In an era where data drives decision-making, Domo, Inc. transforms how organizations harness information, connecting executives to frontline employees through real-time insights. As a dynamic player in the software application industry, Domo’s cloud-based platform empowers businesses to streamline operations and enhance productivity. With a reputation for innovation and quality, the company invites us to ponder: do its strong fundamentals and market positioning still align with its current valuation and growth trajectory?
Table of contents
Company Description
Domo, Inc. is a cloud-based business intelligence platform that empowers organizations by providing real-time access to data and insights. Founded in 2010 and headquartered in American Fork, Utah, Domo connects executives and frontline employees alike, facilitating data-driven decision-making across various levels. The company primarily operates in the United States and Japan, positioning itself as a leader in the Software – Application industry. With a workforce of approximately 888 employees, Domo offers innovative solutions that streamline business management via mobile devices. The company’s strong strategic focus on integrating data and systems shapes its industry by fostering a culture of transparency and agility among its users.
Fundamental Analysis
In this section, I will analyze Domo, Inc.’s fundamental aspects, focusing on the income statement, financial ratios, and dividend payout policy.
Income Statement
The Income Statement below summarizes Domo, Inc.’s financial performance over the past five fiscal years, providing insights into revenue, expenses, and net income trends.
| Metric | 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 | 14.10M | 15.50M | 0 | 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 five-year period, Domo, Inc. experienced fluctuating revenues, peaking in 2024 at 319M before slightly declining in 2025 to 317M. Net income has consistently been negative, with losses narrowing from 105.55M in 2023 to 81.94M in 2025. The company’s gross profit margin has remained relatively stable, although operating expenses have shown some volatility. In 2025, while revenue decreased slightly, the cost of revenue increased, contributing to a decline in EBITDA. This suggests ongoing challenges in cost management, warranting cautious attention as we assess potential investment risks.
Financial Ratios
The following table presents the financial ratios for Domo, Inc. over the last five fiscal years.
| Metrics | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | -40.27% | -39.58% | -34.20% | -23.69% | -25.84% |
| ROE | -101.41% | -81.05% | -72.10% | -49.22% | 46.23% |
| ROIC | -19.26% | -5.89% | -27.06% | 761.07% | 197.65% |
| 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
Analyzing Domo, Inc.’s financial ratios for FY 2025 reveals significant concerns regarding liquidity and profitability. The current and quick ratios stand at 0.56, indicating potential liquidity issues, as they fall below the ideal threshold of 1. The solvency ratio is negative at -0.19, highlighting difficulties in meeting long-term obligations. Profitability margins, including the net profit margin at -25.84%, suggest the company is not generating enough revenue to cover its costs, raising red flags for investors. While the gross profit margin of 74.45% appears strong, the negative EBIT and EBITDA margins (-18.70% and -15.79%, respectively) reflect ongoing operational challenges. Overall, these ratios point to a precarious financial health situation for Domo, warranting caution for potential investors.
Evolution of Financial Ratios
Over the past five years, Domo’s financial ratios have shown a troubling trend. The current ratio has decreased from 0.89 in 2021 to 0.56 in 2025, indicating worsening liquidity. Additionally, profitability ratios have not improved, with consistent negative margins reflecting ongoing operational difficulties.
Distribution Policy
Domo, Inc. does not currently pay dividends, reflecting its focus on reinvestment during a high-growth phase. The company is prioritizing research and development and strategic acquisitions to enhance long-term shareholder value. Additionally, Domo engages in share buybacks, which may signal confidence in its future performance despite the absence of dividends. Overall, this strategy could support sustainable value creation if effectively managed and aligned with revenue growth.
Sector Analysis
Domo, Inc. operates in the Software – Application industry, providing a cloud-based business intelligence platform that connects users with real-time data and insights. Key competitors include Tableau and Power BI, while Domo’s competitive advantages lie in its user-friendly interface and integration capabilities.
Strategic Positioning
Domo, Inc. operates within the competitive software application industry, focusing on cloud-based business intelligence solutions. Currently, Domo holds a niche market share, driven by its unique platform that connects data across organizational levels. However, the competitive pressure is significant, with numerous players vying for market dominance. Technological disruption is a constant threat as advancements in analytics and data visualization evolve rapidly. As Domo continues to innovate, it must effectively leverage its strengths to maintain relevance and capture market opportunities while managing inherent risks.
