Investing in Canadian Education Technology: Transforming the Way We Learn

These tech stocks in the educational space are strong choices for investors looking towards the future opportunity, as the world shifts more online.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published May 11, 2023 2:15 pm EDT

The pandemic taught us a lot when it comes to how we live. One area that saw an immense amount of expansion was technology. It wasn’t just Canadians having to work from home that changed, however. It was also changing the way Canadians learned from home.

Now, there is a transformation underway for how Canadians learn. And education technology is a large part of our future. While it may not be immediate, there are educational technology stocks that could see huge growth in the next few years, and beyond.

investment research — Image source: Getty Images

Docebo

Probably one of the biggest growth stocks in the educational technology field in Canada is Docebo (TSX: DCBO). Docebo stock rose to prominence during the pandemic, providing a way to train employees all over the world.

Docebo stock grew further, as large businesses such as Amazon took it on. It provided a way to hire on a global scale, expanding the potential pool of applicants. As for revenue, the company works on a subscription basis for its services — software that can be changed to fit the needs of each company.

It’s continued to beat out analyst estimates over the last several quarters and has been using cash to expand. This has included acquisitions even quite recently. Shares are up 7% in the last year, but down 54% since all-time highs. So, there could certainly be more growth in this company’s future.

Thinkific Labs

Another of the top stocks in the educational technology field is Thinkific Labs (TSX: THNC), and here it’s specific to online education. The platform works with businesses and entrepreneurs to create, market, sell and deliver these online courses and learning products on a global scale.

Thinkific stock has been one of the tech stocks that went through massive layoffs to make ends meet in recently months. Shares were at about $18 just a few years ago but have since dropped down to about $2.25 as of writing. Currently, shares are down 3% in the last year.

Even so, analysts believe perhaps the company may be finally on the road to recovery — especially as investors seem to be eying up more opportunities in the tech industry during a bull market. Thinkific stock continues to grow in the meantime, reaching $29 million in gross payment volume (GPV) during the last quarter. It now has profit in its sights, with a 67% improvement in adjusted earnings before interest, taxes, depreciation, and amortization losses to $3.1 million.

Bottom line

Education is always changing, and technology is a huge part of that. These two educational technology stocks are therefore strong choices for those who believe training will grow online in the future. That’s both in terms of educating directly through learning institutions and further training in the workplace.

These two tech stocks therefore provide exposure to both of these areas, with investors potentially seeing shares prices even double in the next year or so. And as these companies continue to expand, there could be even more opportunities ahead. So, go ahead and educate yourself on the future of educational technology stocks.