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DOMO Gears Up to Report Q3 Earnings: What's in the Cards?

Domo DOMO is set to release its third-quarter fiscal 2024 results on Nov 30.

The company anticipates third-quarter fiscal 2024 revenues to be between $316 million and $320 million. Non-GAAP loss is anticipated between 39 and 47 cents per share.

The Zacks Consensus Estimate for revenues is pegged at $79 million, indicating a decrease of 0.04% from the year-ago quarter’s reported figure.

The consensus mark for loss has been stable in the past 30 days at 12 cents per share. Domo incurred a loss of 13 cents per share in the year-ago quarter.

Domo, Inc. Price and EPS Surprise

Domo, Inc. Price and EPS Surprise
Domo, Inc. Price and EPS Surprise

Domo, Inc. price-eps-surprise | Domo, Inc. Quote

Let’s see how things have shaped up prior to the announcement.

Factors Likely to Influence Q3 Results

Domo’s third-quarter results are expected to benefit from a strong subscription-based business model, a consumption-based pricing model and robust AI offerings.

The company had more than 250 customers on its consumption-based pricing model, representing more than 10% of its customer base and over 13% of its ARR in the fiscal second quarter. The number of customers is expected to have increased in the soon-to-be-reported quarter.

Strong growth in subscription revenues has been driving Domo’s top line. In second-quarter fiscal 2024, subscription revenues increased 6% year over year and accounted for 89% of revenues. The trend is expected to have continued in the to-be-reported quarter.

However, Domo's top line is expected to have been impacted by a challenging macroeconomic environment that has made the software sales process more complex, resulting in longer deal cycles and increased scrutiny of negotiations.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Domo has an Earnings ESP of 0.00% and currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post earnings beat in their upcoming releases:

Bilibili BILI has an Earnings ESP of +12.5% and currently has a Zacks Rank of 2. You can find the complete list of today’s Zacks #1 Rank stocks here.

Bilibili is set to announce fourth-quarter and fiscal 2023 results on Nov 29. BILI’s shares are down 4% year to date.

Snowflake SNOW has an Earnings ESP of +67.33% and carries a Zacks Rank of 2, at present.

Snowflake is set to announce fourth-quarter and fiscal 2023 results on Nov 29. SNOW’s shares are up 18.6% year to date.

Micron Technology MU has an Earnings ESP of +26.69% and carries a Zacks Rank of 3, at present.

Micron Technology is set to announce fourth-quarter and fiscal 2023 results on Dec 20. MU’s shares are up 55.1% year to date.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Micron Technology, Inc. (MU) : Free Stock Analysis Report

Snowflake Inc. (SNOW) : Free Stock Analysis Report

Bilibili Inc. Sponsored ADR (BILI) : Free Stock Analysis Report

Domo, Inc. (DOMO) : Free Stock Analysis Report

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