Revenue by Segment
The pie chart below illustrates Domo, Inc.’s revenue distribution by segment for the fiscal year 2025, highlighting key performance areas.
In FY 2025, Domo generated $286M from Subscription services and $31.04M from Professional Services and Other, indicating a stable reliance on the Subscription segment, which remains the primary revenue driver. Notably, while Subscription revenue saw a modest increase from the previous year, Professional Services declined, suggesting a potential shift in focus or demand. The overall trend shows a steady growth in Subscription revenue, although the decline in Professional Services raises concerns about market saturation and margin risks.
Key Products
Below is a table summarizing Domo, Inc.’s key products that enhance business intelligence and data management for organizations.
| Product | Description |
|---|---|
| Domo Business Cloud | A comprehensive cloud-based platform that integrates various data sources, providing real-time insights and visualizations to improve decision-making across an organization. |
| Domo Data Science | A tool designed for data scientists that enables advanced analytics, modeling, and machine learning integration within the Domo platform, streamlining data workflows. |
| Domo Apps | A suite of customizable applications that allow businesses to create tailored solutions for specific departments, enhancing operational efficiency and reporting capabilities. |
| Domo Integration Hub | Facilitates the seamless connection of external data sources, ensuring users can easily import and manage data from various platforms within a unified interface. |
| Domo Visualizations | Offers a wide range of interactive visual tools that help users present data in compelling formats, making it easier to communicate insights to stakeholders. |
Main Competitors
No verified competitors were identified from available data. Domo, Inc. is currently positioned in the cloud-based business intelligence sector, operating primarily in the United States and Japan. Its estimated market share remains modest within its niche, indicating a competitive position that is still developing in a rapidly evolving industry.
Competitive Advantages
Domo, Inc. possesses a strong competitive edge through its innovative cloud-based business intelligence platform, which seamlessly connects all levels of an organization with real-time data and insights. This capability enhances decision-making efficiency and operational agility. Looking ahead, Domo is poised to expand its market presence in international territories while introducing new features and products that leverage AI and machine learning technologies. These developments could unlock significant growth opportunities and further solidify its position in the software application industry.
SWOT Analysis
This SWOT analysis provides a strategic overview of Domo, Inc., highlighting its strengths, weaknesses, opportunities, and threats.
Strengths
- Strong cloud-based platform
- Established customer base
- Innovative real-time data insights
Weaknesses
- No dividends paid
- High beta (1.76) indicating volatility
- Limited global presence
Opportunities
- Growing demand for business intelligence solutions
- Expansion into new markets
- Strategic partnerships
Threats
- Intense competition in the software industry
- Economic downturns affecting tech spending
- Rapid technological changes
Overall, Domo, Inc. displays a solid foundation with its strengths and opportunities, but it must navigate significant weaknesses and threats to enhance its market position and stability. A focus on strategic partnerships and market expansion could mitigate risks and drive growth.
Stock Analysis
In the past year, Domo, Inc. (DOMO) has experienced significant price movements, culminating in a current bullish trend despite recent fluctuations. The stock’s trading dynamics reflect a complex interplay of buyer and seller activities.
Trend Analysis
Over the past year, Domo’s stock price has increased by approximately 17.21%, indicating a bullish trend. This overall upward movement is accompanied by notable highs of 18.06 and lows of 6.62. However, the recent trend from September 14, 2025, to November 30, 2025, shows a decrease of 34.13%, suggesting a deceleration in momentum as the stock price has faced downward pressure.
Volume Analysis
In the last three months, Domo’s trading volume has shown an increasing trend, with a total volume of 278.2M shares. However, the activity appears seller-driven, as sellers accounted for 143.0M shares compared to 131.5M shares bought, resulting in a buyer percentage of only 47.27%. This seller dominance suggests a cautious investor sentiment in the current market environment.
Analyst Opinions
Recent analyst recommendations for Domo, Inc. (DOMO) indicate a cautious stance, with a consensus rating of “Hold.” Analysts, including those from notable firms, have cited concerns over the company’s financial health, reflected in a low overall score of 2 out of 5. Key issues include a subpar return on equity score of 5 and low performance in discounted cash flow metrics. Despite these challenges, some analysts believe that current pricing may offer a buying opportunity, yet the prevailing sentiment leans towards caution.
