Docebo (NASDAQ:DCBO) Issues Earnings Results

Key Points

• Docebo reported quarterly EPS of $0.25, missing the $0.31 consensus estimate by $0.06, while posting a 13.71% net margin and 93.49% return on equity.
• Annual recurring revenue growth re-accelerated for the second consecutive quarter, prompting management to raise full-year revenue guidance by $3.5 million, mainly due to stronger enterprise performance.
• Management plans to prioritize share repurchases over near-term acquisitions and is investing in healthcare expansion and AI-agent capabilities; analysts maintain a “Moderate Buy” consensus with a $31.08 target price.

Docebo (NASDAQ:DCBO - Get Free Report) issued its quarterly earnings data on Friday. The company reported $0.25 earnings per share for the quarter, missing the consensus estimate of $0.31 by ($0.06), Zacks reports. Docebo had a return on equity of 93.49% and a net margin of 13.71%.

Here are the key takeaways from Docebo's conference call:

• ARR growth re-accelerated for the second consecutive quarter, with strength across enterprise, mid-market, government, international, new business, and expansions. Management raised full-year revenue guidance by $3.5 million, primarily reflecting stronger enterprise performance.
• Enterprise momentum is being supported by improved execution, a growing partner ecosystem, and products from the 365Talents acquisition. Management said major telecom and automotive customers would likely not have entered the sales process without the added skills capabilities.
• Docebo plans to invest in healthcare as a new vertical, initially building a small product, sales, and management team based on its government-market playbook. The company views healthcare as roughly a $3 billion TAM and expects the investment to expand beyond the second half of 2026 into 2027.
• The company is hiring its first foundational forward-deployed engineer to develop customized AI-agent workflows for major customers, with Agent Hub and Enterprise Knowledge expected to launch in early fall. Initial costs will be treated primarily as R&D, while future monetization and margin impacts remain under development.
• Management said Docebo’s shares appear undervalued and identified share repurchases as the current capital-allocation priority, while characterizing new M&A as opportunistic rather than a near-term focus.

Docebo Stock Performance

Shares of DCBO stock traded up $1.82 during trading hours on Friday, reaching $22.30. 142,549 shares of the company's stock were exchanged, compared to its average volume of 99,904. The company has a debt-to-equity ratio of 0.03, a current ratio of 0.85 and a quick ratio of 0.85. The company's 50 day moving average is $18.72 and its two-hundred day moving average is $18.39. The company has a market cap of $555.05 million, a P/E ratio of 19.22 and a beta of 1.24. Docebo has a 1 year low of $14.39 and a 1 year high of $33.42.

Analysts Set New Price Targets

A number of research analysts recently commented on DCBO shares. Zacks Research downgraded shares of Docebo from a "hold" rating to a "strong sell" rating in a research report on Tuesday, July 21st. Needham & Company LLC reissued a "buy" rating and set a $31.00 price target on shares of Docebo in a report on Friday, July 17th. Wall Street Zen cut Docebo from a "buy" rating to a "hold" rating in a research report on Sunday, May 17th. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $28.00 price objective on shares of Docebo in a research note on Wednesday, April 22nd. Finally, Weiss Ratings cut Docebo from a "sell (d+)" rating to a "sell (d)" rating in a research report on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, Docebo has an average rating of "Moderate Buy" and a consensus target price of $31.08.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of DCBO. Arrowstreet Capital Limited Partnership lifted its holdings in Docebo by 0.4% in the third quarter. Arrowstreet Capital Limited Partnership now owns 554,383 shares of the company's stock valued at $15,132,000 after acquiring an additional 2,112 shares during the period. CIBC Asset Management Inc increased its holdings in shares of Docebo by 3.8% in the 2nd quarter. CIBC Asset Management Inc now owns 445,517 shares of the company's stock valued at $12,915,000 after purchasing an additional 16,432 shares in the last quarter. Wellington Management Group LLP increased its holdings in shares of Docebo by 1.2% in the 4th quarter. Wellington Management Group LLP now owns 437,595 shares of the company's stock valued at $9,715,000 after purchasing an additional 5,169 shares in the last quarter. FIL Ltd lifted its stake in shares of Docebo by 16.1% in the fourth quarter. FIL Ltd now owns 255,518 shares of the company's stock valued at $5,676,000 after purchasing an additional 35,445 shares during the period. Finally, Millennium Management LLC lifted its stake in shares of Docebo by 137.2% in the fourth quarter. Millennium Management LLC now owns 213,444 shares of the company's stock valued at $4,741,000 after purchasing an additional 123,473 shares during the period. Institutional investors and hedge funds own 53.17% of the company's stock.

About Docebo

Docebo is a cloud-based learning management system (LMS) provider that offers enterprise organizations a comprehensive platform for employee, customer and partner training. The company's software is designed to streamline learning and development with features such as AI-powered content recommendations, automated learning paths and social collaboration tools. Docebo's platform supports multiple languages and integrates with a variety of third-party applications, enabling businesses to deliver training at scale across different departments and regions.

Founded in 2005 and headquartered in Toronto, Canada, Docebo has expanded its footprint to serve customers in North America, Europe, the Middle East and the Asia Pacific region.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source