Business intelligence platform Domo (NASDAQ: DOMO) fell short of the market’s revenue expectations in Q1 CY2026, with sales flat year on year at $79.4 million. Its non-GAAP loss of $0.02 per share was 70.6% above analysts’ consensus estimates.

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“One thing that has become clear is that we are still in the early innings of a major shift from AI experimentation to AI embedded in everyday work,” said Josh James, founder and CEO of Domo.

Company Overview

Named for the Japanese word meaning "thank you very much," Domo (NASDAQ: DOMO) provides a cloud-based business intelligence platform that connects people with real-time data and insights across organizations.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Domo grew its sales at a weak 7.5% compounded annual growth rate. This was below our standard for the software sector and is a rough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. Domo’s recent performance shows its demand has slowed as its revenue was flat over the last two years.

This quarter, Domo missed Wall Street’s estimates and reported a rather uninspiring 0.9% year-on-year revenue decline, generating $79.4 million of revenue.

Looking ahead, sell-side analysts expect revenue to grow 1.4% over the next 12 months. While this projection suggests its newer products and services will spur better top-line performance, it is still below the sector average.

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Billings

Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.

Domo’s billings came in at $60.43 million in Q1, and over the last four quarters, its growth was underwhelming as it averaged 1.3% year-on-year increases. This performance mirrored its total sales and suggests that increasing competition is causing challenges in acquiring/retaining customers.

Customer Acquisition Efficiency

The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments.

Domo’s recent customer acquisition efforts haven’t yielded returns as its CAC payback period was negative this quarter, meaning its incremental sales and marketing investments outpaced its revenue. The company’s inefficiency indicates it operates in a highly competitive environment where there is little differentiation between Domo’s products and its peers.

Key Takeaways from Domo’s Q1 Results

We struggled to find many positives in these results. Its billings missed and its revenue fell slightly short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 10.5% to $2.99 immediately following the results.

Domo underperformed this quarter, but does that create an opportunity to invest right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).