DOMO - Domo shares dip as revenue outlook lags estimates

2023-03-07 10:33:25 ET

Domo ( NASDAQ: DOMO ) shares fell 16% on Tuesday after the application software company issued a full-year 2024 revenue outlook that fell short of analysts estimates.

For the year, the company expects to generate adjusted earnings of $0.27-$0.39 per share (vs. consensus: -$0.49) on revenue of $323M-$330M vs. $337.0M estimated.

Commenting on the outlook, Morgan Stanley said, The film "is seeing significant deceleration" and "we remain cautious on the near- term demand environment and see potential disruption risks given the magnitude of change the business is undergoing"

In Q4 , Domo ( DOMO ) incurred net loss of $19.8M compared to estimated loss $19.2M. Revenue grew 14% Y/Y in the quarter to $79.6M, with subscription revenue totaling $70.3M.

Billings were down 3% Y/Y to $104.5M, hurt by a challenging macro environment and tough compare.

The company also announced executive changes, with founder Josh James taking over as CEO in place of John Mellor who stepped down.

James said, "Based on our internal alignment, our sales capacity outlook, the size and health of the pipeline and the strong demand at the top of the funnel, I am very bullish on our long-term prospects."

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