Domo Reports $79.4 Million Revenue with 1% Year-Over-Year Decline and $14.2 Million Net Loss

Domo, Inc. reported a total revenue of $79.4 million for the three months ended April 30, 2026, a slight decrease of 1% from $80.1 million in the same period last year. Subscription revenue, which constitutes the bulk of the company's income, fell by 2% to $69.8 million, while professional services and other revenue increased by 10% to $9.6 million. The company continues to face challenges in achieving profitability, posting a net loss of $14.2 million for the quarter, down from a loss of $18.1 million in the prior year. This brings the accumulated deficit to $1.56 billion as of April 30, 2026.

In terms of operational metrics, Domo's customer count decreased by 6% year-over-year, totaling over 2,400 customers as of April 30, 2026. The company reported that 76% of its customers were under multi-year contracts, which helps enhance revenue predictability. However, the decline in customer count and the challenges in renewing contracts have raised concerns about future revenue growth. The company’s gross retention rate remained stable at 86%, indicating a consistent ability to retain existing customers despite macroeconomic pressures.

Domo is currently navigating significant financial challenges, including noncompliance with a financial covenant under its secured credit facility, which has resulted in the classification of $137.1 million in debt as a current liability. The company has entered into a forbearance agreement with its lenders, allowing them to refrain from exercising their rights related to this noncompliance until a definitive purchase agreement is reached by July 31, 2026. The company is in advanced negotiations regarding a potential transaction, which it hopes will alleviate its financial constraints.

The company has also made strategic investments in its growth, particularly in enhancing its platform capabilities and expanding its partner ecosystem. Domo's focus on a consumption-based pricing model has resulted in 89% of its annual recurring revenue coming from this structure, which the company expects to increase. However, the transition to this model carries risks, including potential revenue fluctuations based on customer usage patterns. Domo's management is actively working to align its sales and marketing strategies with its pricing structure to improve efficiency and customer acquisition.

Looking ahead, Domo's management has expressed concerns about the impact of macroeconomic conditions on its business, including elongated sales cycles and increased scrutiny during renewal discussions. The company anticipates continued investment in its platform and sales capabilities, but acknowledges that achieving profitability remains uncertain. The ongoing negotiations for a strategic transaction and the potential to raise capital through an at-the-market equity offering program are critical to Domo's future financial stability and growth prospects.