Domo Inc (DOMO)
NASDAQ:DOMO
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Domo
(NASDAQ:DOMO)
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Rating:45Neutral
Price Target:
$2.50
▼(-34.21% Downside)
Action:Reiterated
Date:06/19/26
The score is held down primarily by weak financial performance (declining TTM revenue, continued losses, and negative equity) and bearish technical signals (price below key moving averages with negative MACD). The latest earnings call showed meaningful operational improvements (retention, non-GAAP profitability, cash flow, and RPO), but debt covenant noncompliance and no guidance meaningfully increase near-term uncertainty.
Positive Factors
High Gross Margins
SaaS-level gross margins (subscription 81.5%, total 75.3%) indicate a capital-light, scalable product cost structure. High gross margins provide durable operating leverage, enabling profitable scaling, reinvestment in product/AI and improved cash conversion if revenue growth stabilizes.
Negative Factors
Negative Shareholders' Equity
A material equity deficit (~-$186M) weakens the capital structure, limits financial flexibility and impairs the ability to absorb shocks. This structural weakness raises refinancing risk, constrains M&A or R&D investments and magnifies leverage effects on results.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margins
SaaS-level gross margins (subscription 81.5%, total 75.3%) indicate a capital-light, scalable product cost structure. High gross margins provide durable operating leverage, enabling profitable scaling, reinvestment in product/AI and improved cash conversion if revenue growth stabilizes.
Read all positive factors
Domo (DOMO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$109.27M
Dividend YieldN/A
Average Volume (3M)1.63M
Price to Earnings (P/E)―
Beta (1Y)2.24
Revenue Growth0.35%
EPS Growth29.79%
CountryUS
Employees888
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.33
Shares Outstanding41,886,906
10 Day Avg. Volume3,541,859
30 Day Avg. Volume1,628,091
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)-1.29
Price to Sales (P/S)0.75
P/FCF Ratio-119.10
Enterprise Value/Market Cap1.77
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit0.81
Enterprise Value/Ebitda-7.67
Forecast
1Y Price Target
$5.81Price Target Upside52.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.03
Revenue Forecast (FY)$320.26M
Domo Business Overview & Revenue Model
Company Description
Domo, Inc. provides a sophisticated cloud-based platform specifically designed for business intelligence. This service is available globally, with operations spanning the United States, Japan, and other international territories. The platform's co...
How the Company Makes Money
Domo primarily makes money by selling subscriptions to its cloud software platform (SaaS). Customers pay recurring fees—typically tied to contract terms and usage/entitlement levels—to access Domo’s capabilities for data connection/integration, da...
Domo Earnings Call Summary
Earnings Call Date:Jun 15, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
The call presented a mix of operational improvement and strategic activity alongside near-term financial and liquidity uncertainties. Positive signals include meaningful improvements in gross and net retention, a move toward operating profitability (non-GAAP operating income and positive operating cash flow), strong RPO, multiple customer AI production deployments, growing services revenue, and industry recognition. Offsetting these positives are modest declines in subscription revenue and billings, a debt covenant noncompliance that led to current classification of debt (mitigated by a forbearance agreement), and the absence of forward guidance while the strategic transaction is pursued. On balance, the operational momentum and committed revenue base outweigh the near-term financing and timing challenges.Positive Updates
AI Production Deployments and Customer Outcomes
Multiple enterprise customers have deployed Domo-powered AI applications and agents into production (examples across media, commodities trading, sports & events, healthcare marketing, logistics, real estate, and benefits). Several implementations compressed workflows from days to minutes, reduced review costs by ~80% (healthcare marketing agency estimate), and cut investigation times from 30–60 minutes to near real time (logistics example). Many deployments moved from experiment to production in 24–48 hours via forward deployed engineering.
Negative Updates
Subscription Revenue Slight Decline
Subscription revenue was $69.8 million, down 2% year-over-year, primarily attributed to variability in overage-related revenue recognition.
