[Executive Summary](index=1&type=section&id=Executive%20Summary) Domo's Q2 FY26 saw accelerating ACV, strong subscription RPO, and record non-GAAP operating margin, alongside industry recognition for BI leadership and workplace equality [CEO's Strategic Commentary](index=1&type=section&id=CEO%27s%20Strategic%20Commentary) Domo's CEO highlighted accelerating ACV, strong subscription RPO, and expanding partnerships as key growth drivers. The company achieved record operating margin and its first positive non-GAAP EPS, with 108% NRR for consumption contracts, positioning Domo for leadership in the evolving data and AI landscape - CEO Josh James noted accelerating ACV, strong subscription RPO, and expanding partnerships as key growth drivers[3](index=3&type=chunk) - Domo achieved **record operating margin** and its first ever **positive non-GAAP EPS**[3](index=3&type=chunk) - Reported **108% NRR** for customers on consumption contracts, indicating model effectiveness[3](index=3&type=chunk) - Positioned for leadership in data and AI through ongoing AI innovation, continued consumption growth, and a stronger partner ecosystem[3](index=3&type=chunk) [Recent Business Highlights](index=1&type=section&id=Recent%20Business%20Highlights) Domo received significant industry recognition, including being named a leader in Nucleus Research's 2025 Business Intelligence (BI) and Analytics Technology Value Matrix for the fifth consecutive year. The company also earned recognition in Dresner Advisory Services' 2025 BI Market Study and for equal advancement opportunity on the 2025 ParityLIST and the Shatter List - Named a leader in Nucleus Research's 2025 Business Intelligence (BI) and Analytics Technology Value Matrix for the fifth consecutive year[4](index=4&type=chunk) - Recognized as a leader in Dresner Advisory Services' 2025 Wisdom of Crowds® Business Intelligence (BI) Market Study for Customer Experience and Vendor Credibility Models, achieving its **ninth consecutive perfect recommendation score**[9](index=9&type=chunk) - Named to the 2025 ParityLIST and the Women Tech Council's Shatter List for the eighth consecutive year, recognizing equal advancement opportunity[9](index=9&type=chunk) [Fiscal Second Quarter Fiscal 2026 Financial Results](index=1&type=section&id=Fiscal%20Second%20Quarter%20Fiscal%202026%20Financial%20Results) Domo reported Q2 FY26 total revenue of $79.7 million, achieving positive non-GAAP EPS and operating margin, with improved cash flow from operations and adjusted free cash flow [Key Financial Highlights (Non-GAAP & GAAP)](index=1&type=section&id=Key%20Financial%20Highlights%20%28Non-GAAP%20%26%20GAAP%29) Domo reported total revenue of $79.7 million and subscription revenue of $72.7 million for Q2 FY26. Subscription RPO increased 19% year-over-year to $409.8 million. The company achieved a positive non-GAAP operating margin of 8% and non-GAAP net income of $0.9 million, resulting in diluted non-GAAP EPS of $0.02. Net cash provided by operating activities increased 155% year-over-year to $3.4 million, and adjusted free cash flow rose 125% year-over-year to $1.4 million Key Financial Highlights | Metric | Q2 FY26 Value | YoY Change | | :-------------------------------- | :---------------- | :--------- | | Total Revenue | $79.7 million | | | Subscription Revenue | $72.7 million | | | Billings | $70.3 million | | | Subscription RPO (as of July 31, 2025) | $409.8 million | +19% | | Current Subscription RPO (as of July 31, 2025) | $220.2 million | +4% | | Net Cash Provided by Operating Activities | $3.4 million | +155% | | Adjusted Free Cash Flow | $1.4 million | +125% | | GAAP Operating Margin | -9% | +9 percentage points | | Non-GAAP Operating Margin | +8% | +5 percentage points | | GAAP Net Loss | $22.9 million | | | GAAP Net Loss per Share (basic & diluted) | $0.56 | | | Non-GAAP Net Income | $0.9 million | | | Diluted Non-GAAP Net Income per Share | $0.02 | | | Cash and Cash Equivalents (as of July 31, 2025) | $47.1 million | | [GAAP Financial Statements](index=5&type=section&id=GAAP%20Financial%20Statements) Domo's GAAP financial statements for Q2 FY26 show total revenue of $79.7 million, with an improved operating loss of $7.3 million compared to $14.5 million in Q2 FY25. However, net loss increased to $22.9 million, resulting in a GAAP net loss per share of $0.56. The balance sheet indicates a decrease in total assets and a widening stockholders' deficit, while cash flow from operations turned positive at $3.4 million [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 FY26, Domo reported total revenue of $79.7 million, up from $78.4 million in Q2 FY25. Net loss increased to $22.9 million from $19.5 million in the prior year quarter, with GAAP net loss per share at $0.56. Operating loss