Domo (DOMO) Q2 2025 earnings summary

Executive summary

• Q2 revenue was $78.4M, down 2% year-over-year but slightly above guidance; subscription revenue was $70.9M, representing 90% of total revenue.

• GAAP net loss for Q2 was $19.5M ($0.51/share); non-GAAP net loss was $2.7M ($0.07/share); net loss widened from prior year.

• Shift to consumption-based and multi-year contracts continues, now over 45% of ARR; 65% of customers are on multi-year agreements.

• Macroeconomic headwinds have elongated sales cycles, increased deal scrutiny, and pressured renewals, especially among enterprise customers.

• Leadership transitions and industry recognition, including awards for product innovation and customer value.

Financial highlights

• Q2 billings were $68.6M, down from $70.6M year-over-year, impacted by billing timing.

• Subscription gross margin was 82.4% (non-GAAP); GAAP subscription gross margin was 81%.

• Non-GAAP operating margin was 2.5%; GAAP operating margin decreased by 5 points year-over-year.

• Adjusted free cash flow was negative $5.6M; cash and equivalents at quarter end were $55.7M.

• RPO was $358.9M as of July 31, 2024.

Outlook and guidance

• Q3 guidance: revenue of $77–$78M, non-GAAP net loss per share of $0.14–$0.18.

• FY2025 guidance: revenue of $313–$315M, non-GAAP net loss per share of $0.69–$0.77.

• Guidance reflects prioritizing long-term growth over short-term billings, with continued losses expected.