Domo (DOMO) AI Stock Analysis

• Market Cap: $544.78M
• Dividend Yield: N/A
• Average Volume (3M): 605.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: -0.81%
• EPS Growth: 9.83%
• Country: US
• Employees: 888
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): -0.09
• Shares Outstanding: 36,971,410
• 10 Day Avg. Volume: 492,912
• 30 Day Avg. Volume: 605,009
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 1.62
• Enterprise Value/Ebitda: -8.91
• 1Y Price Target: $16.70
• Price Target Upside: 18.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 49 Neutral
• Price Target: $14.50 ▲(2.47% Upside)

Domo's overall stock score is primarily impacted by its financial performance, which shows significant challenges with negative profitability and high leverage. Technical analysis provides a mixed outlook, with some positive long-term trends. The earnings call offers a more optimistic view with strong business momentum, but valuation remains a concern due to ongoing losses. The combination of these factors results in a moderate overall score.

Positive Factors

Analyst Recommendations

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

Growth Initiatives

New initiatives need more time to improve the growth algorithm.

Retention Concerns

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

Revenue Growth Outlook

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

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 generates revenue primarily through subscription fees for its cloud-based platform. Customers pay for access based on the number of users and the level of service required, including features such as data integration, analytics, and reporting tools. Additionally, Domo offers professional services and consulting to help customers implement and maximize the use of its platform, contributing to its revenue streams. The company also forms strategic partnerships with other technology providers to enhance its offerings, which can lead to increased customer acquisition and additional revenue opportunities.

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.

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	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
EBITDA	-50.05M	-48.26M	-88.87M	-78.97M	-73.08M
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	30.21M	57.24M	66.50M	83.56M	90.79M
Total Debt	131.09M	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: Neutral
• Last Price: 14.15
• 50DMA: Negative
• 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 14.15 is below the 20-day moving average (MA) of 15.22, below the 50-day MA of 14.62, and above the 200-day MA of 10.06, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 44.35 is Neutral, neither overbought nor oversold. The STOCH value of 23.27 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	76 Outperform	$2.15B	21.25	17.50%	―	6.75%	97.06%
OLO	71 Outperform	$1.74B	593.71	-0.13%	―	21.92%	95.91%
SPT	63 Neutral	$864.17M	―	-32.50%	―	14.79%	27.52%
Sector *	61 Neutral	$34.98B	7.37	-10.82%	1.91%	8.82%	-8.66%
SEMR	60 Neutral	$1.15B	182.58	-0.50%	―	22.16%	-107.92%
AMPL	59 Neutral	$1.45B	―	-33.99%	―	9.93%	-11.15%
DOMO	49 Neutral	$544.78M	―	48.46%	―	-0.81%	9.83%

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.