improved to $7.3 million from $14.5 million year-over-year Condensed Consolidated Statements of Operations | Metric (in thousands) | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Total Revenue | $78,407 | $79,718 | $158,510 | $159,829 | | Gross Profit | $58,283 | $59,643 | $117,672 | $119,086 | | Loss from Operations | $(14,487) | $(7,251) | $(35,937) | $(21,597) | | Net Loss | $(19,490) | $(22,932) | $(45,497) | $(40,984) | | Net Loss per Share (basic and diluted) | $(0.51) | $(0.56) | $(1.20) | $(1.02) | | Weighted-average shares (basic and diluted) | 38,389 | 40,643 | 37,943 | 40,196 | - Total stock-based compensation expenses for Q2 FY26 were **$13.2 million**, down from $16.5 million in Q2 FY25[19](index=19&type=chunk) - Remeasurement of warrant liability significantly impacted other expense, net, increasing to **$10.4 million** in Q2 FY26 from $0.1 million in Q2 FY25[19](index=19&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of July 31, 2025, Domo's total assets were $195.7 million, a decrease from $214.3 million at January 31, 2025. Total liabilities also decreased to $387.2 million from $391.6 million. Cash and cash equivalents slightly increased to $47.1 million from $45.3 million, while the stockholders' deficit widened to $(191.5) million from $(177.2) million Condensed Consolidated Balance Sheets | Metric (in thousands) | January 31, 2025 | July 31, 2025 | | :-------------------------------- | :--------------- | :-------------- | | Cash and cash equivalents | $45,264 | $47,143 | | Total Current Assets | $141,677 | $117,405 | | Total Assets | $214,340 | $195,715 | | Total Current Liabilities | $254,949 | $246,365 | | Warrant Liability | $11,208 | $20,491 | | Total Liabilities | $391,586 | $387,201 | | Total Stockholders' Deficit | $(177,246) | $(191,486) | - Accounts receivable, net, decreased significantly from **$71.5 million to $47.3 million** between January 31, 2025, and July 31, 2025[21](index=21&type=chunk) - Warrant liability nearly doubled from **$11.2 million to $20.5 million** during the six-month period[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q2 FY26, net cash provided by operating activities was $3.4 million, a significant improvement from net cash used of $6.2 million in Q2 FY25. Net cash used in investing activities remained stable at $2.3 million. Net cash used in financing activities was $0.8 million, compared to $2.6 million provided in Q2 FY25, primarily due to payments on short-term payable financing and shares repurchased for tax withholdings Condensed Consolidated Statements of Cash Flows | Metric (in thousands) | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net cash (used in) provided by operating activities | $(6,171) | $3,368 | $(4,270) | $7,319 | | Net cash used in investing activities | $(2,204) | $(2,349) | $(4,730) | $(5,276) | | Net cash provided by (used in) financing activities | $2,574 | $(758) | $3,695 | $(1,353) | | Net (decrease) increase in cash, cash equivalents, and restricted cash | $(5,454) | $(37) | $(5,235) | $1,879 | | Cash, cash equivalents, and restricted cash at end of period | $55,704 | $47,143 | $55,704 | $47,143 | - The shift to **positive net cash from operating activities** in Q2 FY26 was driven by adjustments including stock-based compensation, remeasurement of warrant liability, and changes in accounts receivable[23](index=23&type=chunk) - Payments on short-term payable financing amounted to **$3.3 million** in Q2 FY26, contributing to the net cash used in financing activities[23](index=23&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) Domo provides non-GAAP reconciliations for various metrics, excluding stock-based compensation, amortization of certain intangible assets, and remeasurement of warrant liability. For Q2 FY26, non-GAAP subscription gross margin was 82%, non-GAAP operating income was $6.1 million (compared to a GAAP operating loss of $7.3 million), and non-GAAP net income was $0.9 million, resulting in non-GAAP diluted EPS of $0.02. Billings for Q2 FY26 were $70.3 million, and adjusted free cash flow was $1.4 million [Non-GAAP Subscription Gross Margin Reconciliation](index=8&type=section&id=Non-GAAP%20Subscription%20Gross%20Margin%20Reconciliation) Non-GAAP subscription gross margin for Q2 FY26 remained stable at 82%, consistent with Q2 FY25, after adjusting for stock-based compensation Non-GAAP Subscription Gross Margin Reconciliation | Metric | Three Months Ended July 31, 2024 (in thousands) | Three Months Ended July 31, 2025 (in thousands) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Subscription gross profit on a GAAP basis | $57,620 | $58,587 | | Subscription gross margin on a GAAP basis | 81% | 81% | | Stock-based compensation | $807 | $947 | | Subscription gross