Artificial Intelligence: 1 Cheap Tech Stock Set to Benefit

Docebo Inc. (TSX:DCBO) has developed a platform and tools that can evolve to increasingly automate time-consuming administrative functions.

| More on:

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.

Artificial intelligence

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.

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.

Fool contributor Nikhil Kumar has no position in any of the stocks mentioned.

More on Investing

Canada national flag waving in wind on clear day
Tech Stocks

Trump Trade: Canadian Stocks to Watch

With Trump returning to the presidency, there are some sectors that could boom in Canada, and others to watch. But…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Investing

Is Canadian National Railway Worth Buying for its 2.2% Dividend Yield?

Let's dive into whether Canadian National Railway (TSX:CNR) is a top buy for long-term investors at this point in the…

Read more »

nuclear power plant
Energy Stocks

Is Cameco Stock Still a Buy?

Cameco stock recently reported earnings that showed the Westinghouse investment is creating some major costs. But that could change.

Read more »

cloud computing
Dividend Stocks

Insurance Showdown: Better Buy, Great-West Life or Manulife Stock?

GWO stock and MFC stock are two of the top names in insurance, but which holds the better outlook?

Read more »

analyze data
Dividend Stocks

Here’s Why the Average TFSA for Canadians Aged 41 Isn’t Enough

The average TFSA simply isn't enough for most Canadians in their early 40s. Here's how to catch up.

Read more »

A plant grows from coins.
Dividend Stocks

The Smartest Dividend-Growth Stocks to Buy With $1,000 Right Now

New dividend-growth investors should consider CN Rail (TSX:CNR) stock and another top play if they're looking to build wealth over…

Read more »

concept of real estate evaluation
Dividend Stocks

How to Earn a TFSA Paycheque Every Month and Pay No Taxes on It

Canadian REITs can turn your TFSA into a monthly paycheque machine for life. Here's how Morguard North American Residential REIT…

Read more »

Start line on the highway
Investing

2 No-Brainer Growth Stocks to Buy Now With $5,000 and Hold Long Term

Market conditions today are ideal for growth investing, and two rising stocks are no-brainer buys in November.

Read more »