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DOMO, INC. (DOMO)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY25 delivered above company guidance on billings, revenue, non‑GAAP EPS and adjusted FCF, with total revenue $78.8M, non‑GAAP EPS of $(0.05), billings $102.6M, and adjusted FCF +$6.0M; subscription RPO reached a record $403.6M (+14% YoY) and long‑term subscription RPO $178.5M (+38% YoY) .
  • Management introduced FY26 targets: billings $310–$320M, revenue $310–$318M, non‑GAAP EPS $(0.29)–$(0.39), implying ~2% non‑GAAP operating margin; Q1 FY26 guidance calls for revenue $77.5–$78.5M, non‑GAAP EPS $(0.18)–$(0.22), and billings $62–$63M (timing shift of ~$5M renewals) .
  • Strategic narrative: accelerating partner‑led ecosystem (CDWs/SIs) and the shift to consumption are improving contract duration, RPO, and retention; consumption cohort posted >90% gross retention and >100% net retention in FY25 .
  • Potential stock catalysts: sustained RPO outperformance vs billings, positive cash generation, and evidence that partner pipeline/close‑rate uplift (5x lead conversion; 2–3x higher close rates) converts to billings/revenue acceleration in 2H FY26 (company hopes to raise H2 guidance contingent on partner volume) .

What Went Well and What Went Wrong

What Went Well

  • Record subscription RPO of $403.6M (+14% YoY) and long‑term subscription RPO of $178.5M (+38% YoY) indicate improved durability and customer commitment; management emphasized longer contracts and consumption migration as drivers .
  • Cash execution: adjusted FCF +$6.0M (company’s highest quarterly free cash flow) and net cash from operations +$8.9M; cash balance increased to $45.3M in Q4 .
  • Ecosystem progress: partner‑sourced opportunities show meaningfully higher conversion (5x lead conversion; 2–3x higher close rates) and are expected to drive a larger share of new logos; Databricks engagement ramping and multiple top CDW/SI relationships established .
  • Quote: “In Q4, we exceeded our guidance for billings, revenue, non‑GAAP EPS and adjusted free cash flow… RPO was over the $400 million mark for the first time ever” — Josh James, CEO .

What Went Wrong

  • Top‑line pressure persists: Q4 total revenue of $78.8M was down vs the prior year’s $80.2M; billings of $102.6M were below prior‑year Q4 ($105.4M) despite strong sequential improvement .
  • Margin softness: subscription gross margin (non‑GAAP) at ~81% in Q4, down sequentially due to capitalized software amortization timing; management expects low‑80s near term before a return to mid‑80s longer‑term .
  • Retention still below long‑term target: gross retention at ~85% in Q4 (third straight quarter at or above 85%); target remains ≥90% over time .

Financial Results

Headline P&L, Margins, Cash Flow (Quarterly)

MetricQ2 FY25 (Jul-31-2024)Q3 FY25 (Oct-31-2024)Q4 FY25 (Jan-31-2025)
Total Revenue ($M)$78.4 $79.8 $78.77
Subscription Revenue ($M)$70.92 $71.11 $71.86
Billings ($M)$68.63 $73.40 $102.64
GAAP EPS (Loss)$(0.51) $(0.48) $(0.45)
Non‑GAAP EPS (Loss)$(0.07) $(0.08) $(0.05)
Non‑GAAP Operating Margin (%)2% 3% 4%
Subscription Gross Margin (Non‑GAAP %)82% 82% 81%
Net Cash from Ops ($M)$(6.17) $(13.70) $8.92
Adjusted Free Cash Flow ($M)$(5.59) $(13.77) $6.01
Cash & Equivalents ($M)$55.70 $40.93 $45.26

YoY Snapshot (Q4 FY25 vs Q4 FY24)