profit on a non-GAAP basis | $58,427 | $59,534 | | Subscription gross margin on a non-GAAP basis | 82% | 82% | [Non-GAAP Operating Expenses and Operating Income (Loss) Reconciliation](index=8&type=section&id=Non-GAAP%20Operating%20Expenses%20and%20Operating%20Income%20%28Loss%29%20Reconciliation) Non-GAAP total operating expenses for Q2 FY26 decreased to $55.0 million from $57.5 million in Q2 FY25. This led to a non-GAAP operating income of $6.1 million in Q2 FY26, a significant improvement from $1.9 million in Q2 FY25, and a non-GAAP operating margin of 8% Non-GAAP Operating Expenses and Operating Income (Loss) Reconciliation | Metric | Three Months Ended July 31, 2024 (in thousands) | Three Months Ended July 31, 2025 (in thousands) | | :------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Total operating expenses on a GAAP basis | $72,770 | $66,894 | | Total operating expenses on a non-GAAP basis | $57,478 | $54,982 | | Operating loss on a GAAP basis | $(14,487) | $(7,251) | | Operating income (loss) on a non-GAAP basis | $1,926 | $6,119 | | Operating margin on a GAAP basis | (18)% | (9)% | | Operating margin on a non-GAAP basis | 2% | 8% | - The improvement in non-GAAP operating income and margin was primarily due to the exclusion of stock-based compensation and amortization of intangible assets[25](index=25&type=chunk) [Non-GAAP Net Income (Loss) and EPS Reconciliation](index=8&type=section&id=Non-GAAP%20Net%20Income%20%28Loss%29%20and%20EPS%20Reconciliation) Domo achieved non-GAAP net income of $0.9 million in Q2 FY26, a substantial improvement from a non-GAAP net loss of $2.7 million in Q2 FY25. This translated to a diluted non-GAAP net income per share of $0.02, compared to a loss of $0.07 in the prior year Non-GAAP Net Income (Loss) and EPS Reconciliation | Metric | Three Months Ended July 31, 2024 (in thousands, except per share data) | Three Months Ended July 31, 2025 (in thousands, except per share data) | | :------------------------------------------ | :--------------------------------------------------------------------- | :--------------------------------------------------------------------- | | Net loss on a GAAP basis | $(19,490) | $(22,932) | | Net (loss) income on a non-GAAP basis | $(2,731) | $879 | | Net loss per share on a GAAP basis (diluted) | $(0.51) | $(0.56) | | Net (loss) income per share on a non-GAAP basis (diluted) | $(0.07) | $0.02 | | Weighted-average shares used (diluted) | 38,389 | 43,554 | - The significant improvement in non-GAAP net income was largely due to the exclusion of stock-based compensation and the remeasurement of warrant liability[25](index=25&type=chunk) [Billings and Adjusted Free Cash Flow Reconciliation](index=9&type=section&id=Billings%20and%20Adjusted%20Free%20Cash%20Flow%20Reconciliation) Billings for Q2 FY26 were $70.3 million, an increase from $68.6 million in Q2 FY25. Adjusted free cash flow showed a positive $1.4 million in Q2 FY26, a notable turnaround from a negative $5.6 million in Q2 FY25 Billings and Adjusted Free Cash Flow Reconciliation | Metric | Three Months Ended July 31, 2024 (in thousands) | Three Months Ended July 31, 2025 (in thousands) | | :------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Billings | $68,626 | $70,333 | | Adjusted free cash flow | $(5,593) | $1,380 | - The positive adjusted free cash flow in Q2 FY26 was achieved by adjusting net cash from operating activities for employee stock purchase plan proceeds, property and equipment purchases, and short-term payable financing[27](index=27&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) Domo provides Q3 and full-year FY26 guidance, projecting revenue between $78.5-$79.5 million for Q3 and $316.0-$320.0 million for the full year, with anticipated non-GAAP net losses per share [Q3 Fiscal 2026 Guidance](index=2&type=section&id=Q3%20Fiscal%202026%20Guidance) For Q3 Fiscal 2026, Domo expects revenue to be between $78.5 million and $79.5 million. Non-GAAP net loss per share is projected to be between $0.03 and $0.07, based on 41.5 million weighted-average shares Q3 Fiscal 2026 Guidance | Metric | Q3 Fiscal 2026 Guidance | | :------------------------------------ | :---------------------- | | Revenue | $78.5 million to $79.5 million | | Non-GAAP Net Loss per Share (basic & diluted) | $0.03 to $0.07 | | Weighted-average shares outstanding (basic & diluted) | 41.5 million | [Full Year Fiscal 2026 Guidance](index=2&type=section&id=Full%20Year%20Fiscal%202026%20Guidance) For the full fiscal year 2026, Domo anticipates revenue in the range of $316.0 million to $320.0 million. Non-GAAP net loss per share is expected to be between $0.11 and $0.19, based on 41.0 million weighted-average shares Full Year Fiscal 2026 Guidance | Metric | Full Year Fiscal 2026 Guidance | | :------------------------------------ | :----------------------------- | | Revenue | $316.0 million to $320.0 million | | Non-GAAP Net Loss per Share (basic & diluted) | $0.11 to $0.19 | | Weighted-average shares outstanding (basic & diluted) | 41.0 million | [Additional Company Information](index=2&type=section&id=Additional%20Company%20Information) This section details Domo's Q2 FY26 earnings call, company profile, public disclosure practices, rationale for non-GAAP financial measures, and important forward-looking statement disclaimers [Earnings Call Details](index=2&type=section&id=Earnings%20Call%20Details) Domo scheduled a conference call for August 27, 2025, at 3:00 p.m. MT/ 5:00 p.m. ET to review Q2 FY26 financial results and discuss its financial outlook. A live webcast and dial-in options were provided, with a replay available until September 27, 2025 - Conference call held on **August 27, 2025, at 3:00 p.m. MT/ 5:00 p.m. ET**[7](index=7&type=chunk) - Live webcast available on Domo Investor Relations website; dial-in and replay options provided[7](index=7&type=chunk)[8](index=8&type=chunk) [About Domo](index=2&type=section&id=About%20Domo) Domo is an AI and Data Products platform that helps companies leverage data and AI to drive value. Its platform, powered by Domo.AI and enriched by a partner ecosystem, enables users to prepare, visualize, automate, distribute, and build end-to-end data products, from hydrating data foundations to deploying AI models and embedded applications - Domo is an **AI and Data Products platform** designed to help companies leverage data and AI for value creation[9](index=9&type=chunk) - The platform supports the entire data journey, enabling users to prepare, visualize, automate, distribute, and build end-to-end data products, including fully embedded applications and AI model deployment[10](index=10&type=chunk) [Disclosure Channels](index=3&type=section&id=Disclosure%20Channels) Domo uses various public channels to disseminate material information, including its website, press releases, SEC filings, blogs, and social media (Facebook, LinkedIn, X accounts @Domotalk and @JoshJames) to ensure broad, non-exclusionary distribution and comply with Regulation FD. Investors are encouraged to monitor these channels - Domo disseminates material information through its **website, press releases, SEC filings, blogs, and social media** (Facebook, LinkedIn, @Domotalk X, @JoshJames X)[11](index=11&type=chunk) - These channels are used for broad, non-exclusionary distribution and to comply with Regulation FD disclosure obligations[11](index=11&type=chunk) [Use of Non-GAAP Financial Measures](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Domo uses non-GAAP financial measures such as non-GAAP subscription gross margin, operating expenses, operating loss/margin, net loss/EPS, billings, and adjusted free cash flow to supplement GAAP statements. These measures exclude stock-based compensation, amortization of certain intangible assets, and remeasurement of warrant liability, and are used for internal decision-making and external performance evaluation, as they provide insights into core business operating results and liquidity - Non-GAAP measures include **non-GAAP subscription gross margin, operating expenses, operating loss/margin, net loss/EPS, billings, and adjusted free cash flow**[12](index=12&type=chunk) - Exclusions from non-GAAP measures typically include **stock-based compensation expense, amortization of certain intangible assets, and remeasurement of warrant liability**[12](index=12&type=chunk) - Management uses these non-GAAP measures for financial and operational decision-making, period-to-period comparisons, and to provide meaningful supplemental information about core business performance and liquidity[14](index=14&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements, including CEO statements, competitive positions, strategic priorities, and financial outlook, which are subject to risks and uncertainties. Actual results may differ materially from predictions due to factors outlined in SEC filings, such as the Annual Report on Form 10-K. Domo undertakes no duty to update this information unless legally required - The press release contains forward-looking statements regarding competitive positions, strategic priorities, and financial outlook[16](index=16&type=chunk) - These statements are subject to **risks and uncertainties**, and actual results may differ materially from predictions[16](index=16&type=chunk) - Risks are detailed in SEC filings, including the Annual Report on Form 10-K, and Domo does not undertake to update this information unless required by law[16](index=16&type=chunk)

