Is Thinkific Labs Inc. over or under valued?

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Thinkific just recently IPO’ed for ~$1B. Simply put, it makes and maintains a platform that helps individuals and companies build online courses. I’m starting in on my own due diligence but I thought it would be worth trying out the Q&A feature for the first time! Would love to hear what other members think about this company, assuming anyone’s heard of it.

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Asked on August 24, 2021 8:24 am
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Hey Mike - we did cover it during the IPO process. See our link to initial thoughts on it here:

https://www.stocktrades.ca/premium/thinkific-tsxthnc-files-to-list-on-the-tsx/

At the time, we felt that it was pretty expensive especially when compared to some others in the space.

It has only reported one quarter since it went public so not a whole lot to go on, but it did dip post earnings. Looks like it experienced health 60% growth, but when compared to CAGR of 160% over the past three years, it might have been a little light for the markets. IT missed on earnings and EBITDA which isn't that big of a deal for high growth companies, but when others are crushing revenue growth estimates and THNC only comes in 4.55% ahead of estimates, it is likely one of the main reasons for the dip. It was trading at expensive valuations compared to peers, so one one expect it to deliver better results - it didn't. Not that the results were bad, they were quite good. However, the fact remain it was expensive.

The company is now back to trading inline with IPO prices - add in the recent quarter and it does have better valuations, but still not exactly cheap. I'd definitely keep an eye on it but a quarter under its belt, today it is better valued than it was at IPO.

Mat

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Posted by Mathieu Litalien
Answered on August 24, 2021 3:19 pm