Domo (DOMO) Q4 Earnings Report Preview: What To Look For

Jabin Bastian /
2022/02/28 6:51 am EST

Data visualisation and business intelligence company Domo (NASDAQ:DOMO) will be reporting earnings tomorrow after market close. Here's what to look for.

Last quarter Domo reported revenues of $65 million, up 21.3% year on year, beating analyst revenue expectations by 1.19%. It was a slower quarter for the company, with 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 18% year on year to $67.1 million, slowing down from the 23.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.40 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 3.83%.

Looking at Domo's peers in the data and analytics software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Palantir (NYSE:PLTR) delivered top-line growth of 34.3% year on year, beating analyst estimates by 3.54% and Amplitude (NASDAQ:AMPL) reported revenues up 75.1% year on year, exceeding estimates by 5.26%. Palantir traded down 21.1% on the results, Amplitude was down eye-watering 58.9%. Read our full analysis of Palantir's results here and Amplitude's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.13% over the last month. Domo is down 4.94% during the same time, and is heading into the earnings with analyst price target of $101.3, compared to share price of $44.64.

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.