Stock to watch: Domo Inc (NASDAQ: DOMO)

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Domo Inc (NASDAQ: DOMO) stock rose 7.38% on June 10th 2019 but slightly corrected over 1.8% on June 11th, 2019 (Source: Google finance)

The company has beaten the earnings estimates for the first quarter of FY 20. In Q1, DOMO was able to decrease operating expenses by 15% from last year on the back of lower marketing and personnel costs. The net effect of increased revenue while effectively managing costs allowed the company to improve operating margin by 73 full percentage points from the same quarter last year. As of April 30th, DOMO had cash, cash equivalents and short-term investments of $154 million, more than adequate amount to get the company to cash flow positive. The adjusted cash used in operations was $22.2 million, which is an improvement of $5.5 million over the prior quarter and a 40% reduction compared to Q1 of the prior year.

Stock to watch: Domo Inc (NASDAQ: DOMO)

DOMO in the first quarter of FY 20 has reported the adjusted loss per share of $1.08, beating the analysts’ estimates for the adjusted loss per share of $1.28. Q1 revenue was $40.8 million, a year-over-year increase of 28%. Subscription revenue grew 29% and represented 84% of total revenue. Year-over-year subscription revenue growth was driven mainly due to new customers and the company now have over 1,800 customers. International revenue represented 26% of total revenue, up from 23% in Q4. The subscription gross margin was 77%, up 270 basis points from 74.3% in Q4 and up over 74 percentage points from 69.8% in Q1 of last year. Including the services business, the total gross margin was 69.1%, a 60 basis point improvement compared to 68.5% in the fourth quarter of last year and a 520 basis point improvement compared to 63.9% gross margin in the first quarter of last year.

During the first quarter 2020, in conjunction with the growing portfolio of technology partners such as AWS, Google, Azure, LinkedIn, Box, Coupa, Okta and Zendesk, DOMO has announced the Domo Integration Cloud. The Domo Integration Cloud or iPaaS solution includes more than 1,000 pre-built connectors and are federated query capabilities to connect to and leverage data, no matter where it lives, on-prem or in the cloud.

The company expects Q2 billings of about $42 million. For fiscal 2020, DOMO expect to continue to execute on the plan to decrease cash burn sequentially each quarter fiscal year ’20 and expect Q2 adjusted cash used in operations of about $20.5 million and $74.5 million for the year. For the second quarter of 2020 DOMO expects GAAP revenue to be between $41 million to $42 million and expect non-GAAP net loss per share basic and diluted to be of $0.98 to $1.02.

Inc (NASDAQ: DOMO) stock rose 7.38% on June 10th 2019 but slightly corrected over 1.8% on June 11th, 2019 (Source: Google finance)

The company has beaten the earnings estimates for the first quarter of FY 20. In Q1, DOMO was able to decrease operating expenses by 15% from last year on the back of lower marketing and personnel costs. The net effect of increased revenue while effectively managing costs allowed the company to improve operating margin by 73 full percentage points from the same quarter last year. As of April 30th, DOMO had cash, cash equivalents and short-term investments of $154 million, more than adequate amount to get the company to cash flow positive. The adjusted cash used in operations was $22.2 million, which is an improvement of $5.5 million over the prior quarter and a 40% reduction compared to Q1 of the prior year.

DOMO in the first quarter of FY 20 has reported the adjusted loss per share of $1.08, beating the analysts’ estimates for the adjusted loss per share of $1.28. Q1 revenue was $40.8 million, a year-over-year increase of 28%. Subscription revenue grew 29% and represented 84% of total revenue. Year-over-year subscription revenue growth was driven mainly due to new customers and the company now have over 1,800 customers. International revenue represented 26% of total revenue, up from 23% in Q4. The subscription gross margin was 77%, up 270 basis points from 74.3% in Q4 and up over 74 percentage points from 69.8% in Q1 of last year. Including the services business, the total gross margin was 69.1%, a 60 basis point improvement compared to 68.5% in the fourth quarter of last year and a 520 basis point improvement compared to 63.9% gross margin in the first quarter of last year.

During the first quarter 2020, in conjunction with the growing portfolio of technology partners such as AWS, Google, Azure, LinkedIn, Box, Coupa, Okta and Zendesk, DOMO has announced the Domo Integration Cloud. The Domo Integration Cloud or iPaaS solution includes more than 1,000 pre-built connectors and are federated query capabilities to connect to and leverage data, no matter where it lives, on-prem or in the cloud.

The company expects Q2 billings of about $42 million. For fiscal 2020, DOMO expect to continue to execute on the plan to decrease cash burn sequentially each quarter fiscal year ’20 and expect Q2 adjusted cash used in operations of about $20.5 million and $74.5 million for the year. For the second quarter of 2020 DOMO expects GAAP revenue to be between $41 million to $42 million and expect non-GAAP net loss per share basic and diluted to be of $0.98 to $1.02.

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