Core Insights - Domo received an upgrade from TD Cowen's analyst Derrick Wood, changing the recommendation from hold to buy, with a new price target of $21 per share, up nearly 62% from the previous $13 [2][4] - Following the upgrade, Domo's share price increased over 16%, significantly outperforming the S&P 500's 0.4% rise [1][2] - Wood highlighted Domo's transition from per-seat to consumption-based pricing as a key factor for potential growth, which could enhance service adoption and monetization [4][5] Company Performance - Domo is set to release its Q2 fiscal 2026 earnings, following a Q1 report that showed a narrowing of net loss and a 24% increase in remaining performance obligations (RPOs) [6] - The company's revenue remained flat year over year, but the improvement in RPOs indicates a positive trend in future revenue potential [6]

Financial Data and Key Metrics Changes - Nonaccruals decreased to 3.7% of the portfolio's fair market value, down from 4.4% last quarter and 5.6% at the end of 2024 [6] - NAV declined during the quarter primarily due to markdowns on previously restructured portfolio companies [6] - Adjusted net investment income was $0.31 per share, down from $0.36 in the first quarter, while gross investment income was $0.61 per share compared to $0.66 in the prior quarter [23] Business Line Data and Key Metrics Changes - The portfolio had a fair market value of approximately $1.8 billion invested across 153 companies in over 20 industry sectors [21] - The average investment size was $11.7 million, with 89% of the portfolio invested in senior secured debt, all in floating rate instruments [21] - The weighted average annual effective yield of the portfolio was 12% in the second quarter, compared to 12.2% in the prior quarter [21] Market Data and Key Metrics Changes - New investments had a weighted average yield of 10.8%, while exited investments carried an average yield of 10.5% [21] - Total liquidity at quarter end was $566 million, including $455 million of available leverage and $107 million in cash [27] Company Strategy and Development Direction - The acquisition of HPS is expected to enhance TCPC's capabilities in private credit, creating a new platform called Private Financing Solutions (PFS) [31] - PFS aims to centralize private investment sourcing and origination teams to maximize collaboration and effectiveness [32] - TCPC will continue to directly source investments while leveraging PFS's extensive deal sourcing capabilities [32] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over additional markdowns but noted progress in reducing nonaccruals and sourcing attractive investments [34] - The company is focused on diligently working through portfolio challenges to deliver the best possible outcomes for shareholders [34] - Management acknowledged that the high rate environment and macroeconomic conditions could impact demand and performance of portfolio companies [56] Other Important Information - The Board declared a second quarter dividend of $0.25 and a special dividend of $0.04 per share, payable on September 30 [13] - The company repurchased 40,830 shares of TCPC stock during the quarter [13] Q&A Session Summary Question: Changes in the investment process with new committee members - Management indicated that the investment process will benefit from centralized origination and sourcing, leveraging resources from both BlackRock and HPS [36][38] Question: Ensuring TCPC receives proper access and resources during growth - Management assured that TCPC remains a strategic priority for the PFS platform and will continue to receive deep engagement across investment processes [42][44] Question: Markdown on Auto Alert and its performance - The markdown was primarily driven by market comps rather than performance issues, although the company has shown improvements since restructuring [45]

Core Insights - BlackRock TCP Capital Corp. (TCPC) experienced a decline in net asset value (NAV) in Q2 2025, primarily due to markdowns on previously restructured portfolio companies rather than new credit issues [12][19] - The company reduced nonaccruals to 3.7% of the portfolio's fair market value, down from 4.4% in Q1 2025 and 5.6% at the end of 2024, indicating improved management of distressed assets [12][19] - The acquisition of HPS by BlackRock has led to the formation of the Private Financing Solutions (PFS) platform, which is expected to enhance TCPC's investment sourcing and risk management capabilities [11][41] Financial Performance - Net realized losses for Q2 2025 totaled approximately $66 million, or $0.78 per share, mainly due to restructurings in several portfolio companies [3][36] - Adjusted net investment income was $0.31 per share in Q2 2025, down from $0.36 per share in Q1 2025; gross investment income was $0.61 per share, down