Docebo (DCBO) ran 10% Friday after pre-releasing its Q2, which looks to be largely in line with estimates on ~11% growth in subscription revenue…

… so the outperformance is likely driven by the $70M substantial issuer bid paired with results, as management looks to swallow another 14% of shares outstanding at 2x NTM EV/sales.

It’s not the first SIB by the company, with a $100M program in 2023 and a $60M bid earlier this year…

… but the execution is changing, with the credit facility being used as the primary funding mechanism this time - given Docebo paid cash for its recent $54M tuck in.

While that likely puts a ceiling on DCBO’s future activity, the cash flowing cohort of small cap software is ramping up their buyback programs…

… in an effort to set a valuation floor and avoid takeout bids from private capital.

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