Domo (DOMO) AI Stock Analysis

• Market Cap: $701.34M
• Dividend Yield: N/A
• Average Volume (3M): 829.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.78
• Revenue Growth: >-0.01%
• EPS Growth: 9.72%
• Country: US
• Employees: 888
• Sector: Technology
• Sector Strength: 85
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 37,967,567
• 10 Day Avg. Volume: 910,639
• 30 Day Avg. Volume: 829,548
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 2.40
• Enterprise Value/Gross Profit: 3.21
• Enterprise Value/Ebitda: -16.30
• 1Y Price Target: $18.38
• Price Target Upside: 8.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 53 Neutral
• Price Target: $15.00 ▼(-11.82% Downside)

Domo's overall stock score reflects significant financial challenges, including persistent losses and negative equity. While the earnings call provided positive insights into strategic initiatives and revenue growth, the technical analysis and valuation remain concerning. The company's ability to improve operational efficiency and financial stability will be crucial for future performance.

Positive Factors

Revenue Growth

Exceeding revenue and billings guidance indicates strong market demand and effective sales strategies, supporting long-term growth.

Strategic Partnerships

Enhanced partnerships with major tech firms can drive innovation and expand market reach, solidifying competitive positioning.

Sales Force Productivity

Significant improvement in sales force productivity suggests effective sales strategies and potential for sustained revenue growth.

Negative Factors

Financial Instability

Negative equity indicates liabilities exceed assets, posing risks to financial stability and limiting investment capacity.

Cash Flow Challenges

Inability to generate positive free cash flow can hinder operational flexibility and investment in growth opportunities.

Gross Retention Rate

Stagnant gross retention rates suggest challenges in customer retention, potentially impacting long-term revenue stability.

Domo Business Overview & Revenue Model

Company Description

Domo, Inc. is a cloud-based business intelligence and data visualization company that provides a platform designed to help organizations manage and analyze their data in real-time. Founded in 2010, Domo serves a wide range of sectors, including technology, healthcare, retail, and financial services. Its core products include the Domo Business Cloud, which allows users to connect various data sources, visualize data through dashboards, and derive actionable insights to facilitate data-driven decision-making.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	318.36M	317.04M	318.99M	308.64M	257.96M	210.18M
Gross Profit	237.47M	236.05M	243.52M	235.57M	190.81M	153.43M
EBITDA	-46.78M	-50.05M	-48.26M	-88.87M	-78.97M	-73.08M
Net Income	-77.42M	-81.94M	-75.57M	-105.55M	-102.11M	-84.63M
Balance Sheet
Total Assets	195.72M	214.34M	225.66M	242.12M	244.59M	216.44M
Cash, Cash Equivalents and Short-Term Investments	47.14M	45.26M	57.24M	66.50M	83.56M	90.79M
Total Debt	137.18M	135.53M	129.48M	128.78M	124.18M	104.97M
Total Liabilities	387.20M	391.59M	379.21M	388.52M	370.57M	299.90M
Stockholders Equity	-191.49M	-177.25M	-153.55M	-146.40M	-125.98M	-83.46M
Cash Flow
Free Cash Flow	-7.45M	-18.50M	-9.18M	-18.89M	-6.14M	-21.68M
Operating Cash Flow	2.54M	-9.05M	2.58M	-10.89M	379.00K	-15.87M
Investing Cash Flow	-9.99M	-9.45M	-11.76M	-8.00M	-6.52M	12.24M
Financing Cash Flow	-1.66M	3.39M	3.47M	2.42M	-561.00K	13.10M

Domo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 17.01 is above the 20-day moving average (MA) of 14.99, above the 50-day MA of 15.19, and above the 200-day MA of 10.52, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 62.43 is Neutral, neither overbought nor oversold. The STOCH value of 87.80 is Negative, 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	70 Neutral	$1.88B	17.10	23.74%	―	6.08%	153.79%
OLO	63 Neutral	$1.74B	593.71	-0.13%	―	21.92%	95.91%
SPT	62 Neutral	$848.69M	―	-32.50%	―	14.79%	27.52%
Sector *	61 Neutral	$36.80B	12.38	-10.20%	1.85%	8.54%	-7.31%
SEMR	60 Neutral	$1.10B	182.58	-0.50%	―	22.16%	-107.92%
AMPL	58 Neutral	$1.47B	―	-33.99%	―	9.93%	-11.15%
DOMO	53 Neutral	$701.34M	―	48.46%	―	>-0.01%	9.72%

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.