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 Q3 Earnings Beat Estimates, Revenues Up on User Growth
Read MoreHide Full Article
Domo Inc. (DOMO - Free Report) reported third-quarter fiscal 2018 non-GAAP loss of $1.06 per share, much narrower than the year-ago quarter’s loss of $25.78.
Revenues of $36.8 million increased 30.2% on a year-over-year basis, primarily driven by new customer additions. International accounted for 22% of total revenues.
Quarter Details
Billings increased 29% to $38.8 million, primarily driven by solid dollar-based net revenue retention rates that were greater than 100%. During the quarter, Domo’s solutions were selected by 21 new customers. Number of customers at the end of the quarter was 430, up from 351 at the end of the year-ago quarter.
Subscription revenues (82.5% of total revenues) were $30.4 million, up 34.2% year over year. Professional services and other revenues (17.5% of total revenues) increased 14.2% year over year to $6.4 million.
In third-quarter fiscal 2019, non-GAAP gross profit surged 50.3% year over year to $23.9 million. Gross margin expanded 870 basis points (bps) to 64.9%.
GAAP Sales & marketing (S&M) expenses decreased 16.4% year over year to $28 million. While GAAP general & administrative (G&A) expenses declined 3.1% to $7.1 million, GAAP research & development (R&D) expenses remained almost flat at $18.8 million.
GAAP operating expenses declined 9.6% year over year to $53.9 million. Non-GAAP operating expenses fell 13.8% from the year-ago quarter to $49.3 million.
Non-GAAP operating loss of $27.9 million was narrower than the year-ago quarter’s $41.5 million.
Guidance
For fourth-quarter fiscal 2019, revenues are anticipated between $37.5 million and $37.9 million. Non-GAAP net loss is expected between $1.23 and $1.27 per share.
Domo expects operating expenses to grow in a range similar to top-line growth in the seasonally strong fourth quarter.
For fiscal 2019, revenues are anticipated between $140.6 million and $141 million. Non-GAAP net loss is expected between $8.79 and $8.83 per share.
Expected long-term earnings growth for Twitter, Intel and Arista is 22.1%, 8.4% and 21.3%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
DOMO Q3 Earnings Beat Estimates, Revenues Up on User Growth
Domo Inc. (DOMO - Free Report) reported third-quarter fiscal 2018 non-GAAP loss of $1.06 per share, much narrower than the year-ago quarter’s loss of $25.78.
Revenues of $36.8 million increased 30.2% on a year-over-year basis, primarily driven by new customer additions. International accounted for 22% of total revenues.
Quarter Details
Billings increased 29% to $38.8 million, primarily driven by solid dollar-based net revenue retention rates that were greater than 100%. During the quarter, Domo’s solutions were selected by 21 new customers. Number of customers at the end of the quarter was 430, up from 351 at the end of the year-ago quarter.
Subscription revenues (82.5% of total revenues) were $30.4 million, up 34.2% year over year. Professional services and other revenues (17.5% of total revenues) increased 14.2% year over year to $6.4 million.
Domo, Inc. Price, Consensus and EPS Surprise
Domo, Inc. Price, Consensus and EPS Surprise | Domo, Inc. Quote
In third-quarter fiscal 2019, non-GAAP gross profit surged 50.3% year over year to $23.9 million. Gross margin expanded 870 basis points (bps) to 64.9%.
GAAP Sales & marketing (S&M) expenses decreased 16.4% year over year to $28 million. While GAAP general & administrative (G&A) expenses declined 3.1% to $7.1 million, GAAP research & development (R&D) expenses remained almost flat at $18.8 million.
GAAP operating expenses declined 9.6% year over year to $53.9 million. Non-GAAP operating expenses fell 13.8% from the year-ago quarter to $49.3 million.
Non-GAAP operating loss of $27.9 million was narrower than the year-ago quarter’s $41.5 million.
Guidance
For fourth-quarter fiscal 2019, revenues are anticipated between $37.5 million and $37.9 million. Non-GAAP net loss is expected between $1.23 and $1.27 per share.
Domo expects operating expenses to grow in a range similar to top-line growth in the seasonally strong fourth quarter.
For fiscal 2019, revenues are anticipated between $140.6 million and $141 million. Non-GAAP net loss is expected between $8.79 and $8.83 per share.
Zacks Rank & Stocks to Consider
Currently, Domo carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader sector are Twitter , Intel (INTC - Free Report) and Arista Networks (ANET - Free Report) . All the three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Expected long-term earnings growth for Twitter, Intel and Arista is 22.1%, 8.4% and 21.3%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>