DOMO, INC. has recently released its 10-Q report, providing a detailed insight into the company's financial performance and operations. The cloud-based modern AI and data products platform, operating in various regions, aims to digitally connect everyone within an organization with real-time data and insights. The platform is offered as a consumption-based service, with over 70% of annual recurring revenue utilizing this model. The company's total revenue remained relatively flat year-over-year at $80.1 million for the three months ended April 30, 2025 and 2024, with no single customer accounting for more than 10% of the total revenue.
The report discusses the impact of macroeconomic conditions on the business, including elongated software sales cycles and increased deal scrutiny, which may negatively affect revenue growth in the near term. Despite this, the company had over 2,500 customers as of April 30, 2025, and 45% of the revenue for the three months ended April 30, 2025, came from enterprise customers.
DOMO, INC. employs a land, expand, and retain sales model, focusing on customer upsell and retention. The company's trailing twelve-month gross retention rate was 85% as of April 30, 2025. Sales and marketing efficiency is a priority, with sales and marketing expenses accounting for 50% of total revenue for the three months ended April 30, 2025.
The company plans to continue investing in research and development, particularly in machine learning algorithms, predictive analytics, and artificial intelligence technologies. Despite incurring significant net losses, including $18.1 million for the three months ended April 30, 2025, the company remains committed to its vision of digitally connecting everyone within the enterprise with real-time, relevant data. As a result of these announcements, the company's shares have moved 4.46% on the market, and are now trading at a price of $14.29. If you want to know more, read the company's complete 10-Q report here.
