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Domo (DOMO)
NASDAQ:DOMO
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Domo
(NASDAQ:DOMO)
Rating:53Neutral
Price Target:
$13.00
▼(-0.31%Downside)
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 (DOMO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$550.82M
Dividend YieldN/A
Average Volume (3M)734.72K
Price to Earnings (P/E)―
Beta (1Y)1.74
Revenue Growth-0.81%
EPS Growth9.83%
CountryUS
Employees888
SectorTechnology
Sector Strength79
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.09
Shares Outstanding36,971,410
10 Day Avg. Volume848,567
30 Day Avg. Volume734,719
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)-13.55
Price to Sales (P/S)0.00
P/FCF Ratio-7.68
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue0.54
Enterprise Value/Gross Profit2.91
Enterprise Value/Ebitda-3.67
Forecast
1Y Price Target
$12.00Price Target Upside-7.98% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Domo Business Overview & Revenue Model
Company DescriptionDomo, Inc. (DOMO) is a cloud-based business intelligence (BI) and data visualization company that empowers organizations to leverage their data efficiently. Founded in 2010 and headquartered in American Fork, Utah, Domo provides a comprehensive platform that allows businesses to connect, prepare, visualize, and analyze data in real-time. The company's core products and services include data integration, data transformation, and dynamic dashboards that facilitate decision-making processes across various sectors such as retail, finance, healthcare, and technology.
How the Company Makes MoneyDomo 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 Earnings Call Summary
Earnings Call Date:May 21, 2025
(Q1-2026)
| % Change Since: 52.51%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Positive
The earnings call was predominantly positive with significant achievements in financial metrics, successful strategic transitions, and strong customer and partner engagement. While macroeconomic challenges exist, they have not substantially hindered current performance.Q1-2026 Updates
Positive Updates
Exceeded Guidance and Achieved Positive Operating Margin
Domo exceeded guidance on billings, revenue, and non-GAAP EPS, and achieved a positive operating margin for the first time in a Q1.
Significant Growth in Key Metrics
Subscription RPO growth accelerated to 24% year-over-year, subscription TCV up 69% year-over-year, and long-term subscription RPO up 61% year-over-year.
Sales Productivity and Retention Improvement
Salesforce productivity was up over 60% year-over-year, and gross retention improved to 86% from 85% last quarter.
Successful Transition to Consumption-Based Pricing
Consumption customers now represent over 70% of ARR, with expectations to reach 90% by the end of the year.
Notable Customer Wins and Expanding Ecosystem
Significant customer wins including a transportation technology company expanding by 10x original contract value and ecosystem partnerships with Snowflake, Databricks, and others showing strong pipeline growth.
Strong Positive Cash Flow and Financial Outlook
Adjusted free cash flow was $1.3 million, and the company expects positive free cash flow for the year with improving operating margins.
AI and Technology Innovations
Launch of Agent Catalyst for AI-driven solutions, with over 200 customers signing up on the first day, and success stories from various industries.
Negative Updates
Challenging Macro Environment
The macro environment is not ideal, with customers being more hesitant than five years ago, though it has not changed significantly in the last 12 months.
Company Guidance
During the Domo Q1 Fiscal Year 2026 earnings call, the company reported exceeding guidance on several key metrics, including billings, revenue, and non-GAAP EPS, while also achieving positive adjusted free cash flow. Notably, this was the first time Domo achieved a positive operating margin in a Q1. Significant metrics highlighted include a 24% year-over-year growth in subscription remaining performance obligations (RPO), a 69% increase in subscription total contract value (TCV), and a 61% rise in long-term subscription RPO. The company also saw a sequential increase in net retention for the third consecutive quarter, with annual recurring revenue (ARR) up sequentially as well. Salesforce productivity increased by over 60% year-over-year. Gross retention improved to 86%, up from 85% in the previous quarter. Based on this strong performance, Domo raised its full-year guidance and expects to exit the fiscal year with 5% billings growth and a 5% operating margin, with an outlook to achieve 10% in both metrics by the end of FY 2027.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.45
Neutral
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.30
Negative
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.40
Negative
| Breakdown | |||||
| TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 317.05M | 317.04M | 318.99M | 308.64M | 257.96M | 210.18M | Gross Profit |
| 236.10M | 236.05M | 243.52M | 235.57M | 190.81M | 153.43M | EBIT |
| -52.18M | -59.28M | -54.88M | -88.87M | -88.47M | -73.08M | EBITDA |
| -43.01M | -50.05M | -48.26M | -88.87M | -78.97M | -73.08M | Net Income Common Stockholders |
| -73.98M | -81.94M | -75.57M | -105.55M | -102.11M | -84.63M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 47.18M | 30.21M | 57.24M | 66.50M | 83.56M | 90.79M | Total Assets |
| 189.68M | 214.34M | 225.66M | 242.12M | 244.59M | 216.44M | Total Debt |
| 131.94M | 131.09M | 129.48M | 128.78M | 124.18M | 104.97M | Net Debt |
| 84.76M | 100.89M | 72.24M | 62.28M | 40.62M | 14.18M | Total Liabilities |
| 368.38M | 391.59M | 379.21M | 388.52M | 370.57M | 299.90M | Stockholders Equity |
| -178.70M | -177.25M | -153.55M | -146.40M | -125.98M | -83.46M |
| Cash Flow | Free Cash Flow | ||||
| -16.85M | -18.50M | -9.18M | -18.89M | -6.14M | -21.68M | Operating Cash Flow |
| -7.00M | -9.05M | 2.58M | -10.89M | 379.00K | -15.87M | Investing Cash Flow |
| -9.85M | -9.45M | -11.76M | -8.00M | -6.52M | 12.24M | Financing Cash Flow |
| 1.68M | 3.39M | 3.47M | 2.42M | -561.00K | 13.10M |
Domo Technical Analysis
Positive
13.04
Price Trends
9.52
Positive
8.88
Positive
8.33
Positive
Market Momentum
1.32
Positive
62.94
Neutral
39.31
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 13.04 is above the 20-day moving average (MA) of 12.27, above the 50-day MA of 9.52, and above the 200-day MA of 8.33, indicating a bullish trend. The MACD of 1.32 indicates Positive momentum. The RSI at 62.94 is Neutral, neither overbought nor oversold. The STOCH value of 39.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DOMO.
Domo Risk Analysis
Domo disclosed 59 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
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $2.22B | 19.77 | 17.50% | ― | 6.75% | 97.06% | |
74 Outperform | $1.45B | 484.00 | 0.49% | ― | 23.31% | ― | |
66 Neutral | $1.24B | ― | -36.95% | ― | 17.79% | 16.49% | |
63 Neutral | $1.40B | 193.12 | 2.81% | ― | 22.75% | -47.45% | |
63 Neutral | $1.60B | ― | -32.87% | ― | 8.56% | -4.21% | |
62 Neutral | $11.97B | 10.08 | -7.46% | 2.96% | 7.37% | -8.22% | |
53 Neutral | $550.82M | ― | 48.46% | ― | -0.81% | 9.83% |
* Technology Sector Average
Performance Comparison
DOMO
Domo
13.04
6.45
97.88%
SPT
Sprout Social
20.30
-13.31
-39.60%
OLO
Olo
8.47
4.02
90.34%
SEMR
SEMrush Holdings
8.98
-4.47
-33.23%
CXM
Sprinklr
7.95
-0.87
-9.86%
AMPL
Amplitude
11.37
2.95
35.04%
Domo Corporate Events
Executive/Board Changes
Domo Appoints Mark Maughan as Chief Operating Officer
Neutral
Mar 17, 2025
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.
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.