MetricQ4 FY24Q4 FY25
Total Revenue ($M)$80.18 $78.77
Subscription Revenue ($M)$71.91 $71.86
Billings ($M)$105.41 $102.64
GAAP EPS (Loss)$(0.51) $(0.45)
Non‑GAAP EPS (Loss)$(0.05) $(0.05)
Non‑GAAP Op Margin (%)4% 4%

Segment Revenue Mix (Quarterly)

Segment ($M)Q2 FY25Q3 FY25Q4 FY25
Subscription$70.92 $71.11 $71.86
Professional Services & Other$7.49 $8.65 $6.91
Total Revenue$78.41 $79.76 $78.77

KPIs and Balance Sheet Indicators

KPIQ2 FY25Q3 FY25Q4 FY25
(Subscription) RPO ($M)$358.9 (Total RPO reported) $354.1 (Subscription RPO) $403.6 (Subscription RPO)
Long‑Term (Subscription) RPO >12m ($M)N/A$145.9 $178.5
Gross Retention (%)88% 85% 85%
ARR Net Retention (YoY)90% (Q2) Up sequentially (Q3) Up sequentially (Q4 commentary)
Weighted‑Avg Shares (M)38.39 (GAAP) 38.83 (GAAP) 39.27 (GAAP)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ1 FY26N/A$77.5–$78.5M Introduced
Non‑GAAP EPS (Loss)Q1 FY26N/A$(0.18)–$(0.22) (39.7M shares) Introduced
BillingsQ1 FY26N/A$62–$63M; ~$5M renewal timing shift Introduced
RevenueFY26N/A$310–$318M Introduced
Non‑GAAP EPS (Loss)FY26N/A$(0.29)–$(0.39) (40.9M shares) Introduced
BillingsFY26N/A$310–$320M Introduced
Non‑GAAP Op MarginFY26N/A~2% implied (from EPS guide) Introduced

Note: For context, Q4 FY25 guidance issued in Q3 called for revenue $77.5–$78.5M and non‑GAAP EPS $(0.13)–$(0.17) (39.3M shares) ; actual Q4 revenue was $78.77M and non‑GAAP EPS was $(0.05) .

Earnings Call Themes & Trends

TopicQ2 FY25 (Prior‑2)Q3 FY25 (Prior‑1)Q4 FY25 (Current)Trend
AI/Agentic AIPositioned Domo as AI‑ready platform; AI service layer; early wins Accelerating AI adoption; agentic workflows; customer ROI anecdotes Agentic AI highlighted; multiple awards; customers deploying AI agents rapidly Improving adoption/validation
Partner ecosystem (CDWs/SIs)Shift to partner‑led motion; Snowflake live; 0→60 joint pipeline deals in 2 qtrs; 26 new partners Partner pipeline +90% QoQ; faster close times; bigger deals; sales enablement ramp 5x lead conversion, 2–3x higher close rates; Databricks momentum; meaningful H2 FY26 potential Strengthening; conversion metrics robust
Consumption model & retentionMajority of ARR to be on consumption by YE; consumption cohorts 98% gross/118% net retention (quarter disclosure) 55% ARR on consumption; vendor consolidation tailwind; multi‑year contracts up >65% ARR on consumption; consumption cohorts >90% gross, >100% net retention in FY25 Expanding share; better retention
Macro/budgetsChallenging environment; optimizing for longer‑term growth Budget constraints impacting retention; pipeline offsets via partners Demand requires well‑authorized projects; macro steady; optimism via partners Stable macro; execution‑driven
Cash flow/capital structureRefinanced debt to Aug‑2028; lower cash interest (SOFR+300) Negative FCF due to timing; Q4 expected positive FCF Positive adjusted FCF and op cash; cash balance up QoQ Improving FCF trajectory

