Hours before it was to report its second-quarter results, Domo (DOMO 9.25%) pleased investors with news of a high-profile business partnership. They were clearly encouraged by this development, as they pushed shares of the data analytics specialist significantly higher (by 9%) for the second trading session in a row. This pop was well higher than the 0.2% increase of the benchmark S&P 500 index.
A new strategic collaboration
That morning, Domo revealed that it has entered into a fresh strategic collaboration agreement with top cloud services provider Amazon Web Services (AWS).
Image source: Getty Images.
The deal centers on the provision of artificial intelligence (AI) capabilities; in Domo's words the two companies will "help mutual customers harness the power of generative AI (GenAI) to build AI-powered solutions that improve business outcomes."
AI, the hot next-generation technology of the moment, is quickly being integrated into the offerings of many business process solutions providers, Domo being one example.
Despite its obvious enthusiasm for the new arrangement, Domo did not provide the financial particulars of the new Amazon arrangement.
AI for the win
Domo did, however, cite findings from a company called ISG Research forecasting that, through 2027, more than 50% of all businesses will realize their ability to harness AI effectively is insufficient. They will therefore require new investment into redressing this, providing a potentially lucrative customer base for the Domo/AWS partnership.
The former company has fully embraced AI as part of its future. It offers Domo AI, a sprawling collection of solutions and tools that take advantage of the technology.
Domo-watchers should keep their eye on the stock, as Thursday trading in the shares will be affected by those second-quarter results (scheduled to be published after market hours Wednesday).
