Domo: Long Overdue Rebound

Jan. 29, 2023 4:31 AM ETDomo, Inc. (DOMO) StockDOMO4 Comments
Gary Alexander
31.2K Followers

Summary

  • Down more than 65% over the past year, shares of Domo are ripe for a rebound rally.
  • Though revenue growth has remained north of >20% y/y, billings growth has slowed to the single digits, foreshadowing coming deceleration.
  • This is a macro-driven phenomenon, as Domo has cited economic headwinds as the reason clients are putting off their digital transformation projects.
  • At the same time, it is worth noting that Domo has now surpassed breakeven on a pro forma operating margin basis.
  • At <2x forward revenue, the stock is too cheap to pass up.

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greenbutterfly

We certainly can't deny that the economy is belt-tightening and many companies are going to feel the pinch of macro headwinds throughout the majority of this year. At the same time, however, last year's pessimism may have taken valuations down too

This article was written by

31.2K Followers
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of DOMO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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