Domo Reports 2% Revenue Growth to $79.7 Million in Q2 FY 2025

Domo, Inc. reported its financial results for the second quarter of fiscal year 2025, revealing a total revenue of $79.7 million, a slight increase of 2% from $78.4 million in the same period last year. Subscription revenue, which constitutes the majority of the company's income, rose by 3% to $72.7 million, while professional services revenue decreased by 7% to $6.99 million. For the first half of the fiscal year, total revenue reached $159.8 million, up from $158.5 million in the prior year. Despite this revenue growth, Domo continued to experience significant net losses, reporting a net loss of $22.9 million for the quarter, compared to a loss of $19.5 million in the same quarter last year.

The company’s financial position showed some notable changes compared to the previous fiscal period. As of July 31, 2025, Domo's total assets increased to $214.3 million from $195.7 million at the end of January 2025. However, total liabilities also rose, resulting in a stockholders' deficit of $191.5 million, up from $177.2 million. The increase in liabilities was primarily driven by a rise in accounts payable and a significant increase in the warrant liability, which grew from $11.2 million to $20.5 million during the same period.

Domo has been focusing on strategic developments to enhance its market position. The company has shifted towards a consumption-based pricing model, which now accounts for 76% of its annual recurring revenue (ARR). This model is expected to facilitate customer adoption and retention. As of July 31, 2025, Domo reported having over 2,500 customers, with enterprise customers making up 46% of its revenue. The company also noted a slight increase in the percentage of customers under multi-year contracts, which rose to 72% on a dollar-weighted basis.

Operationally, Domo has been investing in its platform capabilities and customer support resources to drive engagement and retention. The company reported a gross retention rate of 85% as of July 31, 2025, indicating a stable customer base despite macroeconomic challenges that have elongated sales cycles and increased scrutiny on renewals. Domo's sales and marketing expenses decreased to 44% of total revenue, down from 47% in the previous year, reflecting efforts to improve efficiency.

Looking ahead, Domo anticipates continued investment in product development and sales initiatives to support growth. The company expects to incur losses in the near term but aims to achieve improved margins and positive cash flow in the long run. Domo's management remains cautious about the impact of macroeconomic conditions on its business and is focused on aligning its sales strategies to navigate these challenges effectively.