tiprankstipranks
Market News

Domo Q2 Results Surpass Estimates; Shares Decline 8.4%

Shares of cloud software company Domo, Inc. (DOMO) fell 8.4% in Thursday’s extended trade to close at $89.49 even though the company reported better-than-expected results for the second quarter ended July 31, 2021. The strong results were primarily driven by growth in total revenues.

Domo reported quarterly revenues of $62.8 million, up 23% from the same quarter last year. Moreover, the figure surpassed the Street’s estimates of $60.76 million. The rise in revenues can be attributed to a 23% year-over-year rise in Subscription revenues, which stood at $54.7 million, representing about 87% of the total revenues.

The company reported a loss of $0.30 per share in the quarter, narrower than the previous year’s loss of $0.37 per share. Analysts had estimated the company to report a loss of $0.36 per share.

In other key operating metrics, billings surged 26% year-over-year to $60 million and remaining performance obligations grew 24% year-over-over to $286.8 million. While the company’s net cash from operating activities stood at $2.2 million, it ended the quarter with a cash and cash equivalents balance of $86.4 million.

Notably, the company also provided guidance for the third quarter and Fiscal Year 2022.

For the third quarter, the company expects revenues to be in the range of $63.5 million to $64.5 million against the consensus estimates of $63.42 million. It estimates its third-quarter loss to hover between $0.33 and $0.37 per share against the Street’s estimates of a loss of $0.37 per share.

For Fiscal Year 2022, the company sees revenue to be in the range of $252 million to $256 million against the analysts’ estimates of $250.96 million. It expects to report per share loss in the range of $1.31 to $1.39 against the consensus estimates of a loss of $1.34 per share.

The CEO of Domo, Josh James, said, “As the first cloud-native, modern BI platform, Domo was built to help companies put data to work in new ways with the speed and scale that most organizations haven’t seen to date. I am confident in Domo’s ability to execute on this mission for the remainder of FY22.” (See Domo stock chart on TipRanks)

Recently, Morgan Stanley analyst Sanjit Singh reiterated a Buy rating on the stock with a price target of $91. The analyst’s price target implies downside potential of 6.9% from current levels.

Consensus among analysts is a Strong Buy based on 4 unanimous Buys. The average Domo price target of $97.50 implies downside potential of 0.2% from current levels.

Domo scores a 7 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations. Shares have gained 155.3% over the past year.

Related News:
TD Bank Q3 Profit Surges 58%, Tops Estimates
Ulta Beauty Leaps 5% on Stellar Q2 Results & Upbeat Guidance
Autodesk’s Q2 Results Beat Estimates; Shares Fall 7%

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More