Domo (DOMO) investor relations material

Executive summary

• Achieved Q3 revenue of $79.4 million, with subscription revenue at $71.9 million and billings at $73.2 million; nine-month revenue was $239.2 million, up 0.4% year-over-year.

• Net loss for the quarter improved to $10.4 million ($0.25 per share), with non-GAAP net income of $0.3 million ($0.01 per diluted share); nine-month net loss was $51.4 million.

• Adjusted free cash flow was $2.1 million in Q3, a $15.8 million year-over-year improvement, and is projected to reach approximately $6 million for the year.

• 80% of annual recurring revenue is now on a consumption-based model, with 74% of customers under multi-year contracts by dollar value.

• Recognized as a leader in agentic AI and embedded analytics by multiple analyst firms, with notable customer wins and CEO on temporary medical leave.

Financial highlights

• Q3 billings were $73.2 million, below guidance due to longer partner-related sales cycles.

• Gross margin was 75.4%, down 90 bps year-over-year, with subscription gross margin (GAAP) at 81% and non-GAAP at 82%.

• Operating expenses decreased 7% year-over-year, driven by lower sales and marketing and R&D costs.

• Cash and cash equivalents totaled $47.9 million at quarter end.

• Current subscription RPO grew 3% YoY to $214.1 million; total subscription RPO up 15% to $405.9 million.

Outlook and guidance

• Q4 revenue expected between $78–$79 million; Q4 billings guidance is $107.5–$109.5 million, implying 6% YoY growth.

• FY2026 revenue guidance: $317.5–$318.5 million; billings: $315–$317 million; non-GAAP net loss per share: $0.07–$0.11.

• Expect full-year operating margin of 5%, highest ever, and targeting 10% billings growth and 10% margin by FY27.

• Management expects sales and marketing and R&D expenses as a percentage of revenue to remain stable or decrease long term.

• The company believes existing cash and equivalents are sufficient for at least the next 12 months.