What happened
Shares of Domo (DOMO +5.62%), a provider of a low-code data app platform, were slammed on Friday. As of 11:05 a.m. ET, the stock was down more than 29%.
The tech stock's decline was likely due to the company's fiscal second-quarter earnings report, which was released after market close on Thursday. Domo's bottom-line results were worse than expected. In addition, management lowered its outlook for full-year sales and provided lower-than-expected guidance for fiscal Q3 revenue.
NASDAQ: DOMO
Key Data Points
So what
Domo's fiscal second-quarter revenue rose 20% year over year to $75.5 million. Subscription revenue, which increased 23% year over year and accounted for $67.4 million of its total revenue, was the primary driver of this growth. But analysts were expecting fiscal Q2 sales of about $76.4 million. The company's adjusted loss per share of $0.26, however, beat analysts' average forecast for a loss of $0.33 per share.
"We continue to optimize for long-term, sustainable growth, as we deliver speed-to-value to line-of-business decision makers and support our customers' success," said CEO John Mellor in the company's fiscal second-quarter earnings release.
Now what
Despite management's optimism about its business, Domo did notably lower its outlook for full-year revenue. Management said it now expects fiscal 2023 revenue to be between $305 million and $310 million. This is below a previous forecast for sales of $315 million to $319 million. In addition, the guidance is below analysts' consensus estimate for revenue of $316 million. But the company said it now expects a narrower adjusted loss per share than it had previously projected.
Domo's fiscal third-quarter revenue guidance also missed the mark, with the midpoint of the range being about $2.6 million below analysts' consensus estimate. But, once again, the company surprised to the upside on its bottom line, guiding for an adjusted loss per share between $0.27 and $0.23. This compares to analysts' average forecast for a loss per share of $0.34.
