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Domo (DOMO)
NASDAQ:DOMO

Domo (DOMO) AI Stock Analysis

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Domo

(NASDAQ:DOMO)

Rating:58Neutral
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 (DOMO) vs. SPDR S&P 500 ETF (SPY)

Domo Business Overview & Revenue Model

Company DescriptionDomo, 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 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: 60.82%|
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
45
Neutral
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
30
Negative
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
40
Negative
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 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
317.04M318.99M308.64M257.96M210.18M
Gross Profit
236.05M243.52M235.57M190.81M153.43M
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 SheetCash, Cash Equivalents and Short-Term Investments
45.26M57.24M66.50M83.56M90.79M
Total Assets
214.34M225.66M242.12M244.59M216.44M
Total Debt
131.09M129.48M128.78M124.18M104.97M
Net Debt
85.83M72.24M62.28M40.62M14.18M
Total Liabilities
391.59M379.21M388.52M370.57M299.90M
Stockholders Equity
-177.25M-153.55M-146.40M-125.98M-83.46M
Cash FlowFree Cash Flow
-18.50M-9.18M-18.89M-6.14M-21.68M
Operating Cash Flow
-9.05M2.58M-10.89M379.00K-15.87M
Investing Cash Flow
-9.45M-11.76M-8.00M-6.52M12.24M
Financing Cash Flow
3.39M3.47M2.42M-561.00K13.10M

Domo Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.75
Price Trends
50DMA
9.19
Positive
100DMA
8.70
Positive
200DMA
8.25
Positive
Market Momentum
MACD
1.58
Negative
RSI
73.63
Negative
STOCH
75.98
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 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
CXCXM
80
Outperform
$2.27B21.2017.50%6.75%97.06%
OLOLO
74
Outperform
$1.49B500.000.49%23.31%
66
Neutral
$1.51B219.142.81%22.75%-47.45%
SPSPT
66
Neutral
$1.26B-36.95%17.79%16.49%
63
Neutral
$1.66B-32.87%8.56%-4.21%
62
Neutral
$11.90B10.64-7.50%2.90%7.41%-8.19%
58
Neutral
$553.23M48.46%-0.81%9.83%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DOMO
Domo
13.75
7.08
106.15%
SPT
Sprout Social
22.46
-12.63
-35.99%
OLO
Olo
8.67
4.07
88.48%
SEMR
SEMrush Holdings
10.19
-3.94
-27.88%
CXM
Sprinklr
8.83
-0.22
-2.43%
AMPL
Amplitude
12.65
3.94
45.24%

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.

Executive/Board ChangesShareholder Meetings
Domo Announces New Director Appointments and Resignation
Neutral
Mar 11, 2025

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.

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.