Domo Reports Impressive Third Quarter Fiscal 2025 Results
Domo, Inc. (Nasdaq: DOMO) has recently released its financial results for the fiscal third quarter, revealing significant growth and promising outlooks for the future. The company recorded a total revenue of $79.8 million, marking a strong performance driven by a $71.1 million subscription revenue component. The billings also showcased stability, amounting to $73.4 million during this quarter.
Fiscal Third Quarter Highlights
Revenue and Performance Figures
The quarterly results indicate a Subscription Remaining Performance Obligation (RPO) of $354.1 million, reflecting a year-over-year increase of 3%. Impressively, the portion of RPO expected to be recognized beyond a twelve-month timeframe stood at $145.9 million—an increase of 14% from the previous year. However, net cash used in operating activities was $13.7 million, and adjusted free cash flow was reported at negative $13.8 million.
Profit Margins and Losses
From an operational standpoint, the GAAP operating margin was reported at negative 14%. In contrast, the non-GAAP operating margin fared better at 3%. The GAAP net loss reached $18.8 million, translating to a GAAP net loss per share of $0.48. Conversely, the non-GAAP net loss was notably lower at $3.2 million, equating to a non-GAAP net loss per share of $0.08 based on an average of 38.8 million shares outstanding.
CEO Statement on Growth Strategy
Josh James, founder and CEO of Domo, expressed optimism about the company’s growth trajectory, emphasizing the positive impacts of their focus on ecosystem-led growth, innovative consumption-based contracts, and advancing AI technology. James highlighted, "Our initiatives are creating robust momentum, increasing demand for Domo as a cornerstone technology in our customers' data architectures. We are strategically positioned to seize the emerging market opportunities driven by the evolution of data and AI landscapes."
Recent Achievements
Acknowledged Leadership in Analytics
Domo's achievements have not gone unnoticed. It was recognized as a leader in Nucleus Research’s 2024 Embedded Analytics Technology Value Matrix for the fourth consecutive year. Additionally, the company topped the 2024 Dresner Advisory Wisdom of Crowds Analytical Platforms Report for the fourth straight year and was named as an “Overall Leader” in the Small and Midsize Enterprise Business Intelligence Market Study.
Future Guidance
Looking forward, Domo provided guidance for the upcoming fourth quarter and full fiscal year. The revenue for Q4 Fiscal 2025 is anticipated to fall between $77.5 million and $78.5 million. For the full fiscal year, revenue expectations are in the range of $315.5 million to $316.5 million, while the non-GAAP net loss per share is projected to be between $0.60 and $0.64.
Conference Call Details
To discuss these results and their implications further, Domo plans to host a conference call today at 3:00 p.m. MT/5:00 p.m. ET, with a live webcast available on the Domo Investor Relations website, ensuring accessibility to its stakeholders.
About Domo
Domo is dedicated to unlocking the power of data for stakeholders across businesses, enhancing their ability to drive substantial impact through actionable insights. Their cloud-native platform surpasses traditional business intelligence offerings, empowering users with interactive dashboards and applications designed for a seamless data experience. With robust AI capabilities and a secure foundation connecting various systems, Domo accelerates the optimization of expansive processes, fostering a culture of curiosity that bolsters business outcomes.
Frequently Asked Questions
What were Domo's total revenues for the third quarter of fiscal 2025?
Domo reported total revenues of $79.8 million for Q3 of fiscal 2025.
Who is the CEO of Domo, and what was his comment on the recent performance?
Josh James is the CEO of Domo and noted that the company is witnessing increased demand due to their strategic focus on technology and AI.
What is Domo's expected revenue range for Q4 Fiscal 2025?
Domo expects Q4 2025 revenue to be between $77.5 million and $78.5 million.
How does Domo rank in recent industry reports?
Domo was named a leader in the Nucleus Research's Embedded Analytics Technology Value Matrix and topped the Dresner Advisory Wisdom of Crowds report.
What are the non-GAAP net loss per share projections for full fiscal 2025?
The non-GAAP net loss per share is expected to range from $0.60 to $0.64 for the full fiscal year 2025.
