ET 02:58

Domo (DOMO) Under Pressure: Billings Flat, CAC Payback Negative, Analysts See Limited Upside

IMP4.0
SNT-1.0
CONF100%
Earnings

Domo Inc. (DOMO) faces headwinds as billings stagnated at $73.2 million in the latest quarter, signaling struggles in customer acquisition and retention. Analysts forecast just 1.3% revenue growth over the next 12 months, below the company's five-year 9.8% annualized pace. The customer acquisition cost (CAC) payback turned negative, indicating sales and marketing outpacing revenue. DOMO now trades at $4.10 (0.6× forward P/S), raising concerns about shaky fundamentals despite the low valuation.

EditorWong Mei Ling