Business intelligence platform Domo (NASDAQ:DOMO) met Wall Streets revenue expectations in Q3 CY2025, but sales were flat year on year at $79.4 million. On the other hand, next quarter’s revenue guidance of $78.5 million was less impressive, coming in 0.9% below analysts’ estimates. Its non-GAAP profit of $0.01 per share was significantly above analysts’ consensus estimates.

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Domo (DOMO) Q3 CY2025 Highlights:

• Revenue: $79.4 million vs analyst estimates of $79.04 million (flat year on year, in line)

• Adjusted EPS: $0.01 vs analyst estimates of -$0.05 (significant beat)

• Adjusted Operating Income: $5.42 million vs analyst estimates of $2.99 million (6.8% margin, 80.9% beat)

• Revenue Guidance for Q4 CY2025 is $78.5 million at the midpoint, below analyst estimates of $79.23 million

• Management lowered its full-year Adjusted EPS guidance to -$0.09 at the midpoint, a 160% decrease

• Operating Margin: -8.7%, up from -13.9% in the same quarter last year

• Free Cash Flow Margin: 2.6%, similar to the previous quarter

• Billings: $73.2 million at quarter end, in line with the same quarter last year

• Market Capitalization: $482.8 million

Company Overview

Named for the Japanese word meaning "thank you very much," Domo (NASDAQ:DOMO) provides a cloud-based business intelligence platform that connects people with real-time data and insights across organizations.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Domo grew its sales at a sluggish 9.8% compounded annual growth rate. This fell short of our benchmark for the software sector and is a tough starting point for our analysis.

Long-term growth is the most important, but within software, a half-decade historical view may miss new innovations or demand cycles. Domo’s recent performance shows its demand has slowed as its revenue was flat over the last two years.

This quarter, Domo’s $79.4 million of revenue was flat year on year and in line with Wall Street’s estimates. Company management is currently guiding for flat sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 1.3% over the next 12 months, similar to its two-year rate. Although this projection implies its newer products and services will spur better top-line performance, it is still below the sector average.

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