Domo, Inc. (DOMO): BCG Matrix [Dec-2025 Updated]

You're looking at Domo, Inc.'s strategic map for late 2025, and honestly, it's a classic tech pivot story playing out. We've got clear Stars like Domo.AI driving future value, supported by a solid Cash Cow base where Core Subscription Revenue hit $286.0 million in Fiscal Year 2025 with a strong 74% gross margin. But here's the rub: the Question Marks, like the aggressive shift to Consumption-Based ARR, haven't fully offset the near-flat 1.7% total revenue growth in Q2 FY26, while the company still carries a GAAP net loss of $81.9 million for FY25. Let's break down where Domo, Inc. needs to invest, hold, or divest based on this four-quadrant view.

Background of Domo, Inc. (DOMO)

You're looking at Domo, Inc. (DOMO), the company founded by Josh James that provides an AI and Data Products platform designed to help enterprises integrate data from various sources and turn those insights into live visualizations and actionable outcomes. The platform is built around the customer's preferred data foundation and is significantly enhanced by their award-winning Domo.AI solution.

Financially speaking, Domo is in a transition period, pivoting its model to drive growth, with CEO Josh James emphasizing that the shift to consumption-based contracts and AI innovation is showing promising momentum. For the second quarter of calendar year 2025 (Q2 CY2025), which ended July 31, 2025, Domo reported total revenue of $79.72 million, marking a 1.7% year-over-year increase and beating analyst estimates.

Looking at the full fiscal year 2025, which concluded on January 31, 2025, Domo, Inc. recorded total revenue of $317.0 million, with subscription revenue making up $286.0 million of that total. Billings for that full fiscal year reached $310.2 million. As of the end of Q2 CY2025, the company's trailing twelve months revenue stood at $318.36 million.

The company's strategic shift is evident in its contract structure; as of the Q2 CY2025 report, over 75% of annual recurring revenue (ARR) now comes from consumption-based contracts, a key part of their strategy to improve net retention rates. This focus helped them achieve an adjusted operating income of $6.12 million in Q2 CY2025, resulting in a 7.7% margin, a significant improvement from the negative 18.5% operating margin reported in the same quarter the prior year.

Despite the operational improvements, Domo, Inc. has been operating at a net loss, posting a GAAP net loss of $81.9 million for the full fiscal year 2025. The most recent reported non-GAAP Earnings Per Share (EPS) for Q2 2026 (Q2 CY2025) was a profit of $0.02, which significantly exceeded the analyst consensus estimate of a loss of -$0.05. The company's market capitalization at the time of that report was $616.4 million.

Domo continues to gain industry recognition for its platform and AI capabilities; for instance, Domo.AI was named a Trend-Setting Product of 2025 by Database Trends and Applications magazine. Furthermore, the company has maintained leadership positions in various analyst reports, including being named a leader in Nucleus Research's 2024 Embedded Analytics Technology Value Matrix for the fourth consecutive year.

Domo, Inc. (DOMO) - BCG Matrix: Stars

You're looking at the products and business units that are currently defining Domo, Inc.'s high-potential future. These are the areas where the market is expanding rapidly, and Domo, Inc. has managed to secure a leading position. In BCG terms, these are the Stars-they demand heavy investment to maintain that growth trajectory, but the payoff is a future as a Cash Cow.

The focus here is squarely on the artificial intelligence offerings. Specifically, Domo.AI and the newer Agent Catalyst are the engine for this quadrant. Agent Catalyst, unveiled at Domopalooza 2025, is positioned as the ultimate toolbox for creating autonomous AI agents, allowing for independent business processes while keeping enterprise-grade security intact. Domo AI itself is already noted as an award-winning lineup of solutions, which helps solidify the high-market-share claim. Honestly, this AI push is what management is betting on to drive the next phase of growth.

The financial metrics from the second quarter of fiscal year 2026 clearly show this momentum translating into future contracted revenue. The Total Subscription Remaining Performance Obligations (RPO) is a key indicator here, representing revenue we expect to book later. That RPO figure hit a record of $409.8 million as of July 31, 2025, which is a 19% increase year-over-year. That's serious forward momentum.

Furthermore, the sales engine supporting these Stars is showing signs of re-acceleration. While the growth rate for New Annual Contract Value (ACV) has been choppy, CEO Josh James noted that it has accelerated every quarter following a decline in Q3 fiscal year 2025. The growth rate is now reported as approaching 20%, which is the highest seen in three and a half years. This suggests strong product-market fit in these newer, high-growth areas.

