Domo Reports Strong Q4 Growth and Plans for Future Expansion

Domo exceeds Q4 expectations with strong billings, revenue, and adjusted free cash flow, showcasing a promising outlook for fiscal year 2026 as they shift to a consumption model. Investors should note the positive trends in retention and AI adoption.

Date: 07-03-2025

AI Rating: 7

Earnings and Revenue Performance
Domo's Q4 results indicate a positive trajectory in both billings and revenue, which were $102.6 million and $78.8 million, respectively. This marks a 14% year-over-year increase in subscription remaining performance obligation (RPO), showing a strong demand for its services.

Adjusted Free Cash Flow
In Q4, Domo's adjusted free cash flow was reported at $6 million, an important indicator of its financial health and operational efficiency. This improvement suggests that Domo is moving towards profitability, which is a positive sign for potential investors.

Retention Rates
Domo reported that consumption customers achieved a gross retention rate of over 90% and a net retention rate exceeding 100%. This is indicative of strong customer satisfaction and loyalty, which could lead to further revenue growth and stability in the company's future earnings.

Future Growth Outlook
Guidance for FY '26 includes billings between $310 million and $320 million and non-GAAP net loss per share of $0.29 to $0.39. The anticipated improvement in growth and the strategic shift towards consumption pricing are expected to enhance the retention metrics, indicating potential stability and revenue growth in the coming years.

Stocks: DOMO