Domo (NASDAQ:DOMO), a data visualization and business intelligence company, reported Q1 FY2024 results that were in line with analyst expectations. The company’s revenue grew by 6.71% YoY to $79.5 million. Domo expects its revenue for the next quarter to be around $79 million, which is the midpoint of the guidance range, and is roughly in line with analyst expectations. Domo’s GAAP loss was $24.4 million, an improvement from the $32.9 million loss in the same quarter last year.
Domo provides business intelligence software that enables managers to access and visualize crucial business metrics in real-time using their smartphones. The company’s software improves operational efficiency and helps extract actionable insights by providing access to a lot of data that is often stored in silos in incompatible formats.
Domo (DOMO) Q1 FY2024 Highlights:
- Revenue: $79.5 million vs. analyst estimates of $78.9 million (small beat)
- EPS (non-GAAP): -$0.17 vs. analyst estimates of -$0.17
- Revenue guidance for Q2 2024 is $79 million at the midpoint, below analyst estimates of $79.7 million
- The company reconfirmed revenue guidance for the full year, at $326.5 million at the midpoint
- Free cash flow was negative $2.75 million, compared to a negative free cash flow of $5.75 million in the previous quarter
- Gross Margin (GAAP): 76.6%, in line with the same quarter last year
The company’s revenue growth has been solid over the last two years, growing from $60.1 million in Q1 FY2022 to $79.5 million. However, Domo’s quarterly revenue was only up 6.71% YoY, which might disappoint some shareholders. The revenue actually decreased by $166 thousand in Q1, compared to an increase of $598 thousand in Q4 2023. Domo expects its revenue to grow 4.59% YoY to $79 million in Q2, which is significantly slower than the 20.2% YoY increase the company recorded in the same quarter last year.
Domo’s gross profit margin was 76.6% in Q1, indicating that the company had $0.77 left to spend on developing new products, marketing & sales, and general administrative overhead for every $1 in revenue. The stable gross margin suggests that Domo is doing a good job controlling costs and is not under pressure from competition to lower prices.
Domo’s revenue guidance for the next quarter missed analysts’ expectations, which was unfortunate. However, full-year guidance was roughly in line. The company’s results for this quarter were not the best, causing a decline of 0.81% in stock prices. However, some investors might see this as an opportunity to invest in Domo.
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The author has no position in any of the stocks mentioned.
