We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Domo (DOMO - Free Report) reported first-quarter fiscal 2023 non-GAAP loss of 23 cents per share, which beat the Zacks Consensus Estimate by 42.50%. The company had reported a loss of 26 cents in the year-ago quarter.
Revenues improved 24% year over year to $74.5 million and surpassed the consensus mark by 0.66%.
In the reported quarter, Domo revenues benefited from a 25% growth in billings. Improving gross retention and growing partner contribution aided the performance.
Domo’s shares have fallen 54.1% year to date, compared with the Zacks Internet Software industry’s decline of 60.1%. Meanwhile, the Computer & Technology sector has tumbled 21.3%.
Domo’s subscription revenues increased 24% year over year to $64.6 million in the reported quarter. The subscription revenues contributed 87% to total revenues.
Professional Services and other revenues contributed 13% to total revenues. The figure was $9.9 million, up 24% year over year.
In the first quarter, Domo delivered billings of $72.9 million, reflecting an improvement of 25% year over year, courtesy of new customer addictions, an increase in spending by existing customers and an over 90% gross retention rate.
However, in the first quarter, non-GAAP operating expenses increased 21.4% year over year and accounted for 83% of revenues. This impacted the bottom line negatively. While operating margin increased by 370 bps, operating loss on a non-GAAP basis stood at $3.5 million. In the year-ago quarter, operating loss was $5 million.
Research & development expenses, as a percentage of revenues, increased 420 bps on a year-over-year basis to 31.1%. General & administrative expenses, as a percentage of revenues, were 22.4%, up 540 bps year over year. Sales and marketing expenses, as a percentage of revenues, expanded 550 bps year over year to 61.2%.
Balance Sheet & Cash Flow
As of Apr 30, 2022, Domo had cash, cash equivalents and short-term investments of $84 million compared with $83.6 million as of Jan 31, 2022.
Operating cash flow was $781 million in first-quarter 2023 compared with $909 million in the previous quarter.
Revenue Performance Obligation as of Apr 30, 2022, increased 24% year over year to $351.5 million.
Guidance
For second-quarter fiscal 2023, Domo expects revenues in the range of $76 million to $77 million.
Non-GAAP net loss is expected in the range of 31 cents to 35 cents per share in the fiscal second quarter.
For the full year 2023, Domo expects revenues in the range of $315 million to $319 million.
Non-GAAP net loss is expected in the range of $1.26 to $ 1.34 per share in the fiscal second quarter.
Zacks Rank & Stocks to Consider
Domo carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks worth considering in the broader Computer and Technology Sector.
Image: Bigstock
Domo (DOMO) Reports Q1 Earnings Loss, Revenues Improve Y/Y
Domo (DOMO - Free Report) reported first-quarter fiscal 2023 non-GAAP loss of 23 cents per share, which beat the Zacks Consensus Estimate by 42.50%. The company had reported a loss of 26 cents in the year-ago quarter.
Revenues improved 24% year over year to $74.5 million and surpassed the consensus mark by 0.66%.
In the reported quarter, Domo revenues benefited from a 25% growth in billings. Improving gross retention and growing partner contribution aided the performance.
Domo’s shares have fallen 54.1% year to date, compared with the Zacks Internet Software industry’s decline of 60.1%. Meanwhile, the Computer & Technology sector has tumbled 21.3%.
Domo, Inc. Price, Consensus and EPS Surprise
Domo, Inc. price-consensus-eps-surprise-chart | Domo, Inc. Quote
Quarter Details
Domo’s subscription revenues increased 24% year over year to $64.6 million in the reported quarter. The subscription revenues contributed 87% to total revenues.
Professional Services and other revenues contributed 13% to total revenues. The figure was $9.9 million, up 24% year over year.
In the first quarter, Domo delivered billings of $72.9 million, reflecting an improvement of 25% year over year, courtesy of new customer addictions, an increase in spending by existing customers and an over 90% gross retention rate.
However, in the first quarter, non-GAAP operating expenses increased 21.4% year over year and accounted for 83% of revenues. This impacted the bottom line negatively. While operating margin increased by 370 bps, operating loss on a non-GAAP basis stood at $3.5 million. In the year-ago quarter, operating loss was $5 million.
Research & development expenses, as a percentage of revenues, increased 420 bps on a year-over-year basis to 31.1%. General & administrative expenses, as a percentage of revenues, were 22.4%, up 540 bps year over year. Sales and marketing expenses, as a percentage of revenues, expanded 550 bps year over year to 61.2%.
Balance Sheet & Cash Flow
As of Apr 30, 2022, Domo had cash, cash equivalents and short-term investments of $84 million compared with $83.6 million as of Jan 31, 2022.
Operating cash flow was $781 million in first-quarter 2023 compared with $909 million in the previous quarter.
Revenue Performance Obligation as of Apr 30, 2022, increased 24% year over year to $351.5 million.
Guidance
For second-quarter fiscal 2023, Domo expects revenues in the range of $76 million to $77 million.
Non-GAAP net loss is expected in the range of 31 cents to 35 cents per share in the fiscal second quarter.
For the full year 2023, Domo expects revenues in the range of $315 million to $319 million.
Non-GAAP net loss is expected in the range of $1.26 to $ 1.34 per share in the fiscal second quarter.
Zacks Rank & Stocks to Consider
Domo carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks worth considering in the broader Computer and Technology Sector.
Analog Devices (ADI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ADI’s shares have fallen 6.7% in the year-to-date period compared with the Zacks Semiconductor - Analog and Mixed industry’s decline 17.3%.
Avnet (AVT - Free Report) flaunts a Zacks Rank of 1.
Avnet’s shares have increased 15.4% in the year-to-date period against the Zacks Electronics - Parts Distribution industry’s decline of 8.2%.
Axcelis Technologies (ACLS - Free Report) carries a Zacks Rank #2 (Buy).
ACLS’ shares have fallen 19.6% in the year-to-date period compared with the Zacks Electronics - Manufacturing Machinery industry’s decline of 28.4%.