The chart below shows how DOMO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DOMO sees a -1.46% change in stock price 10 days leading up to the earnings, and a -9.42% change 10 days following the report. On the earnings day itself, the stock moves by -1.15%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Earnings Surprise: Domo, Inc. exceeded earnings expectations with a reported EPS of $-0.05, surpassing the expected $-0.18.
Strong Financial Performance: In Q4, Domo exceeded guidance for billings, revenue, non-GAAP EPS, and adjusted free cash flow, indicating strong financial performance.
Subscription RPO Growth Acceleration: Subscription RPO growth accelerated to 14% year over year, with long-term subscription RPO growth at 38% year over year, marking a significant milestone.
RPO Milestone Achievement: RPO surpassed the $400 million mark for the first time, indicating future revenue stability and customer commitment.
Customer Retention Success: Domo's consumption model has led to improved customer retention, with consumption customers achieving over 90% gross retention and over 100% net retention in FY 2025.
ARR Migration Progress: The company has successfully migrated 65% of its ARR to the consumption model, up from 5% two years ago, with expectations to reach 90% by the end of FY 2026.
Industry Awards and Innovation: Domo's AI and data products platform received multiple industry awards, highlighting its competitive edge and innovation in the market.
Sales Rep Productivity Improvement: The company reported a significant improvement in sales rep productivity, which is critical for efficient growth.
Improved Cash Generation: Domo's adjusted free cash flow was $6 million in Q4, with an increase in cash balance from $40.9 million in Q3 to $45.3 million in Q4, indicating improved cash generation.
Positive Cash Flow Outlook: The company expects to be cash flow positive in both Q1 and FY 2026, reflecting a positive financial outlook.
Negative
Retention Rate Analysis: Gross retention rate remains at 85%, which is below the long-term goal of 90%.
Financial Challenges Persist: Non-GAAP net loss of $1.8 million in Q4, indicating ongoing financial challenges despite beating earnings expectations.
Subscription Margin Decline: Subscription gross margin decreased to 81.4%, down sequentially due to capitalized software amortization timing.
Projected Net Loss Guidance: Guidance for FY 2026 indicates a non-GAAP net loss per share of $0.29 to $0.39, suggesting continued losses in the upcoming year.
Billings Guidance Shift: Billings guidance for Q1 reflects a shift of approximately $5 million in renewals to later quarters, indicating potential revenue timing issues.
Billings Growth Outlook: Expectations for low single-digit billings growth in Q2, which may signal slower growth compared to previous quarters.
Domo, Inc. (NASDAQ:DOMO) Q4 2025 Earnings Call Transcript
DOMO.O
3.41%