Docebo (TSX:DCBO) Valuation in Focus After Q3 Earnings Growth and New Guidance

Docebo (TSX:DCBO) just released its third quarter earnings, showing revenue and net income growth compared to last year, and delivered fresh guidance for both the coming quarter and the full fiscal year. Investors will be watching to see how these trends develop.

See our latest analysis for Docebo.

Docebo’s latest earnings update arrived as the stock continues its difficult run, with a 1-year total shareholder return of -54.00% and the share price nearly halved year-to-date. While the company’s revenue and profit numbers are moving up, recent price momentum remains weak. This suggests that investors want to see more sustained growth before sentiment turns a corner.

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With the stock trading well below analyst price targets despite solid earnings growth, the key question is whether Docebo is a value opportunity at these levels or if the market is already pricing in its future prospects.

Most Popular Narrative: 40% Undervalued

Docebo’s most widely followed narrative values the stock about 40% higher than yesterday’s close, which highlights significant upside if the company achieves its ambitious targets. This gap between current price and calculated fair value makes the narrative a critical lens for investors tracking Docebo's next phase.

Rapid adoption of AI-driven features such as Harmony and Creati is positioning Docebo as an innovation leader, enabling enhanced personalization, automation, and productivity for customers; this supports long-term customer retention, upsell opportunities, and gross margin expansion.

Read the complete narrative.

Wondering how this narrative arrives at such a bullish fair value? The secret is that its bold forecasts rely on breakthrough technology adoption and a transformation in margins over just a few years. Curious which financial pivots are driving this gap between price and potential? The full story uncovers the growth levers and profit trajectory analysts have factored in.

Result: Fair Value of $55.02 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, if prolonged sales cycles continue and the monetization of new AI features remains unproven, these optimistic growth assumptions could quickly be derailed.

Find out about the key risks to this Docebo narrative.

Build Your Own Docebo Narrative

If you’re keen to challenge these assumptions or want to investigate the numbers for yourself, you can quickly assemble your own take in just a few minutes with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Docebo.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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