Domo
NASDAQ: DOMO
$3.67 ▼ -0.28  (-6.96%)
At close: Jul 24, 2026 · 3:59 PM UTC
Financial Ratios
Market Cap171.49 Mn
P/E-3.09
P/S0.54
Div. Yield0.00
Total Debt (Qtr)137.11 Mn
Revenue Growth (1y) (Qtr)-0.88
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About

Domo, Inc. provides a cloud based artificial intelligence and data products platform that enables organizations to connect, prepare, analyze, visualize, automate and act on data across the enterprise. The platform integrates data from a wide range of sources, applies machine learning and AI models, and delivers insights through interactive dashboards, embedded applications and automated workflows. By combining data integration, transformation, business intelligence,…

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Sector: Technology Industry: Software - Application CIK: 0001505952

Investment Thesis

▲ Bull case
  • Domo's strategic shift to consumption pricing has unlocked significant growth potential, with 84% of annual recurring revenue now on consumption pricing and a specific cohort of customers achieving 111% net revenue retention, indicating strong expansion within high-value accounts. This model allows customers to start small and scale usage as they realize value, reducing upfront friction and driving organic expansion without reliance on new budgets. The company's internal AI utilization—nearly 30% of its codebase edited with AI in February—demonstrates operational efficiency gains that directly translate to faster product innovation and lower cost to serve, creating a virtuous cycle where improved margins fund further R&D in AI capabilities. This self-reinforcing loop positions Domo to capture disproportionate value as enterprise AI adoption accelerates, particularly since its platform is architected for governed, scalable AI agent deployment rather than experimental tools. The company's recognition as a leader in ISG's AI Analytics Buyers Guide 2025 and winner in six Dresner Technology Innovation categories validates its differentiated approach, moving beyond basic analytics to enable automated actions—such as AI-powered vendor onboarding workflows reducing administrative hours for a national restaurant brand or AI-driven invoice processing cutting delays for a global financial services firm—proving tangible ROI that resonates with C-suite buyers. Furthermore, Domo's integration with major cloud partners like Google Cloud Marketplace and Snowflake reduces procurement friction, allowing customers to apply existing committed cloud spend (MCD funds) to Domo contracts, which has already converted potential 1-year renewals into 3-year deals with upsells. This partner-led motion shortens sales cycles for existing customer expansions while deepening embedment in enterprise data strategies, turning Domo from a discretionary tool into a core infrastructure layer. With billings growth of 8% year-over-year in Q4 and full-year billings up 3%—the first increase since fiscal 2023—combined with record operating margins above 10% for the quarter and full-year adjusted free cash flow near breakeven (up over $12 million), Domo has achieved profitability while investing in growth, suggesting the market underestimates its ability to scale efficiently as consumption-driven usage compounds over time.
▼ Bear case
  • Despite Domo's consumption model adoption and AI use case proliferation, the company faces structural headwinds in revenue recognition that could perpetuate a disconnect between billings growth and top-line expansion, as management explicitly stated GAAP revenue will remain flat due to the ratable recognition structure of consumption contracts, meaning current strong billings may not translate to proportional revenue growth for 12-24 months. This lag creates a risk that investors could misinterpret near-term billings strength as immediate revenue acceleration, setting up potential disappointment when GAAP revenue fails to catch up, especially if consumption adoption slows or customer usage growth plateaus after initial expansion phases. Furthermore, while Domo highlights 15 explicit AI agent deployments across diverse industries, these remain isolated examples rather than evidence of broad, scalable platform adoption; the majority of customers may still be in pilot or limited-use phases, and the company provides no data on what percentage of its customer base has moved beyond single use cases to multi-solution deployments that drive sustained consumption growth. The competitive landscape also poses a significant threat, as major cloud providers (AWS, Google Cloud, Microsoft Azure) and established analytics players (Tableau, Power BI, Looker) are rapidly integrating native AI capabilities directly into their platforms, potentially diminishing Domo's differentiation as an orchestration layer—particularly if enterprises prefer to keep AI workflows within their existing cloud ecosystems rather than adding another platform layer. Domo's dependence on ecosystem partnerships for go-to-market success introduces execution risk; while partnerships with Snowflake and Google Cloud are cited as strengths, the company offers no metrics on partner-sourced pipeline contribution or win rates, leaving open the possibility that these relationships are not yet materially impacting revenue. Finally, the company's decision to withhold formal guidance due to ongoing evaluation of strategic alternatives creates uncertainty about its long-term independence, raising concerns that potential M&A activity or a shift in strategic focus could disrupt current initiatives, and the lack of clarity on how management plans to monetize its AI investments beyond consumption usage leaves questions about the sustainability of its margin expansion, which relies heavily on continued efficiency gains from internal AI use rather than demonstrable pricing power or market share gains in a crowded AI analytics space.

Geographical Breakdown of Revenue (2026)

Product and Service Breakdown of Revenue (2026)

Peer Comparison

Companies in the Software - Application
S.No. Ticker Company Market CapP/EP/STotal Debt (Qtr)
1 SAP Sap Se 208.91 Bn20.224.867.05 Bn
2 YMM Full Truck Alliance Co. Ltd. 188.77 Bn322.09-0.00 Bn
3 SHOP Shopify Inc. 145.98 Bn109.5911.80-
4 UBER Uber Technologies, Inc 141.48 Bn16.322.6410.51 Bn
5 CRM Salesforce, Inc. 128.51 Bn16.953.0039.28 Bn
6 NOW ServiceNow, Inc. 98.38 Bn54.177.057.52 Bn
7 ADP Automatic Data Processing Inc 97.56 Bn22.454.523.98 Bn
8 SNOW Snowflake Inc. 91.55 Bn-76.6318.19-