Domo, Inc. reported its financial results for the fiscal year ending January 31, 2025, revealing total revenue of $317.0 million, a slight decline of 1% from the previous year’s revenue of $319.0 million. The company continues to operate at a loss, with a net loss of $81.9 million for the year, compared to a net loss of $75.6 million in the prior year. This brings Domo's accumulated deficit to approximately $1.49 billion as of January 31, 2025. The company’s revenue is primarily derived from subscription services, which accounted for 90% of total revenue, while professional services contributed the remaining 10%.
In terms of operational metrics, Domo reported a customer base of over 2,600 organizations as of January 31, 2025, with a notable increase in the percentage of customers under multi-year contracts, rising to 69% from 66% the previous year. The company’s annual recurring revenue (ARR) net retention rate showed a decline, averaging 89% for the year, down from 96% and 106% in the previous two years, respectively. This decline is attributed to macroeconomic conditions that have elongated sales cycles and increased scrutiny during deal negotiations.
Domo has made significant investments in its platform, totaling $920 million since its inception, with a focus on enhancing its cloud-based services and expanding its partner ecosystem. The company has also transitioned to a consumption-based pricing model, which now represents over 68% of its annual recurring revenue. This shift aims to improve customer adoption and retention by aligning pricing with the value delivered to customers. However, the company faces challenges in managing growth effectively, particularly in attracting new customers and expanding usage among existing clients.
Looking ahead, Domo anticipates that total revenue for fiscal 2026 will remain approximately flat compared to fiscal 2025, as it continues to navigate a challenging economic environment. The company plans to focus on controlling costs and improving sales efficiency to enhance margins and sustain positive cash flow. Domo's credit facility, which allows for up to $125.3 million in borrowings, remains fully drawn, and the company is exploring additional financing options to support its growth initiatives.
About DOMO, INC.
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