from $0.66 [7][34] - The weighted average annual effective yield was 12% in Q2 2025, compared to 12.2% in the prior quarter [7][33] Portfolio Management - The portfolio included 153 companies across more than 20 industry sectors, with an average investment size of $11.7 million [6][32] - 89% of the $1.8 billion portfolio was invested in senior secured debt, all in floating-rate instruments [6][32] - Four new investments were added to nonaccrual status in Q2 2025 due to uneven performance and liquidity constraints [4][19] Dividend and Share Repurchase - A regular dividend of $0.25 and a special dividend of $0.04 per share were declared for Q2 2025, payable on September 30 [8][24] - The company repurchased 40,830 shares during Q2 2025 [8][25] Leverage and Liquidity - Total liquidity at the end of Q2 2025 was $566 million, with available leverage of $155 million and cash of $107 million [9][37] - Net regulatory leverage rose to 1.28 times, exceeding the targeted range of 0.9 to 1.2 times, due to new investments and delayed repayments [3][38] Strategic Outlook - Management expects net regulatory leverage to return to approximately Q1 2025 levels in the next quarter following investment deployments and delayed repayments [14] - The integration into the PFS platform is anticipated to provide enhanced sourcing and allocation capabilities, benefiting TCPC's investment strategy [41][42]

Core Insights - Domo, Inc. is experiencing significant growth and positive market sentiment in 2021, with shares initially trading around $25 each [1] Company Overview - Domo, Inc. has been public for a couple of years, indicating a period of established market presence and investor interest [1]

Domo (DOMO) FY Conference Summary Company Overview - Domo is a data platform company that has undergone significant transformation over the past two years, shifting from a focus on being a cloud data warehouse (CDW) to partnering with existing CDWs in the market [2][5][6]. Key Points Industry and Market Position - Domo operates within the data analytics and business intelligence sector, focusing on providing a comprehensive data stack solution [2][3]. - The company has recognized the importance of aligning with CDWs, which has become a central strategy for growth and customer acquisition [19][20]. Transformation and Business Model Shift - Domo has transitioned from a seat-based revenue model to a consumption-based model, which now accounts for approximately 75% of its revenue, with expectations to reach 90% by the end of the year [7][8][26]. - This shift has allowed for greater flexibility for customers, enabling unlimited users and access to advanced capabilities without additional costs [30][31]. Financial Performance and Projections - Domo aims to exit the current year with 5% billings growth and a 5% operating margin, and to achieve 10% growth and margin by the end of the next year [9][10]. - The company has seen improvements in retention rates, with gross retention over 90% and net retention exceeding 100% for consumption customers [34]. Customer Engagement and Use Cases - Domo has expanded its customer base, particularly in the enterprise sector, leveraging relationships with CDWs to penetrate deeper into organizations [25][12]. - The company is witnessing increased use of AI and agentic solutions, with customers creating numerous AI agents to automate processes and enhance efficiency [55][56][66]. Competitive Landscape - Domo has positioned itself as a complementary solution to major CDWs like Snowflake and Databricks, moving away from a competitive stance to a collaborative one [76][78]. - The company has successfully won deals from customers dissatisfied with other solutions, such as Microsoft Fabric, showcasing its ability to deliver effective solutions quickly [80][82]. Future Outlook - Domo is optimistic about its growth trajectory, particularly with the ongoing partnerships with CDWs and the increasing demand for AI-driven solutions [91][92]. - The company is focused on maximizing shareholder value and is open to strategic options, including potential acquisition discussions, but emphasizes the importance of achieving fair valuation [84][88]. Additional Insights - Domo's ability to integrate with various CDWs and provide a seamless experience for customers is seen as a significant competitive advantage [19][20]. - The company is actively engaging in AI boot camps to educate customers on leveraging AI capabilities, which has accelerated the sales cycle and led to successful deal closures [65][66]. This summary encapsulates the key insights and developments discussed during the Domo FY Conference, highlighting the company's strategic shifts, financial outlook, and market positioning within the data analytics industry.

