Domo, Inc. (NASDAQ:DOMO) Earnings Report Q2 FY2025

Domo, Inc., a cloud-based operating system for businesses, released its earnings for the second quarter of fiscal year 2025, achieving a revenue of $78.4 million, surpassing its revenue guidance, despite a 2% YoY decline.

Key Metrics

• Total Revenue: $78.4 million
• Subscription Revenue: 90% of total revenue
• Gross Retention Rate: 88%
• Billings: $68.6 million (slightly below guidance)

Strategic Partnerships

Domo’s partnerships with cloud-based data warehouses have played a vital role in its business strategy. These partnerships have allowed for better customer engagement and progress in growth initiatives. Notable partnerships include those with Snowflake, Databricks, Google, Oracle, IBM, and Dremio.

Leadership Changes

• David Jolley: Transitioning to a Senior Advisor role.
• Todd Crane: Promoted to Chief Financial Officer (CFO).
• RJ Tracy: Appointed Chief Revenue Officer (CRO).
• Jeff Skousen: Becoming President of Worldwide Sales and Field Operations.

Company Outlook

Domo is optimistic about future growth, predicting an increase in billings following positive prospects from CDWs. Additionally, the company is transitioning to consumption-based pricing, which is expected to lead to increased ARR.

Insights

Despite a slight revenue decline compared to last year, Domo has demonstrated resilience through strategic partnerships and innovative pricing models. The leadership transitions reflect a focus on driving growth in a competitive market. The company aims to increase its user base to 50,000 by the end of 2025. Moreover, Domo’s gross profit margin stands at 75.72%, highlighting its efficient operations.