Thinkific Labs (THNC) AI Stock Analysis

• Market Cap: C$170.20M
• Dividend Yield: N/A
• Average Volume (3M): 23.97K
• Price to Earnings (P/E): 219.6
• Beta (1Y): 0.79
• Revenue Growth: 15.08%
• EPS Growth: 97.53%
• Country: CA
• Employees: 275
• Sector: Technology
• Sector Strength: 49
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 23,677,485
• 10 Day Avg. Volume: 13,537
• 30 Day Avg. Volume: 23,971
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.64
• Price to Cash Flow (P/CF): 8.60
• P/FCF Ratio: 8.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$3.50
• Price Target Upside: 42.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Thinkific Labs shows strong potential with robust revenue growth and improved cash flow, but consistent net losses and high operational costs dampen profitability. Technical indicators suggest a bearish trend, and a negative P/E ratio presents valuation challenges. Positive corporate events underscore strategic growth, but financial performance and valuation concerns weigh heavily on the overall score.

Positive Factors

Advanced Payment Features

THNC will be launching advanced payments features, such as invoicing and group orders, which it believes may help drive better Commerce adoption by Plus customers.

Commerce Expansion

Commerce (payments) penetration expanded to 52% of GMV, up from 47% in Q3/24.

Profitability Potential

There is limited downside to the share price given THNC's depressed EV/sales valuation and the fact that THNC should now be able to sustainably generate positive FCF.

Negative Factors

Guidance and Strategic Transition

Q1/25 guidance was below consensus, reflecting a potential short-term impact due to the company's strategic transition.

Subscription Revenue Growth

A more constructive view requires seeing stronger growth in Thinkific Labs' subscription revenue.

Thinkific Labs Business Overview & Revenue Model

Company Description

Thinkific Labs (THNC) is a technology company that operates within the e-learning and online education sector. The company provides a comprehensive platform that enables entrepreneurs, educators, and businesses to create, market, and sell their own customized online courses. Thinkific's core products and services include course creation tools, website hosting, and integrated marketing features, all designed to support seamless online learning experiences.

How the Company Makes Money

Thinkific Labs makes money primarily through a subscription-based revenue model. The company offers tiered pricing plans that provide varying levels of access to its platform features, catering to individual educators and large enterprises alike. Key revenue streams include monthly and annual subscription fees paid by users who wish to utilize Thinkific's platform to build and sell online courses. Additionally, Thinkific may generate revenue through partnerships with educational institutions and other organizations that seek to leverage its technology for e-learning purposes. However, specific details about such partnerships or additional revenue sources are not publicly disclosed.

Thinkific Labs Financial Statement Overview

Summary

Thinkific Labs displays strong revenue growth and improving cash flow metrics, indicating positive future potential. However, persistent net losses and high operational costs affect profitability. The balance sheet is stable with low leverage, but declining assets and equity suggest challenges in capital management.

Income Statement

Thinkific Labs has shown strong revenue growth over recent years, increasing from $21 million in 2020 to $66 million in 2024, indicating a positive growth trajectory. However, the company consistently reports negative EBIT and net income, which impacts profitability. Gross profit margins are healthy at approximately 75%, but significant operating losses suggest high operational costs.

Balance Sheet

The balance sheet reflects a solid equity base with stockholders' equity at $41.6 million in 2024. The debt-to-equity ratio is low, demonstrating conservative leverage. However, the decline in total assets and equity from 2023 to 2024 suggests potential challenges in asset management and capital retention.

