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DOMO Gears Up to Report Q4 Earnings: What's in the Cards?

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Domo (DOMO - Free Report) is set to report fourth-quarter fiscal 2021 results on Mar 11.

For the quarter, Domo expects revenues between $53.3 million and $54.3 million. Non-GAAP net loss is expected between 42 cents and 46 cents per share.

The Zacks Consensus Estimate for fourth-quarter loss has been steady at 44 cents per share over the past 30 days. The company had reported a loss of 85 cents in the year-ago quarter.

The consensus mark for revenues stands at $53.8 million, indicating an increase of 16.5% from the year-ago reported figure.

Notably, Domo beat the Zacks Consensus Estimate in the past four quarters, delivering an earnings surprise of 21.4%, on average.

Domo, Inc. Price and EPS Surprise


Domo, Inc. Price and EPS Surprise

Domo, Inc. price-eps-surprise | Domo, Inc. Quote


Let’s see how things have shaped up for this announcement.

Factors to Watch

Domo’s fourth-quarter results are expected to reflect resilient subscription-based business model amid the coronavirus pandemic. The top line is expected to have benefited from its new platform-based pricing model.

Markedly, subscriptions increased 24% year over year and accounted for 87.4% of the company’s third-quarter revenues. The momentum is expected to have continued in the to-be-reported quarter.

Domo has also benefited from the ongoing digital transformation of businesses and work-from-home wave. Additionally, the company’s expanding service offerings, based on a solid partner base, is a key catalyst. Moreover, expanded partnership with the likes of Snowflake (SNOW - Free Report) is another key catalyst.

Markedly, during the to-be-reported quarter, Domo achieved Premier status in Snowflake’s Partner Connect Program.

Further, Domo’s expanding clientele, particularly enterprise customers, are expected to have driven the top line in the to-be-reported quarter. Notably, at the end of the third quarter, 59% of customers were on multi-year contracts.

However, the bottom line is expected to have been hurt by modest sequential increase in operating expenses particularly due to addition in sales headcount in the to-be-reported quarter. 

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Domo has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a couple of companies worth considering as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:

Micron (MU - Free Report) has an Earnings ESP of +5.16% and currently flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

FedEx (FDX - Free Report) has an Earnings ESP of +2.72% and carries a Zacks Rank of 2, at present.

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