Company Overview
Domo, Inc. operates as a provider of a cloud-based modern AI and data products platform, digitally connecting chief executive officers to frontline employees with the necessary data, systems, and people across North America, Western Europe, Australia, Japan, and India. The company functions within the Technology sector and the Software - Application industry, positioning itself to deliver enterprise-level analytics and collaboration solutions to a global customer base. According to the latest available data, the company holds a market capitalization of $142.11M and reports annual revenue of $318.86M for the trailing twelve months. These financial figures indicate that while the company generates significant top-line revenue, its market valuation suggests a smaller-scale entity relative to its revenue generation, a dynamic often observed in software firms still navigating profitability challenges or those with specific market concentration risks.
Financial Health
The company reported revenue of $318.86M over the trailing twelve months, yet it simultaneously recorded a net income of -$59,342,000 and an EBITDA of -$26,086,000. The substantial gap between the positive revenue figure and the significant negative net income reveals a cost structure where operating expenses and taxes exceed the gross profits generated from sales, resulting in an overall loss. Despite the reported net loss, the company maintains positive free cash flow of $57.17M, which indicates a degree of financial flexibility allowing the business to fund operations and potentially invest in growth initiatives without immediate reliance on external equity financing. The company's profitability is characterized by a gross margin of 75.0%, reflecting efficient product delivery, while the operating margin stands at -9.0% and the profit margin is -18.6%, signaling that high operating expenditures are currently eroding bottom-line profitability. On the balance sheet, the company holds $42.95M in cash against $139.64M in debt, creating a net debt position, and the debt-to-equity ratio is listed as N/A. The current ratio is 0.57, which indicates that the company's current assets are insufficient to cover its current liabilities without additional liquidity or refinancing. Return on Equity is listed as N/A due to the capital structure, while Return on Assets is -10.0%, revealing that the company's assets are currently generating negative returns on the capital employed.
Valuation Assessment
Domo, Inc. presents a forward P/E ratio of 25.00, whereas the trailing P/E ratio is listed as N/A due to the company's lack of reported earnings. The disparity between the forward P/E and the unavailable trailing P/E implies that the market is pricing in expected future earnings that are anticipated to turn positive, though the historical data does not yet reflect this profitability. The price-to-book ratio is -0.77, which indicates that the market is valuing the company at a discount relative to its book value, a metric that can occur when a company carries significant debt or has negative equity. Alternative valuation metrics such as the price-to-sales ratio of 0.45 and an EV/EBITDA of -9.19 suggest that the stock is trading at a low multiple relative to its sales, potentially reflecting market skepticism regarding its path to sustained profitability. The stock has traded within a range defined by a 52-week high of $18.49 and a 52-week low of $3.25. Without the current specific share price provided in the facts, the exact percentage distance from the high cannot be calculated, but the wide range between the high and low demonstrates significant price volatility. The beta of 1.75 indicates that the stock's price volatility is substantially higher than the broader market, meaning the asset is expected to experience larger swings in value during market movements.
Growth & Income
Revenue growth for the company is recorded at 1.1% year-over-year, while earnings growth is listed as N/A due to the current net loss. Since earnings growth cannot be measured positively in the same manner as revenue when the company is unprofitable, the implication is that the company is prioritizing top-line expansion over immediate earnings accretion. Regarding income distribution, the company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%. This non-dividend status confirms that the company reinvests all available cash flow, including its positive free cash flow, back into operations and growth initiatives rather than returning capital to shareholders. The overall growth and income profile is characterized by modest revenue expansion, a lack of current earnings, and a reliance on internal cash generation to fund operations without distributing income to investors.