Domo Reports Q3 Revenue of $79.4 Million, Faces Net Loss of $10.4 Million

Domo, Inc. reported its financial results for the three and nine months ended October 31, 2025, revealing a total revenue of $79.4 million for the quarter, a slight decrease from $79.8 million in the same period last year. For the nine-month period, revenue increased marginally to $239.2 million from $238.3 million year-over-year. Subscription revenue, which constitutes the majority of the company's income, rose to $71.9 million for the quarter, up 1% from $71.1 million, while professional services revenue fell to $7.5 million, down 13% from $8.7 million. Despite the revenue stability, Domo continues to face significant net losses, reporting a net loss of $10.4 million for the quarter compared to a loss of $18.8 million in the prior year.

The company’s financial performance reflects a strategic shift towards consumption-based pricing, which now accounts for 80% of its annual recurring revenue (ARR). This model is designed to enhance customer adoption and retention, although the total customer count saw a slight decline from the previous year. As of October 31, 2025, Domo had over 2,400 customers, with enterprise customers representing 46% of revenue. The company reported a gross retention rate of 84% for both the current and prior year, indicating stable customer retention despite macroeconomic challenges affecting renewal discussions.

Domo's operational expenses decreased to $65.8 million for the quarter, down from $70.9 million a year earlier, primarily due to reduced sales and marketing costs. The company has focused on improving sales efficiency and managing costs, which has contributed to a decrease in sales and marketing expenses as a percentage of revenue from 47% to 43%. Research and development expenses also fell to $19.1 million, reflecting a strategic decision to streamline operations while continuing to invest in product development.

The company’s balance sheet as of October 31, 2025, showed total assets of $214.3 million, with cash and cash equivalents amounting to $47.9 million. Domo has a credit facility of $125.3 million, all of which has been drawn, and it is secured by the company’s assets. The company continues to navigate a challenging economic environment, which has elongated sales cycles and increased scrutiny on technology spending. Domo anticipates that these conditions may impact revenue growth in the near term, but it remains committed to its growth strategy, including expanding its customer base and enhancing its product offerings.

Looking ahead, Domo expects to continue investing in its platform and customer success initiatives to drive growth. The company acknowledges the potential for ongoing losses but aims to achieve improved margins and positive cash flow in the long term. Domo's management remains focused on aligning its sales and marketing efforts with its pricing structure to enhance customer engagement and retention, which are critical for sustaining its growth trajectory in the competitive business intelligence software market.