Docebo Raises $165 Million Through IPO and Continues to Make Moves in the Right Direction

By Bruce Harpham Sunday, December 20, 2020

Docebo, founded in 2005, has raised $165 million in the US in December in the public markets. Listed on the Toronto Stock Exchange, the software company offers learning management software (LMS) products. The company's stock price has done well in 2020, rising from a low of $10 in March 2020 to more than $60 in early December.

Docebo: Key Financial Numbers

Docebo has managed to achieve good results in 2020. The company's Q3 2020 results reported in November 2020 show:

  • Gaining in Revenue. $16 million in revenue in the third quarter of 2020, an increase of 52% compared to the year before. The company probably benefited from the lack of traditional conferences and other corporate training options in 2020. Additionally, Docebo earns 72% of its revenue in North America.
  • Focused on Subscription Revenue. Docebo earns 93% of its revenue from subscription software. In the first nine months of 2020, the company earned about $3 million from professional services. In contrast, it earned $40.6 million in subscription revenue.
  • Getting Closer to Profitability. The company reported a net loss of $1.2 million in the third quarter. That's an improvement compared to a loss of $3.7 million in the same period of last year.
  • Improving Profit Margins. The company's march toward profitability has become easier this year due to increasing profit margins. For the first nine months of 2020, its gross profit margin was 80.6%, up from 79.2% in 2019. Looking at the third quarter of 2020 alone, the company achieved a gross profit margin of 82.1%.
  • Growing with Major Corporate Customers. Due to its price point, Docebo's learning management products are best suited for larger companies. Furthermore, Docebo boasts some high-end customers such as Walmart, AWS (i.e., Amazon), Bose, DocuSign, OpenTable, Heineken, and Uber. New customers include Economical Insurance and SiriusXM. The deal with AWS is particularly significant because Docebo will power all of AWS's online training and certification worldwide.

Before going public, Klass Capital acquired Docebo in 2015. Previously, the company received approximately $6.4 million in outside funding. Based in Toronto, Klass Capital has invested in multiple technology companies such as BigRoad,, and Resolver.

Docebo Is Earning More From Each Customer

Docebo is steadily increasing the amount it earns from each customer. In 2020, Docebo's average contract value was $31,900, a 24% increase from 2019 (i.e. $25,600). That's not all. Docebo has also made progress signing up more customers. As of September 30, 2020, the company had 2024 customers, an increase of 393 compared to last year.

How Companies Use Docebo

There are several ways that customers use Docebo. Some customers use it for compliance training. For example, companies in the financial services industry are subject to extensive regulation and need to train employees to follow these complex rules. In addition, the platform can also be used for new employee onboarding and sales training. Ultimately, it is up to the customer to create the learning content in the platform.

Docebo Acquires forMetrics

Much of Docebo's growth comes from selling more of its products. However, the company has also increased its value by acquiring forMetrics, a software company based in France. The deal was announced in November 2020. The financial terms of the transaction were not disclosed.

The forMetrics product will be rebranded as Docebo Learning Impact. This new product will help to quantify the benefit of corporate learning programs. By providing more detailed learning measurement capabilities, Docebo may be able to acquire more customers.

Inside the $20 Billion Learning Management Software Market

The LMS market is significant. Some companies specialize in working with colleges, universities, and schools. Other organizations, like Docebo, focus their efforts on companies that run training programs for their employees. The global LMS market is expected to be worth $20 billion in 2020, according to Additionally, the LMS market is expected to grow to $25 billion by 2025.

If other companies in the LMS market are indicators for the industry, Docebo has plenty of room to grow. Blackboard, an LMS provider that serves schools and companies, was acquired by Providence Equity Partners for $1.64 billion in 2011. Providence Equity Partners continues to invest in education companies such as Tes Global in 2018 and has $49 billion in assets under management.

About the Author

Headshot for author Bruce Harpham

Bruce Harpham is an author and marketing consultant based in Canada. His first book "Project Managers At Work" shared real-world success lessons from NASA, Google, and other organizations. His articles have been published in, InfoWorld, Canadian Business, and other organizations. Visit for articles, interviews with tech leaders, and updates on future books.

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