Here's a quick look at the key financial indicators reflecting this Star performance as of Q2 FY26 (ended July 31, 2025):

The high consumption customer cohort is also performing well, which is critical for a subscription business. You want to see those customers expanding their usage. Domo, Inc. reported that Net Revenue Retention (NRR) for customers who started on a consumption contract was 108%. That's a solid number that shows existing high-growth customers are spending more.

The investment required to keep these Stars shining is evident in the cash flow dynamics. While the business achieved its first-ever positive Non-GAAP diluted Earnings Per Share ($0.02) and positive Adjusted Free Cash Flow ($1.4 million), the overall picture still requires cash to fuel the AI development and market penetration necessary to convert these Stars into long-term Cash Cows. The strategy is clear: invest heavily now to secure market leadership.

Key takeaways supporting the Star classification include:

• Domo.AI and Agent Catalyst: The core of the high-growth market segment.
• New ACV Growth: Accelerated to approaching 20%, signaling strong new business traction.
• Total Subscription RPO: Reached $409.8 million, up 19% YoY, locking in future revenue.
• Consumption Cohort Health: NRR at 108% for new consumption customers.

If Domo, Inc. can sustain this success until the high-growth AI market matures, these products will transition into the Cash Cow quadrant, providing the stable cash flow needed for the next generation of innovation. Finance: draft 13-week cash view by Friday.

Domo, Inc. (DOMO) - BCG Matrix: Cash Cows

You're looking at the core engine of Domo, Inc. (DOMO)-the business units or products that have already won significant market share and now primarily serve to fund the rest of the operation. These are the products that generate more cash than they consume, which is exactly what you want in a mature segment of the business.

The Cash Cow segment for Domo, Inc. is characterized by its stable, high-margin subscription base, which provides the necessary capital for strategic moves elsewhere in the portfolio. Here are the concrete numbers supporting this positioning as of the latest available data near November 2025.

Core Subscription Revenue:

The recurring revenue stream from the established platform provides the bulk of stable revenue. For the full Fiscal Year 2025, this core subscription revenue totaled $286.0 million. This figure represents the reliable foundation of the company's financial structure.

High Gross Margin:

The platform maintains a strong gross margin, which is critical for generating excess cash flow. For Fiscal Year 2025, the reported gross margin was 74%. This margin provides the capital for R&D and strategic investment, even though it saw a slight dip from 76% the prior year due to increased third-party hosting services costs.

Non-GAAP Profitability Milestone:

A key indicator of this segment's maturity and efficiency is the achievement of operating profitability on a non-GAAP basis. In the second quarter of Fiscal Year 2026 (ended July 31, 2025), Domo, Inc. achieved a positive non-GAAP operating margin of 7.7%, which was noted as the highest in company history. This marked a significant milestone for sustainable operations, especially when compared to the 2.5% non-GAAP operating margin reported in the same quarter last year.

You can see the operational efficiency gains in the table below, focusing on the shift toward profitability:

Established Customer Base:

The base of committed users ensures the stability of the recurring revenue stream. As of January 31, 2025, Domo, Inc. had more than 2,600 organizations as customers. This established base provides the reliable, recurring revenue stream that defines a Cash Cow.

The stability is further evidenced by the focus on long-term commitments:

• Subscription Remaining Performance Obligations (RPO) as of January 31, 2025, totaled $403.6 million.
• Subscription RPO expected to be recognized beyond twelve months as of January 31, 2025, was $178.5 million.
• The company noted that approximately two-thirds of customers were on multiyear contracts as of July 31, 2024.

The strategy here is to maintain the current level of productivity and 'milk' the gains passively, using the resulting cash flow to fund higher-growth, higher-risk areas, like Question Marks.

Domo, Inc. (DOMO) - BCG Matrix: Dogs

You're looking at the units within Domo, Inc. (DOMO) that are stuck in low-growth markets and have low relative market share. These are the classic Dogs-they tie up capital without delivering significant returns, making divestiture a prime consideration for capital reallocation.

For Domo, Inc., the Dogs quadrant is characterized by segments that are either mature, low-margin, or represent the legacy business model being actively phased out. These areas require careful management to avoid becoming cash traps, even if they are currently breaking even or consuming minimal cash.

Overall Market Share

Domo, Inc. competes in the broad data-analytics space, a market dominated by much larger players. Domo holds an estimated market share of only 1.05% in the broader data-analytics market as of 2025, which is dwarfed by competitors like Datadog at 31.80% and Tableau Software at 25.13% in that category. This low share firmly places any segment lacking high growth potential into the Dog category.

