Investing in quality growth stocks that are part of expanding addressable markets is a proven strategy to generate outsized returns over time. While big tech companies are dominating the artificial intelligence narrative, several other companies are flying under the radar in 2025.
One such beaten-down TSX tech stock is Docebo (TSX:DCBO), which could set you up for life. Valued at a market cap of $1.1 billion, DCBO stock is down more than 70% below all-time highs.
Docebo provides a cloud-based learning management platform that enables organizations to deliver personalized training, create and access content, analyze learning data, and monetize courses.
Its AI-powered suite includes tools for course delivery, communities, e-commerce, and integrations with Salesforce and Microsoft Teams, serving internal teams and external audiences globally.
Is Docebo stock a good buy right now?
In the second quarter (Q2) of 2025, Docebo delivered solid numbers as corporate learning platforms continue to evolve from nice-to-have tools into strategic necessities. The company’s cloud-based learning management system serves global organizations, helping them transform training from a cost center into a competitive advantage.
The quarter showcased impressive momentum in the mid-market segment, where Docebo has systematically strengthened its position through better segmentation and targeted marketing.
CEO Alessio Artuffo highlighted improved leadership capabilities and process changes that produced immediate results. Technology clients remain a key revenue driver, but healthcare and financial services are also driving growth.
A standout development came from one of the Big 5 tech companies, which expanded its Docebo deployment in a large six-figure deal. Notably, the customer migrated away from an internally built system to adopt Docebo as the learning infrastructure backbone. This contradicts concerns about enterprises building proprietary solutions and validates Docebo’s enterprise-grade capabilities.
Docebo achieved FedRAMP certification ahead of schedule in May, unlocking a US$2.7 billion market across U.S. federal, state, and local agencies.
It already operates in approximately 10 states, with only 10% market penetration, leaving substantial room for expansion. Management expects meaningful federal revenue contributions in the second half of 2026 as the sales pipeline strengthens.
On the AI front, Docebo launched Harmony, its agentic AI platform, in July. This goes beyond simple chatbot functionality to create what Artuffo calls an “agent of agents” that will automate administrative tasks, generate content, and fundamentally shift learning from instructor-led to learner-first experiences.
Early adoption metrics show promise, with customers already generating over 20,000 minutes of AI-created video content and thousands of learning assets.
CFO Brandon Farber raised full-year guidance, reflecting improved visibility as market chaos from earlier tariff concerns subsided. Foreign exchange provided a tailwind, contributing 1% to total revenue and 2% to subscription revenue. The company added veteran CRO Mark to focus on execution efficiency and tighter integration between sales and customer success functions.
Despite losing the Amazon Web Services contract, Docebo’s customer count above $100,000 jumped 23%, up from 16% previously, driven by strong new logos, expansions, and currency benefits.
Is the TSX tech stock undervalued?
According to consensus estimates, Docebo is projected to increase revenue from US$217 million in fiscal 2024 to US$658 million by 2029. In this period, adjusted earnings are forecast to expand from US$1.04 per share to US$2.87 per share.
Moreover, its free cash flow (FCF) is projected to increase from US$28 million in 2024 to US$157.4 million by 2029. If the TSX tech stock trades at 15 times forward FCF, it should gain 200% within the next four years.
