In an era where data drives decisions, Domo, Inc. empowers organizations to harness real-time insights like never before. As a pivotal player in the cloud-based business intelligence sector, Domo connects executives to frontline employees, transforming how businesses operate and innovate. With a commitment to quality and a reputation for cutting-edge technology, Domo continues to shape its industry landscape. As we dive into the investment analysis, the pressing question remains: do the fundamentals of Domo still support its current market valuation and growth potential?
Table of contents
Company Description
Domo, Inc. is a leading player in the cloud-based business intelligence sector, specializing in providing organizations with a platform that connects executives to frontline employees through real-time data and insights. Founded in 2010 and headquartered in American Fork, Utah, Domo operates primarily in the United States and Japan, delivering innovative solutions that enhance decision-making capabilities across various industries. The company’s offerings encompass a robust application software suite designed to facilitate data management and visualization, appealing to both large enterprises and smaller businesses. By focusing on data accessibility and user-friendly interfaces, Domo is strategically positioned to influence the future of business intelligence, driving efficiency and fostering an informed workforce.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of Domo, Inc., focusing on its income statement, financial ratios, and dividend payout policy.
Income Statement
The Income Statement provides a comprehensive overview of Domo, Inc.’s financial performance over the past five fiscal years, highlighting revenue and expenses.
| Income Statement | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 210.18M | 257.96M | 308.65M | 318.99M | 317.04M |
| Cost of Revenue | 56.75M | 67.15M | 73.08M | 75.47M | 80.99M |
| Operating Expenses | 226.52M | 279.29M | 324.44M | 298.40M | 295.33M |
| Gross Profit | 153.43M | 190.82M | 235.57M | 243.52M | 236.05M |
| EBITDA | -64.35M | -78.97M | -78.86M | -48.26M | -50.05M |
| EBIT | -73.09M | -88.47M | -88.87M | -54.88M | -59.28M |
| Interest Expense | 2.70M | 1.00M | 15.50M | 0.00 | 19.80M |
| Net Income | -84.63M | -102.11M | -105.55M | -75.57M | -81.94M |
| EPS | -2.89 | -3.19 | -3.10 | -2.10 | -2.13 |
| Filing Date | 2021-04-01 | 2022-03-23 | 2023-03-27 | 2024-03-28 | 2025-04-04 |
Interpretation of Income Statement
Over the past five years, Domo, Inc. has seen fluctuating revenue, peaking in 2024 at 319M before a slight decline in 2025 to 317M. Net income has consistently remained negative, though the rate of loss has improved slightly in the latest year. Gross profit margins have shown some stability, with a modest increase in 2024 before declining again in 2025. The most recent year indicates a concerning trend with increasing operating expenses, which may hinder future profitability if not addressed. Overall, while there are signs of operational efficiency, the persistent losses highlight the need for strategic adjustments to turn the financial tide.
Financial Ratios
The following table summarizes the financial ratios for Domo, Inc. across the available fiscal years.
| Financial Ratios | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | -40.27% | -39.58% | -34.20% | -23.69% | -25.84% |
| ROE | -1.01% | 81.05% | 72.10% | 49.22% | 46.23% |
| ROIC | -2.39% | -10.96% | -27.06% | 7.61% | 1.98% |
| P/E | -22.90 | -14.73 | -5.01 | -5.19 | -3.98 |
| P/B | -23.22 | -11.94 | -3.61 | -2.55 | -1.84 |
| Current Ratio | 0.89 | 0.73 | 0.68 | 0.65 | 0.56 |
| Quick Ratio | 0.89 | 0.73 | 0.68 | 0.65 | 0.56 |
| D/E | -1.26 | -0.99 | -0.88 | -0.84 | -0.76 |
| Debt-to-Assets | 48.50% | 50.77% | 53.19% | 57.38% | 63.23% |
| Interest Coverage | -4.78 | -6.27 | -5.73 | 0 | -2.99 |
| Asset Turnover | 0.97 | 1.05 | 1.27 | 1.41 | 1.48 |
| Fixed Asset Turnover | 11.42 | 7.59 | 8.43 | 8.23 | 8.17 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
Domo, Inc. shows concerning financial ratios for FY 2025. The liquidity ratios, with a current ratio of 0.56 and a quick ratio of 0.56, indicate insufficient short-term assets to cover liabilities. Solvency is alarming, evidenced by a solvency ratio of -0.19 and a debt-to-assets ratio of 0.63, suggesting over-leverage. Profitability is weak, with a gross profit margin of 74.45% but negative margins across ebit, ebitda, and net profit, indicating significant operational inefficiencies. Efficiency ratios, such as a receivables turnover of 4.43, suggest moderate collection performance, but the net income per share is -2.13, raising potential concerns for investors.
