We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DOMO's Loss Narrows in Q2, Revenues Fall Shy of Estimates
Read MoreHide Full Article
Domo (DOMO - Free Report) reported a second-quarter fiscal 2023 non-GAAP loss of 26 cents per share, comparing favorably with the Zacks Consensus Estimate of a loss of 33 cents. Domo reported a loss of 30 cents in the year-ago fiscal quarter.
Revenues of $75.5 million missed the consensus mark by 1.08%. However, the metric improved 20% from the last fiscal year’s reading.
Growth in revenues was driven by strength in the subscription business segment. However, revenues were flat in professional services and other business segment, and rising operating costs impacted the bottom line negatively.
Top-Line Details
Subscription revenues (89% of revenues) increased 23% year over year to $67.4 million. Growth in the subscription business segment can be attributed to strong sales to corporate customers, which increased 30% year over year.
Subscription gross margin on a non-GAAP basis was 85%, which expanded 200 bps year over year.
Professional services and other revenues (11% of total revenues) were flat year over year at $8.125 million. Professional services failed to grow due to lower average billing rates with several large customers.
In the second quarter, Domo reported billings of $72.3 million or 21% growth from the last fiscal year’s reading.
In second-quarter fiscal 2023 total operating expenses on a non-GAAP basis of $63.98 increased 20% from the last fiscal year’s tally, primarily due to expanding expenses, induced by an increased sales headcount.
Domoincurred an operating loss on a non-GAAP basis of $5.41 million compared with the non-GAAP operating loss of $6.12 million from the year-ago fiscal quarter’s level.
Balance Sheet & Cash Flow
As of Jul 31, 2022, cash and cash equivalents were $79.9 million compared with $84 million as of Apr 31, 2022.
Total debt (including the current portion of long-term debt) was $106.25 million as of Jul 31, 2022, compared with $105.08 billion as of Apr 31, 2022.
Operating cash outflow was $2.39 million in second-quarter fiscal 2023 against a cash inflow of $781 million in first-quarter 2023.
Guidance
In the fiscal third quarter, Domo expects revenues in the range of $76-$77 million. Non-GAAP net loss per share is expected between 23 cents and 27 cents.
For the full fiscal, Domo expects revenues in the range of $305-$310 million. Non-GAAP net loss per share is expected between 88 cents and 96 cents.
Zacks Rank & Stocks to Consider
Domo currently has a Zacks Rank #3 (Hold).
DOMO’s shares have fallen 16% in the year-to-date period compared with the Zacks Internet - Softwareindustry’s and the Computer and Technology sector’s decline of 24.7% and 28.4%, respectively.
Here are some better-ranked stocks in the broader Computer and Technology sector:
Image: Bigstock
DOMO's Loss Narrows in Q2, Revenues Fall Shy of Estimates
Domo (DOMO - Free Report) reported a second-quarter fiscal 2023 non-GAAP loss of 26 cents per share, comparing favorably with the Zacks Consensus Estimate of a loss of 33 cents. Domo reported a loss of 30 cents in the year-ago fiscal quarter.
Revenues of $75.5 million missed the consensus mark by 1.08%. However, the metric improved 20% from the last fiscal year’s reading.
Growth in revenues was driven by strength in the subscription business segment. However, revenues were flat in professional services and other business segment, and rising operating costs impacted the bottom line negatively.
Top-Line Details
Subscription revenues (89% of revenues) increased 23% year over year to $67.4 million. Growth in the subscription business segment can be attributed to strong sales to corporate customers, which increased 30% year over year.
Subscription gross margin on a non-GAAP basis was 85%, which expanded 200 bps year over year.
Professional services and other revenues (11% of total revenues) were flat year over year at $8.125 million. Professional services failed to grow due to lower average billing rates with several large customers.
In the second quarter, Domo reported billings of $72.3 million or 21% growth from the last fiscal year’s reading.
Domo, Inc. Price, Consensus and EPS Surprise
Domo, Inc. price-consensus-eps-surprise-chart | Domo, Inc. Quote
Operating Details
In second-quarter fiscal 2023 total operating expenses on a non-GAAP basis of $63.98 increased 20% from the last fiscal year’s tally, primarily due to expanding expenses, induced by an increased sales headcount.
Domoincurred an operating loss on a non-GAAP basis of $5.41 million compared with the non-GAAP operating loss of $6.12 million from the year-ago fiscal quarter’s level.
Balance Sheet & Cash Flow
As of Jul 31, 2022, cash and cash equivalents were $79.9 million compared with $84 million as of Apr 31, 2022.
Total debt (including the current portion of long-term debt) was $106.25 million as of Jul 31, 2022, compared with $105.08 billion as of Apr 31, 2022.
Operating cash outflow was $2.39 million in second-quarter fiscal 2023 against a cash inflow of $781 million in first-quarter 2023.
Guidance
In the fiscal third quarter, Domo expects revenues in the range of $76-$77 million. Non-GAAP net loss per share is expected between 23 cents and 27 cents.
For the full fiscal, Domo expects revenues in the range of $305-$310 million. Non-GAAP net loss per share is expected between 88 cents and 96 cents.
Zacks Rank & Stocks to Consider
Domo currently has a Zacks Rank #3 (Hold).
DOMO’s shares have fallen 16% in the year-to-date period compared with the Zacks Internet - Softwareindustry’s and the Computer and Technology sector’s decline of 24.7% and 28.4%, respectively.
Here are some better-ranked stocks in the broader Computer and Technology sector:
ASE Technology (ASX - Free Report) carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ASX’s shares have slumped 22.4% in the year-to-date period compared with the Zacks Electronics - Semiconductors industry’s decline of 21.8%.
Monolithic Power Systems (MPWR - Free Report) carries a Zacks Rank of 2, currently.
MPWR’s shares have risen 3.5% in the year-to-date period against the Zacks Semiconductor - Analog and Mixedindustry’s decline of 11.4%.
Arista Networks (ANET - Free Report) presently sports a Zacks Rank of 1.
ANET’s shares have dropped 12.9% in the year-to-date period compared with the Zacks Communication - Components industry’s decline of 12.7%.