Shares of Domo (NASDAQ:DOMO) have soared today, up by 15% as of 12:48 p.m. EST, after the business analytics specialist reported third-quarter earnings. The company beat expectations for both top- and bottom-line results.
Revenue in the third quarter increased 22% to $44.8 million, of which $37.8 million was subscription revenue. Billings came in at $44.4 million, and Domo reported an adjusted net loss of $23.6 million, or $0.85 per share. Analysts had been modeling for $41.8 million in sales and an adjusted loss of $1.02 per share. The company burned through $19.5 million in negative operating cash flow, and finished the quarter with $115.9 million in cash on the balance sheet.
"I am very pleased with our 24% subscription revenue growth and our execution in Q3, closing several of the largest deals in company history," CEO Josh James said in a statement. "We provide a differentiated solution that helps customers quickly, easily and securely put data to work at scale."
The chief executive added that Domo is making progress in reducing its cash burn. The tech company is focused on becoming cash flow positive. Guidance also came in above Wall Street's forecasts.
Revenue in the fourth quarter is expected to be in the range of $45 million to $46 million, which should translate into an adjusted net loss of $0.94 to $0.98 per share. Consensus estimates currently call for $43.9 million in revenue and an adjusted net loss of $0.98 per share. That should bring full-year revenue to $172.2 million to $173.2 million, with an adjusted net loss of $3.88 to $3.92 per share.