Evolution of Financial Ratios
Over the past five years, Domo’s financial ratios have shown a consistent trend of decline in profitability, with all profit margins remaining negative. Liquidity ratios have also decreased, reflecting growing challenges in meeting short-term obligations.
Distribution Policy
Domo, Inc. does not currently pay dividends, reflecting its focus on reinvestment for growth during this high-growth phase. The absence of dividends aligns with a strategy prioritizing research and development and potential acquisitions. Additionally, the company engages in share buybacks, indicating a commitment to returning value to shareholders. Overall, this approach may support long-term value creation, provided that the reinvestments yield favorable returns and the financial health stabilizes.
Sector Analysis
Domo, Inc. operates within the Software – Application sector, offering a cloud-based business intelligence platform that connects data and insights across organizations, facing competition from major players while leveraging unique data integration capabilities.
Strategic Positioning
Domo, Inc. operates within the competitive Software – Application industry, currently holding a market capitalization of approximately 350M. Despite a beta of 1.76 indicating higher volatility, Domo has established a niche in cloud-based business intelligence solutions, connecting key organizational stakeholders with real-time data. However, it faces significant competitive pressure from established players and emerging technologies. Domo’s recent price decline of over 23% suggests challenges in maintaining its market share amidst ongoing technological disruption. As an investor, I recommend closely monitoring these dynamics to assess potential risks and opportunities.
Revenue by Segment
The following pie chart illustrates Domo, Inc.’s revenue distribution by segment for the fiscal year 2025, highlighting key contributions from each area.
In FY 2025, Domo’s total revenue was primarily driven by the Subscription segment at 286M, demonstrating consistent growth compared to the previous year. The Professional Services and Other segment contributed 31M, although this reflects a slight decline from 33.5M in FY 2024. Over the recent years, the Subscription revenue has shown robust resilience, while the Professional Services segment has faced some volatility, indicating potential margin risks. Overall, the company appears to be shifting its focus towards strengthening its subscription-based offerings, which may enhance stability moving forward.
Key Products
Domo, Inc. offers a range of innovative products aimed at enhancing business intelligence and data management. Below is a table summarizing their key products:
| Product | Description |
|---|---|
| Domo Business Cloud | A comprehensive cloud-based platform that connects users with real-time data, allowing for informed decision-making across all levels of an organization. |
| Domo Workbench | A tool that enables users to prepare and transform data from various sources into a format suitable for analysis, enhancing data integrity and usability. |
| Domo Data Science | This product provides advanced analytics capabilities, allowing users to leverage machine learning and predictive analytics to drive business insights. |
| Domo Integration | A suite of APIs and connectors that facilitate seamless integration of external data sources, ensuring users can gather and analyze data from multiple platforms effortlessly. |
| Domo Dashboards | Customizable dashboards that present data visually, enabling users to track key performance indicators (KPIs) and metrics in real-time. |
These products collectively empower organizations to harness their data effectively, driving better business outcomes.
Main Competitors
The competitive landscape for Domo, Inc. in the Software – Application industry reveals several key players that are noteworthy for investors.
| Company | Market Cap |
|---|---|
| Daily Journal Corporation | 635M |
| Sprout Social, Inc. | 623M |
| Cerence Inc. | 546M |
| Digital Turbine, Inc. | 533M |
| Weave Communications, Inc. | 502M |
| Arqit Quantum Inc. | 465M |
| Bumble Inc. | 385M |
| Domo, Inc. | 350M |
| Backblaze, Inc. | 288M |
| Blaize Holdings, Inc. | 268M |
| NovaBridge Biosciences | 209M |
These competitors primarily operate in the North American market, each providing unique solutions in the cloud-based business intelligence and application software space. Understanding the positioning of these companies can help investors assess potential growth opportunities and risks in their portfolios.
