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Domo shares plummet 9% as earnings miss analyst estimates

EditorRachael Rajan
Published 05/23/2024, 04:29 PM
© Reuters.
DOMO
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SILICON SLOPES, Utah - Domo, Inc. (NASDAQ:DOMO) reported its fiscal first quarter results with an adjusted net loss per share of -$0.33, which was below the analyst estimate of -$0.23.

The company's revenue reached $80.1 million, slightly surpassing the consensus estimate of $79.51 million. Despite the slight revenue beat, the stock price fell sharply by 9.5% due to the earnings miss.

The company's total revenue saw a modest increase of 1% YoY, with subscription revenue also up by 1% from the same quarter last year. However, billings experienced a 7% decline YoY.

Domo's CEO, Josh James, remains optimistic, citing "early signals from our strategic initiatives such as partner collaborations, consumption momentum and multi-use case customers," as reasons for confidence in the company's strategic priorities to reinforce its competitive position in the data and AI environment.

Looking ahead, Domo provided guidance for the second quarter of fiscal 2025, expecting revenue to be in the range of $76.0 million to $77.0 million. The midpoint of this range, $76.5 million, falls below the analyst consensus. Furthermore, the company anticipates an adjusted net loss per share between -$0.26 and -$0.30, based on 38.4 million weighted-average shares outstanding.

The company's GAAP operating margin decreased by 2 percentage points YoY, while the adjusted operating margin saw a more significant decrease of 7 percentage points. Domo ended the quarter with $61.2 million in cash, cash equivalents, and restricted cash.

Domo's recent achievements include winning five Dresner Advisory Services 2023 Technology Innovation Awards and ranking as the top vendor in several market studies for consecutive years. Additionally, the company was recognized on the Women Tech Council Shatter List for the seventh consecutive year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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