Summary
Domo's fiscal 2025 third quarter revenue was $79.8 million, flat versus the prior-year quarter. Year-to-date revenue was $238.3 million, also flat. The top line stalled as subscription revenue stayed flat and professional services was relatively flat. The company continued to push consumption-based pricing; more than 55% of annual recurring revenue was on consumption-based agreements or enterprise-wide subscription agreements as of the quarter's end. Customer count was over 2,600. Domo also highlighted product recognition: a leader in Nucleus Research's 2024 Embedded Analytics Technology Value Matrix for the fourth consecutive year, and first place in the 2024 Dresner Advisory Wisdom of Crowds Analytical Platforms Report for the fourth consecutive year. The company said its focus on ecosystem-led growth, consumption-based contracts and AI innovation is paying off with promising momentum. Gross profit fell to $59.8 million, down 1.8%, and gross margin slipped to 75.0%, down 1.5 percentage points. Management tied the subscription gross margin decline to slower revenue growth and higher third-party web hosting costs as customer data usage increased.
Operating loss for the quarter was $11.1 million, narrowed from the prior-year quarter. Year-to-date operating loss was $47.0 million, widened from the prior-year period. Net loss was $18.8 million, widened from the prior-year quarter. Diluted EPS was negative $0.48, down $0.03. Year-to-date net loss was $64.3 million, widened, and year-to-date diluted EPS was negative $1.68, down $0.09. Operating margin was negative 13.9%, up 0.2 percentage points. Year-to-date operating margin was negative 19.7%, down 2.3 percentage points. Non-GAAP operating margin was 3%. Non-GAAP net loss was $3.2 million, and non-GAAP net loss per share was $0.08. The non-GAAP figures exclude stock-based compensation, amortization of certain intangible assets, executive officer severance, loss on extinguishment of debt, and remeasurement of warrant liability.
Cash flow weakened. Operating cash flow was negative $13.7 million for the quarter, down $9.4 million from the prior-year quarter. Year-to-date operating cash flow was negative $18.0 million, down $15.1 million. Capital expenditures were $2.5 million for the quarter, down 7.3%, and $7.2 million year to date, down 21.4%. Deferred revenue was $157.2 million, down 3.4% from the prior-year quarter. Adjusted free cash flow was negative $13.8 million. Billings were $73.4 million for the quarter and $207.5 million for the nine-month period. Gross retention on a trailing twelve-month basis was 84%, down from 87% a year earlier. The decline reflected macroeconomic conditions, challenging renewals from customers with COVID-19 use cases, and one large non-renewal in April 2024. The company had more than 55% of ARR on consumption-based agreements or ELAs, and 65% of customers were under multi-year contracts on a dollar-weighted basis. Management believes existing cash and cash equivalents will be sufficient to meet projected operating requirements for at least the next 12 months.
Guidance for the fourth quarter of fiscal 2025 calls for non-GAAP net loss per share of $0.13 to $0.17, based on 39.3 million weighted-average shares. For the full fiscal year 2025, Domo expects non-GAAP net loss per share of $0.60 to $0.64, based on 38.5 million weighted-average shares. The company did not reconcile the non-GAAP guidance to the most directly comparable GAAP measures because certain items are not within its control or cannot be reasonably predicted. The outlook reflects a business still dealing with macroeconomic pressure. Management said the macroeconomic environment has elongated software sales cycles, increased deal scrutiny, and made renewal discussions more challenging. These factors have hit enterprise customers harder, and enterprise revenue is expected to decline in the near term. The shift to consumption-based pricing also carries uncertainty, even as it may improve land, expand, and retain results over the long term. Domo faces credit facility covenants, including a minimum annualized recurring revenue covenant, a minimum trailing twelve-month consolidated EBITDA covenant, and a monthly minimum liquidity covenant. The company remains exposed to customer retention risk after gross retention fell to 84%. It also has a $150.0 million at-the-market offering available, and no shares have been sold under it to date.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $79.8M | $78.4M | +1.7% | $79.7M | +0.1% |