Revenue and Performance - Total revenue for the three months ended April 30, 2024 and 2025 was $80.1 million, remaining relatively flat year-over-year [161]. - Total revenue for the three months ended April 30, 2025, was $80,111 thousand, a slight increase of $8 thousand compared to $80,103 thousand in the same period of 2024 [189]. - Remaining performance obligations (RPO) increased from $346.3 million in 2024 to $427.5 million in 2025, with $241.0 million expected to be recognized as revenue in the next twelve months [160]. - Subscription revenue decreased by $721 thousand, or 1%, from $72,110 thousand in 2024 to $71,389 thousand in 2025, primarily due to a $4.3 million net decrease from existing customers [193]. - Professional services and other revenue increased by $729 thousand, or 9%, from $7,993 thousand in 2024 to $8,722 thousand in 2025, driven by increases in event sponsorship and consulting revenue [194]. Customer and Market Dynamics - As of April 30, 2025, 70% of annual recurring revenue (ARR) was derived from consumption-based service agreements, with expectations for this percentage to increase [158]. - The company had over 2,500 customers as of April 30, 2025, with enterprise customers accounting for 45% of revenue [167]. - The macroeconomic environment has elongated the software sales cycle and increased deal scrutiny, potentially impacting revenue growth in the near term [162]. Financial Performance - Net losses were $26.0 million for the three months ended April 30, 2024, and $18.1 million for the same period in 2025, with an accumulated deficit of $1.5056 billion as of April 30, 2025 [163]. - Net loss for the three months ended April 30, 2025, was $18,052 thousand, compared to a net loss of $26,007 thousand in 2024, reflecting an improvement of $7,955 thousand [189]. - Cash collected from customers during the three months ended April 30, 2025 was $93.2 million, exceeding cash outflows of $89.2 million [217]. - Net cash provided by operating activities for the three months ended April 30, 2025 was $3.951 million, compared to $1.901 million for the same period in 2024 [214]. Expenses and Cost Management - Total operating expenses decreased by $7,050 thousand, or 9%, from $80,839 thousand in 2024 to $73,789 thousand in 2025, with significant reductions in sales and marketing, research and development, and general and administrative expenses [199]. - Sales and marketing expenses as a percentage of total revenue increased from 50% in 2024 to 53% in 2025 [174]. - Research and development expenses as a percentage of total revenue increased from 25% in 2025 to 28% in 2024, indicating a focus on future growth [176]. - Research and development expenses decreased by $2,758 thousand, or 12%, from $22,719 thousand in 2024 to $19,961 thousand in 2025, with a decrease in employee-related costs [200]. - General and administrative expenses decreased by $1,734 thousand, or 11%, from $15,901 thousand in 2024 to $14,167 thousand in 2025, primarily due to a reduction in professional and legal fees [201]. Liquidity and Financing - Cash and cash equivalents as of April 30, 2025, totaled $47.2 million, held primarily for working capital purposes [204]. - The company has a $125.3 million credit facility, all of which had been drawn as of April 30, 2025 [204]. - The company is required to maintain a minimum liquidity of $25.0 million in unrestricted cash as per the credit facility [213]. - As of April 30, 2025, the cash interest rate on the term loan was approximately 7.3%, with an additional fixed rate of 5.0% accruing on the outstanding principal [212]. Economic and Inflation Considerations - The company does not believe inflation has materially affected its business or financial condition to date [232]. - Subscription contracts often contain pricing terms tied to the Consumer Price Index (CPI), and renewal pricing policies are designed to approximate CPI changes [232]. - If costs become subject to significant inflationary pressure, the company may not be able to fully offset these costs with price increases, which could adversely affect its financial condition [232]. - A hypothetical change in interest rates of 100 basis points would not have a material impact on the fair value of the company's outstanding debt [229]. Strategic Initiatives - The company entered into a Controlled Equity Offering Sales Agreement to sell up to $150.0 million of Class B common stock, with a commission of 3.0% on gross proceeds [208]. - The company has no current agreements for potential investments or acquisitions but may seek additional equity financing in the future [208]. - The company has experienced fluctuations in net loss due to transaction gains or losses from remeasuring current asset and liability balances in foreign currencies [231]. - The company has not engaged in hedging foreign currency transactions to date but is considering the costs and benefits of initiating such a program as it expands international operations [231].

