Domo Inc (DOMO)DOMO

Domo Inc. Comprehensive Overview

Company Profile:

Background and History:

Domo, founded in 2010, is a Utah-based company headquartered in American Fork. It operates a cloud-based platform that integrates data from various sources and provides BI (Business Intelligence) tools for data analysis and visualization. Domo primarily focuses on large enterprises and offers subscription-based access to its platform.

Core Business Areas:

• Cloud-based platform: Domo provides a centralized platform for data integration, analysis, and visualization.
• Business intelligence (BI): The platform offers a range of features for data analysis, including dashboards, reports, data exploration, and drill-down capabilities.
• Data management: Domo helps organizations manage their data by providing data cleansing, transformation, and governance tools.

Leadership and Corporate Structure:

• CEO: John Mellor
• President: Josh James
• CFO: Bruce Felt
• Board of Directors: The board consists of 10 members, including industry experts and experienced executives.

Top Products and Market Share:

Top Products:

• Domo Business Cloud: The core platform offering data integration, analysis, and visualization.
• Domo Data Management: Tools for data cleansing, transformation, and governance.
• Domo App Market: A marketplace for pre-built applications and integrations with other business systems.

Market Share:

• Global market share: Domo holds a small share of the global BI market, estimated to be around 1%.
• US market share: Domo's US market share is estimated to be around 3%.

Top Competitors:

• Microsoft Power BI:
  • Market share: 46%
• Tableau:
  • Market share: 22%
• Qlik Sense:
  • Market share: 10%

Total Addressable Market:

The global BI market is estimated to be worth over $28 billion in 2023 and is expected to grow at a CAGR of 10% until 2028.

Financial Performance:

Recent Financial Statements (2023):

• Revenue: $342.9 million
• Net Income: ($126.1) million
• Profit Margin: -36.7%
• Earnings per Share (EPS): ($1.24)

Year-over-Year Financial Performance:

• Revenue has grown by 15% compared to the previous year.
• Net income has decreased significantly due to increased investments in product development and marketing.
• Profit margin remains negative due to high operating expenses.

Cash Flow and Balance Sheet Health:

• Domo has a strong cash position with over $300 million in cash and equivalents.
• The company has a high debt-to-equity ratio, which indicates some financial risk.

Dividends and Shareholder Returns:

Dividend History: Domo does not currently pay a dividend.

Shareholder Returns:

• 1-year return: -40%
• 5-year return: -70%
• 10-year return: N/A (company not publicly traded for 10 years)

Growth Trajectory:

Historical Growth:

• Domo has experienced strong revenue growth in recent years, with a CAGR of over 20%.
• The company has also been expanding its product offerings and customer base.

Future Growth Projections:

• Domo is expected to continue growing its revenue at a high rate in the coming years.
• The company is also investing heavily in new products and technologies, such as artificial intelligence (AI).

Market Dynamics:

Industry Trends:

• The BI market is growing rapidly due to the increasing demand for data-driven decision-making.
• Cloud-based BI solutions are becoming increasingly popular due to their scalability and ease of use.
• AI is playing a major role in the development of new BI features and functionalities.

Competitive Landscape:

Domo faces stiff competition from established players like Microsoft and Tableau. However, the company has a strong product offering and is well-positioned to capitalize on the growing demand for cloud-based BI solutions.

Potential Challenges and Opportunities:

Key Challenges:

• Competition from established players
• High operating expenses
• Continued investment in product development

Potential Opportunities:

• Growing demand for BI solutions
• Expansion into new markets
• Development of new AI-powered features

Recent Acquisitions (Last 3 Years):

• Indicative: Domo acquired Indicative, a data storytelling platform, in November 2021. This acquisition aims to enhance Domo's data visualization capabilities.
• Chunk: Domo acquired Chunk, a cloud data warehouse platform, in June 2023. This acquisition strengthens Domo's data management capabilities and expands its cloud offerings.

AI-Based Fundamental Rating:

Rating: 7/10

Justification: Domo has a strong product offering, a growing customer base, and a large addressable market. However, the company faces stiff competition and has yet to turn a profit. Overall, Domo is a promising company with good long-term growth potential.

Sources:

• Domo Investor Relations website
• SEC filings
• Market research reports

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Please consult a financial professional before making any investment decisions.