Breaking Down Domo, Inc. (DOMO) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments? Ever wondered about the financial stability of a company before diving in? Let's dissect Domo, Inc. (DOMO), a player in the cloud-based business intelligence space. In fiscal year 2024, the company reported a total revenue of $319.0 million, marking a 3% increase year-over-year, with subscription revenue accounting for $285.5 million, a 5% increase. However, billings saw a slight decrease of 1%, totaling $321.1 million. With a GAAP net loss of $75.6 million, how should investors interpret these figures? Dive in as we break down Domo's financial health and what it means for potential investors.

Domo, Inc. (DOMO) Revenue Analysis

Domo, Inc. primarily generates revenue through subscriptions to its cloud-based business intelligence platform. This platform provides data visualization, analytics, and collaboration tools. The company's revenue is derived from various subscription plans tailored to different organizational sizes and needs.

Domo's fiscal year ends in January. For the fiscal year 2024, Domo reported total revenue of $322.2 million, representing a growth of 10% year-over-year. Subscription revenue accounted for $282.4 million of the total, a 10% increase compared to the previous year. This indicates that the vast majority of Domo's revenue is recurring and subscription-based.

Here's a breakdown:

• Subscription Revenue: $282.4 million (FY2024), up 10% year-over-year
• Total Revenue: $322.2 million (FY2024), up 10% year-over-year

While specific regional revenue breakdowns are not always detailed in public filings, Domo generally targets businesses in North America, EMEA (Europe, Middle East, and Africa), and Asia-Pacific. The company does not specifically break out revenue by geographic region in its financial statements.

There haven't been significant changes in Domo's revenue streams recently; the company remains focused on its core cloud-based platform. Domo continues to invest in product development and sales & marketing efforts to drive further subscription growth.

A closer look at Domo’s revenue composition and growth trends reveals the following details:

• Focus on Subscription Model: Domo’s consistent growth in subscription revenue highlights the effectiveness of its business model.
• Growth Rate: The 10% year-over-year increase in total revenue demonstrates steady expansion.
• Strategic Investments: Domo’s ongoing investments in its platform and market reach are aimed at sustaining and accelerating revenue growth.

Here is a table summarizing Domo's revenue performance:

For more insights into Domo, Inc. (DOMO) and its investors, check out this related article: Exploring Domo, Inc. (DOMO) Investor Profile: Who’s Buying and Why?

Domo, Inc. (DOMO) Profitability Metrics

Analyzing Domo, Inc.'s (DOMO) profitability involves examining several key financial metrics that provide insights into the company's ability to generate profits relative to its revenue, assets, and equity. These metrics include gross profit, operating profit, and net profit margins.

For the fiscal year 2024, Domo, Inc. reported a revenue of $319.0 million. The cost of goods sold was $75.47 million, resulting in a gross profit of $243.52 million. However, the company's operating expenses amounted to $373.87 million, leading to an operating income of -$54.88 million. The net loss for the year was $75.6 million, or $2.10 per share, based on 36.1 million weighted-average shares outstanding. Mission Statement, Vision, & Core Values of Domo, Inc. (DOMO).

Here's a breakdown of Domo's profitability metrics based on available data:

• Gross Profit: For the quarter ended September 30, 2024, Domo's gross profit was $59.803 million. For the fiscal year 2024, the gross profit was $243.52 million with a gross margin of 74% for the year ended January 31, 2025.
• Operating Profit/Loss: For fiscal year 2024, the operating loss was -$54.88 million. The GAAP operating margin for Q3 2025 was reported as negative 14%, while the non-GAAP operating margin was 3%.
• Net Profit/Loss: Domo has been experiencing net losses. For fiscal year 2024, the net loss was $75.6 million. For Q3 fiscal year 2025, the GAAP net loss was $18.8 million ($0.48 per share), and the non-GAAP net loss was $3.2 million ($0.08 per share).

Domo's financial performance in fiscal year 2024 can be summarized as follows:

To provide a more detailed view, below is a table summarizing key profitability metrics for fiscal year 2025:

Over the years, Domo's revenue has generally increased, but profitability has remained a challenge. In fiscal year 2024, total revenue was $319.0 million, a 3% increase year-over-year. However, the company still reported a net loss of $75.6 million. The trend of increasing revenue but persistent net losses suggests that while Domo is growing its sales, it struggles to manage costs and achieve profitability.

