Domo (DOMO) To Report Earnings Tomorrow: Here Is What To Expect

Adam Hejl /
2022/05/25 8:00 am EDT

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

Last quarter Domo reported revenues of $69.9 million, up 23.1% year on year, beating analyst revenue expectations by 4.31%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and a full year guidance beating analysts' expectations.

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 23.3% year on year to $74 million, in line with the 23.6% 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 4.25%.

Looking at Domo's peers in the data analytics segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Palantir delivered top-line growth of 30.8% year on year, beating analyst estimates by 0.64% and Amplitude reported revenues up 46.6% year on year, exceeding estimates by 4.36%. Palantir traded down 6.43% on the results, Amplitude was up 6.2%. Read our full analysis of Palantir's results here and Amplitude's results here.

There has been a stampede out of high valuation technology stocks and software stocks have not been spared, with share price down on average 20.2% over the last month. Domo is down 33.8% during the same time, and is heading into the earnings with analyst price target of $77.3, compared to share price of $28.03.

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.