Domo (DOMO) Stock Forecast & Price Target

Domo Inc. is experiencing positive financial momentum, as evidenced by its guidance for billings of $310.0M-$320.0M, reflecting a growth of approximately 2% at the midpoint. The company has reported improving adjusted free cash flow with a margin of 7.6%, alongside a notable enhancement in its Non-GAAP EBIT profitability, which reached a margin of 4.1%. Additionally, management anticipates a significant shift towards consumption revenue, projecting it to constitute over 65% of annual recurring revenue by the end of the year, thus indicating strong underlying business trends and customer engagement.

Domo Inc. has indicated a decline in billings, projecting $62.0 million to $63.0 million, which represents a 5% year-over-year decrease at the midpoint and falls short of market expectations of $67.3 million. Additionally, the company reported a notable decline in professional services revenue, which totaled $6.9 million, down 17% year-over-year, significantly missing the consensus estimate of $8.3 million. Furthermore, Domo's guidance for total revenue in the range of $310.0 million to $318.0 million suggests stagnation, as it is expected to decline by 1% year-over-year, further highlighting the negative growth trajectory in comparison to prior estimates.