Domo (DOMO) Q1 2027 earnings summary

Executive summary

• Entered advanced negotiations for a potential strategic transaction after a comprehensive review of alternatives, aiming to maximize shareholder value; no definitive agreement has been reached.

• The company is addressing capital structure and liquidity needs, including a forbearance agreement due to noncompliance with a recurring revenue covenant, resulting in substantial doubt about its ability to continue as a going concern.

• AI and data infrastructure are now central to customer conversations, with rapid deployment of AI-powered solutions and ecosystem partnerships driving customer engagement.

• Recognized as a leader in BI and analytics by Nucleus Research and Dresner Advisory Services.

• 89% of annual recurring revenue is now on a consumption-based model, and 76% of customers are under multi-year contracts.

Financial highlights

• Q1 FY2027 total revenue was $79.4 million, down 1% year-over-year; subscription revenue was $69.8 million, down 2%, and professional services revenue rose to $9.6 million.

• Billings were $60.4 million, down from $63.9 million year-over-year; subscription RPO was $412.9 million, up 1% year-over-year.

• GAAP net loss was $14.2 million ($0.33 per share), improved from $18.1 million prior year; non-GAAP net loss was $0.9 million ($0.02 per share).

• Adjusted free cash flow was near break even or negative $0.2 million; cash flow from operations was $5.2 million; quarter-end cash balance was $39.1 million.

• Operating expenses decreased across all categories, with sales and marketing at $37.6 million (-5%), R&D at $18.6 million (-7%), and G&A at $13.3 million (-6%).

Outlook and guidance

• No financial guidance is being provided due to ongoing strategic transaction discussions; further updates will be shared only as required.

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

• The company may sell up to $150 million of Class B common stock through an at-the-market equity program, but no shares have been sold to date.