What is Domo Net Worth and Revenue Streams: Financial Performance Overview 2024

Domo net worth has seen some fluctuations, particularly as the company works to grow its revenue streams and stabilize its finances.

Let’s take an in-depth look at the key revenue sources, operating costs, and overall financial health that shape Domo’s standing today, presented by Ando Money.

Quick Facts

What is the Net Worth/Market Cap of Domo in 2024?

As of October 2024, Domo has a market cap of $0.27 billion, which reflects its financial status in comparison to other companies in the industry.

Although the value places it as one of the smaller players, Domo continues to navigate the competitive landscape by focusing on innovation and strategic partnerships.

To put this in context, here are several other companies with significant market valuations that you might find interesting to compare:

• BlackRock
• Benchmark Capital
• Viking Global Investors
• Institutional Venture Partners
• T. Rowe Price
• Capital Advisors
• Adobe Inc.
• GGV Capital
• Capital Group
• Credit Suisse

When it comes to analyzing the biggest market players, it’s useful to consider some of the top wealthiest companies and see how Domo aligns in this sector.

Domo Financial Performance Overview

Key Revenue Streams

Domo’s key revenue streams are primarily divided into two segments: subscription services and professional services. Subscription revenue in Q2 2024 amounted to $70.9 million, contributing significantly to overall revenue.

In addition, professional services and other revenue sources brought in $7.5 million, helping to balance out income despite declining trends in some areas.

The primary driver behind their subscription services revenue is the company’s ability to integrate AI-based business intelligence tools across their client base.

Analysis of Revenue Trends Over Time

The analysis of Domo’s revenue trends shows some fluctuations. In the fiscal second quarter of 2024, total revenue was $78.4 million, which represents a 2% decrease year-over-year compared to the previous year’s performance.

This decline indicates challenges that Domo faces in maintaining consistent growth. When we look at fiscal projections, they expect the total revenue for the full year of 2025 to fall between $313.0 million to $315.0 million.

This projection suggests that Domo anticipates stabilizing its growth despite the current contraction.

Subscription Revenue Breakdown

A closer look at subscription revenue reveals that it continues to be the most substantial contributor, accounting for almost 90% of the total revenue.

The consistent demand for cloud-based solutions and the adoption of Domo’s business intelligence tools keep driving their subscription sales.

Notably, Domo has also focused on developing data-driven applications that encourage businesses to adopt subscription models as part of their long-term data visualization needs.

Operating Costs and Their Impact on Profitability

Operating costs have had a notable impact on Domo’s profitability. Total operating expenses in Q2 2024 were $72.77 million, which includes significant expenditures on sales and marketing as well as research and development.

Sales and marketing costs amounted to $36.63 million, reflecting the high investment in acquiring and retaining clients.

On the other hand, research and development costs stood at $21.97 million, showing their ongoing commitment to innovation.

Financial Health Indicators

Cash flow and liquidity are critical to Domo’s overall financial health. As of July 31, 2024, cash, cash equivalents, and restricted cash totaled $55.7 million.

Despite the ongoing expenditures, Domo managed its cash flow effectively, although they reported net cash used in operating activities at $6.2 million for the quarter.

Adjusted free cash flow was negative at $5.6 million, which indicates challenges in generating enough cash to cover its operating needs without external funding.

Performance of Major Financial Metrics

Another important aspect to look at is the billings and remaining performance obligations (RPO). Billings in Q2 2024 stood at $68.6 million, which reflects a 3% decline year-over-year.

The RPO, which represents contracted revenues yet to be recognized, was $358.9 million. This figure shows promise for future revenues, even if short-term billing trends have dipped.

Additionally, the operating margin for Q2 2024 saw a decline of 5 percentage points in the GAAP metric, which is a clear indicator of rising costs relative to revenue.

Role of Investors and Funding in Financial Performance

Domo’s ability to sustain its operations partly depends on investments.

The company has seen significant funding rounds in the past, including Series C funding from major investors like BlackRock and T. Rowe Price.

These investments allowed Domo to scale its operations and explore new markets, which is crucial for a company with such high operational and marketing costs.

Strategies to Drive Revenue Growth

To enhance revenue, Domo has embarked on partnerships and initiatives.

They have made notable progress with ecosystem partnerships, focusing on consumption-based customers in Q2, which is a strategic move aimed at ensuring consistent revenue flow.

Their initiatives in the data and AI sectors also present exciting new opportunities that could potentially stabilize and even grow their financial metrics in the coming quarters.

Contribution of Customer Recognition and Market Position

Domo’s recognition in the business intelligence industry has also contributed to its overall financial health.

The company has been honored with several awards, including recognition as a leader in the Nucleus Research 2024 Business Intelligence Technology Value Matrix and a perfect recommendation score from Dresner’s 2024 Wisdom of Crowds® Business Intelligence Market Study.

Such accolades contribute positively to Domo’s brand and can indirectly affect revenue growth.

Comparison of Revenue Expectations Versus Actual Outcomes

When comparing Domo’s actual performance with fiscal projections, we see mixed results.

The Q3 fiscal 2025 revenue is expected to be between $77.0 million to $78.0 million, which reflects stability but limited growth compared to previous expectations.

Variations in market conditions and rising operational costs have created hurdles that make consistent growth difficult.

Nevertheless, these projections show a measured confidence in steadying the business as external challenges stabilize.

FAQs about Domo

What are Domo’s main revenue streams?

Domo’s primary revenue streams are subscription services and professional services. Subscription revenue forms the bulk of the total, with professional services contributing a smaller share.

What operating costs have affected Domo’s financial performance?

Operating costs such as sales and marketing and research and development are significant for Domo. In Q2 2024, these costs were $36.63 million and $21.97 million respectively.

How much cash does Domo currently have?

As of July 31, 2024, Domo has $55.7 million in cash, cash equivalents, and restricted cash. This forms a critical part of their short-term liquidity.

Who are the major investors in Domo?

Major investors include BlackRock, Benchmark Capital, T. Rowe Price, and Viking Global Investors. Their funding has been crucial in sustaining and expanding operations.

What is Domo’s total revenue for Q2 2024?

For the fiscal second quarter of 2024, Domo’s total revenue was $78.4 million. This figure represents a 2% decline year-over-year.

Conclusion

Domo’s financial landscape presents a complex mix of growth opportunities and challenges. If you have thoughts or questions, feel free to comment or share! For more detailed financial insights, visit Ando Money.