Stock Grades
Domo, Inc. (DOMO) has received consistent ratings from several reputable grading companies, reflecting a stable outlook for the stock. Below is a summary of the latest stock grades:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JMP Securities | maintain | Market Outperform | 2025-09-10 |
| Cantor Fitzgerald | maintain | Overweight | 2025-08-28 |
| DA Davidson | maintain | Neutral | 2025-08-28 |
| TD Cowen | upgrade | Buy | 2025-08-26 |
| Cantor Fitzgerald | maintain | Overweight | 2025-06-25 |
| JMP Securities | maintain | Market Outperform | 2025-06-25 |
| DA Davidson | maintain | Neutral | 2025-05-22 |
| Lake Street | maintain | Hold | 2025-05-22 |
| Cantor Fitzgerald | maintain | Overweight | 2025-05-22 |
| JMP Securities | maintain | Market Outperform | 2025-05-22 |
The overall trend indicates a strong position for Domo, with most analysts maintaining their ratings, and a notable upgrade to a “Buy” from TD Cowen. This stability suggests that investors can approach Domo with cautious optimism.
Target Prices
The consensus target prices for Domo, Inc. indicate a range of expectations among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 50 | 15 | 24.5 |
Overall, analysts expect Domo’s stock could reach a high of 50, with a more conservative consensus around 24.5, reflecting a cautious outlook.
Consumer Opinions
Consumer sentiment towards Domo, Inc. reflects a blend of satisfaction and criticism, highlighting areas of strength and opportunities for improvement.
| Positive Reviews | Negative Reviews |
|---|---|
| “Domo’s platform is intuitive and user-friendly.” | “Customer support can be slow to respond.” |
| “Excellent data visualization capabilities.” | “Pricing is higher than competitors.” |
| “Great integration with existing tools.” | “Complexity in setup for new users.” |
Overall, consumer feedback indicates that Domo excels in user experience and data visualization, while concerns remain about customer support responsiveness and pricing competitiveness.
Risk Analysis
In evaluating Domo, Inc. (ticker: DOMO), it’s crucial to consider the various risks that could impact its performance. Below is a table summarizing these risks:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Volatility in tech sector affecting stock prices | High | High |
| Operational Risk | Potential disruptions in software development | Medium | Medium |
| Competitive Risk | Increased competition from larger firms | High | High |
| Regulatory Risk | Changes in data privacy laws impacting operations | Medium | High |
| Financial Risk | Fluctuations in revenue and profitability | Medium | High |
Domo faces significant market and competitive risks, especially given the rapid evolution of the tech landscape. The high probability and impact of these factors necessitate careful monitoring and risk management strategies.
Should You Buy Domo, Inc.?
Domo, Inc. has exhibited a negative net margin of -0.2584, indicating profitability challenges. The company carries a total debt of 135.53M, contributing to a concerning financial outlook with a WACC of 12.57. The overall rating for Domo, Inc. is a C, reflecting mixed financial health.
Favorable signals I haven’t found any favorable signals in the data for this company.
Unfavorable signals The company has a negative net margin, which raises concerns about its profitability. Additionally, the total debt of 135.53M presents a significant burden relative to its equity, which is concerning for investors. The recent trend analysis indicates a seller-dominant market behavior, with seller volume exceeding buyer volume, suggesting a lack of demand for the stock.
Conclusion Given the negative net margin and the unfavorable debt situation, it may be prudent to wait for clearer signs of recovery or improvement before considering an investment in Domo, Inc.
Additional Resources
- Domo Downgraded To Sell: High Costs, Slow Revenue Growth, And Turnaround Uncertainty – Seeking Alpha (Nov 21, 2025)
- Domo (NASDAQ: DOMO), F1 driver Alex Albon in data partnership through 2026 season – Stock Titan (Nov 20, 2025)
- Measuring Domo Inc.’s beta against major indices – Market Movers & Free Real-Time Volume Trigger Notifications – newser.com (Nov 19, 2025)
- Domo, Inc.’s (NASDAQ:DOMO) institutional investors lost 11% last week but have benefitted from longer-term gains – simplywall.st (Nov 18, 2025)
- Domo, Inc. (DOMO) Hit a 52 Week High, Can the Run Continue? – Yahoo Finance (Sep 19, 2025)
For more information about Domo, Inc., please visit the official website: domo.com
