Expertise shares have come beneath stress in latest days, weighed down by considerations about elevated valuations and rising financial uncertainty, particularly because the Federal Reserve’s coverage committee stays divided on the trail of future financial coverage. Amid the latest pullback, let’s study the efficiency, development prospects, and valuation of Lightspeed Commerce (TSX:LSPD) and Docebo (TSX:DCBO) to find out which of those two expertise shares presents the extra compelling purchase for the time being.

Lightspeed Commerce

Earlier this month, Lightspeed Commerce delivered a formidable second-quarter fiscal 2026 efficiency, pushed by its AI (synthetic intelligence)-powered innovation and disciplined execution, surpassing inner steering. Income rose 15% yr over yr to $319 million, forward of its projected vary of $305–$310 million. This development was fuelled by a 17% improve in transaction-based income and a 9% rise in subscription income. The corporate additionally continued to increase its buyer base, with complete buyer places reaching 146,000. As well as, common income per person climbed 15% to $685, pushed by elevated adoption of its funds providing, new software program improvements, and up to date value changes.

Furthermore, gross revenue elevated by 18%, whereas gross margin expanded by 100 foundation factors to 42%, supported by satisfactory value controls and focused value changes. Though web losses widened, adjusted earnings per share (EPS) rose 23.1% yr over yr to $0.16. The corporate additionally reported adjusted EBITDA earnings earlier than curiosity, taxes, depreciation, and amortization) of $21.3 million, a considerable 52.1% improve from the identical quarter final yr. As well as, Lightspeed generated $18 million in free money circulate, a major enchancment in contrast with $1.6 million within the prior-year quarter.

Additional, the accelerating adoption of omnichannel options continues to create sturdy long-term development alternatives for Lightspeed. In response to this rising demand, the corporate is intensifying its concentrate on growing progressive merchandise that handle its clients’ evolving wants. Reflecting this momentum, administration has raised its fiscal 2026 outlook, projecting 12% income and 15% gross revenue development. Adjusted EBITDA may exceed $70 million, representing a rise of greater than 30% from the prior yr. Now, let’s have a look at Docebo’s efficiency and development prospects.

Docebo

Docebo additionally delivered a powerful third-quarter efficiency, surpassing its inner steering. Income rose 11.2% yr over yr to $61.6 million, barely above its projected vary of $61–$61.2 million. Whereas gross revenue elevated 10% to $49.5 million, gross margin contracted by 80 foundation factors to 80.3% attributable to larger value of income. Supported by strong topline development, decrease gross sales and advertising and marketing bills, and decreased depreciation and amortization prices, web revenue climbed 22% to $6.1 million. Excluding particular objects, adjusted web revenue reached $9.9 million, and adjusted EPS got here in at $0.34, marking a 25.9% improve from the prior-year interval.

The Studying Administration System market is witnessing sturdy growth, pushed by the rising adoption of digital studying options throughout academic establishments and company environments, in addition to by technological developments that allow personalised, scalable, and cost-effective coaching platforms. To capitalize on rising demand, Docebo has embraced an AI-first platform technique to ship more and more progressive and clever studying options. As well as, the corporate is forging strategic partnerships and increasing its footprint within the federal and SLED (state, native, and training authorities) markets, which may bolster its monetary development within the years forward. Reflecting this optimistic outlook, Docebo has raised its fiscal 2025 steering, projecting 11.4% income development and an adjusted EBITDA margin of 18%.

Traders’ takeaway

Regardless of delivering sturdy quarterly outcomes, each Lightspeed and Docebo have declined by 3.1% and 16%, respectively, since their earnings releases. On a year-to-date foundation, Lightspeed has shed greater than 27% of its worth, whereas Docebo has fallen by greater than 55%. Following these steep corrections, each shares now commerce at interesting valuations. Lightspeed at the moment trades at an NTM (subsequent 12 months) price-to-sales a number of of 1.2, in contrast with Docebo’s 2.3.

Whereas each corporations provide engaging entry factors at present ranges, I’m extra optimistic about Lightspeed given its strong second-quarter efficiency, stronger development outlook, and a extra compelling valuation.