Domo (DOMO) AI Stock Analysis

• Market Cap: $553.23M
• Dividend Yield: N/A
• Average Volume (3M): 690.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: -0.81%
• EPS Growth: 9.83%
• Country: US
• Employees: 888
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): -0.09
• Shares Outstanding: 36,971,410
• 10 Day Avg. Volume: 1,015,275
• 30 Day Avg. Volume: 690,218
• PEG Ratio: -0.63
• Price to Book (P/B): -3.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -31.80
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 2.91
• Enterprise Value/Ebitda: -3.57
• 1Y Price Target: $12.00
• Price Target Upside: -12.73% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 58 Neutral
• Price Target: $14.00 ▲(1.82%Upside)

Domo's overall stock score is driven by significant financial and valuation challenges, offset by strong technical momentum and positive earnings call outcomes. The company's financial performance indicates structural weaknesses, but recent earnings highlight strategic successes and improved operational metrics. While technical indicators suggest bullish momentum, caution is warranted due to financial instability and overbought signals.

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.

Strategic Alliances

Strategic alliances with major cloud data warehouse providers like Snowflake position Domo to capture more sales opportunities.

Negative Factors

Customer Retention

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

Revenue Growth

Revenue growth outlook remains unchanged at -1% in FY26, and there is a wait to see current initiatives move key KPIs higher.

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. 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 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 is facing significant financial challenges. Despite moderate revenue growth, the company remains unprofitable with a net profit margin of -25.8%. The balance sheet shows structural weaknesses, including negative equity and high leverage, which indicate financial instability. Additionally, the negative operating and free cash flows highlight cash management challenges.

Income Statement

Domo's revenue has shown moderate growth, with a recent TTM revenue of $317M compared to $319M the previous year, indicating a slight decline. The gross profit margin remains relatively stable, but the company continues to operate at a net loss, with a net profit margin of -25.8%. This consistent loss position underscores challenges in achieving profitability despite revenue growth.

Balance Sheet

The balance sheet reveals structural weaknesses, with significant negative stockholders' equity of -$177M, indicating high leverage. The debt-to-equity ratio is not meaningful due to negative equity, highlighting financial instability. Additionally, the company's total liabilities exceed total assets, further emphasizing balance sheet vulnerability.

Cash Flow

The cash flow situation is concerning, with negative operating and free cash flows indicating ongoing cash burn. The free cash flow to net income ratio is negative, which reflects the company's inability to generate positive cash flow relative to its reported losses. The operating cash flow to net income ratio also mirrors this trend, emphasizing cash management challenges.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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
	EBIT
-59.28M	-54.88M	-88.87M	-88.47M	-73.08M
	EBITDA
-50.05M	-48.26M	-88.87M	-78.97M	-73.08M
	Net Income Common Stockholders
-81.94M	-75.57M	-105.55M	-102.11M	-84.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
45.26M	57.24M	66.50M	83.56M	90.79M
	Total Assets
214.34M	225.66M	242.12M	244.59M	216.44M
	Total Debt
131.09M	129.48M	128.78M	124.18M	104.97M
	Net Debt
85.83M	72.24M	62.28M	40.62M	14.18M
	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: Positive
• Last Price: 13.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOMO, the sentiment is Positive. The current price of 13.75 is above the 20-day moving average (MA) of 11.56, above the 50-day MA of 9.19, and above the 200-day MA of 8.25, indicating a bullish trend. The MACD of 1.58 indicates Negative momentum. The RSI at 73.63 is Negative, neither overbought nor oversold. The STOCH value of 75.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DOMO.

Domo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	80 Outperform	$2.27B	21.20	17.50%	―	6.75%	97.06%
OLO	74 Outperform	$1.49B	500.00	0.49%	―	23.31%	―
SEMR	66 Neutral	$1.51B	219.14	2.81%	―	22.75%	-47.45%
SPT	66 Neutral	$1.26B	―	-36.95%	―	17.79%	16.49%
AMPL	63 Neutral	$1.66B	―	-32.87%	―	8.56%	-4.21%
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%
DOMO	58 Neutral	$553.23M	―	48.46%	―	-0.81%	9.83%

Domo Corporate Events

Domo Appoints Mark Maughan as Chief Operating Officer

On March 14, 2025, Domo, Inc. appointed Mark Maughan as the chief operating officer. Mr. Maughan has been with Domo since 2015, holding various leadership roles, and his appointment reflects his extensive experience within the company. His new role comes with an increased annual base salary of $345,000 and potential for a discretionary cash bonus. This strategic appointment is expected to enhance Domo’s operational leadership, although specific implications for stakeholders were not detailed in the announcement.

Domo Announces New Director Appointments and Resignation

On March 6 and 7, 2025, Domo, Inc. elected Ryan Wright and David Jolley as directors, with terms expiring at the 2025 annual meeting of stockholders. Jolley resigned as an employee on March 7, 2025, and both will participate in the company’s outside director compensation policy. This move, approved by stockholders holding a majority of the company’s stock, was communicated to stockholders on March 11, 2025, as part of a written consent action under Delaware law.