Domo: Downgrade On Enterprise Slowdown

Tech and Growth
3.51K Followers

Summary

  • The 4% - 7% revenue growth outlook in FY 2024 makes Domo a far cry from what it should be: a 20% - 30% growth stock.
  • Enterprise sales productivity issue is a bump in the road. I adjusted the baseline scenario to project Domo to reclaim 20%+ growth in FY 2027.
  • Domo's market positioning is still solid, though the growing AI-driven trend and specialization dynamics in BI value chain may present a threat.

Sea "u200b"u200bof "u200b"u200bdata submerged in the metaverse. Abstract floor technology background with blue led light.

Imagesrouges/iStock via Getty Images

I am downgrading Domo (NASDAQ:DOMO) to neutral at least for the medium term. I believe that the recent sales productivity issues and leadership changes may delay Domo's progress in capturing more sizable shares of the enterprise

This article was written by

3.51K Followers
We're a long-only asset manager allocating into tech and growth asset classes. Learn more at www.tnginvestments.com

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About DOMO Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on DOMO

Related Stocks

SymbolLast Price% Chg
DOMO
--