Financial Data and Key Metrics Changes - The company exceeded guidance on billings, revenue, and EPS for Q1, showing solid performance across all metrics [4] - Subscription RPO increased by 24% year over year, up from 14% in the previous quarter, with current RPO up 5% [4][8] - Net retention improved for the third consecutive quarter, and ARR increased sequentially for the first time in a while [5] - Rep productivity rose by 60% year over year, indicating enhanced sales force efficiency [5] Business Line Data and Key Metrics Changes - The company reported a strong performance in subscription revenue, with core metrics such as net retention and ARR trending positively [14] - The focus on multi-year contracts has contributed to the growth in RPO, reflecting stronger customer relationships [9][10] Market Data and Key Metrics Changes - The pipeline from the ecosystem increased by over 200% in Q1 compared to Q4, indicating robust demand and lead flow [20][21] - The company is seeing a steady state in sales cycles, with some adaptation to increased scrutiny from CFOs [7] Company Strategy and Development Direction - The company is shifting its go-to-market approach to work seamlessly with partners like Snowflake and Databricks, enhancing its competitive positioning [19][20] - The strategy includes building strong relationships and educating partners on the benefits of the company's platform [26][27] - The consumption pricing model is being adopted by over 70% of the customer base, with expectations to approach 90% by year-end [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the pipeline and the core business, leading to guidance for Q4 of this year and next year [21][22] - The company is optimistic about the impact of AI and agentic workflows on customer engagement and retention [60][61] Other Important Information - The company does not have significant federal exposure, mitigating risks from public sector revenue concerns [86] - The recent acquisition of Informatica by Salesforce is seen as a competitive opportunity for the company [82][84] Q&A Session Summary Question: What is the outlook for the consumption pricing model? - The company expects to approach 90% of ARR on consumption by the end of the year, reflecting strong adoption trends [43][44] Question: How is the partnership with Snowflake progressing? - The partnership is yielding positive results, with increased lead flow and joint selling opportunities [20][34] Question: What are the implications of the Informatica acquisition? - The acquisition is expected to create competitive opportunities, as the company anticipates seeing less of Informatica in deals [82][84] Question: How is the company managing costs while pursuing growth? - The company is focusing on optimizing resources and leveraging AI to enhance productivity without increasing costs [72][73]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Domo (DOMO) - Domo currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Performance Metrics - Domo's shares have increased by 9.52% over the past week, outperforming the Zacks Internet - Software industry, which rose by 3.98% [5] - Over the last month, Domo's stock price has surged by 48.22%, significantly higher than the industry's 4.78% [5] - In the past quarter, Domo's shares rose by 40.54%, and over the last year, they increased by 52.17%, while the S&P 500 saw movements of -2.55% and 11.45%, respectively [6] Trading Volume - Domo's average 20-day trading volume is 472,751 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the last two months, one earnings estimate for Domo has increased, while none have decreased, leading to a consensus estimate improvement from -$0.35 to -$0.31 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions during the same period [9] Conclusion - Considering the strong performance metrics and positive earnings outlook, Domo is identified as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [11]

Core Insights - Domo's stock surged by 30.5% following a strong earnings report, indicating positive market reaction to the company's performance [1] Financial Performance - Domo reported $80.1 million in revenue for Q1 2026, unchanged from the previous year [3] - The company achieved an adjusted net loss of $0.09 per share, an improvement from a net loss of $0.33 per share in the prior year, outperforming Wall Street's expectation of a loss of $0.11 per share [3] Business Growth - Domo's subscription-based unfilled orders increased by 24% year over year, with expectations for faster revenue conversion in 2026 and beyond [4] - The CEO emphasized the company's innovative strategies in the technology market, asserting that Domo is leading in the data and AI sectors [5] Future Outlook - Management anticipates that second-quarter and full-year sales will be comparable to fiscal year 2025, suggesting a buildup of future revenues [5]