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DOMO: Rising Revenue Outlook And India Expansion Will Drive Long-Term Upside

Cloud Partnerships And AI Integration Will Unlock Future Markets

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DOMO
AnalystConsensusTarget
Not Invested
Published 31 Mar 2025

Update shared on 07 Dec 2025

Fair value Decreased 13%
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Narrative Update on Domo

Analysts have trimmed their price target on Domo from approximately $18.50 to about $16.17 per share, citing slightly lower margin expectations and valuation multiples that more than offset improved revenue growth assumptions and a modestly higher discount rate.

What's in the News

  • Domo issued revenue guidance for the fourth quarter of fiscal 2026 of $78.0 million to $79.0 million, and for full year 2026 of $317.5 million to $318.5 million (company guidance)
  • Domo launched its platform on the AWS Asia Pacific Region in India to improve performance, reduce latency, and support customers operating in or serving the Indian market (company announcement)
  • Showpass is using Domo's AI and data products platform to deliver real time embedded analytics to over 30,000 clients, adding premium dashboards as a new revenue stream (company announcement)
  • Panasonic's Living Appliances and Solutions Company is leveraging Domo to transform digital customer support and product innovation, cutting 180 hours of monthly manual data aggregation and helping regain the top ranking in digital support for home appliances (company announcement)

Valuation Changes

  • The fair value estimate has decreased modestly from approximately $18.50 to about $16.17 per share, reflecting a lower implied upside for the stock.
  • The discount rate has risen slightly from about 9.12 percent to roughly 9.56 percent, indicating a marginally higher required return for valuing future cash flows.
  • The revenue growth assumption has increased from around 4.76 percent to approximately 6.20 percent, signaling a somewhat more optimistic view of top-line expansion.
  • The net profit margin forecast has edged down from roughly 13.09 percent to about 12.69 percent, implying slightly lower long-term profitability expectations.
  • The future P/E multiple has declined from about 23.1x to roughly 21.6x, suggesting a modest contraction in the valuation multiple applied to projected earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.