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On Friday, JMP Securities analysts maintained their Market Outperform rating and $16.00 price target for DOMO stock (NASDAQ:DOMO), a cloud software company with a market capitalization of $276 million. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with three analysts recently revising their earnings expectations upward. The reiteration followed DOMO’s release of its fourth-quarter fiscal year 2025 results, which surpassed expectations. The company reported a non-GAAP EPS of ($0.05), beating the consensus estimate of ($0.16), and revenue of $78.8 million, slightly above the forecasted $78.0 million. Despite a year-over-year decline of 2% in revenue, down from a flat performance in the previous quarter, the report was well-received, with DOMO shares rising approximately 1% in aftermarket trading.
The company’s subscription revenue came in at $71.9 million, aligning with the anticipated $69.9 million and maintaining a flat year-over-year growth, consistent with the last quarter’s results. With a robust gross margin of 74.9% and total revenue of $318.5 million over the last twelve months, DOMO maintains strong operational metrics despite challenges. Billings were reported at $102.6 million, exceeding the consensus of $101.2 million, although it marked a 3% decline from the previous year, slightly worse than the 2% decrease in the last quarter. Discover more comprehensive financial metrics with InvestingPro’s detailed analysis tools.
A notable highlight from DOMO’s earnings was the growth in long-term subscription Remaining Performance Obligations (RPO), which soared to 38%, and the current RPO (cRPO) for subscriptions, which grew by 14%. This marked the strongest subscription RPO growth the company has seen in over two years, a significant improvement from the 3% growth in the previous quarter. Analysts view this as a potentially positive indicator for the company’s future performance.
Despite the positive aftermarket response to DOMO’s earnings, the stock’s year-to-date performance has been relatively stagnant, in contrast to the Russell 3000 index, which has seen a decline of around 3%. With a current ratio of 0.53 indicating potential liquidity challenges, and the company not yet achieving profitability over the last twelve months, investors maintain measured expectations. The after-hours gain suggests a cautious optimism from investors following the company’s earnings release. For deeper insights into DOMO’s financial health and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, Domo Inc . reported its fourth-quarter 2025 financial results, surpassing expectations with an earnings per share (EPS) of -$0.05, compared to the forecasted -$0.17. The company also exceeded revenue predictions, generating $78.8 million against the projected $78.06 million. Domo’s strategic shift towards a consumption-based pricing model and increased investment in AI services contributed to its performance, with 91% of revenue stemming from subscription services. The company achieved its highest adjusted free cash flow in history, amounting to $6 million, and increased its cash balance from $40.9 million to $45.3 million. Domo’s partnerships with major cloud data warehouses (CDWs) are enhancing lead conversion rates, a trend that has been noted by analysts. The company has set its fiscal year 2026 revenue guidance between $310 million and $318 million, with an expected billings guidance of $310 million to $320 million. Domo’s CEO, Josh James, expressed optimism about the company’s strategic direction, highlighting robust retention rates among consumption customers.
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