Analysts Have Made A Financial Statement On Domo, Inc.’s (NASDAQ:DOMO) Second-Quarter Report

Domo, Inc. (NASDAQ:DOMO) just released its latest quarterly results and things are looking bullish. Results overall were solid, with revenues arriving 2.4% better than analyst forecasts at US$78m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.51 per share, were 2.4% smaller than the analysts expected. Earnings are an important time for investors, as they can track a company’s performance, look at what the analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Domo

Following last week’s earnings report, Domo’s five analysts are forecasting 2025 revenues to be US$313.9m, approximately in line with the last 12 months. Losses are expected to increase substantially, hitting US$2.35 per share. Before this latest report, the consensus had been expecting revenues of US$312.0m and US$2.31 per share in losses.

As a result there was no major change to the consensus price target of US$9.60, implying that the business is trading roughly in line with expectations despite ongoing losses. There’s another way to think about price targets though, and that’s to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Domo, with the most bullish analyst valuing it at US$16.00 and the most bearish at US$7.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Domo’s past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 2.8% annualised decline to the end of 2025. That is a notable change from historical growth of 15% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 12% annually for the foreseeable future. It’s pretty clear that Domo’s revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that Domo’s revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$9.60, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn’t be too quick to come to a conclusion on Domo. Long-term earnings power is much more important than next year’s profits. We have forecasts for Domo going out to 2027, and you can see them free on our platform here.

We don’t want to rain on the parade too much, but we did also find 3 warning signs for Domo (1 shouldn’t be ignored!) that you need to be mindful of.