Competitive Advantages
Domo, Inc. benefits from a robust cloud-based business intelligence platform that connects stakeholders across organizations, providing real-time data access and insights. This unique integration capability enhances decision-making processes, a significant advantage in today’s data-driven world. Looking ahead, Domo is poised to explore new markets and develop innovative products tailored to evolving customer needs, especially in mobile management solutions. With a focus on scalability and user experience, I believe Domo can capture greater market share, presenting promising growth opportunities for investors.
SWOT Analysis
This SWOT analysis provides a framework to evaluate Domo, Inc.’s current position and strategic direction.
Strengths
- Strong cloud-based platform
- Established market presence
- High growth potential
Weaknesses
- High beta (1.76)
- Lack of dividends
- Volatile stock price
Opportunities
- Expanding global market
- Increased demand for business intelligence
- Potential partnerships
Threats
- Intense competition
- Economic downturns
- Rapid technology changes
The overall SWOT assessment indicates that while Domo, Inc. possesses significant strengths and opportunities, it must address its weaknesses and mitigate external threats to enhance its market position and strategic growth.
Stock Analysis
Over the past year, Domo, Inc. (DOMO) has experienced notable price movements, culminating in a bearish trend that reflects the stock’s downward trajectory amid prevailing market dynamics.
Trend Analysis
The stock has exhibited a percentage change of -5.76% over the past year, indicating a bearish trend. The analysis shows an acceleration status of deceleration, with the highest price recorded at 18.06 and the lowest at 6.62. Given the percentage change, it is evident that the stock is moving downward, and this trend is not showing signs of reversal.
Volume Analysis
In the last three months, total trading volume for DOMO reached 284.01M, with seller-driven activity prevailing as sellers accounted for 139.57M (approximately 49.2%) of the volume compared to buyer activity at 133.01M (46.83%). The volume trend has been increasing, suggesting a growing market participation, albeit with a seller-dominant sentiment reflecting cautious investor behavior.
Analyst Opinions
Recent analyst recommendations for Domo, Inc. (DOMO) suggest a cautious stance, with a current rating of “C.” Analysts highlight concerns regarding the company’s financial metrics, particularly its low scores in discounted cash flow, debt-to-equity, and price-to-earnings ratios. Notably, the return on equity score is a relative strength, but overall, the sentiment leans towards a hold position. The consensus for the current year remains neutral, indicating that investors should monitor developments closely before making any significant moves.
Stock Grades
Domo, Inc. (DOMO) has received several grades from reputable analysts, reflecting a stable outlook with some upgrades in recent months.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | Maintain | Neutral | 2025-12-05 |
| TD Cowen | Maintain | Buy | 2025-12-05 |
| Lake Street | Maintain | Hold | 2025-12-05 |
| DA Davidson | Maintain | Neutral | 2025-12-01 |
| JMP Securities | Maintain | Market Outperform | 2025-09-10 |
| DA Davidson | Maintain | Neutral | 2025-08-28 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-08-28 |
| TD Cowen | Upgrade | Buy | 2025-08-26 |
| JMP Securities | Maintain | Market Outperform | 2025-06-25 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-06-25 |
Overall, the trend indicates a consistent assessment among analysts, with a mix of “Neutral,” “Buy,” and “Market Outperform” ratings. Notably, TD Cowen upgraded its rating from “Hold” to “Buy,” suggesting a positive shift in sentiment towards Domo, Inc.
Target Prices
The consensus target prices for Domo, Inc. (DOMO) suggest a moderate outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 50 | 10 | 22.5 |
Overall, analysts indicate a significant range in expectations, with a consensus target price of 22.5, suggesting potential for growth in the stock’s value.
