Domo, Inc. Reports $80.1 Million Revenue with Improved Net Loss in Latest Quarter

Domo, Inc. reported its financial results for the three months ended April 30, 2025, revealing total revenue of $80.1 million, a slight increase from the same period in 2024, which also recorded $80.1 million. Subscription revenue decreased by 1% to $71.4 million, while professional services and other revenue rose by 9% to $8.7 million. The company experienced a net loss of $18.1 million for the quarter, an improvement from the $26.0 million loss reported in the prior year. This resulted in a net loss per share of $0.45, compared to $0.69 in the previous year.

Domo's financial performance reflects a challenging macroeconomic environment that has elongated sales cycles and increased scrutiny during renewal discussions. The company noted a 2% decrease in customer count year-over-year, with over 2,500 customers as of April 30, 2025. Despite these challenges, Domo's annual recurring revenue (ARR) remains stable, with 70% of customers under multi-year contracts, enhancing revenue predictability. The company also reported a total remaining performance obligation of $427.5 million, indicating future revenue potential.

Operationally, Domo has focused on improving its sales and marketing efficiency, resulting in a decrease in sales and marketing expenses as a percentage of revenue from 53% to 50%. Research and development expenses also decreased from 28% to 25% of total revenue, reflecting a strategic shift towards cost management while continuing to invest in product development. The company has emphasized its consumption-based pricing model, which is expected to drive customer adoption and retention.

Domo's balance sheet as of April 30, 2025, showed cash and cash equivalents of $47.2 million, with total liabilities amounting to $391.6 million. The company has a credit facility of $125.3 million, all of which has been drawn. Domo's management expressed confidence in its ability to meet projected operating requirements for at least the next 12 months, although they acknowledged the need for potential future capital raises to support growth initiatives.

Looking ahead, Domo anticipates continued investment in product development and sales efforts to enhance customer engagement and retention. The company remains focused on navigating the current economic landscape while striving for improved margins and sustained positive cash flow. However, Domo cautioned that it expects to incur losses for the foreseeable future, as it continues to prioritize growth and market expansion.