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Stockchase Opinions

Ryan ModestoDoceboDCBO.TOWATCHNov 07, 2019

Training software. Should be a high margin type of name. It is about 8 times forward sales. 35% revenue growth expected for the next few years. He does not know how big the market is. He is not there yet. Give it a couple more quarters since their IPO.
$15.96

Stock price when the opinion was issued

$24.45

As of Jun 19, 2026. Market Open.

0
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TOP PICK

It is a Canadian company that does online training with add-on new clients. There is a breakout to the upside on volume. This is after basing most of the year after declining from around $92 to $23.        Buy 10  Hold 1  Sell 0

He doesn't own any of his top picks but is planning to buy 2 or 3, probably 3 within the next couple of weeks.

(Analysts’ price target is $76.71)
DON'T BUY

Is well off its pandemic highs. The valuation remains high, but are growing fast. Investors like their high gross margins, but that hasn't trickled into profits. But they are investing in their business. Not a bad name, but is still richly valued. 

DON'T BUY

Doesn't have the proven business model he's looking for.

PAST TOP PICK
(A Top Pick Feb 18/22, Down 26%) Best product in learning management. Earnings down 25% since the recommendation, due to macro environment and tech selloff. Valuations for all software companies came down. Grew 42% YOY, mostly recurring revenue. Nothing has changed his long-term view. Still reinvesting in its business, but always operating at break-even rather than debt-financing that growth.
BUY
Automating learning systems for large corporations. Has fallen off in recent market selloff. High growth rate of earnings and sales will power company going forward. Good time to buy the stock. Will be a good long term investment.
WAIT
Under pressure. Topline and revenue growth is slowing from 50% to 40% range. Doesn't make any money. Fundamentals still quite good. Looks to reach profitability in 2023. Investors will come back at end of interest rate hike cycle, hopefully later this year. Continues to add customers. Well managed. Lots of tailwinds in online learning.
TOP PICK
Canadian software company that has been hit by recent selloff. Stock prices are approaching attractive levels. High margin products with large enterprise customers. Quickly growing business in customer and employee training service. Expecting free cash flow to increase.
BUY ON WEAKNESS

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The price for the secondary offer was set recently but the offer was previously announced. The growth potential is positive and recent acquisitions have been good. Volatility is expected with a large stock sale. Unlock Premium - Try 5i Free

WATCH
Target of $45.40. Cloud-based learning management platform. Strikes a chord during these Covid times. Amends traditional corporate learning requirements. Risks, as it's a competitive field. In right place, so they've done well. He's watching it.
BUY

Billy Kawasaki’s Insights - Picks from 5i Research. They announced that they will power AWS Training and Certification offerings. More US investors might look into the stock with the recent announcement. It’s shown good momentum since going public. It’s currently trading above 15x sales but they have recently beat Q2 sales estimates. Unlock Premium - Try 5i Free

DON'T BUY

Open Text vs. Docebo He prefers OTEX, hands-down. OTEX is a former top pick. Likes their strategy and cloud-based business. They're an active acquirer of other businesses. Offers decent organic growth, not as good as Shopify but with a far lower PE than the latter around 15x. A stable cash flow, too.

BUY ON WEAKNESS
He looked at this when it originally went public. It takes a lot to understand what they do. They have online training platforms and it has done great during the pandemic. It trades at a higher multiple now. It has been around a number of years, it just recently went public.