Domo (DOMO) 2020 Q4 Earnings Results

Domo Inc (NASDAQ:DOMO), founded in 2010, is an emerging cloud analytics software company. It helps organizations grow by connecting employees with the data they need. Its cloud-based operating system unifies all data that allows executives to manage their business more efficiently. Domo went public in July 2018 by pricing more than 10 million shares at $21 apiece.

The company recently announced its financial results for the fourth quarter. Domo reported a loss of $19.6 million, or 65 cents per share for the three months ended January 31, narrower than a loss of $29.8 million, or $1.06 in the comparable period of 2020. On an adjusted basis, the loss came in at 32 cents per share, lower than a loss of 43 cents per share projected by analysts.

Revenue for the quarter jumped 23 percent on a year-over-year basis to $56.8 million, beating analysts’ average estimate of $54 million. Subscription revenue in the quarter climbed 26 percent to $50.0 million, accounting for 88 percent of the total revenue.

Commenting on the quarter, CEO Josh James said in a statement, “Q4 capped off an incredible year in which our entire team’s commitment to customer success drove outstanding performance across the board. Our strong performance and much improved financial position has put us in an excellent position to continue to execute and I’m thrilled to be pursuing our growth initiatives in FY22.”

Looking forward, Domo expects to report an adjusted loss in the range of 43 cents per share to 47 cents per share and revenue between $56.5 million to $57.5 million for the first quarter.

Separately, Global Equity Research Firm UBS increased its rating for Domo from “Neutral” to “Buy” and lifted its price target for the stock from $40 per share to $90 per share, citing strong demand for cloud data services this year. DOMO shares rose nearly 5 percent in the mid-day trading Monday following the upgrade.

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