Read all updates
Q1-2027 Updates
Positive
Negative
AI Production Deployments and Customer Outcomes
Multiple enterprise customers have deployed Domo-powered AI applications and agents into production (examples across media, commodities trading, sports & events, healthcare marketing, logistics, real estate, and benefits). Several implementations compressed workflows from days to minutes, reduced review costs by ~80% (healthcare marketing agency estimate), and cut investigation times from 30–60 minutes to near real time (logistics example). Many deployments moved from experiment to production in 24–48 hours via forward deployed engineering.
Read all positive updates
Company Guidance
Domo did not provide forward financial guidance on the call due to the advanced stage of a strategic transaction; instead management disclosed Q1 FY27 operating and balance‑sheet metrics: total revenue $79.4M, subscription revenue $69.8M (down 2% YoY), professional services $9.6M (vs $8.7M prior), billings $60.4M (vs $63.9M), gross retention 86.7% (up 240 bps YoY), net revenue retention 95.5% (up 150 bps), consumption‑started cohort gross retention 92% and net retention 108%, current subscription RPO $222.2M and total subscription RPO $412.9M, subscription gross margin 81.5% and total gross margin 75.3%, non‑GAAP operating income $4.4M (5.6% operating margin), non‑GAAP net loss per share $0.02 on 43.4M weighted average diluted shares, adjusted free cash flow ≈ breakeven, cash flow from operations $5.2M, cash balance $39.1M, and disclosure that a covenant shortfall led to debt being classified as current with a signed forbearance agreement with the lender.Domo Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
18
Very Negative
Cash Flow
40
Negative
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 318.15M | 318.86M | 317.04M | 318.99M | 308.64M | 257.96M |
| Gross Profit | 238.22M | 239.12M | 236.05M | 243.52M | 235.57M | 190.81M |
| EBITDA | -25.16M | -28.84M | -51.69M | -47.51M | -82.96M | -83.11M |
| Net Income | -55.46M | -59.34M | -81.94M | -75.57M | -105.55M | -102.11M |
Balance Sheet | ||||||
| Total Assets | 196.57M | 235.53M | 214.34M | 225.66M | 242.12M | 244.59M |
| Cash, Cash Equivalents and Short-Term Investments | 39.06M | 42.95M | 45.26M | 60.94M | 66.50M | 83.56M |
| Total Debt | 148.36M | 139.64M | 135.53M | 129.48M | 128.78M | 124.18M |
| Total Liabilities | 382.87M | 421.60M | 391.59M | 379.21M | 388.52M | 370.57M |
| Stockholders Equity | -186.29M | -186.06M | -177.25M | -153.55M | -146.40M | -125.98M |
Cash Flow | ||||||
| Free Cash Flow | 286.00K | -2.02M | -18.50M | -9.15M | -18.89M | -6.14M |
| Operating Cash Flow | 9.15M | 7.93M | -9.05M | 2.58M | -10.89M | 379.00K |
| Investing Cash Flow | -8.88M | -9.95M | -9.45M | -11.76M | -8.00M | -6.52M |
| Financing Cash Flow | -8.56M | -2.20M | 3.39M | 3.47M | 2.42M | -561.00K |
Domo Technical Analysis
Negative
3.80
Price Trends
3.49
Negative
3.84
Negative
7.89
Negative
Market Momentum
-0.34
Positive
36.68
Neutral
14.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOMO, the sentiment is Negative. The current price of 3.8 is above the 20-day moving average (MA) of 3.40, above the 50-day MA of 3.49, and below the 200-day MA of 7.89, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 36.68 is Neutral, neither overbought nor oversold. The STOCH value of 14.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DOMO.
Domo Risk Analysis
Domo disclosed 60 risk factors in its most recent earnings report. Domo reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Domo Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $736.60M | 77.48 | 16.65% | ― | 18.15% | 331.16% | |
69 Neutral | $615.45M | 26.56 | 9.69% | ― | 8.25% | -99.84% | |
66 Neutral | $393.95M | ― | -19.29% | ― | 12.27% | 37.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $386.08M | -0.46 | -110.37% | ― | -11.42% | -20.07% | |
52 Neutral | $222.55M | -5.19 | -32.73% | ― | 11.07% | 27.51% | |
45 Neutral | $109.27M | -1.89 | 29.35% | ― | 0.35% | 29.79% |
* Technology Sector Average
DOMO
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.