Here's a quick look at the competitive landscape context:

Professional Services Revenue

The Professional Services segment fits the Dog profile due to its typically low-margin nature and non-recurring revenue stream, which contrasts with the desired high-margin, recurring subscription revenue. For the full fiscal year 2025 (ended January 31, 2025), this segment totaled $31.0 million. To put that in perspective against the total revenue of $317.0 million for FY25, Professional Services accounted for approximately 9.78% of the total revenue base.

The financial profile for the full fiscal year 2025 shows the difficulty in generating profit from the overall business, which compounds the low-margin nature of services:

• Total Revenue (FY25): $317.0 million
• Subscription Revenue (FY25): $286.0 million
• Professional Services and Other Revenue (FY25): $31.0 million
• GAAP Operating Margin (FY25): negative 19%
• Non-GAAP Operating Margin (FY25): 0%

Legacy Seat-Based Contracts

Legacy seat-based contracts represent the older revenue structure that Domo, Inc. is actively moving away from. These fixed-fee arrangements are inherently less flexible and are likely experiencing low or negative growth as customers migrate to the consumption model. As of January 31, 2025, the company reported that more than 68% of its Annual Recurring Revenue (ARR) was utilizing the platform as a consumption-based service. This means that, at the close of FY25, a significant portion-at least 32% of the ARR base-was still tied up in these legacy or non-consumption-based agreements, which are the prime candidates for minimization or divestiture.

The transition away from these older models is a strategic necessity to improve metrics like Net Revenue Retention (NRR), which was 89% for the year ended January 31, 2025. The goal is to shift revenue to the consumption model, which shows stronger expansion potential.

Key indicators of the legacy segment's status:

• ARR on Consumption Model (as of Jan 31, 2025): >68%
• Implied Legacy ARR (as of Jan 31, 2025): <32%
• Total GAAP Net Loss (FY25): $81.9 million

Finance: draft 13-week cash view by Friday.

Domo, Inc. (DOMO) - BCG Matrix: Question Marks

You're looking at the new growth engines for Domo, Inc. (DOMO) that are consuming cash now but hold the potential to become Stars. These are the Question Marks: high-growth areas where the company has not yet secured a dominant market share.

Consumption-Based ARR

The shift to a consumption-based Annual Recurring Revenue (ARR) model is a major strategic push, placing this area firmly in the Question Mark quadrant. As of the second quarter of fiscal year 2026 (Q2 FY26), over 75% of Domo, Inc.'s ARR is now consumption-based contracts. This is a massive pivot from just a few percentage points two years prior. The marketing strategy here is definitely focused on getting markets to adopt this new way of paying for the platform, which requires heavy investment to scale quickly. Management has set an ambitious target to exit fiscal year 2026 with the mix above 85%. The early returns are promising for this segment, showing a 108% Net Revenue Retention (NRR) for customers who initiated purchases on the consumption model.

Cloud Data Warehouse Partnerships

The expansion of strategic partnerships, especially with major Cloud Data Warehouse (CDW) vendors, represents high-potential, yet still nascent, revenue streams. Two years ago, Domo, Inc. had zero CDW partners. Now, the company reports having partnerships with five of the largest and most important CDWs. These include collaborations with Snowflake, Databricks, AWS, and BigQuery. These new, strategic integrations are designed to capture market share in a growing segment, but the full revenue contribution from these newer, deeper integrations is still materializing, fitting the Question Mark profile perfectly.

Near-Flat Total Revenue

The high investment required to fuel the consumption and partnership strategies has not yet translated into significant top-line acceleration, which is typical for Question Marks. For the fiscal second quarter of 2026, Domo, Inc.'s Total Revenue (GAAP) growth was only 1.7% year-over-year, reaching $79.7 million. This near-flat growth shows that the high-growth initiatives have not fully offset the slower growth from the legacy business structure. The company needs these new initiatives to gain traction fast to avoid becoming a Dog.

Here's a quick look at the financial context surrounding these high-investment areas as of Q2 FY26, compared to the prior full fiscal year:

GAAP Net Loss

Question Marks consume cash, and Domo, Inc.'s GAAP results confirm this high investment need. For the full fiscal year 2025, the company reported a GAAP net loss of $81.9 million. In the most recent reported quarter, Q2 FY26, the GAAP net loss was $22.9 million. Even with the company achieving its first-ever positive non-GAAP Earnings Per Share (EPS) of $0.02 in Q2 FY26, the GAAP figures show the reality of the required investment to win market share in these new, competitive areas. The decision you face is whether to invest heavily to turn these into Stars or divest if the potential isn't realized soon.

• Invest heavily to capture market share quickly.
• Sell if growth potential is not realized.
• High demands but low initial returns.
• Consume cash, leading to GAAP losses.

Finance: draft 13-week cash view by Friday.