Domo, Inc. (NASDAQ:DOMO) Yearly Results: Here's What Analysts Are Forecasting For This Year
It's been a mediocre week for Domo, Inc. (NASDAQ:DOMO) shareholders, with the stock dropping 15% to US$9.82 in the week since its latest full-year results. Revenues came in at US$319m, in line with forecasts and the company reported a statutory loss of US$2.10 per share, roughly in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Domo
Taking into account the latest results, Domo's five analysts currently expect revenues in 2025 to be US$320.6m, approximately in line with the last 12 months. Losses are expected to hold steady at around US$2.04. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$323.8m and losses of US$1.75 per share in 2025. While this year's revenue estimates held steady, there was also a noticeable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
The consensus price target held steady at US$15.10, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Domo analyst has a price target of US$23.00 per share, while the most pessimistic values it at US$10.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Domo's revenue growth is expected to slow, with the forecast 0.5% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Domo.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$15.10, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Domo going out to 2027, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 4 warning signs for Domo you should be aware of, and 1 of them can't be ignored.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
