Domo, Inc. (NASDAQ:DOMO) is among the Best Get Rich Fast Stocks to Buy Right Now. On December 24, Tom Blakey from Cantor Fitzgerald assumed coverage on Domo, Inc. (NASDAQ:DOMO) with an ‘Overweight’ rating and a price target of $22, according to TheFly. This reaffirmation follows the firm’s revised research coverage for the Security & Infrastructure Software sector, following the analyst departure and resource reallocation. Earlier, on December 8, an analyst at Stephens said that Domo, Inc. (NASDAQ:DOMO) ...

Core Viewpoint - Domo (DOMO) has experienced a significant decline of 31.2% over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround as analysts expect better earnings than previously predicted [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2]. - Domo's current RSI reading is 24.73, indicating that the heavy selling pressure may be exhausting itself, which could lead to a reversal in the stock's trend [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts regarding an increase in Domo's earnings estimates, with a 2.1% rise in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - Domo holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].

Revenue Performance - Total revenue for the three months ended October 31, 2025, was $79.4 million, compared to $79.8 million for the same period in 2024, indicating a slight decline [178]. - For the nine months ended October 31, 2025, total revenue was $239.2 million, up from $238.3 million in 2024, reflecting a year-over-year increase of approximately 0.4% [178]. - Total revenue for the same period was $79,403, a slight decrease of $361 thousand compared to $79,764 in 2024 [210]. - Total revenue for the nine months ended October 31, 2025, was $239.2 million, a slight increase of $958, or 0.4%, compared to the prior year [223]. Customer Metrics - As of October 31, 2025, 80% of annual recurring revenue (ARR) was derived from consumption-based service agreements, with expectations for this percentage to increase [175]. - The company had over 2,400 customers as of October 31, 2025, with enterprise customers accounting for 44% of revenue during the same period [183]. Financial Losses and Profitability - The company incurred net losses of $10.4 million for the three months ended October 31, 2025, compared to $18.8 million for the same period in 2024, indicating a reduction in losses [179]. - The net loss for the three months ended October 31, 2025, was $10,388, compared to a net loss of $18,761 in 2024 [207]. Expenses and Cost Management - Sales and marketing expenses as a percentage of total revenue decreased from 47% in Q3 2024 to 43% in Q3 2025, indicating improved efficiency [191]. - Research and development expenses as a percentage of total revenue increased from 27% in Q3 2024 to 24% in Q3 2025, reflecting ongoing investment in platform functionality [193]. - Total cost of revenue increased to $20,504, up 3% from $19,961 in 2024, with subscription costs rising by 7% to $14,281 [211]. - Operating expenses decreased to $65,829, down 7% from $70,887 in 2024, with sales and marketing expenses dropping by 8% to $34,120 [215]. - Research and development expenses fell to $19,062, a 10% decrease from $21,264 in 2024, reflecting lower headcount [216]. - General and administrative expenses increased from 15% to 16% of revenue, with a $1.6 million rise in employee-related costs due to stock-based compensation [218]. Cash Flow and Financing - As of October 31, 2025, the company had $47.9 million in cash and cash equivalents, with a $125.3 million credit facility fully drawn [233]. - For the nine months ended October 31, 2025, net cash provided by operating activities was $10.7 million, with cash collected from customers totaling $232.1 million [242][245]. - During the same period, net cash used in investing activities was $7.6 million, primarily for capitalized development costs related to internal-use software [242][247]. - The company experienced net cash used in financing activities of $1.5 million for the nine months ended October 31, 2025, primarily due to payments on short-term payable financing [242][250]. Debt and Credit Facilities - The company had total debt outstanding of $124.2 million as of October 31, 2025, with a credit facility allowing for term loan borrowings up to $125.3 million [256][257]. - The credit facility was amended in August 2024, extending the maturity date to August 19, 2028, and included the issuance of 1,022,918 fully-vested warrants [239]. Market and Economic Conditions - The company does not believe that inflation has had a material effect on its business, financial condition, or results of operations to date [260]. - The company has foreign currency exchange risks related to revenue and operating expenses denominated in currencies other than the U.S. dollar, primarily the Japanese Yen, British Pound Sterling, and the Australian Dollar [258]. Other Financial Metrics - Remaining performance obligations (RPO) increased from $368.2 million in 2024 to $428.6 million in 2025, with $231.1 million expected to be recognized as revenue in the next twelve months [177]. - The gross retention rate remained stable at 84% for both the trailing twelve months ending October 31, 2024, and 2025, despite macroeconomic challenges [188]. - Subscription revenue for the three months ended October 31, 2025, was $71,879, a 1% increase from $71,113 in 2024, driven by a $3.3 million increase from new customers [210]. - Subscription gross margin was 80% for the three months ended October 31, 2025, down from 81% in 2024, attributed to increased costs from third-party web hosting services [211]. - Income tax provision increased by $52, or 9%, to $634, primarily due to higher taxable income from international subsidiaries [232]. - The company entered into a Controlled Equity Offering Sales Agreement to sell up to $150 million of Class B common stock, with no shares sold to date [236]. - Remeasurement of warrant liability resulted in a $7.5 million net change during the nine months ended October 31, 2025 [231].

