Domo (NASDAQ:DOMO) Announces Quarterly Earnings Results, Misses Estimates By $0.16 EPS

Domo (NASDAQ:DOMO) issued its quarterly earnings results on Tuesday. The company reported ($0.19) earnings per share for the quarter, missing the consensus estimate of ($0.03) by ($0.16), reports. The business had revenue of $79.63 million during the quarter, compared to the consensus estimate of $78.65 million. The company’s quarterly revenue was up 1% on a year-over-year basis.

Here are the key takeaways from Domo’s conference call:

• Domo reported a record quarterly billings figure of $111.2 million (8% YoY), beating guidance and marking its strongest billings growth in three years, driven by higher retention, consumption adoption, and partner ecosystem activity.
• The company has largely completed its shift to consumption pricing with 84% of ARR on consumption, and the consumption cohort delivered a 111% net revenue retention while overall ARR net retention exceeded 96% and gross retention rose above 88%.
• Profitability and cash flow improved materially — Q4 operating margin topped 10%, the company posted its best-ever EPS (third consecutive quarter of positive EPS), and full-year adjusted free cash flow was near breakeven, the strongest on record.
• Management positioned Domo as an AI-first data platform (highlighting App Catalyst and Agent Catalyst) and showcased 15 customer AI agent deployments across industries, which it expects will drive increased consumption and deeper adoption.
• Management declined to provide detailed forward guidance while evaluating strategic alternatives and said it expects GAAP revenue to remain roughly flat next year, with only modest non-GAAP EPS improvement, reducing near-term top-line visibility.

Domo Trading Down 7.0%

DOMO stock traded down $0.35 during trading on Thursday, hitting $4.62. 4,238,280 shares of the company’s stock were exchanged, compared to its average volume of 1,910,165. The business has a 50-day moving average price of $5.53 and a two-hundred day moving average price of $10.37. The stock has a market capitalization of $193.20 million, a price-to-earnings ratio of -3.19 and a beta of 1.70. Domo has a 52-week low of $3.45 and a 52-week high of $18.49.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on DOMO. Citizens Jmp reissued an “underperform” rating and set a $3.50 price objective on shares of Domo in a research report on Friday, February 13th. Lake Street Capital decreased their price target on shares of Domo from $13.00 to $7.00 and set a “hold” rating for the company in a research note on Wednesday. DA Davidson lowered their price target on shares of Domo from $10.00 to $6.00 and set a “neutral” rating for the company in a report on Wednesday. Weiss Ratings reissued a “sell (d-)” rating on shares of Domo in a research report on Wednesday, January 21st. Finally, TD Cowen reduced their price objective on shares of Domo from $16.00 to $9.00 and set a “buy” rating on the stock in a report on Friday, February 20th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, three have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $8.64.

Institutional Trading of Domo

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Headlands Technologies LLC acquired a new stake in shares of Domo during the second quarter worth about $42,000. Kemnay Advisory Services Inc. purchased a new stake in Domo during the 4th quarter valued at approximately $88,000. Oxford Asset Management LLP purchased a new stake in Domo during the 4th quarter valued at approximately $88,000. Public Employees Retirement System of Ohio acquired a new stake in Domo during the 4th quarter worth approximately $92,000. Finally, Raymond James Financial Inc. acquired a new stake in Domo during the 2nd quarter worth approximately $122,000. Institutional investors and hedge funds own 76.64% of the company’s stock.

Domo News Roundup

Here are the key news stories impacting Domo this week:

• Positive Sentiment: Record forward demand metrics: Domo reported record quarterly billings of $111.2M (+8% Y/Y), Subscription RPO of $437.9M (+8% Y/Y) and an 88%+ gross retention — signs of improving, recurring demand that support better revenue visibility. Domo’s Breakout Quarter
• Positive Sentiment: AI monetization appears to be driving upsells: management highlighted operational AI and consumption?based features (App Catalyst) with reported 111% net revenue retention for consumption customers, indicating customers are increasing spend. This supports upside if adoption continues. AI Growth Engine
• Neutral Sentiment: Mixed earnings prints: Domo beat sell?side consensus on non?GAAP adjusted EPS (~$0.03) and revenue ($79.6M), but GAAP results and adjustments caused mixed headlines — the beat sparked after?hours gains but didn’t resolve forward concerns. Q4 Beats
• Neutral Sentiment: Strategic review and activist attention: the board launched a review of strategic alternatives and a new activist investor presence is prompting a valuation reassessment — a potential catalyst but outcome and timing are uncertain. Assessing Domo Valuation
• Negative Sentiment: Conservative FY?2027 guidance: management issued revenue guidance (~$317M) well below Street consensus (~$353M), which undercut the post?earnings rally and raised doubts about near?term growth. Guidance & Valuation
• Negative Sentiment: Analyst downgrades and target cuts: multiple firms trimmed targets and shifted ratings (Lake Street to $7/hold; DA Davidson to $6/neutral; Cantor Fitzgerald down to $8 though still overweight) — these cuts amplify selling pressure and tighten near?term upside expectations. Analyst Moves
• Negative Sentiment: Balance?sheet and debt concerns persist: several writeups flagged leverage and competitive headwinds as longer?term risks that may limit valuation multiple expansion absent sustained top?line acceleration. Debt Worries

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.