Consumer Opinions
Consumer sentiment towards Domo, Inc. reflects a diverse range of experiences, underscoring both strengths and areas for improvement.
| Positive Reviews | Negative Reviews |
|---|---|
| “Domo’s analytics are user-friendly and intuitive.” | “Customer support is slow to respond.” |
| “The platform significantly improves our data visualization.” | “Pricing is on the higher side for small businesses.” |
| “I appreciate the seamless integration with other tools.” | “Some features feel underdeveloped.” |
Overall, consumer feedback highlights Domo’s user-friendly analytics and strong integration capabilities as key strengths, while slow customer support and high pricing for smaller businesses are recurring weaknesses.
Risk Analysis
In evaluating Domo, Inc. (DOMO), I have identified several key risks that could impact its performance and investor returns.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in tech sector could affect stock price | High | High |
| Competition | Increased competition from larger tech firms | Medium | High |
| Regulatory Risks | Changes in data privacy laws may impact operations | Medium | Medium |
| Dependency on Key Clients | Revenue heavily reliant on a few major clients | High | High |
| Technological Changes | Rapid advancements may render services obsolete | Medium | High |
Overall, the most significant risks I see for Domo, Inc. are market volatility and dependency on key clients, both of which can heavily influence the company’s stability and growth prospects.
Should You Buy Domo, Inc.?
Domo, Inc. has exhibited a negative profitability trend with a net income of -82M in 2025, signaling ongoing value destruction as its ROIC (Return on Invested Capital) of -27.06% is significantly below its WACC (Weighted Average Cost of Capital) of 12.76%. The company’s debt levels remain concerning, reflected in a total debt of 135.53M against total equity of 340.16M, resulting in a debt-to-equity ratio of 0.40. The overall rating of C may suggest caution, as the fundamentals indicate a challenging environment for future growth.
Favorable signals
In the evaluation of Domo, Inc., there are several favorable elements to note. The company demonstrates a strong gross margin of 74.45%, indicating efficiency in production and pricing. Additionally, the return on equity (ROE) stands at a robust 46.23%, reflecting effective use of shareholder equity. Furthermore, the return on invested capital (ROIC) is significantly high at 197.65%, suggesting substantial value creation relative to the cost of capital. Moreover, the company shows favorable price-to-earnings (P/E) and price-to-book (P/B) ratios at -3.98 and -1.84, respectively, which may indicate undervaluation.
Unfavorable signals
Conversely, I have identified several unfavorable signals regarding Domo, Inc. The revenue growth is in decline, recorded at -0.61%, alongside a negative trend in gross profit growth at -3.07%. The company’s EBIT margin is also unfavorable at -18.7% along with an EBIT growth of -8.02%. Additionally, the net margin is notably negative at -25.84%, compounded by a net margin growth of -9.09%. Furthermore, the company is experiencing unfavorable liquidity ratios, with a current ratio of 0.56 and a quick ratio of 0.56. The debt-to-assets ratio stands at a concerning 63.23%, indicating a high level of debt, and the interest coverage ratio is unfavorable at -2.99.
Conclusion
Given the overall unfavorable opinion from both the income statement and ratios evaluation, it may appear prudent to wait for a clearer indication of recovery before considering any investment in Domo, Inc. The recent trend shows a bearish market with seller volume exceeding buyer volume, suggesting that buyers need to return for potential stabilization.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Domo Inc. Earnings Call Reveals Positive Outlook – TipRanks (Dec 06, 2025)
- Domo, Inc. (NASDAQ: DOMO) Q3 2026 earnings call transcript – MSN (Dec 05, 2025)
- Domo Inc (DOMO) Q3 2026 Earnings Call Highlights: Record Operating Margin and Strategic … – Yahoo Finance (Dec 05, 2025)
- Domo, Inc. (NASDAQ:DOMO) Q3 2026 Earnings Call Transcript – Insider Monkey (Dec 05, 2025)
- Domo (DOMO) Analyst Rating Update: Lake Street Lowers Price Targ – GuruFocus (Dec 05, 2025)
For more information about Domo, Inc., please visit the official website: domo.com
