Domo (NASDAQ:DOMO – Get Free Report) announced its earnings results on Monday. The company reported ($0.02) earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of ($0.02), FiscalAI reports. The company had revenue of $79.40 million for the quarter, compared to analyst estimates of $79.64 million. During the same quarter in the previous year, the company posted ($0.69) earnings per share.
Here are the key takeaways from Domo’s conference call:
- Domo said its board has завершено a review of strategic alternatives and is in advanced negotiations for a potential transaction, with a final announcement expected in the near term.
- Management emphasized growing demand for its data-plus-AI platform, saying customers are moving beyond AI pilots and using Domo to operationalize AI with governed data, apps, and agents.
- The company highlighted several production deployments of AI applications across media, logistics, healthcare, real estate, and other industries, often built quickly by its forward-deployed engineering team.
- Q1 retention trends improved, with gross retention at 86.7% and net retention at 95.5%, both up year over year, helped by consumption pricing, multi-year contracts, and the forward-deployed model.
- Revenue was $79.4 million, with subscription revenue down 2% year over year and billings down to $60.4 million, while management also disclosed a debt covenant miss that led to a forbearance agreement with its lender.
Domo Stock Down 37.1%
Shares of DOMO stock opened at $2.05 on Wednesday. The stock has a 50-day moving average price of $3.49 and a 200 day moving average price of $5.26. The firm has a market cap of $92.55 million, a price-to-earnings ratio of -1.54 and a beta of 1.78. Domo has a 12 month low of $1.98 and a 12 month high of $18.49.
Analyst Ratings Changes
Read Our Latest Research Report on Domo
More Domo News
Here are the key news stories impacting Domo this week:
- Negative Sentiment: Domo reported revenue of $79.4 million, slightly below expectations, adding to worries that growth remains soft even though adjusted EPS met estimates.
- Negative Sentiment: Management disclosed a going-concern warning, which signals potential liquidity or financing risk and can weigh heavily on investor confidence.
- Negative Sentiment: The company said its strategic alternatives review is still ongoing and that no transaction agreement has been reached, increasing uncertainty about whether a deal will materialize soon.
- Negative Sentiment: Several analysts cut price targets after the report, including Citizens JMP and Cantor Fitzgerald, reflecting reduced optimism after the mixed results.
- Neutral Sentiment: Some analysts kept favorable stances, with Stephens reaffirming an overweight rating and DA Davidson reiterating neutral, suggesting the selloff may be moderated by longer-term takeover or turnaround potential.
- Positive Sentiment: Gross retention improved to 86.7% and management highlighted AI initiatives and possible strategic transaction progress, which could help support a future rerating if execution improves or a deal is announced.
Insider Buying and Selling
In related news, insider Rpd Fund Management Llc sold 39,034 shares of Domo stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $4.46, for a total value of $174,091.64. Following the completion of the sale, the insider directly owned 4,187,809 shares in the company, valued at $18,677,628.14. This trade represents a 0.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders sold 1,350,626 shares of company stock valued at $3,785,484 in the last three months. 13.25% of the stock is owned by company insiders.
Institutional Trading of Domo
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Headlands Technologies LLC acquired a new position in shares of Domo during the 2nd quarter worth about $42,000. Kemnay Advisory Services Inc. acquired a new position in shares of Domo during the 4th quarter worth about $88,000. Oxford Asset Management LLP acquired a new position in shares of Domo during the 4th quarter worth about $88,000. Public Employees Retirement System of Ohio acquired a new position in shares of Domo during the 4th quarter worth about $92,000. Finally, Raymond James Financial Inc. acquired a new position in shares of Domo during the 2nd quarter worth about $122,000. 76.64% of the stock is currently owned by institutional investors and hedge funds.
About Domo
Domo, Inc (NASDAQ: DOMO) is a cloud-based software company that specializes in business intelligence and data analytics. The company’s flagship product, the Domo Business Cloud, provides organizations with an end-to-end platform to integrate, visualize and analyze data from a wide array of sources. By unifying disparate data feeds into interactive dashboards and custom applications, Domo enables real-time insights that inform decision-making across all levels of an enterprise.
Founded in 2010 by Josh James, Domo is headquartered in American Fork, Utah, and operates offices across North America, Europe and Asia Pacific.
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