Cash Flow

Thinkific Labs has improved its free cash flow position, turning from negative in 2023 to a positive $6.7 million in 2024, highlighting strong cash flow management. Operating cash flow has also turned positive, although the company previously faced cash flow deficits. This improvement suggests better operational efficiency and cost control.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
45.09M	66.94M	59.05M	51.48M	38.12M	21.07M
	Gross Profit
33.86M	50.31M	44.56M	39.11M	29.21M	16.62M
	EBIT
-36.65M	-2.44M	-13.54M	-30.94M	-24.31M	-1.47M
	EBITDA
-35.80M	-1.06M	-9.26M	-30.44M	-23.63M	-1.19M
	Net Income Common Stockholders
-45.65M	-237.00K	-9.78M	-41.90M	-28.44M	-1.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
87.31M	49.49M	86.61M	93.85M	126.05M	9.07M
	Total Assets
97.04M	61.37M	97.79M	102.97M	132.40M	12.94M
	Total Debt
875.00K	1.77M	1.03M	1.96M	875.26K	1.36M
	Net Debt
-86.44M	-47.72M	-85.58M	-91.89M	-125.18M	-7.70M
	Total Liabilities
18.20M	19.77M	15.85M	15.12M	10.79M	7.63M
	Stockholders Equity
78.84M	41.59M	81.94M	87.85M	121.61M	5.31M
Cash Flow		Free Cash Flow
-31.95M	6.75M	-5.44M	-27.11M	-18.91M	2.34M
	Operating Cash Flow
-30.32M	6.99M	-5.43M	-25.85M	-18.26M	2.63M
	Investing Cash Flow
-1.63M	-166.00K	53.37K	-1.26M	-655.16K	-289.80K
	Financing Cash Flow
-299.39K	-42.60M	-2.41M	-241.18K	138.26M	3.15M

Thinkific Labs Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:THNC, the sentiment is Negative. The current price of 2.46 is below the 20-day moving average (MA) of 2.68, below the 50-day MA of 2.98, and below the 200-day MA of 3.04, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 36.10 is Neutral, neither overbought nor oversold. The STOCH value of 17.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:THNC.

Thinkific Labs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHOP	72 Outperform	$153.13B	53.92	19.58%	―	27.85%	1400.97%
DCBO	70 Outperform	$1.30B	33.78	49.29%	―	21.78%	868.71%
KXS	68 Neutral	C$4.56B	157.81	-0.10%	―	14.85%	-105.25%
LSPD	59 Neutral	C$1.89B	―	-5.18%	―	23.95%	39.68%
Sector *	57 Neutral	$19.52B	9.58	-12.47%	2.79%	5.43%	-24.71%
BB	54 Neutral	C$2.61B	―	-7.59%	―	-31.15%	30.02%
THNC	51 Neutral	C$170.20M	219.59	-0.39%	―	15.08%	97.53%

Thinkific Labs Corporate Events

Thinkific to Announce Q1 2025 Financial Results

Thinkific Labs Inc. announced it will release its first quarter 2025 financial results on May 6, 2025, after market close. The company will host a conference call and webcast to discuss the financial and operational results, reflecting its ongoing commitment to transparency and engagement with stakeholders.

Spark’s Take on TSE:THNC Stock

According to Spark, TipRanks’ AI Analyst, TSE:THNC is a Neutral.

Thinkific Labs shows strong potential with robust revenue growth and improved cash flow, but consistent net losses and high operational costs dampen profitability. Technical indicators suggest a bearish trend, and a negative P/E ratio presents valuation challenges. Positive corporate events underscore strategic growth, but financial performance and valuation concerns weigh heavily on the overall score.

To see Spark’s full report on TSE:THNC stock, click here.

Thinkific Reports Strong 2024 Financial Results and Strategic Growth

Thinkific Labs Inc. announced its financial results for the fourth quarter and full year of 2024, highlighting a 13% year-over-year increase in revenue to $17.6 million and a significant improvement in cash flow from operations, which grew to $7 million from a loss of $5.4 million in 2023. The company has transitioned from cost-cutting to investing in profitable growth, with a focus on product innovation and exceptional service, earning recognition in G2’s 2025 Best Software Awards. This strategic shift positions Thinkific for continued growth alongside its customers, supported by a strengthened senior management team.

Thinkific Earns Top Honors in G2’s 2025 Best Software Awards

Thinkific has been recognized among the world’s top software companies in G2’s 2025 Best Software Awards, excelling in categories such as ‘Best Customer Service Software Products’, ‘Best Education Software Products’, and ‘Best Software Companies in Canada’. This recognition reflects Thinkific’s strong industry positioning and commitment to providing excellent tools and support for customer success, further solidifying its reputation in the cloud-based educational software sector.

Thinkific to Announce 2024 Financial Results on March 5, 2025

Thinkific Labs Inc. has announced that it will release its financial results for the fourth quarter and full year of 2024 on March 5, 2025. The announcement will be followed by a conference call and webcast where management will discuss the company’s financial and operational performance. This event is of significant interest to stakeholders as it will provide insights into the company’s financial health and business trajectory.