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 Q3 Earnings Beat Estimates, Subscription Revenues Up Y/Y
Read MoreHide Full Article
Domo (DOMO - Free Report) reported a third-quarter fiscal 2023 non-GAAP loss of 13 cents per share, which beat the Zacks Consensus Estimate by 50%. The company reported a loss of 32 cents in the year-ago quarter.
Revenues improved 21.4% year over year to $79 million and surpassed the consensus mark by 3.40%. International revenues in the reported quarter represented 22% of total revenues, unchanged sequentially.
Domo’s subscription revenues increased 21.9% year over year to $69 million in the reported quarter and contributed 87.4% to total revenues.
Professional Services and other revenues contributed 12.6% to total revenues. The figure was $10 million, up 18% year over year.
Image: Bigstock
DOMO Q3 Earnings Beat Estimates, Subscription Revenues Up Y/Y
Domo (DOMO - Free Report) reported a third-quarter fiscal 2023 non-GAAP loss of 13 cents per share, which beat the Zacks Consensus Estimate by 50%. The company reported a loss of 32 cents in the year-ago quarter.
Revenues improved 21.4% year over year to $79 million and surpassed the consensus mark by 3.40%. International revenues in the reported quarter represented 22% of total revenues, unchanged sequentially.
Domo’s subscription revenues increased 21.9% year over year to $69 million in the reported quarter and contributed 87.4% to total revenues.
Professional Services and other revenues contributed 12.6% to total revenues. The figure was $10 million, up 18% year over year.
Domo, Inc. Price, Consensus and EPS Surprise
Domo, Inc. price-consensus-eps-surprise-chart | Domo, Inc. Quote
Domo’s shares were up 0.40% in after-hours trading.
Quarter Details
In the reported quarter, billings increased 5.4% year over year to $74 million. Domo achieved a customer gross retention rate of more than 90%.
Subscription gross margin expanded 200 basis points on a year-over-year basis to 85%.
However, in the fiscal third quarter, non-GAAP operating expenses increased 7.6% year over year to $60.6 million and accounted for 76.6% of revenues.
Operating income was $0.5 million in the fiscal third quarter compared with the $6.9 million reported in the year-ago quarter.
Balance Sheet & Cash Flow
As of Oct 31, 2022, cash and cash equivalents were $71.1 million compared with $79.9 million as of Jul 31, 2022.
Total debt was $107.4 million as of Oct 31, 2022 compared with $106.3 million as of Jul 31, 2022.
Operating cash outflow was $6.48 million in third-quarter fiscal 2023.
Remaining Performance Obligations (RPO) were $354.3 million as of Oct 31, 2022, increasing 19% year over year.
RPO expected to be recognized as revenues in the next twelve months were $230.3 million as of Oct 31, 2022, increasing 21% year over year.
Guidance
For fourth-quarter fiscal 2023, Domo expects revenues in the range of $77-$78 million.
Non-GAAP net loss is expected in the range of 7-11 cents per share in the fiscal fourth quarter.
Domo expects fiscal fourth-quarter cash flow from operations to be negative, but improve sequentially.
For the fiscal 2023, Domo expects revenues in the range of $306-$307 million.
Non-GAAP net loss is expected in the range of 68-72 cents per share for the fiscal year.
Zacks Rank & Stocks to Consider
Domo currently carries a Zacks Rank #4 (Sell).
Shares of Domo have declined 70% year to date compared with the Zacks Computer & Technology sector’s decline of 32.8%.
Some better-ranked stocks in the broader sector are Richardson Electronics (RELL - Free Report) , Sanmina (SANM - Free Report) and Super Micro Computer (SMCI - Free Report) . While Richardson Electronics carries a Zacks Rank #2 (Buy), both Sanmina and Super Micro sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Richardson Electronics, Sanmina and Super Micro Computer are up 91.6%, 53.2% and 94.8%, respectively, on a year-to-date basis.