Section1: Company Overview and Fundamental Insights:

1.1 Company Overview:

Docebo Inc (TSX: DCBO) offers cloud-based learning platform for both internal and external enterprise learning with real time tracking of training results, optimizing time, and reducing costs associated with traditional learning methods. Geographically, it holds presence in five offices around the world, including locations in Europe, Asia and North America. The firm derives its revenues from two main sources: software as-a-service application (SaaS); and professional services revenue, which includes services such as initial project management, training, and integration.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~77.06% of the total shareholding. Intercap Equity Inc. and Cat Rock Capital Management LP hold a maximum stake in the company at ~­­­41.28% and ~16.34%, respectively.

1.4 Key Metrics:

The company is reporting sequentially improving financials, which is a significant plus. Furthermore, the group clocked higher average recurring revenue and higher average contract value in Q3 2022, against Q3 2021, another key positive. In line with improving financials the group also reported healthy operating margins and elevated cash flows, displaying its strength and agility.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates: The below picture gives an overview of its recent activities, such as announcement regarding new customer wins and update on partnership with Deliveroo.

2.2 Insights on Q3 2022 Financial Performance:

Section 3: Key Risks

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

The stock has witnessed an upside of ~11.80% in 1 month and ~26.68% over the last 3 months. Moreover, the stock is trading above the average of 52-week high price of CAD 72.74 and 52-week low price of CAD 31.66 providing an opportunity to ride the trend.

4.2 Fundamental Valuation

Valuation Methodology: EV to Sales Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 15, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer

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