U.S. stocks traded higher midway through trading, with the Nasdaq Composite gaining around 0.2% on Friday.The Dow traded up 0.17% to 47,933.71 while the NASDAQ rose 0.16% to 23,543.03. The S&P 500 also rose, gaining, 0.15% to 6,867.40.Check This Out: Broadcom To Rally More Than 14%? Here Are 10 Top Analyst Forecasts For FridayLeading and Lagging SectorsCommunication services shares jumped by 0.9% on Friday.In trading on Friday, utilities stocks fell by 0.6%.Top HeadlineThe U.S. PCE price index increased 0.3 ...

U.S. Stock Market Performance - U.S. stocks traded higher, with the Nasdaq Composite gaining around 0.2% on Friday [1] - The Dow increased by 0.17% to 47,933.71, while the NASDAQ rose 0.16% to 23,543.03, and the S&P 500 gained 0.15% to 6,867.40 [1] - Communication services shares jumped by 0.9%, while utilities stocks fell by 0.6% [1] Economic Indicators - The U.S. PCE price index increased by 0.3% month-over-month in September, consistent with the previous month and market estimates [2][11] - U.S. personal income rose by 0.4% month-over-month to $26.397 trillion in September [8] Commodity Market - Oil traded up 0.7% to $60.08, gold increased by 0.1% to $4,245.70, silver rose by 2.7% to $59.035, and copper gained 1.2% to $5.4385 [5] Company-Specific Movements - Praxis Precision Medicines Inc shares surged 31% to $248.00 after announcing completion of its pre-NDA meeting with the FDA [9] - DigitalBridge Group Inc shares increased by 32% to $12.86 following reports of SoftBank's interest in acquiring the company [9] - Rubrik Inc shares rose 23% to $86.80 after reporting better-than-expected third-quarter results and raising FY26 guidance [9] - Parsons Corp shares dropped 25% to $62.97 after losing a joint bid with IBM for a new air traffic control system [9] - Sportsman's Warehouse Holdings Inc shares fell 30% to $1.70 after reporting third-quarter results [9] - Domo Inc shares decreased by 23% to $8.87 after reporting third-quarter results and issuing lower-than-expected fourth-quarter sales guidance [9]

Group 1 - U.S. stock futures were mostly higher, with Nasdaq futures gaining around 100 points [1] - Domo Inc reported quarterly earnings of 1 cent per share, beating the analyst consensus estimate of a loss of 5 cents per share [2] - Domo's quarterly sales were $79.400 million, exceeding the analyst consensus estimate of $78.967 million [2] Group 2 - Domo shares fell 14.2% to $9.93 in pre-market trading following the earnings report and weak fourth-quarter sales guidance [2] - Sportsman's Warehouse Holdings Inc tumbled 18.8% to $1.99 in pre-market trading after reporting third-quarter results [4] - Argan Inc fell 11.6% to $315.00 in pre-market trading due to worse-than-expected third-quarter sales results [4] - Hewlett Packard Enterprise Co shares dipped 9.2% to $20.80 after mixed fourth-quarter financial results and weak first-quarter sales guidance [4] - SentinelOne Inc declined 8% to $15.61 after narrowing its FY26 sales guidance below estimates [4] - SoFi Technologies Inc fell 7.5% to $27.39 as the company announced pricing of a public offering of common stock [4] - Oklo Inc fell 6.6% to $104.30 after entering into an equity distribution agreement to offer up to $1.5 billion of common stock [4] - Docusign Inc fell 5.5% to $67.21 following third-quarter results [4] - Parsons Corp fell 5.3% to $80.00 in pre-market trading [4] - Chatham Lodging Trust fell 4.3% to $6.24 in pre-market trading [4]

U.S. stock futures were mostly higher this morning, with the Nasdaq futures gaining around 100 points on Friday.Shares of Domo Inc (NASDAQ:DOMO) fell sharply in pre-market trading after the company reported third-quarter financial results and issued fourth-quarter sales guidance with its midpoint below estimates.Domo reported quarterly earnings of 1 cent per share which beat the analyst consensus estimate of a loss of 5 cents per share. The company reported quarterly sales of $79.400 million which beat the ...

