Domo (DOMO) AI Stock Analysis

• Market Cap: $552.63M
• Dividend Yield: N/A
• Average Volume (3M): 709.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• Revenue Growth: -0.81%
• EPS Growth: 9.83%
• Country: US
• Employees: 888
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): -0.09
• Shares Outstanding: 36,971,410
• 10 Day Avg. Volume: 577,129
• 30 Day Avg. Volume: 709,801
• PEG Ratio: 1.78
• Price to Book (P/B): -3.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -28.00
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 2.91
• Enterprise Value/Ebitda: -3.67
• 1Y Price Target: $12.67
• Price Target Upside: -7.79% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 59 Neutral
• Price Target: $15.00 ▲(9.17%Upside)

Domo's overall stock score of 59 reflects a mixed outlook. The company's financial performance is a significant risk due to high leverage and negative profitability. However, positive earnings call results and technical momentum provide a more optimistic near-term view. Valuation remains a concern with negative earnings and no dividends. Investors should weigh the positive short-term momentum and strategic achievements against the substantial financial challenges.

Positive Factors

Analyst Recommendation

Analyst's recommendation has been upgraded to Overweight with a price target increase from $12.00 to $17.00, indicating confidence in Domo's growth potential.

Financial Performance

Domo's financial performance exceeded expectations in key areas such as billings, revenue, operating income/margin, and free cash flow/margin, contributing to a positive outlook.

Market Expansion

Domo is well-positioned to take advantage of the disruption caused by the Salesforce/Informatica transaction, targeting legacy Informatica customers and Salesforce's Tableau users.

Negative Factors

Customer Retention

Retention numbers below 90% have been concerning, with current retention at 85%.

Growth Initiatives

New initiatives need more time to improve the growth algorithm.

Valuation Concerns

Valuations are near trough levels but more progress is needed to warrant upward pressure on the stock.

Domo Business Overview & Revenue Model

Company Description

Domo, Inc. (DOMO) is a cloud-based business intelligence (BI) and data visualization company that empowers organizations to leverage their data efficiently. Founded in 2010 and headquartered in American Fork, Utah, Domo provides a comprehensive platform that allows businesses to connect, prepare, visualize, and analyze data in real-time. The company's core products and services include data integration, data transformation, and dynamic dashboards that facilitate decision-making processes across various sectors such as retail, finance, healthcare, and technology.

How the Company Makes Money

Domo makes money primarily through a subscription-based revenue model. The company offers its software-as-a-service (SaaS) platform to businesses on a subscription basis, charging fees based on the number of users and the level of services utilized. Key revenue streams include licensing fees for its software platform, professional services for implementation and customization, and customer support services. Additionally, Domo may engage in strategic partnerships and collaborations that further enhance its platform's capabilities and expand its market reach, contributing to its revenue growth.

Domo Financial Statement Overview

Summary

Domo faces significant financial challenges characterized by high leverage, negative profitability, and cash flow difficulties. While gross profits are strong, the company's inability to turn revenues into net profits and positive cash flows is concerning. The negative equity position and high debt levels further exacerbate the financial risk. Domo needs to focus on improving operational efficiencies, reducing costs, and enhancing cash flow management to stabilize its financial position.

Income Statement

Domo's income statement exhibits mixed performance. The Gross Profit Margin is relatively strong at approximately 74.5% TTM, demonstrating effective cost management in generating core profits. However, the company is struggling with profitability, evident from a negative Net Profit Margin of about -23.3% TTM and a negative EBIT Margin of -16.4% TTM. Revenue growth has been stagnant, with negligible change from the previous year. These factors suggest challenges in scaling revenues while managing operational costs and achieving profitability.

Balance Sheet

The balance sheet reflects a concerning financial structure. The Debt-to-Equity Ratio is not calculable due to negative equity, indicating high leverage and potential financial instability. Stockholders' Equity is negative, which is a significant red flag for financial health. The Equity Ratio is also negative due to the deficit in equity, emphasizing the risk of insolvency. These metrics highlight the company's reliance on debt financing and the associated risk.

Cash Flow

Cash flow analysis shows some challenges but slight improvement. Operating Cash Flow is negative, indicating insufficient cash generation from operations. However, Free Cash Flow has shown some improvement from a larger negative value last year, pointing to better capital expenditure management. The Operating Cash Flow to Net Income Ratio is not favorable, as cash outflows exceed inflows. This suggests that the company needs to enhance operational efficiency and cash generation capabilities.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	317.05M	317.04M	318.99M	308.64M	257.96M	210.18M
Gross Profit	236.10M	236.05M	243.52M	235.57M	190.81M	153.43M
EBITDA	-43.01M	-50.05M	-48.26M	-88.87M	-78.97M	-73.08M
Net Income	-73.98M	-81.94M	-75.57M	-105.55M	-102.11M	-84.63M
Balance Sheet
Total Assets	189.68M	214.34M	225.66M	242.12M	244.59M	216.44M
Cash, Cash Equivalents and Short-Term Investments	47.18M	30.21M	57.24M	66.50M	83.56M	90.79M
Total Debt	131.94M	131.09M	129.48M	128.78M	124.18M	104.97M
Total Liabilities	368.38M	391.59M	379.21M	388.52M	370.57M	299.90M
Stockholders Equity	-178.70M	-177.25M	-153.55M	-146.40M	-125.98M	-83.46M
Cash Flow
Free Cash Flow	-16.85M	-18.50M	-9.18M	-18.89M	-6.14M	-21.68M
Operating Cash Flow	-7.00M	-9.05M	2.58M	-10.89M	379.00K	-15.87M
Investing Cash Flow	-9.85M	-9.45M	-11.76M	-8.00M	-6.52M	12.24M
Financing Cash Flow	1.68M	3.39M	3.47M	2.42M	-561.00K	13.10M

Domo Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOMO, the sentiment is Neutral. The current price of 13.74 is below the 20-day moving average (MA) of 13.75, above the 50-day MA of 11.81, and above the 200-day MA of 8.91, indicating a neutral trend. The MACD of 0.71 indicates Positive momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 47.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DOMO.

Domo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	78 Outperform	$2.21B	20.79	17.50%	―	6.75%	97.06%
OLO	71 Outperform	$1.72B	578.29	0.49%	―	23.31%	―
SPT	64 Neutral	$1.10B	―	-36.95%	―	17.79%	16.49%
SEMR	63 Neutral	$1.27B	183.87	2.81%	―	22.75%	-47.45%
AMPL	63 Neutral	$1.58B	―	-32.87%	―	8.56%	-4.21%
DOMO	59 Neutral	$552.63M	―	48.46%	―	-0.81%	9.83%
Sector *	50 Neutral	C$2.90B	1.80	-63.12%	2.50%	11.24%	-12.42%

Domo Corporate Events

Domo Concludes Annual Meeting with Key Approvals

On June 24, 2025, Domo held its Annual Meeting where stockholders voted on several key proposals. The meeting saw a high participation rate with 96.22% of the voting power represented. All nine director nominees were elected to the board, Ernst & Young LLP was ratified as the independent auditor for the fiscal year ending January 31, 2026, and the compensation of the company’s named executive officers was approved on an advisory basis.

The most recent analyst rating on (DOMO) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Domo stock, see the DOMO Stock Forecast page.