Management Commentary

  • Strategic focus: “We exceeded our guidance… We have also turned the corner on cash generation and expect positive adjusted free cash flow for Q1 and for fiscal year ’26.” — Josh James, CEO .
  • Ecosystem efficacy: “Our ecosystem converts at about a 5x increase in conversion rate… and a 2 to 3x increase in close rates… We’re hoping through Q1 and Q2… to raise guidance for the Q3 and Q4 numbers based on what we’re seeing in the partner network.” — CEO .
  • Consumption/retention: “In fiscal year ’25, our consumption customer cohort had gross retention of over 90% and net retention of over 100%.” — CEO .
  • Profitability/margins: “Subscription gross margin was 81.4%, down sequentially due to the timing of capitalized software amortization… returning to the mid‑80s over the longer term.” — CFO .
  • Outlook setup: “For the full year, we expect billings of $310–$320M, GAAP revenue of $310–$318M… Our FY ’26 EPS guidance implies a 2% operating margin… For Q1, we expect billings of $62–$63M… and GAAP revenue $77.5–$78.5M.” — CFO .

Q&A Highlights

  • Renewal timing and billings: ~$5M of renewals shifted out of Q1 FY26 due to mid‑term consumption conversions resetting renewal dates; billings guidance reflects timing, not demand .
  • Balance sheet: Highest quarterly free cash flow achieved in Q4; cash rose from ~$41M to ~$45M; debt ≈$120M with >4 years to address (maturity extended to 2028 previously) .
  • Ecosystem conversion metrics: Leads from partners show ~5x conversion vs self‑sourced, 2–3x higher close rates; management aims to translate into H2 FY26 uplift and potentially raise guidance if lead volumes sustain .
  • Go‑to‑market mix: Continued shift of resources to ecosystem and technical adoption roles aligned with consumption; hiring profiles favor CDW ecosystem experience .
  • Macro tone: Customers remain selective, emphasizing well‑authorized projects; no new macro headwinds seen in near term .

Estimates Context

  • Wall Street consensus (S&P Global) could not be retrieved at the time of analysis due to API limits; therefore, explicit comparisons vs consensus are not included. Values are based on company filings and call commentary. S&P Global consensus data was unavailable at time of query.
  • Company did state it exceeded its own Q4 guidance on billings, revenue, non‑GAAP EPS and adjusted FCF .

Key Takeaways for Investors

  • RPO strength outpacing billings (total subscription RPO +14% YoY; long‑term +38% YoY) suggests improving revenue durability and visibility into FY26, driven by longer contracts and consumption migration .
  • Positive cash inflection (adjusted FCF +$6.0M; op cash +$8.9M) and guidance for continued cash generation position DOMO to self‑fund while pursuing partner‑led growth .
  • The partner ecosystem is showing statistically higher conversion/close rates; if lead volumes scale as management expects in 1H, H2 FY26 billings could accelerate, a potential catalyst for estimate revisions and multiple expansion .
  • Near‑term P&L headwinds remain: revenue and billings down YoY in Q4, subscription gross margin dipped on amortization timing; management expects margins to normalize to low‑80s near term before trend back to mid‑80s .
  • Retention improving but below target: gross retention at ~85%; consumption cohorts (>90% gross/>100% net) and longer contract terms are the levers to approach the ≥90% gross retention goal over FY26 .
  • Guidance architecture implies modest FY26 profitability improvement (~2% non‑GAAP operating margin) on flat‑to‑modest top‑line; upside hinges on partner pipeline conversion and potential H2 guidance raises .
  • Watch for continued CDW/SI announcements (e.g., Databricks/Koantek) and Domopalooza updates as signals of ecosystem momentum translating into bookings/billings .

Appendix: Source Documents

  • Q4 FY25 Press Release: headline metrics, financial statements, and guidance .
  • 8‑K (Item 2.02) and Exhibit 99.1: confirmation of results and guidance .
  • Q4 FY25 Earnings Call Transcript: strategic narrative, KPIs, and guidance detail .
  • Prior quarters for trend: Q3 FY25 press release and call ; Q2 FY25 press release and call .
  • Related ecosystem PRs around the quarter: Koantek/Databricks partnership; Domopalooza investor session .