Domo (DOMO) Q2 Earnings Report Preview: What To Look For

Jabin Bastian /
2022/08/24 5:13 am EDT

Data visualisation and business intelligence company Domo (NASDAQ:DOMO) will be announcing earnings results tomorrow afternoon. Here's what investors should know.

Last quarter Domo reported revenues of $74.4 million, up 23.9% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in gross margin but an underwhelming revenue guidance for the next quarter.

Is Domo buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Domo's revenue to grow 21.6% year on year to $76.4 million, in line with the 22.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.33 per share.

Domo Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.4%.

Looking at Domo's peers in the data analytics segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Amplitude delivered top-line growth of 48% year on year, beating analyst estimates by 5.34% and Health Catalyst reported revenues up 18.4% year on year, exceeding estimates by 1.08%. Amplitude traded up 3.34% on the results, and Health Catalyst was down 5.33%. Read our full analysis of Amplitude's results here and Health Catalyst's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 3.12% over the last month. Domo is down 5.81% during the same time, and is heading into the earnings with analyst price target of $59, compared to share price of $27.88.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.