TD Cowen has maintained its Hold rating on shares of DOMO (NASDAQ: DOMO), with a consistent price target of $8.00. The firm's stance comes ahead of the company's second quarter 2025 earnings report, which is scheduled to be released on August 29.
According to TD Cowen's analysis, there has been no significant change in demand conditions quarter over quarter. The firm anticipates DOMO's financial results to align with their estimates, which predict flat billings growth for the quarter.
Despite observing some increased sales churn during the quarter, TD Cowen notes that DOMO's new initiatives with Data Cloud partners are advancing satisfactorily.
The firm suggests that these collaborative efforts with Data Cloud partners could potentially lead to the development of new business opportunities in the second half of the year.
The reiterated Hold rating indicates that TD Cowen advises investors to maintain their current positions in DOMO stock without increasing or decreasing their holdings.
DOMO, which is due to report its quarterly earnings at the end of this month, is being closely watched by investors for signs of growth and stability in its operations.
In other recent news, Domo (NASDAQ:DOMO) reported first-quarter results for fiscal year 2025, with total revenue reaching $80.1 million, a 1% year-over-year increase, despite billings falling short at $65.5 million due to a significant non-renewal.
The company has revised its debt terms to secure more favorable conditions, extending the debt maturity to August 2028, which is expected to reduce overall interest rate and annual cash interest costs. TD Cowen maintained a Hold rating on Domo shares following these developments.
In other governance matters, Domo's shareholders recently approved executive compensation and elected directors at their annual meeting. The company's independent registered public accounting firm, Ernst & Young LLP, was also ratified for the fiscal year ending January 31, 2025. These decisions reflect shareholder confidence in the company's governance and executive compensation policies.
InvestingPro Insights
As we approach DOMO's earnings report, InvestingPro data presents a nuanced picture of the company's financial health. DOMO's gross profit margin stands out with an impressive 75.72% for the last twelve months leading up to Q1 2023, highlighting the company's ability to retain a significant portion of its sales after deducting the cost of goods sold. Despite this strong margin, analysts have tempered their expectations, with five analysts revising their earnings downwards for the upcoming period, reflecting potential concerns about future profitability.
The market has responded to these mixed signals, as evidenced by the stock's volatility and a notable 28.38% decline over the last six months. However, it's worth noting the stock has rebounded with a strong return of 16.21% in the past three months. For investors considering DOMO's stock, these dynamics underscore the importance of closely monitoring the company's upcoming earnings report and any strategic updates provided.
For those seeking a deeper dive into DOMO's financials and future outlook, InvestingPro offers additional insights and tips. Currently, there are 9 more InvestingPro Tips available, which can provide investors with a more comprehensive understanding of DOMO's investment potential. These tips can be accessed through InvestingPro's platform, giving investors an edge in making informed decisions.
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