Domo (DOMO) Stock Forecast & Price Target

Domo Inc. is experiencing positive momentum in its financial performance, with projected billings of $310.0M-$320.0M, reflecting a modest increase of approximately 2% at the midpoint. The company has successfully improved its adjusted free cash flow margin to 7.6% and has seen a significant uptick in its Non-GAAP EBIT margin, rising to 4.1%. Furthermore, the transition to consumption-based revenue is anticipated to enhance recurring revenue streams, with expectations of consumption revenue surpassing 65% of annual recurring revenue by year-end, contributing positively to overall financial stability.

Domo Inc. is experiencing a challenging financial outlook, as management projects billings of $62.0M-$63.0M, indicating a 5% year-over-year decline at the midpoint, which falls short of market consensus expectations. Additionally, professional services revenue has dropped 17% year-over-year to $6.9M, significantly underperforming both consensus estimates and previous guidance. The company's overall revenue guidance of $310.0M-$318.0M also suggests stagnation, as it reflects only a slight decline compared to the prior year, indicating a lack of growth momentum within the business.