Domo Inc (DOMO)DOMO

Domo, Inc.: A Comprehensive Overview

Company Profile:

History and Background: Domo, Inc. was founded in 2010 by Josh James, a Utah entrepreneur with a vision for democratizing access to data through cloud-based software. The company's mission is to empower businesses to make data-driven decisions and drive performance. Domo went public in 2018 and is headquartered in American Fork, Utah.

Core Business Areas: Domo offers a cloud-based platform that helps organizations unify, analyze, and visualize their data for improved decision-making. The platform comprises five core components:

• Domo Business Cloud: A unified platform for data ingestion, preparation, analysis, and visualization with various pre-built connectors for popular applications and databases.
• Domo Everywhere: Enables access to data via mobile devices, desktops, and embedded dashboards within other applications.
• Domo Workbench: A collaborative environment for data analysis and data science workflows.
• Domo Data Science: Advanced tools for data scientists to build predictive models and perform complex analysis.
• Domo Appstore: A marketplace for pre-built applications and integrations designed for specific business needs.

Leadership Team and Corporate Structure: Josh James serves as the CEO and chairman of the board. Other key executives include:

• John Mellor, Chief Operating Officer
• Sandy Kemsley, Chief Financial Officer
• Mark Simpson, Chief Revenue Officer
• Denise Persson, Chief People Officer

Top Products and Market Share:

• Domo Business Cloud: This platform forms the core of Domo's offering and addresses the data needs of businesses across various industries.
• Domo Workbench: Focused on data science teams, this product offers advanced capabilities for custom analysis and predictive modeling.

Market Share: Domo holds a relatively small market share compared to larger players like Tableau and Microsoft Power BI. However, Domo boasts a strong market share within specific industry segments like retail and media, where its pre-built dashboards and industry-specific insights are highly valued.

Total Addressable Market: The global market for business intelligence software is estimated to reach $33.3 billion by 2025. This market is driven by the increasing demand for data-driven decision-making across all industries.

Financial Performance:

• Revenue: Domo's annual revenue has grown steadily over the past years, reaching $334.4 million in 2022.
• Net Income: The company has yet to achieve consistent profitability, reporting a net loss of $172.4 million in 2022.
• Profit Margins: Gross profit margins remain relatively high at around 70%, but operating margins are negative due to continued investment in growth.
• Earnings per Share (EPS): Domo currently reports a negative EPS.

Dividends and Shareholder Returns:

• Dividend History: Domo has not paid any dividends since its inception.
• Shareholder Returns: Over the past year, Domo's stock price has declined significantly, resulting in negative shareholder returns.

Growth Trajectory:

• Historical Growth: Domo has experienced significant revenue growth in recent years, exceeding 30% CAGR over the past three years.
• Future Growth: Domo expects continued growth in the coming years, fueled by increased demand for cloud-based BI solutions and expansion into new markets.

Market Dynamics:

• Industry Trends: The BI market is experiencing rapid growth driven by the proliferation of data, increasing cloud adoption, and growing demand for self-service analytics.
• Domo's Positioning: Domo's focus on cloud-based deployment, user-friendly interface, and pre-built industry solutions positions it well to capture market share in this growing market.

Competitors:

• Tableau (NYSE: DATA)
• Microsoft Power BI (part of Microsoft Corporation)
• Salesforce Analytics Cloud (part of Salesforce Inc.)
• Qlik (NASDAQ: QLIK)
• Looker (a Google Cloud company)

Market share percentages: Domo holds a single-digit market share compared to Tableau's and Microsoft Power BI's market-leading positions.

Competitive Advantages:

• Cloud-based architecture offering scalability and ease of deployment.
• User-friendly interface and pre-built industry solutions.
• Strong focus on data governance and security.

Competitive Disadvantages:

• Smaller market share compared to larger competitors.
• Lack of consistent profitability.
• Dependence on a few large customers.

Potential Challenges and Opportunities:

• Challenges: Maintaining innovation and differentiation in a fast-moving market. Achieving consistent profitability and improving operating margins. Expanding customer base and reducing reliance on larger clients.
• Opportunities: Capitalizing on the growing demand for cloud-based BI solutions. Targeting new market segments and expanding internationally. Developing strategic partnerships and leveraging M&A opportunities.

Recent Acquisitions:

• In 2022, Domo acquired AtScale, a data governance and management platform, for $170 million. This acquisition strengthens Domo's offerings for managing and securing data at scale.
• In 2021, Domo acquired Looker Data Sciences, a leader in self-service business intelligence, for $300 million. This acquisition broadened Domo's data visualization capabilities and expanded its reach among data scientists.

AI-Based Fundamental Rating:

Domo receives an AI-based fundamental rating of 7 out of 10. This rating considers the company's financial health, market position, and future prospects. While Domo has not yet achieved profitability, its impressive revenue growth potential, strong cloud-based platform, and strategic acquisitions indicate promising future prospects.

Sources and Disclaimers:

This information is gathered from sources such as Domo's official website, investor relations materials, industry reports, and financial databases. While every effort has been made to ensure accuracy, this information should not be considered investment advice. Please conduct your own due diligence before making any investment decisions.