Domo (DOMO) Q3 2025 earnings summary

Executive summary

• Q3 revenue was $79.8 million, nearly flat year over year, with subscription revenue at $71.1 million and billings at $73.4 million; subscription RPO reached $354.1 million, up 3% year over year.

• Accelerated shift to a consumption-based model, now representing over 55% of ARR, with 100% of new logo deals on consumption contracts.

• GAAP net loss was $18.8 million ($0.48 per share); non-GAAP net loss was $3.2 million ($0.08 per share); gross margin was 75%, with subscription gross margin at 82%.

• Ecosystem-led growth and AI capabilities are driving higher quality, faster, and larger enterprise deals, especially through key partners like CDW.

• Customer base is more stable, with increased contract lengths and improved retention outlook, though gross retention declined to 84% from 87% year over year.

Financial highlights

• Q3 total revenue was $79.8 million, up slightly year over year; subscription revenue made up 89% of total.

• Q3 billings reached $73.4 million, down from $74.8 million in Q3 FY2024; subscription RPO ended at $354.1 million, up 3% year over year.

• Subscription RPO beyond 12 months grew 14% year over year; average contract length increased 13% year over year and 10% sequentially.

• Subscription gross margin was 82%; non-GAAP operating margin was 3%; GAAP operating margin was negative 14%.

• Cash and cash equivalents at quarter-end were $40.9 million; net cash used in operating activities was $13.7 million.

Outlook and guidance

• Q4 revenue expected at $77.5–$78.5 million; Q4 non-GAAP net loss per share expected at $0.13–$0.17.

• Full-year FY2025 revenue guidance is $315.5–$316.5 million; non-GAAP net loss per share $0.60–$0.64.

• Positive adjusted free cash flow of $4–$5 million expected in Q4, with cash balance projected to increase.

• Revenue is expected to remain under pressure in the near term due to macroeconomic headwinds and a shift to consumption-based pricing.

• No formal quantitative guidance was provided for future quarters beyond FY2025.