Core Insights - Domo, Inc. is a cloud-based platform focused on business intelligence and data visualization, competing with major players like Tableau and Microsoft Power BI, and showing resilience in the analytics market [1] Financial Performance - On December 4, 2025, Domo reported earnings per share of $0.01, exceeding the anticipated loss of $0.05 per share, indicating effective expense management and improved profitability [2][6] - The company's revenue for the period was approximately $79.4 million, surpassing the forecasted $79 million, reflecting strong sales performance [2][6] - In Q3 2026, Domo's total revenue was reported at $79.4 million, with subscription revenue contributing $71.9 million, highlighting the importance of subscription services in the revenue model [3] Future Revenue Indicators - Domo's Subscription Remaining Performance Obligations (RPO) reached $405.9 million as of October 31, 2025, marking a 15% increase year-over-year, indicating a strong future revenue pipeline [4][6] - The current subscription RPO was $214.1 million, reflecting a 3% year-over-year growth, suggesting steady demand for Domo's services [4] Valuation Metrics - Domo's price-to-sales ratio is 1.44, indicating that investors are willing to pay $1.44 for every dollar of sales [5] - The enterprise value to sales ratio stands at 1.73, reflecting the company's valuation relative to its sales [5] - However, the current ratio of 0.49 suggests potential liquidity challenges in meeting short-term obligations [5]

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Financial Data and Key Metrics Changes - In Q3, the company generated positive adjusted free cash flow of $2.1 million, a $15.8 million improvement year-over-year, and is on track to finish the year with positive adjusted free cash flow for the first time ever [4][20] - The operating margin was 6.8%, exceeding guidance and positioning the company for its highest full-year operating margin ever [4][21] - Positive EPS was reported for the second consecutive quarter, marking the second time in company history [4][22] - Total revenue reached $79.4 million, near the high end of guidance, with a gross margin of 75.4%, down 90 basis points year-over-year [25] Business Line Data and Key Metrics Changes - The company has transitioned to a consumption model, with 80% of annual recurring revenue (ARR) now on consumption contracts, a significant increase from single digits two years ago [8][9] - Monthly active users across the customer base increased over 10% year-over-year, reflecting growing momentum in user engagement [10] - Current subscription RPO grew 3% year-over-year to $214.1 million, while total subscription RPO grew 15% to $405.9 million [23] Market Data and Key Metrics Changes - Leads from strategic partners increased over 25% compared to Q2 and more than doubled from Q1, indicating rapid expansion of partner relationships [7] - The company expects billings of $107.5-$109.5 million in Q4, representing 6% year-over-year growth, which would be the highest billings growth in over three years [26] Company Strategy and Development Direction - The company is focused on deepening its partner ecosystem, accelerating consumption, and leveraging AI capabilities [4][10] - A composable approach to selling platform components is being adopted to meet customer needs more effectively [10] - The company is enhancing its AI capabilities, with unique accounts using AI features increasing over 60% year-over-year [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline for Q4, despite longer sales cycles for partner-related deals, emphasizing the strength of relationships built with CIO-level engagement [30][32] - The company anticipates continued improvements in gross retention, projecting it to reach approximately 87% in Q4, with potential to approach 90% in future quarters [24][80] - Management highlighted the importance of governance in AI usage, ensuring customers can leverage AI while maintaining control over their data [57] Other Important Information - The company received strong industry recognition, being named a leader in various categories related to AI and data products [17] - Management is committed to maintaining a balance between growth and profitability, aiming for 10% growth and 10% operating margin by the end of FY27 [27][73] Q&A Session Summary Question: What caused the negative billing surprise in Q3? - Management indicated that the longer sales cycles associated with the ecosystem business contributed to the billing shortfall, but expressed confidence in the pipeline for Q4 [30][32] Question: How are things looking for Q4? - Management reported that Q4 started well, with some deals that had slipped already closing, and emphasized the importance of CIO involvement in the sales process [33][34] Question: Can you elaborate on opportunities with CDWs? - Management noted that partners are considering OEM deals, indicating strong interest in deeper collaborations [36][39] Question: What is the outlook for net revenue retention? - Management expects improvements in net retention as gross retention increases and as the company capitalizes on the consumption model [40][41] Question: How is the conversation around AI evolving? - Management emphasized that AI is a key focus, with ongoing initiatives to enhance the agentic platform and improve customer experiences [53][54] Question: What leverage is being gained from new partners based on learnings from Snowflake? - Management highlighted that the experience gained from the Snowflake partnership is being applied to new partnerships, improving go-to-market strategies [62][64] Question: Was the billing shortfall due to large transactions or multiple mid-sized deals? - Management clarified that the shortfall was due to a combination of medium-sized deals slipping, rather than a few large transactions [68][70] Question: Are there planned areas of investment for FY27? - Management indicated that while there are areas for potential investment, they are also finding efficiencies that will not impact growth [71][72]