Domo (DOMO) AI Stock Analysis

• Market Cap: $355.00M
• Dividend Yield: N/A
• Average Volume (3M): 682.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.91
• Revenue Growth: -0.14%
• EPS Growth: 21.60%
• Country: US
• Employees: 888
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.01
• Shares Outstanding: 38,534,832
• 10 Day Avg. Volume: 1,075,658
• 30 Day Avg. Volume: 682,974
• PEG Ratio: -2.79
• Price to Book (P/B): -1.84
• Price to Sales (P/S): 1.03
• P/FCF Ratio: -17.63
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 2.08
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: -22.21
• 1Y Price Target: $13.00
• Price Target Upside: 42.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.15
• Revenue Forecast (FY): $318.07M

• Rating: 48 Neutral
• Price Target: $11.50 ▲(26.23% Upside)

Domo's overall stock score is primarily impacted by its weak financial performance and valuation challenges. However, the positive sentiment from the earnings call, highlighting strategic initiatives and improvements in cash flow and operating margin, provides some optimism. Technical analysis indicates bearish momentum, adding to the cautious outlook.

Positive Factors

Positive Cash Flow

Achieving positive cash flow indicates improved financial health and operational efficiency, supporting sustainable growth and reducing reliance on external financing.

Consumption-Based Model

The shift to a consumption-based model enhances revenue predictability and customer engagement, potentially leading to higher customer retention and lifetime value.

AI Feature Adoption

Strong adoption of AI features positions Domo as a leader in innovation, potentially driving competitive advantage and attracting new customers in a tech-driven market.

Negative Factors

Financial Instability

Ongoing financial instability with negative equity suggests potential solvency issues, which could limit strategic investments and growth opportunities.

Weak Cash Generation

Weak cash generation from operations limits the ability to invest in growth initiatives and may necessitate additional financing, impacting long-term financial health.

Gross Margin Decline

A declining gross margin indicates potential cost pressures or pricing challenges, which could impact profitability and require strategic adjustments to maintain competitiveness.

Domo Business Overview & Revenue Model

Company Description

Domo, Inc. operates a cloud-based business intelligence platform in the United States, Japan, and internationally. Its platform digitally connects from the chief executive officer to the frontline employee with the people, data, and systems in an organization, giving them access to real-time data and insights, and allowing them to manage business from smartphones. The company was formerly known as Domo Technologies, Inc. and changed its name to Domo, Inc. in December 2011. Domo, Inc. was incorporated in 2010 and is headquartered in American Fork, Utah.

How the Company Makes Money

Domo primarily generates revenue through a subscription-based model, offering its platform on a Software as a Service (SaaS) basis. Customers pay for access to the Domo Business Cloud, with pricing typically based on the number of users, data connectors, and features utilized. Additional revenue streams may come from professional services, such as implementation support, training, and consulting. Domo has formed strategic partnerships with major technology companies, enabling it to enhance its product offerings and expand its customer base, which contributes to its overall earnings. The company also focuses on upselling and cross-selling capabilities, encouraging existing customers to adopt more features and services over time.

Domo Financial Statement Overview

Summary

Domo's financial performance is concerning, with negative net profit margins, declining revenues, and a weak balance sheet characterized by negative stockholders' equity. Although gross profit margins are strong, operational inefficiencies and declining cash flow growth pose significant risks.

Income Statement

Domo's income statement reveals challenges with profitability and growth. The company has a negative net profit margin of -21.71% TTM, indicating losses. Revenue has declined by 11.3% TTM, showing a negative growth trajectory. Gross profit margin remains strong at 74.39%, but EBIT and EBITDA margins are negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a concerning financial structure with negative stockholders' equity, leading to a negative debt-to-equity ratio. Return on equity is positive at 43.10% TTM, but this is due to the negative equity base. The equity ratio is negative, indicating potential financial instability.

Cash Flow

Cash flow analysis highlights volatility, with a significant decline in free cash flow growth of -232.20% TTM. The operating cash flow to net income ratio is low at 0.08, suggesting limited cash generation relative to net losses. However, free cash flow to net income is positive at 0.50, indicating some cash flow efficiency despite losses.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	317.04M	318.99M	308.64M	257.96M	210.18M
Gross Profit	236.05M	243.52M	235.57M	190.81M	153.43M
EBITDA	-50.05M	-47.51M	-82.96M	-83.11M	-68.32M
Net Income	-81.94M	-75.57M	-105.55M	-102.11M	-84.63M
Balance Sheet
Total Assets	214.34M	225.66M	242.12M	244.59M	216.44M
Cash, Cash Equivalents and Short-Term Investments	45.26M	60.94M	66.50M	83.56M	90.79M
Total Debt	135.53M	129.48M	128.78M	124.18M	104.97M
Total Liabilities	391.59M	379.21M	388.52M	370.57M	299.90M
Stockholders Equity	-177.25M	-153.55M	-146.40M	-125.98M	-83.46M
Cash Flow
Free Cash Flow	-18.50M	-9.18M	-18.89M	-6.14M	-21.68M
Operating Cash Flow	-9.05M	2.58M	-10.89M	379.00K	-15.87M
Investing Cash Flow	-9.45M	-11.76M	-8.00M	-6.52M	12.24M
Financing Cash Flow	3.39M	3.47M	2.42M	-561.00K	13.10M

Domo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.11
• 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 DOMO, the sentiment is Negative. The current price of 9.11 is below the 20-day moving average (MA) of 10.82, below the 50-day MA of 12.46, and below the 200-day MA of 12.20, indicating a bearish trend. The MACD of -1.04 indicates Positive momentum. The RSI at 30.33 is Neutral, neither overbought nor oversold. The STOCH value of 9.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DOMO.

Domo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VTEX	66 Neutral	$705.44M	104.38	6.53%	―	3.62%	-20.45%
DSP	65 Neutral	$766.68M	443.56	4.45%	―	22.97%	49.49%
LAW	62 Neutral	$369.83M	―	-41.00%	―	6.33%	-66.34%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$668.47M	―	-26.69%	―	13.09%	32.34%
BMBL	51 Neutral	$436.30M	―	-25.34%	―	-7.43%	61.36%
DOMO	48 Neutral	$355.00M	―	―	―	-0.14%	21.60%

Domo Corporate Events

Domo CEO Reduces Duties Due to Health Reasons

Domo, Inc. announced that its CEO, Joshua G. James, will reduce his duties effective December 4, 2025, due to health reasons. Daren Thayne, the current CTO and Executive VP of Product, will step in as the Interim Principal Executive Officer, maintaining his existing compensation and with no familial or transactional ties requiring disclosure.