Compared to the previous years, Domo's financial performance reveals the following:

• 2022: Revenue of $258.0 million and net loss of $102.1 million.
• 2023: Revenue of $308.6 million and net loss of $105.6 million.
• 2024: Revenue of $319.0 million and net loss of $75.6 million.

While Domo's gross margin of 74.45% is relatively strong, its operating margin of -18.96% and net profit margin of -25.84% indicate significant challenges in converting revenue into profit. For Q4 2024, the non-GAAP operating margin was 4%, up 0.6 percentage points from the previous year, with a net loss of $1.9 million, compared to a net loss of $0.8 million a year prior.

Examining Domo's operational efficiency involves analyzing its cost management and gross margin trends. The cost of revenue for Domo's corporate customers increased by 23.17% in Q3 2024 year-on-year, while Domo's revenue decreased by 0.12%. This indicates potential inefficiencies in managing the costs associated with generating revenue. Despite increases in cost of revenue, Domo has managed to maintain a relatively stable gross margin. For example, in Q3 2025, the gross margin remained stable at 75%, even with a 6% increase in the cost of revenue.

In Q3 2025, Domo's subscription gross margin was 82.4%. The company anticipates this margin to increase to the mid-80s in the long term. Efforts to keep costs aligned with revenue have resulted in a non-GAAP operating margin of positive 2.5%. The non-GAAP net loss was $3.2 million, or $0.08 per share, based on 38.8 million weighted average shares outstanding.

For the full fiscal year 2024, Domo's GAAP operating margin increased by 12 percentage points year-over-year, and the non-GAAP operating margin increased by 5 percentage points. This improvement suggests that Domo's cost management strategies are becoming more effective.

Domo's ability to improve its financial performance will depend on:

• Continuing to grow revenue through strategic initiatives like partner collaborations and expanding its customer base.
• Improving cost management to increase operating and net profit margins.
• Leveraging its technology and AI capabilities to provide value to customers.

Domo, Inc. (DOMO) Debt vs. Equity Structure

Understanding Domo, Inc. (DOMO)'s financial health requires a close examination of its debt and equity structure. This involves analyzing the company's debt levels, how it compares to industry standards, and how it strategically uses debt and equity to fund its operations and growth. Let's delve into the specifics of Domo, Inc. (DOMO)'s approach to financing.

As of January 31, 2024, Domo, Inc. (DOMO) reported a total debt of $298.8 million. This figure includes both short-term and long-term debt obligations, reflecting the company's strategy in managing its financial leverage. A detailed look at the components reveals:

• Short-term debt: $2.3 million
• Long-term debt: $296.5 million

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. Domo, Inc. (DOMO)'s debt-to-equity ratio stands at -2.6 as of January 31, 2024. This indicates that Domo, Inc. (DOMO.)'s liabilities are significantly higher relative to its equity.

To provide a clearer picture, here’s a breakdown of Domo, Inc. (DOMO)'s capital structure as of January 31, 2024:

• Total Debt: $298.8 million
• Total Equity: $-114.7 million

Understanding how Domo, Inc. (DOMO) manages its debt in comparison to its equity is essential for investors. The balance between these two components can significantly impact the company's financial stability and growth potential. For more insights into Domo, Inc. (DOMO)'s investor profile, check out: Exploring Domo, Inc. (DOMO) Investor Profile: Who’s Buying and Why?

Recent financial activities, such as debt issuances or refinancing, play a crucial role in shaping Domo, Inc. (DOMO)'s capital structure. For instance, the company’s financial statements provide details on interest expenses and the nature of its debt agreements, offering clues into how Domo, Inc. (DOMO) manages its obligations. As of fiscal year 2024, Domo, Inc. (DOMO) reported $12.4 million in interest expenses.

Here's a snapshot of Domo, Inc. (DOMO)'s recent financial activities related to its debt:

Balancing debt and equity is vital for Domo, Inc. (DOMO). While debt can provide leverage and fuel growth, excessive debt can pose risks, especially if the company faces challenges in meeting its obligations. Equity, on the other hand, provides a cushion and reflects investor confidence. Domo, Inc. (DOMO)'s strategy in managing this balance is a key factor in assessing its long-term financial health and investment potential.

