Citizens JMP maintains DOMO stock $16 target, upbeat on results

Published 22/05/2025, 09:56
Citizens JMP maintains DOMO stock $16 target, upbeat on results

On Thursday, Citizens JMP analyst team reaffirmed their positive stance on DOMO (NASDAQ:DOMO), maintaining a Market Outperform rating and a $16.00 price target for the company’s shares. This endorsement follows the release of DOMO’s first-quarter fiscal year 2026 results, which surpassed analysts’ expectations. InvestingPro data shows DOMO as a small-cap technology company with a market capitalization of $342.14 million and a notably high beta of 1.67, indicating significant stock price volatility.

DOMO reported a non-GAAP EPS of ($0.09), beating the consensus estimate of ($0.20). Revenue for the quarter stood at $80.1 million, exceeding the expected $77.9 million and remaining flat year-over-year. This performance marked an improvement from the previous quarter’s 2% decline. Subscription revenue, a critical metric for the company, was reported at $71.4 million, slightly above the consensus of $70.9 million but down 1% from the previous year, compared to flat growth in the last quarter. The company maintains a healthy gross profit margin of 74.45%, though InvestingPro analysis indicates challenges with short-term obligations, reflected in a current ratio of 0.56.

The company’s billings amounted to $63.9 million, which also topped the consensus estimate of $62.5 million, despite being down 2% year-over-year. This was a slight improvement from the 3% decline reported in the previous quarter. Notably, DOMO’s long-term subscription Remaining Performance Obligations (RPO) grew by 24%, a significant increase from 14% growth in the last quarter. Furthermore, the company’s current RPO (cRPO) related to subscriptions saw a growth of 5%, a positive change from the flat growth observed in the previous quarter.

These strong financial indicators have had a favorable impact on DOMO’s stock performance. In the aftermarket trading session, DOMO shares saw an approximate 6% rise. This uptick comes on the back of an already impressive 21% year-to-date increase, contrasting with a 1% decrease in the broader Russell 3000 index. According to InvestingPro’s Fair Value analysis, DOMO appears slightly undervalued at current levels. Subscribers can access 6 additional ProTips and a comprehensive Pro Research Report, offering deeper insights into DOMO’s financial health and growth prospects.

In other recent news, Domo Inc . announced its financial results for the first quarter of 2025, revealing a revenue of $80.1 million, which surpassed the forecasted $78.03 million. Despite this revenue beat, the company reported a net loss per share of $0.69, which was significantly higher than the anticipated loss of $0.20. Domo has introduced new AI-driven workflow automation tools and improved cloud data integrations, which have been well-received in the market. The company has successfully transitioned to a consumption-based pricing model, resulting in a 60% increase in sales productivity. Additionally, Domo’s strategic initiatives have led to enhanced sales efficiency and longer-term contractual commitments with customers. Analysts have noted the company’s robust platform capabilities and its focus on AI-driven solutions, which are expected to drive further growth. Domo has projected Q2 2025 billings between $69-70 million, reflecting a modest year-over-year growth of 1-2%. The company aims for a 5% billings growth and operating margin by the end of the year, with plans to achieve 10% growth in both metrics by next year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.