The case for & against
Bull & Bear analysis
Bearish
Domo, Inc. (NASDAQ: DOMO) is a provider of cloud-based business intelligence and data visualization solutions. The company has positioned itself as a key player in the analytics space, helping organizations gain insights through data-driven decision-making. Domo operates in the growing field of business intelligence and data analytics, addressing the increasing demand for real-time data management across various industries. The recent asset sale agreement with Progress Software demonstrates Domo's repositioning strategy to enhance financial flexibility and align its focus on core competencies.
Bull says
- ↑Asset sale to Progress Software delivers $400M, boosting cash to $246M
- ↑Analysts project Q2 revenue of $78M and EPS of $0.0018
- ↑Growth factor strong, implying expansion potential post-sale
- ↑High liquidity lets Domo meet obligations and reinvest
- ↑Tax benefits plan preserves NOLs, enhancing future cash flow
- ↑Stock rose 17.2% in 30 days, reflecting renewed optimism
Bear says
- ↓Earnings yield at -1.78% and book/price at -2.95 signal distress
- ↓Profitability factor weak, indicating unsustainable profit margins
- ↓Momentum score negative, reflecting bearish sentiment and volatility
- ↓Low institutional ownership suggests limited investor confidence
- ↓Asset sale may create uncertainty around core business focus
- ↓Consensus ‘Reduce’ rating with $3.95 target vs $4.84 cash/share
Earnings Call · Q1 2026 · Mgmt. Guidance
Updated 06-19-2026neutral
Transcript signals
Bull points
- We exceeded our Q1 guidance for billings, revenue, and non-GAAP EPS and were adjusted free cash flow positive.
- Total revenue was $80.1 million and billings were $63.9 million.
- Gross retention improved to 86% from 85% in Q4 and 83% a year ago. This is the fourth consecutive quarter at 85% or above, and we continue to expect a two percentage point improvement in gross retention for FY26 compared to the prior year.
Bear points
- Non-GAAP net loss was $3.6 million.
- Non-GAAP net loss per share was $0.09, based on 39.7 million weighted average shares outstanding.
- Yeah, on the enterprise side, I mean, it's a large portion of our business. It's an important part, part of our business.
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