Domo, Inc. (DOMO) Liquidity and Solvency

When evaluating Domo, Inc.'s financial health, understanding its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

Here's an overview of key liquidity measures for Domo, Inc. based on the latest available data:

• Current Ratio: This ratio measures a company's ability to pay short-term obligations with its current assets.
• Quick Ratio: Similar to the current ratio, but excludes inventory to provide a more conservative view of liquidity.

Analyzing working capital trends provides insights into Domo's operational efficiency. Working capital is the difference between a company's current assets and current liabilities. Monitoring changes in these components can reveal how effectively Domo manages its short-term resources.

A review of Domo's cash flow statements offers further clarity. Key areas to examine include:

• Operating Cash Flow: Cash generated from the company's core business activities.
• Investing Cash Flow: Cash used for investments in assets, such as property, plant, and equipment.
• Financing Cash Flow: Cash flow related to debt, equity, and dividends.

Domo Inc.'s financial performance can be further illuminated by examining its key financial ratios and cash flow trends. For example, the fiscal year 2024 data indicates:

These figures provide a snapshot of Domo's financial activities and can be used to assess its liquidity position. While the company maintains a significant cash balance, consistent negative cash flow from operations may raise concerns about long-term sustainability unless addressed through improved efficiency or additional financing.

For more insights into Domo, Inc. and its investors, consider exploring this resource: Exploring Domo, Inc. (DOMO) Investor Profile: Who’s Buying and Why?

Domo, Inc. (DOMO) Valuation Analysis

Assessing whether Domo, Inc. (DOMO) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. This detailed examination helps investors make informed decisions about DOMO's market position.

Here's a breakdown of essential valuation metrics:

• Price-to-Earnings (P/E) Ratio: As Domo, Inc. currently has negative earnings, the P/E ratio is not meaningful for valuation purposes.
• Price-to-Book (P/B) Ratio: The P/B ratio can offer insights into how the market values Domo's net assets. However, as of now, reliable data for Domo's P/B ratio isn't readily available.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: Similar to the P/E ratio, the EV/EBITDA ratio may not be useful if EBITDA is negative, which is the case with Domo, Inc. currently.

Analyzing Domo Inc.'s stock performance over the past year provides context on market sentiment and investor confidence. As of April 18, 2025, DOMO's stock is trading at $15.94. The stock has shown a volatile trend over the last 12 months. The 52-week high is $20.94, and the 52-week low is $11.72.

Domo, Inc. does not currently offer a dividend yield, as the company has not been distributing dividends. Therefore, dividend yield and payout ratios are not applicable.

Analyst consensus provides a summarized view of professional opinions on Domo's stock. Currently, the consensus on Domo's stock is 'hold'.

For further insights into Domo, Inc. (DOMO) and its investors, explore: Exploring Domo, Inc. (DOMO) Investor Profile: Who’s Buying and Why?

Domo, Inc. (DOMO) Risk Factors

Domo, Inc. (DOMO) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges highlighted in their financial reports.

Industry Competition: The cloud-based business intelligence (BI) and analytics market is intensely competitive. Domo faces competition from large, well-established players like Microsoft (Power BI), Salesforce (Tableau), and Qlik, as well as numerous smaller, specialized vendors. This competition can lead to pricing pressure, reduced sales, and loss of market share. Maintaining a technological advantage and differentiating its offerings are critical for Domo to compete effectively. Intense competition could prevent Domo from attaining profitability.

Regulatory Changes: Domo is subject to various regulations, including data privacy laws (such as GDPR and CCPA), securities laws, and industry-specific regulations. Changes in these regulations could increase compliance costs, require significant changes to its products and services, and expose Domo to potential liabilities. For instance, stricter data privacy rules could limit Domo's ability to collect and use customer data, which is crucial for its analytics services.

Market Conditions: Economic downturns, geopolitical instability, and other adverse market conditions can negatively impact Domo's business. During economic slowdowns, businesses tend to cut discretionary spending, which can reduce demand for Domo's platform. Additionally, fluctuations in currency exchange rates can affect Domo's international revenues and expenses.

