Domo (DOMO, Financial) has strengthened its partnership with Snowflake by rolling out an extensive array of applications on the Snowflake Marketplace. This enhanced collaboration allows joint customers to integrate, transform, and analyze data within a secure and scalable environment enhanced with advanced AI features.
As part of this initiative, Domo's offering, powered by Snowflake, delivers a fully managed analytics and business intelligence solution. This service streamlines deployment, management, and billing processes by operating within the Snowflake environment. Customers gain effortless access to Domo's Magic ETL, connectors, dashboards, and low-code applications without the hassle of managing the infrastructure.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Domo Inc (DOMO, Financial) is $13.60 with a high estimate of $20.00 and a low estimate of $9.00. The average target implies an downside of 2.09% from the current price of $13.89. More detailed estimate data can be found on the Domo Inc (DOMO) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Domo Inc's (DOMO, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Domo Inc (DOMO, Financial) in one year is $8.88, suggesting a downside of 36.07% from the current price of $13.89. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Domo Inc (DOMO) Summary page.
DOMO Key Business Developments
Release Date: May 21, 2025
- Total Revenue: $80.1 million.
- Billings: $63.9 million.
- Gross Retention: Improved to 86% from 85% in Q4.
- Net Retention: 94%, up sequentially for the third consecutive quarter.
- Subscription RPO Growth: 24% year over year, totaling $408 million.
- Non-GAAP Subscription Gross Margin: 81.6%.
- Non-GAAP Operating Margin: 1.3%.
- Non-GAAP Net Loss: $3.6 million.
- Adjusted Free Cash Flow: $1.3 million.
- Cash Balance: Increased to $47.2 million from $45.3 million in Q4.
- Guidance for Q2 Billings: $69 million to $70 million.
- Guidance for Q2 GAAP Revenue: $77.5 million to $78.5 million.
- Guidance for Full-Year Billings: $312 million to $322 million.
- Guidance for Full-Year GAAP Revenue: $312 million to $320 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Domo Inc (DOMO, Financial) exceeded guidance on billings, revenue, and non-GAAP EPS, and achieved positive adjusted free cash flow for the first time in Q1.
- The company reported a significant increase in pipeline activity, sales efficiency, and contract length, leading to an acceleration in RPO growth.
- Domo Inc (DOMO) raised its full-year guidance due to continued business strength and momentum.
- Salesforce productivity increased over 60% year over year, contributing to improved operational leverage.
- The transition to a consumption-based pricing model has resulted in higher usage, customer satisfaction, and retention, with consumption customers now representing over 70% of ARR.
Negative Points
- The macroeconomic environment remains challenging, with customers being more hesitant than five years ago.
- Despite improvements, gross retention is still below the desired 90% target, indicating room for further enhancement.
- The company faces ongoing challenges in balancing investments in growth versus margin expansion.
- Domo Inc (DOMO) is still working on optimizing its partnerships with cloud data warehouse providers, with some partners progressing faster than others.
- The company reported a non-GAAP net loss of $3.6 million, highlighting ongoing profitability challenges.
