Data visualization and business intelligence company Domo (NASDAQ:DOMO) will be reporting results tomorrow after market hours. Here’s what investors should know.
Domo beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $79.76 million, flat year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
Is Domo a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Domo’s revenue to decline 2.7% year on year to $78 million, a deceleration from its flat revenue in the same quarter last year. Adjusted loss is expected to come in at -$0.16 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Domo has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Domo’s peers in the data analytics segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Palantir delivered year-on-year revenue growth of 36%, beating analysts’ expectations by 6.8%, and Amplitude reported revenues up 9.4%, topping estimates by 1.9%. Palantir traded up 23.7% following the results while Amplitude was also up 21.8%.
Read our full analysis of Palantir’s results here and Amplitude’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed’s rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the data analytics stocks have shown solid performance, the group has generally underperformed, with share prices down 10.9% on average over the last month. Domo is down 15.3% during the same time and is heading into earnings with an average analyst price target of $10.42 (compared to the current share price of $7.74).
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