Nasdaq:DOMO
DOMO, INC.
DOMO delivers an intuitive cloud-based business intelligence platform that democratizes data access and accelerates decision-making for modern enterprises.
Key Metrics
Investment Thesis
Bull Case
Investors might consider DOMO due to its dominant position in the SMB and mid-market business intelligence space where customer stickiness remains high. The platform's continuous innovation in AI-driven analytics and its growing ecosystem of marketplace apps suggest strong future revenue diversification opportunities. If management can successfully pivot towards higher-margin subscription models and reduce operational burn, the current distressed valuation could offer significant upside potential upon a turnaround.
Bear Case
The lack of profitability over three consecutive years is a fundamental red flag that suggests the business model may require excessive capital to ever become self-sustaining. With total liabilities exceeding assets by over $174M, the company faces substantial solvency risks and limited flexibility to weather economic downturns or increase R&D spending. The heavy expenditure on marketing relative to revenue generation implies that customer acquisition costs are outpacing lifetime value, which is unsustainable for a software-as-a-service business without immediate margin improvement.
About DOMO, INC.
DOMO is a leading provider of business intelligence and analytics software solutions that empower organizations to transform raw data into actionable insights. Serving enterprises across various sectors including finance, healthcare, and retail, the company's platform enables real-time collaboration, customizable dashboards, and predictive modeling to drive operational efficiency and strategic growth.
Analysis
Management Discussion
Despite a slight revenue stabilization in 2025 at $317M compared to the prior year, DOMO continues to report significant net losses of $81.9M, with operating expenses heavily weighted towards marketing ($151.5M) and general administration ($55.9M). The negative cash flow from operations of $9.1M indicates that current revenue growth is not yet covering the burn rate required for sustainable unit economics, particularly given the substantial investment in research and development ($87.9M). While the company maintains a healthy current asset base relative to current liabilities, the widening deficit in shareholders' equity highlights the need for a clear path to positive cash conversion.
Industry Overview
The global business intelligence market is experiencing rapid growth driven by the explosion of enterprise data and the urgent need for real-time analytics across all departments. Dominated by established giants like Microsoft and Oracle alongside agile challengers, the industry is shifting towards cloud-native, AI-enhanced platforms that offer seamless integration and self-service capabilities. Success in this sector now depends heavily on ecosystem partnerships and the ability to deliver hyper-personalized analytics experiences that solve specific vertical challenges.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $308.6M | $319.0M | $317.0M |
| Cost of Revenue | $73.1M | $75.5M | $81.0M |
| Gross Profit | $235.6M | $243.5M | $236.1M |
| Operating Expenses | $324.4M | $298.4M | $295.3M |
| Operating Income | $-88.9M | $-54.9M | $-59.3M |
| R&D | $95.1M | $85.0M | $87.9M |
| G&A | $56.0M | $49.4M | $55.9M |
| Marketing | $173.3M | $163.9M | $151.5M |
| Stock-Based Comp | $83.9M | $64.3M | $59.4M |
| D&A | — | — | $9.2M |
| Depreciation | $5.3M | $6.6M | — |
| Amortization | $100.0K | $100.0K | $600.0K |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $-15.5M | $-19.4M | $-21.4M |
| Pre-Tax Income | $-104.4M | $-74.3M | $-80.7M |
| Income Tax | $1.2M | $1.3M | $1.2M |
| Continuing Ops | $-105.6M | $-75.6M | $-81.9M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-105.6M | $-75.6M | $-81.9M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-105.6M | $-75.6M | $-81.9M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $168.8M | $153.7M | $141.7M |
| Cash & Equivalents | $66.5M | $60.9M | $45.3M |
| Accounts Receivable | $79.0M | $67.2M | $71.5M |
| Prepaid Expenses | $7.4M | $9.6M | $9.1M |
| Other Current Assets | $15.9M | $16.0M | $15.8M |
| Long-Term Assets | $73.3M | $71.9M | $72.7M |
| PP&E (Net) | $21.4M | $27.0M | $28.6M |
| Intangibles | $2.8M | $2.7M | — |
| Goodwill | $9.5M | $9.5M | $9.5M |
| Operating Leases | $15.3M | $11.7M | $10.2M |
| Other LT Assets | $24.4M | $20.9M | $24.4M |
| Total Assets | $242.1M | $225.7M | $214.3M |
| Current Liabilities | $248.6M | $237.8M | $254.9M |
| Accounts Payable | $12.1M | $4.3M | $10.0M |
| Current Leases | $4.9M | $4.8M | $5.7M |
| Deferred Revenue | $182.3M | $185.2M | $178.3M |
| Other Current Liab | $0 | $0 | $0 |
| Long-Term Liabilities | $139.9M | $141.4M | $136.6M |
| Long-Term Debt | $108.6M | $113.5M | $117.7M |
| LT Operating Leases | $15.3M | $11.1M | $7.7M |
| Other LT Liab | $12.4M | $14.0M | $8.4M |
| Total Liabilities | $388.5M | $379.2M | $391.6M |
| Shareholders' Equity | $-146.4M | $-153.5M | $-177.2M |
| Retained Earnings | $-1.33B | $-1.41B | $-1.49B |
| AOCI | $-322.0K | $-180.0K | $-669.0K |
| Total L&E | $242.1M | $225.7M | $214.3M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $-105.6M | $-75.6M | $-81.9M |
| Non-Cash Adjustments | $52.6M | $82.3M | $50.0M |
| Working Capital Changes | $42.1M | $-4.2M | $22.9M |
| Cash from Operations | $-10.9M | $2.6M | $-9.1M |
| Capital Expenditures | $8.0M | $11.7M | $9.4M |
| Cash from Investing | $-8.0M | $-11.8M | $-9.4M |
| Cash from Financing | $2.4M | $3.5M | $3.4M |
| FX Effect | $-599.0K | $145.0K | $-569.0K |
| Net Change in Cash | $-17.1M | $-5.6M | $-15.7M |
| Beginning Cash | $83.6M | $66.5M | $60.9M |
| Ending Cash | $66.5M | $60.9M | $45.3M |
Frequently Asked Questions
How does DOMO, INC. make money?
The company's revenue is primarily derived from its core SaaS platform licensing fees, professional services and implementation contracts, and ecosystem partnerships. Key streams include subscription revenue from the DOMO Cloud analytics engine, custom development services tailored to enterprise clients, and marketplace sales of third-party connectors and applications that extend platform functionality.
What are the main risks for DOMO?
Persistent net losses and an expanding retained earnings deficit raise concerns about the company's ability to achieve sustainable profitability in a competitive SaaS landscape. Heavy reliance on professional services revenue may indicate challenges in scaling product-led growth and margin expansion without corresponding increases in subscription base. The current liability structure, with total liabilities significantly exceeding assets, suggests potential liquidity pressures if cash flow from operations does not improve rapidly. Intense competition from larger enterprise analytics players like Microsoft Power BI and Tableau could further erode market share and pricing power.
What is DOMO's competitive advantage?
DOMO possesses a robust competitive moat through its superior user experience and intuitive drag-and-drop interface, which significantly lowers the barrier to entry for non-technical users. The company benefits from a strong network effect where its extensive library of pre-built templates and community-driven content accelerates adoption rates. Additionally, DOMO's deep integration capabilities with leading cloud data warehouses and ERP systems create high switching costs for established enterprise clients.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.