Domo Inc. Shares Drop After Disappointing Outlook

by Warren Seah

Domo Inc. (NASDAQ: DOMO) shares tumbled more than 25% in after-hours trading on Thursday, following the release of the company’s outlook that overshadowed its better-than-expected results. During the regular session, Domo’s shares remained flat at $17.04.

Third Quarter Projections

Domo has forecast an adjusted loss of 14 cents to 10 cents per share for the third quarter, with a revenue range of $78.5 million to $79.5 million. For the full year, the company anticipates a loss of 47 cents to 39 cents per share on revenue between $316 million and $320 million.

Analysts’ Expectations

However, analysts surveyed by FactSet had estimated a smaller loss of 6 cents per share on revenue of $82.1 million for the third quarter. For the year, they expected a loss of 36 cents per share on revenue of $325.5 million.

Second Quarter Performance

Domo reported a second-quarter loss of $16.1 million, or 45 cents per share, compared to a loss of $29.1 million, or 86 cents per share, in the same period last year. The adjusted loss, which excludes stock-based compensation expenses and other items, amounted to 2 cents per share. Revenue increased to $79.7 million from $75.5 million in the year-ago quarter.

Analysts’ Previous Projections

Analysts had previously projected a loss of 9 cents per share on revenue of $78.9 million for the second quarter.

Even though Domo’s quarterly results exceeded analysts’ estimates, investors seemed to focus more on the disappointing outlook provided by the company.

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