Domo's Q3 Results Exceed Expectations

Domo, the cloud-software company based in Silicon Slopes, Utah, saw a surge in its stock price after reporting better-than-expected revenue and adjusted earnings for the third quarter. This positive news has helped offset the stock's overall decline of 27% this year.

In the three months ended October 31, Domo's revenue increased by 1% to reach $79.7 million, surpassing both analysts' forecasts and the company's own guidance of $79 million. The company also managed to narrow its loss to $16.4 million, or 45 cents per share, compared to $23.7 million, or 69 cents per share, in the same period last year.

After adjusting for certain one-time items, Domo reported a loss of less than one cent per share, beating the expected adjusted loss of 12 cents per share according to analysts polled by FactSet.

Domo's CEO, Josh James, expressed confidence in the company's growth strategy, stating that they were prioritizing the right initiatives to drive profitability. As a result, Domo has updated its full-year adjusted loss forecast to between 24 and 28 cents per share, compared to the previous guidance of a 39 to 47 cent loss per share. Analysts surveyed by FactSet are anticipating a per-share loss of 28 cents for the year.

In summary, Domo's impressive performance in the third quarter has instilled renewed optimism among investors, leading to a 7.4% increase in the stock price to $10.19 as of Friday.