DOMO - Domo: Long Overdue Rebound
Summary
- Down more than 65% over the past year, shares of Domo are ripe for a rebound rally.
- Though revenue growth has remained north of >20% y/y, billings growth has slowed to the single digits, foreshadowing coming deceleration.
- This is a macro-driven phenomenon, as Domo has cited economic headwinds as the reason clients are putting off their digital transformation projects.
- At the same time, it is worth noting that Domo has now surpassed breakeven on a pro forma operating margin basis.
- At <2x forward revenue, the stock is too cheap to pass up.
For further details see:
Domo: Long Overdue Rebound