| Gross profit | $59.8M | $58.3M | +2.6% | $60.9M | -1.8% |
| Gross margin | 75.0% | 74.3% | +0.6 pp | 76.4% | -1.5 pp |
| Research & development | $21.3M | $22.0M | -3.2% | $19.7M | +7.8% |
| Sales & marketing | $37.2M | $36.6M | +1.5% | $40.3M | -7.6% |
| General & administrative | $12.4M | $14.2M | -12.3% | $12.1M | +2.5% |
| Total operating expenses | $70.9M | $72.8M | -2.6% | $72.1M | -1.7% |
| Operating income (loss) | -$11.1M | -$14.5M | +23.5% | -$11.2M | +1.2% |
| Operating margin | -13.9% | -18.5% | +4.6 pp | -14.1% | +0.2 pp |
| Net income (loss) | -$18.8M | -$19.5M | +3.7% | -$16.4M | -14.3% |
| Net margin | -23.5% | -24.9% | +1.3 pp | -20.6% | -2.9 pp |
| Diluted EPS | -$0.48 | -$0.51 | +$0.03 | -$0.45 | -$0.03 |
Risks
MD&A states revenue is expected to be negatively impacted in the near term due to the macroeconomic environment, which has elongated the software sales cycle, increased deal scrutiny, and made renewal discussions more challenging. These factors have had a greater impact on enterprise customers, as evidenced by declining enterprise revenue that is expected to continue to decline in the near term.
More than 55% of ARR is on consumption-based agreements or ELAs as of the end of FY2025 Q3, and the company has limited experience with consumption pricing. It warns that customers may use less data than originally contemplated, resulting in lower net retention, and that changes to pricing models could expose it to unexpected effects including increased user dissatisfaction and difficulty retaining customers.
Trailing twelve month gross retention declined to 84% as of October 31, 2024 from 87% as of October 31, 2023, due in part to challenging renewals from COVID-19 use cases and one large non-renewal in April 2024. A majority of annual recurring revenue is up for renewal during the fiscal year ending January 31, 2025, and RPO expected to be recognized in the next twelve months fell to $220.6 million from $230.8 million.
The company had an accumulated deficit of $1,469.9 million at October 31, 2024, net loss widened to $64.3 million for the nine months ended October 31, 2024 from $56.9 million in the prior-year period, and operating cash flow declined to negative $18.0 million from negative $2.9 million. It had $40.9 million of cash and cash equivalents, no amounts available to draw under its credit facility, and may need to raise additional funds on unfavorable terms.
The $123.0 million credit facility was fully drawn as of October 31, 2024 and is secured by substantially all assets. It contains restrictive covenants, including minimum annualized recurring revenue, minimum trailing twelve month consolidated EBITDA, and monthly minimum liquidity of $25.0 million, and noncompliance could result in an event of default and acceleration.
The market is intensely competitive with large software companies such as Microsoft, Oracle, SAP, and IBM, as well as analytics providers like Tableau and Qlik, which may bundle products at significant discounts. The company's use of AI and machine learning carries risks of flawed algorithms, biased data, reputational harm, and evolving regulation such as the proposed E.U. Artificial Intelligence Act.
The company must align and expand its sales and marketing capabilities with its new consumption-based pricing structure and increase sales efficiency. It faces significant competition for direct sales personnel, and recent hires may not become as productive as quickly as desired, while changes in sales leadership could adversely affect existing sales personnel.
Joshua G. James beneficially controlled approximately 79% of voting power as of October 31, 2024 and has pledged all Class A shares to secure a loan. A default or sale of those pledged shares could cause the market price of Class B common stock to decline or be volatile.
SaaS KPIs
All quarters →Total Customers
Billings
Non-GAAP Subscription Gross Margin
Adjusted Free Cash Flow
Non-GAAP Operating Margin
Customers under multi-year contracts (dollar-weighted)
Subscription Remaining Performance Obligations (RPO)
Total Remaining Performance Obligations (RPO)
Summary, forecast, risks and KPIs are extracted from Huckleberry.ai, Inc.'s SEC filings for Q3 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.