Domo, Inc. (DOMO)

Domo, Inc. (DOMO) Technology Profile & Competitive Position

Domo, Inc. provides a cloud-based business intelligence platform, connecting CEOs to frontline employees with real-time data and insights. Operating in the application software sector, Domo facilitates data-driven decision-making across organizations in the United States, Japan, and internationally, despite a current negative profit margin.

What Is the Investment Thesis for DOMO?

Domo, Inc. presents a compelling investment case centered on its cloud-based business intelligence platform, which addresses the growing need for real-time data insights across organizations. With a gross margin of 75.0%, Domo demonstrates the potential for scalability and profitability. However, the company's negative profit margin of -18.6% raises concerns about its operational efficiency and cost management. Key growth catalysts include expanding its international presence and enhancing its platform's analytical capabilities. The company's beta of 1.76 indicates higher volatility compared to the market. Investors should closely monitor Domo's ability to improve its profitability and maintain its competitive edge in the business intelligence market.

Based on FMP financials and quantitative analysis

DOMO Key Highlights

• Cloud-based business intelligence platform connects CEOs to frontline employees with real-time data and insights.
• Gross margin of 75.0% indicates strong potential for profitability.
• Platform enables business management from smartphones, catering to the increasing demand for mobile business solutions.
• Operates in the United States, Japan, and internationally, providing geographic diversification.
• Market capitalization of $147.44M reflects its current valuation in the market.

Who Are DOMO's Competitors?

DOMO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are DOMO's Key Strengths?

• Cloud-based platform
• Mobile-first design
• Integrated data connectivity
• Scalable architecture

What Are DOMO's Weaknesses?

• Negative profit margin
• Smaller market share compared to competitors
• Limited brand recognition
• High beta value

What Could Drive DOMO Stock Higher?

• Expansion of platform capabilities with advanced analytics and AI/ML features.
• Strategic partnerships and integrations with complementary software vendors.
• Focus on targeting specific industries with tailored solutions.
• Continued optimization of the platform for mobile devices and enhanced mobile analytics features.

What Are the Key Risks for DOMO?

• Financial-distress signal — its Altman Z-Score of -11.50 sits in the distress zone (elevated bankruptcy risk).
• Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
• Intense competition from larger, more established companies.
• Economic downturn impacting customer spending on business intelligence solutions.
• Data security breaches compromising customer data and damaging the company's reputation.
• Changing customer preferences and evolving technology trends requiring continuous innovation.

What Are the Growth Opportunities for DOMO?

• Expanding International Presence: Domo has the opportunity to further expand its presence in international markets, particularly in regions with high adoption rates of cloud-based solutions. Focusing on strategic partnerships and localized marketing efforts can drive growth in these regions. The global business intelligence market is projected to reach $33.3 billion by 2025, providing a substantial market opportunity for Domo to capture. Timeline: Ongoing.
• Enhancing Platform Capabilities: Domo can enhance its platform capabilities by incorporating advanced analytics, artificial intelligence (AI), and machine learning (ML) features. This will attract a broader customer base and drive higher subscription revenues. The market for AI in business intelligence is expected to grow significantly, offering Domo a competitive advantage. Timeline: Ongoing.
• Strategic Partnerships and Integrations: Domo can pursue strategic partnerships and integrations with other technology providers to expand its ecosystem and reach new customers. Collaborating with complementary software vendors can create bundled solutions that offer greater value to customers. The market for integrated business solutions is growing, driven by the need for seamless data integration. Timeline: Ongoing.
• Targeting Specific Industries: Domo can focus on targeting specific industries with tailored solutions that address their unique business intelligence needs. This will allow the company to differentiate itself from competitors and build deeper relationships with customers. The market for industry-specific BI solutions is expanding, driven by the increasing demand for customized analytics. Timeline: Ongoing.
• Mobile Business Intelligence: Domo's platform is designed to enable business management from smartphones, which aligns with the increasing demand for mobile business intelligence solutions. By further optimizing its platform for mobile devices and offering enhanced mobile analytics features, Domo can attract a larger customer base. The mobile BI market is projected to grow rapidly, driven by the increasing adoption of mobile devices. Timeline: Ongoing.

What Opportunities Does DOMO Have?

• Expanding international presence
• Enhancing platform capabilities with AI/ML
• Strategic partnerships and integrations
• Targeting specific industries

What Threats Does DOMO Face?

• Intense competition
• Economic downturn
• Data security breaches
• Changing customer preferences

What Are DOMO's Competitive Advantages?

• Proprietary cloud-based platform.
• Integrated data connectivity.
• Mobile-first design.
• Scalable architecture.

What Does DOMO Do?

Domo, Inc., founded in 2010 and headquartered in American Fork, Utah, operates a cloud-based business intelligence platform designed to connect individuals, data, and systems within an organization. Originally incorporated as Domo Technologies, Inc., the company rebranded to Domo, Inc. in December 2011. Domo's platform provides users, from CEOs to frontline employees, with access to real-time data and insights, enabling them to manage their business operations effectively using smartphones and other devices. The company's core offering revolves around digitally connecting various organizational levels, facilitating data-driven decision-making. Domo's services are available in the United States, Japan, and internationally. The platform integrates data from multiple sources into a unified interface, offering analytical tools and visualizations. Despite its innovative approach, Domo faces challenges in achieving profitability, reflected in its negative profit margin. The company continues to focus on expanding its platform capabilities and market reach within the competitive business intelligence landscape.

What Products and Services Does DOMO Offer?

• Operates a cloud-based business intelligence platform.
• Connects CEOs to frontline employees with real-time data.
• Provides access to data and insights through mobile devices.
• Offers analytical tools and visualizations.
• Integrates data from multiple sources into a unified interface.
• Enables data-driven decision-making across organizations.

How Does DOMO Make Money?

• Subscription-based revenue model.
• Offers tiered pricing plans based on usage and features.
• Targets businesses of all sizes, from small to large enterprises.

What Industry Does DOMO Operate In?

Domo, Inc. operates within the application software segment of the technology sector, a rapidly evolving market driven by the increasing demand for data-driven decision-making. The business intelligence (BI) market is characterized by intense competition, with established players and emerging startups vying for market share. Domo's cloud-based platform positions it to capitalize on the growing trend of cloud adoption and mobile business solutions. The company competes with larger, more established companies that have greater resources and broader product offerings. The market is projected to continue its growth trajectory, fueled by the increasing volume and complexity of data.

Who Are DOMO's Key Customers?

• Chief Executive Officers (CEOs)
• Frontline employees
• Data analysts
• Business managers

How Domo, Inc. Is Valued

Domo, Inc. carries a market capitalization of $147.44M, placing it in the micro-cap category. Relative to its peer group, DOMO's quantitative score of 19/100 is below the peer average of 67/100.

Company Profile

Domo, Inc. operates in the Software - Application industry within the Technology sector. It is headquartered in American Fork, US. The company is led by CEO Joshua G. James. DOMO has traded publicly since 2018.

ROE 29%Key Financial Metrics

Return on equity for Domo, Inc. stands at 29.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -28.2%, showing how much profit it generates from its asset base. Its free cash flow yield is 0.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.31 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is -46.5%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 3/9Financial Health

Domo, Inc.'s Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of -11.50 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project Domo, Inc. revenue of about $317.9M for fiscal 2026, with EPS near $-0.08. The estimate reflects 3 contributing analysts.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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