Docebo (NASDAQ:DCBO)(TSX:DCBO) helps enterprises apply new technologies to the traditional corporate learning management system (LMS) market. The company provides an easy-to-use, highly configurable and affordable learning platform with the end-to-end capabilities and critical functionality needed to train internal and external workforces.
The company’s solutions allows customers to take control of desired training strategies and retain institutional knowledge, while providing efficient course delivery, advanced reporting tools and analytics. Docebo’s robust platform helps customers centralize a broad range of learning materials from peer enterprises and learners into one LMS to expedite and enrich the learning process, increase productivity and grow teams uniformly.
Recurring subscription fee model
Docebo’s solutions are sold on a subscription model and the subscriptions are typically structured with an initial fixed term of between one and three years, without the ability for customers to terminate for convenience. The company charge customers based upon a per learner, per module basis, varying depending on the size of the organization and complexity.
For fiscal 2019 and 2020, 90.0% and 91.3%, of the company’s revenue was generated from recurring subscription-based plans for Docebo’s learning management platform. With over 450 employees across six global offices, Docebo sells products in approximately 70 countries, serves over 2,000 companies and approximately 18.4 million registered learners.
Global solutions provider
About 71% of the company’s revenue originates from customers in North America, with the remainder coming primarily from Europe and a small component coming from the rest of the world. The company’s customers are diversified across various industries including technology and media, consulting, professional services, manufacturing and retail. The company’s platform has won numerous awards and industry recognition.
The company is working on growing the business to become a leading provider of cloud-based subscription software applications to enterprises looking for innovative ways to train internal and external workforces, partners and customers as well as retain talent. Docebo enable the company’s customers to efficiently and profitably develop and retain workforces over time and provide employees with a competitive advantage.
Docebo is focused on expanding platform capabilities and features. The company is building a powerful sales force to take advantage of the growing demand for corporate learning solutions. Docebo has significantly expanded the company’s direct sales force to focus on the divisions of larger enterprises and has aligned the company’s sales team’s compensation structure to fit this objective. In addition to expanding the sales force, the company has been able to drive substantial increases in the productivity and effectiveness of Docebo’s sales personnel over time.
Docebo believes the deployment of artificial intelligence (AI) into the platform is critical to the company’s ability to scale and differentiate the business over time. The company has developed a platform and tools that can evolve to increasingly automate time-consuming administrative functions. Through the implementation of AI into Docebo’s products, the nature and scope of learner interaction on the company’s platform can expand considerably. Hence, this represents a huge opportunity for the company.
The company pursues strategic acquisitions, investments and other relationships that it believes are consistent with the company’s strategy. This can significantly enhance the attractiveness of Docebo’s technology platform.