Why Domo Shares Are Trading Lower Friday

Domo, Inc. DOMO stock is moving lower following the company announcing first quarter financial earnings.

The Details: On Thursday after the market closed, Domo announced financial results for the 2025 fiscal year first quarter including subscription revenue of $72.1 million.

Domo enables companies to streamline essential business processes quickly and efficiently on a large scale through the use of AI, data science and a secure data foundation that connects with both cloud and legacy systems.

Domo reported total revenue of $80.10 million, a 1% year-over-year increase, beating analyst estimates of $79.49 million.

The company announced a loss of 33 cents per share missing analyst estimates of a loss of 23 cents per share.

“We’re hyper-focused on returning to growth, and feel optimistic about early signals from our strategic initiatives such as partner collaborations, consumption momentum and multi-use case customers,” said Josh James, CEO of Domo.

“Domo is a compelling solution for the current data and AI environment. We’re confident that our strategic priorities will continue to reinforce our competitive position.”

The company also set guidance for the second quarter. It expects a loss between 30 and 26 cents per share versus analyst estimates of a loss of 7 cents per share. Furthermore, Domo sees revenue between $76 and $77 million versus analyst estimates of $79.75 million.

Following the earnings report, several analysts issued price target adjustments.

Lake Street analyst Eric Martinuzzi downgrades Domo from Buy to Hold and lowers the price target from $15 to $8.

Morgan Stanley analyst Sanjit Singh maintains Domo with a Equal-Weight and lowers the price target from $13 to $7.

Related Link: Why Genelux Corporation (GNLX) Shares Are Down 40%

DOMO Price Action: At the time of writing, Domo stock was trading 1.54% lower at $7, according to data from Benzinga Pro.

Image: Pete Linforth from Pixabay