GICS Sector : Technology
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.
Domo reported a robust Q2 performance, exceeding guidance for billings, revenue, and non-GAAP EPS. Billings reached $70.3 million, revenue was $79.7 million, and non-GAAP EPS was $0.02, significantly better than the estimated loss of $0.05. The company's operating margin expanded to 7.7%, a record high, driven by disciplined expense management and strong revenue performance. The achievement of positive adjusted free cash flow of $1.4 million in Q2 further underscores Domo's improving financial health.
Publication Date: Sep -02
The strong new ACV growth of nearly 20% was driven by a productive sales force, with sales productivity surging to a record high of 67%. Subscription RPO reached a record high of $409.8 million, fueled by a focus on longer-term, strategic contracts. Net retention remained above 94%, showcasing strong customer loyalty. As Domo's CEO mentioned, "We're building teams around all hyperscalers and CDWs. Solutions driven by our agent solutions, AI, governance, and security will be key to our success."
Domo has raised its guidance for fiscal year 2026, projecting 6% billings growth and 6% non-GAAP operating margin. The company expects continued success in the second half of the year, driven by its strategic initiatives, including the launch of Agent Catalyst on AWS and partnerships with CDW and hyperscalers. The new consumption-based pricing model is proving successful, leading to a 108% Net Revenue Retention Rate (NRR) for net new customers.
With a P/S Ratio of 1.86 and an EV/EBITDA of -14.55, the market appears to have tempered expectations for Domo's growth. The company's improved financial performance and guidance suggest potential for upside. As Domo continues to focus on partnerships and AI innovation, its growth prospects appear promising, with analysts estimating revenue growth of 0.6% next year. The significant beat on EPS, with actual EPS coming in at $0.02 versus estimates of -$0.05, further supports a positive outlook.
Domo, Inc. (DOMO) Q3 2026 Earnings Call Transcript
Dec -05
Domo Announces Third Quarter Fiscal 2026 Financial Results
Dec -04
Domo's AI and Data Products Platform Recognized With CRN 2025 Products of the Year Award
Dec -01
Domo Joins Snowflake and Industry Leaders to Support the Open Semantic Interchange to Advance AI and Data Interoperability
Nov -25
Connor Clark & Lunn Investment Management Ltd. Has $449,000 Stock Holdings in Domo, Inc. $DOMO
Nov -21
Domo and Formula 1 Driver Alex Albon Join Forces to Showcase the Power of Data and How it Helps Drive Performance
Nov -20
Rising Star Outreach Uses Domo to Help Uplift People with Leprosy Across India
Nov -13
Domo Announces Date of Third Quarter Fiscal 2026 Earnings Conference Call
Nov -12
Domo's subscription growth of 12.03% is driven by increasing adoption of cloud-based business intelligence solutions, expansion into new industries, and growing demand for data-driven decision making. Additionally, Domo's platform enhancements, strategic partnerships, and effective sales execution also contribute to this growth.
Domo's Professional Services and Other segment growth of 11.43% is driven by increasing adoption of its cloud-based platform, expansion of existing customer relationships, and growth in demand for digital transformation services. Additionally, strategic partnerships and investments in emerging technologies such as AI and machine learning are contributing to the segment's growth.
A cloud-based platform that integrates with hundreds of data sources to provide real-time insights and analytics.
A low-code platform that enables users to build custom business applications without extensive coding knowledge.
A platform that connects and analyzes data from IoT devices, sensors, and equipment to provide real-time insights.
Pre-built, customizable apps that provide real-time insights and analytics for customer-facing teams.
A data integration platform that connects and integrates data from multiple sources.
A data governance platform that provides data quality, security, and compliance features.
Domo's cloud-based platform and proprietary technology make it difficult for substitutes to emerge, but the presence of open-source alternatives and custom-built solutions pose some threat.
Domo's customers are largely enterprise-level organizations with limited bargaining power, and the company's subscription-based model reduces the risk of customer concentration.
Domo's technology-driven business model reduces its reliance on suppliers, and the company's scale and market position give it bargaining power over its suppliers.
The cloud-based business intelligence and analytics market is highly competitive, and new entrants with innovative technologies and business models can easily disrupt the market.
The business intelligence and analytics market is highly competitive, with established players like Tableau, Power BI, and Qlik, and new entrants vying for market share.
| Value | |
|---|---|
| Debt Weight | -336.15% |
| Debt Cost | 3.95% |
| Equity Weight | 436.15% |
| Equity Cost | 15.71% |
| WACC | 55.24% |
| Leverage | -77.07% |
Value: 9.2
Growth: 4.9
Quality: 5.1
Yield: 0.0
Momentum: 9.5
Volatility: 2.0
1-Year Total Return ->
Value: 7.7
Growth: 4.2
Quality: 5.7
Yield: 0.0
Momentum: 9.0
Volatility: 3.0
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Value: 4.0
Growth: 6.2
Quality: 6.3
Yield: 0.0
Momentum: 9.0
Volatility: 3.3
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Value: 2.4
Growth: 6.4
Quality: 7.2
Yield: 0.0
Momentum: 8.0
Volatility: 4.3
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Value: 4.8
Growth: 5.4
Quality: 4.5
Yield: 0.0
Momentum: 6.5
Volatility: 3.7
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Value: 9.0
Growth: 2.8
Quality: 4.8
Yield: 0.0
Momentum: 0.5
Volatility: 1.0
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