Docebo (NASDAQ:DCBO) specializes in corporate learning. Specifically, the company provides a range of software modules that help companies create, deliver, measure, and analyze the impact of learning, all with the goal of improving employee satisfaction and productivity.
In this Backstage Pass video, which was recorded on Oct. 27, 2021, Motley Fool contributor Trevor Jennewine shares his thoughts on Docebo, highlighting how the company uses artificial intelligence and why the stock could produce monster returns.
Trevor Jennewine: The next company I'm going to talk about is Docebo, and this is a completely different type of business. Docebo is in the corporate earnings space. I'll just give you some context here. There are lots of different studies that show a correlation between ongoing work opportunity and employee productivity, retention, satisfaction -- and all of those are good things. It cost a lot of money to hire new employees, so turnover is a problem. Then, obviously, if your employees are more productive, that's a positive too.
For instance, there's a study from LinkedIn that shows that 94% of employees would stay with the company longer if it invested in their career development. Another study showed that companies that spend at least $1,500 per employee per year on training, generate higher profits of 24%.
Docebo, one of its differentiating factors is that it was one of the first companies in this corporate learning space to bring artificial intelligence to its software. It offers a suite of different solutions and I'm just going to highlight a few of them. One of my favorites is Docebo Shape and that's up in the upper left-hand corner here.
Docebo Shape, to give you some context on this, creating an e-learning course can take upwards of 250 hours. I've seen other statistics that say, creating just one hour of content takes over 100 hours. So this is a very time-consuming process. Docebo Shape, what it does is it allows you to take internal documents or external documents -- whatever you want your employees to learn-you upload that information to the platform, and it uses AI to turn it into learning content. This essentially automates what has traditionally been a very time-consuming process, and I think that's very valuable.
Some of the other modules on the platform, you have access to a content marketplace. The learn module allows you to deliver this content, we'll come back to that in just a second. Then, it also allows you to measure the impact: How are your employees doing with this e-learning content? Then, actually relate that back to your business performance. They just recently released flow which allows learning content to basically be inserted into a typical workflow. So that you're not doing your learning content or your learning at one point and then going back to work. You learn as you go, which I think is interesting.
The last thing I wanted to mention is that there is these two middle things here. The learn module, it allows the company to deliver learning content to the employees, and it uses AI to automatically adjust it. If you're answering questions correctly every single time, chances are you already know this content, so it's going to switch to something else to keep you engaged. In doing so, typically it generates some better outcomes, especially on the engagement front.
The two big things that I wanted to highlight here is that Docebo is using AI to build content and then it's using AI to deliver content in a way that makes it interesting, that you're not just doing the same tedious thing over and over again.
I know that I personally have worked for companies where you sit in front of a computer and you do training modules and it's three hours of the exact same thing. It's a very tedious experience. You don't usually get very much out of it. Docebo is trying to disrupt that industry.
Let's see here. They have a lot of different customers on the platform already, a few big ones, Amazon Web Services, Walmart, Samsung is not pictured here but they are customers as well. Before we close out, this is what Docebo's revenue growth looks over the last few years. It's growing about two times the speed of the industry as a whole. Taking market share there, but there is a huge opportunity. You can see its revenue is in the $63 million range in 2020. It thinks the market is going to reach about $30 billion by 2025. Plenty of room to grow. I think the company by bringing AI to its software is doing something innovative in an interesting space.