If You’d Invested $10,000 in Docebo’s IPO, This Is How Much Money You’d Have Now

Docebo (TSX:DCBO) has been one of the most impressive stocks on the TSX this year. How much would your $10,000 investment at its IPO have grown?

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Those who were early investors in Docebo (TSX:DCBO) have been greatly rewarded by its stock. Since listing on the Toronto Stock Exchange just over a year ago, the company has become one of the most exciting growth stories in 2020. An up-and-coming contender in the Learning Management System space, Docebo has been quick to attract big names to its platform.

Docebo provides a cloud-based e-learning platform for enterprises. Using its proprietary artificial intelligence software, Docebo’s platform allows training managers to better assign, monitor, and modify training exercises. It also provides the tools necessary to analyse performance and more effectively streamline the process.

The company operates in a highly competitive market. Notable competitors include offerings by Adobe, SAP, and Cornerstone OnDemand. However, despite the difficult task ahead of it, Docebo has managed to stand out among its peers.

The company has been consistently recognized through industry awards for its robust offerings. Today, Docebo ranked fifth in Deloitte’s Enterprise Fast 15. This is a program that recognizes Canada’s fastest-growing tech companies with the highest revenue growth percentage over the past four years.

$10,000 invested in Docebo’s IPO would be worth…

Docebo’s IPO took place on October 11, 2019 on the TSX. The company’s earliest days on the public markets were not very well received. Its stock opened trading at $16, which means the company had successfully raised $75 million. However, within a week, Docebo stock started to have issues. Shares fell to $11.5, nearly a 30% drop from its IPO price.

At the time of this writing, Docebo stock trades at $59.90. This represents more than a 250% increase from its IPO price. This means, a $10,000 investment at the company’s IPO would be worth $35,518.23 today. After just 13 months on the public market, it is difficult to deny the magnitude of Docebo’s rapid rise.

What is driving this growth?

As mentioned in the opening, Docebo has done an excellent job at attracting big name customers to its platform. At the start of the year, the company already claimed names such as Appian, Cineplex, Uber, and Walmart as customers.

In September, Docebo landed its biggest customer to date, announcing a multi-year agreement with Amazon to power its AWS Training and Certification offerings. The company has also recently launched a partnership with Salesforce allowing customers to use the Salesforce CRM directly within Docebo’s platform.

Is there still room for growth?

Docebo continues to follow its growth stretgy. In Q4, the company has already announced the acquisition of forMetris. This is a SaaS-based learning impact evaluation platform, which will give Docebo’s platform another tool that training managers can use to further streamline enterprise training courses.

Currently, 72% of Docebo’s customers (by revenue) are located in North America. The company plans to continue expanding in France, Germany, and the Asia-Pacific region. Assuming it is able to retain its North American customers, then Docebo should see significant growth as it establishes a presence in these areas.

The company has continued to grow its customer base each year, even reporting a 2.8 times growth in average contract value since 2016. It appears Docebo is only getting started.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren owns shares of Appian and Docebo Inc. David Gardner owns shares of Amazon. Tom Gardner owns shares of Appian and Salesforce.com. The Motley Fool owns shares of and recommends Adobe Systems, Amazon, Appian, and Salesforce.com. The Motley Fool recommends Uber Technologies and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon.

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