Operational Risks:

• Data Security: As a cloud-based platform, Domo is vulnerable to data breaches and cyberattacks. A successful attack could compromise sensitive customer data, disrupt operations, damage its reputation, and result in significant financial losses.
• Platform Reliability: Any significant disruptions to its platform, whether due to technical glitches, infrastructure failures, or other issues, could harm customer satisfaction and lead to customer churn.
• Scalability: Domo needs to ensure its platform can handle increasing volumes of data and user traffic as its customer base grows. Failure to scale effectively could result in performance issues and limit its growth potential.

Financial Risks:

• Cash Flow Management: Maintaining adequate cash flow is essential for funding operations, investing in growth initiatives, and meeting debt obligations. If Domo fails to manage its cash flow effectively, it may need to raise additional capital, which could dilute existing shareholders.
• Subscription Renewals: Domo relies on subscription renewals for a significant portion of its revenue. If renewal rates decline, it could negatively impact its financial performance.
• Acquisition Integration: Domo's ability to successfully integrate acquired companies and technologies is crucial for realizing the expected benefits of these acquisitions.

Strategic Risks:

• Innovation: The BI and analytics market is rapidly evolving, and Domo needs to continuously innovate and introduce new features and capabilities to remain competitive.
• Sales Execution: Effective sales execution is critical for acquiring new customers and expanding its presence in existing accounts.
• Brand Reputation: Any damage to Domo's brand reputation, whether due to product issues, security breaches, or other factors, could negatively impact its ability to attract and retain customers.

Mitigation Strategies: Domo's management team is likely implementing various strategies to mitigate these risks. These may include:

• Investing in cybersecurity measures to protect against data breaches.
• Implementing robust disaster recovery and business continuity plans.
• Diversifying its customer base to reduce reliance on any single customer or industry.
• Continuously monitoring and adapting to changes in the regulatory landscape.
• Investing in research and development to maintain a technological edge.

For more in-depth insights, you can explore: Breaking Down Domo, Inc. (DOMO) Financial Health: Key Insights for Investors

Domo, Inc. (DOMO) Growth Opportunities

For Domo, Inc. (DOMO), several factors could drive future expansion. These encompass product enhancements, broadening market reach, strategic alliances, and potential acquisitions. Domo's capacity to innovate its platform and adapt to the changing demands of the data analytics sector is vital for sustaining growth.

While pinpointing precise future revenue growth projections and earnings estimates demands a thorough analysis incorporating proprietary data, industry trends, and expert forecasts, several strategic initiatives and partnerships may significantly influence Domo's growth trajectory. Domo's focus on specific industries and development of tailored solutions could unlock new revenue streams. Furthermore, collaborations with other technology providers or service integrators could amplify its market presence and solution capabilities.

Here are some key growth drivers for Domo, Inc. (DOMO):

• Product Innovation: Continuous development and enhancement of the Domo platform to meet evolving customer needs and market demands.
• Market Expansion: Targeting new industries, geographies, and customer segments to broaden Domo's reach.
• Strategic Partnerships: Collaborating with other technology providers and service integrators to expand Domo's ecosystem and solution offerings.
• Acquisitions: Acquiring complementary technologies or businesses to enhance Domo's platform and capabilities.

To maintain a competitive edge, Domo, Inc. (DOMO) should leverage several key advantages:

• Scalable Cloud Platform: Domo’s cloud-native architecture allows it to efficiently serve businesses of all sizes, providing a robust and reliable data analytics solution.
• User-Friendly Interface: Domo's intuitive design and ease of use make it accessible to a wide range of users, from data scientists to business professionals.
• Extensive Integration Capabilities: Domo integrates with a vast array of data sources and applications, enabling users to consolidate and analyze data from across their organization.
• Real-Time Data Analytics: Domo provides real-time insights, empowering users to make timely decisions and respond quickly to changing business conditions.

Analyzing Domo's competitive advantages alongside its strategic initiatives provides insights into its potential for future growth. Keep in mind that these are qualitative assessments, and the actual financial performance will depend on successful execution and market conditions.

Here is a look at potential future growth strategies for Domo, Inc. (DOMO):

Learn more about Domo, Inc. (DOMO) in this related article: Exploring Domo, Inc. (DOMO) Investor Profile: Who’s Buying and Why?