Business intelligence platform Domo (NASDAQ:DOMO) fell short of the market's revenue expectations in Q2 CY2026, with sales falling 3.7% year on year to $76.78 million. Its GAAP loss of $0.21 per share was 32.3% above analysts' consensus estimates.
Is now the time to buy Domo? Find out in our full research report .
Domo (DOMO) Q2 CY2026 Highlights:
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Revenue:$76.78 million vs analyst estimates of $77.92 million (3.7% year-on-year decline, 1.5% miss)
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EPS (GAAP):-$0.21 vs analyst estimates of -$0.31 (32.3% beat)
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Operating Margin:-3.1%, up from -9.1% in the same quarter last year
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Free Cash Flowwas -$8.06 million compared to -$184,000 in the previous quarter
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Billings:$61.04 million at quarter end, down 13.2% year on year
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Market Capitalization:$171.1 million
Company Overview
Named for the Japanese word meaning "thank you very much," Domo (NASDAQ:DOMO) provides a cloud-based business intelligence platform that connects people with real-time data and insights across organizations.
Revenue Growth
Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Domo grew its sales at a weak 6.2% compounded annual growth rate. This fell short of our benchmark for the software sector and is a tough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. Domo's recent performance shows its demand has slowed as its revenue was flat over the last two years.
This quarter, Domo missed Wall Street's estimates and reported a rather uninspiring 3.7% year-on-year revenue decline, generating $76.78 million of revenue.
Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. This projection doesn't excite us and suggests its newer products and services will not lead to better top-line performance yet.
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Billings
Billings is a non-GAAP metric that is often called "cash revenue" because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.
Domo's billings came in at $61.04 million in Q2, and it averaged 2.6% year-on-year declines over the last four quarters. This performance mirrored its total sales and shows the company faced challenges in acquiring and retaining customers. It also suggests there may be increasing competition or market saturation.
Customer Acquisition Efficiency
The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments.
Domo's recent customer acquisition efforts haven't yielded returns as its CAC payback period was negative this quarter, meaning its incremental sales and marketing investments outpaced its revenue. The company's inefficiency indicates it operates in a highly competitive environment where there is little differentiation between Domo's products and its peers.
Key Takeaways from Domo's Q2 Results
We struggled to find many positives in these results. Its revenue slightly missed and its billings fell short of Wall Street's estimates. Overall, this was a softer quarter. The stock remained flat at $3.82 immediately following the results.
Big picture, is Domo a buy here and now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free .
