Domo, Inc. operates a cloud-based AI and data products platform through its subsidiaries in North America, Western Europe, Australia, Japan, and India. The platform connects leadership to frontline employees with the data, systems, and people in an organization, providing real-time data and insights that help put data to work to multiply business impact. The company has a strategic partnership with Altis Consulting to deliver data solutions intended to enable smarter decisions and measurable business outcomes. It serves the financial services, health care, pharmaceuticals, energy, and technology industries. Formerly known as Domo Technologies, Inc., it changed its name to Domo, Inc. in December 2011, was incorporated in 2010, and is headquartered in American Fork, Utah.
Progress Software Posts 43% Operating Margin as Domo Deal Lifts Debt to $1.24 Billion
Progress Software reported third-quarter results on September 30, 2026, showing revenue down 2% to $246 million while non-GAAP earnings per share rose 13% to $1.69, as expenses fell about 6% and operating margin expanded to 43% from 40% a year earlier. Adjusted free cash flow grew 17% to $87 million, with days sales outstanding dropping to 42 from 73 at the end of fiscal 2025, funding $170 million of debt paydown this year and $17 million of buybacks in the quarter. The company closed the largest acquisition in its history, paying $400 million for Domo, or 1.4 times revenue and 3.5 times pro forma EBITDA, and management expects Domo to add well over $100 million in annual EBITDA once integration finishes by the end of fiscal 2027. Progress drew $390 million on its revolver, leaving total debt near $1.24 billion and net leverage around 2.7 times, and management warned Domo will run slightly below a 30% operating margin while synergies ramp, pulling overall margin to 36% to 37% from its usual 38% to 39% with roughly $21 million of added interest expense. Annual recurring revenue rose only about 1% on a pro forma basis with net retention at 99%, hedge fund holders fell to 23 from 29 in the prior quarter, and short sellers hold 16.69% of the float against a forward P/E of 6.47 as of October 2.
Cloud & Digital Infrastructure › Horizontal SaaS Capital
PRGS · Capital · Neutral Q3 revenue fell 2% to $246M but EPS rose 13% to $1.69 with 43% operating margin, while the $400M Domo deal lifted debt to $1.24B and cut guidance to 36-37% margin.
DOMO · Capital · Neutral Progress closed its $400M acquisition of Domo, but Domo will run below 30% operating margin while synergies ramp, pulling overall margin down.
Vita Coco and Domo rally while Mobileye falls in premarket trading
U.S. stock futures pointed lower on Thursday amid a deluge of earnings reports and rising oil prices. Vita Coco surged 8.8% after second-quarter net sales rose 28% to $216 million and adjusted EBITDA reached $67 million, well above estimates. Domo soared 21% on news that Progress Software will acquire substantially all of its assets for $400 million in cash. Mobileye fell 4.4% as founder and CEO Amnon Shashua announced plans to step down, overshadowing an earnings beat. Dow Inc. slipped 2.8% despite adjusted earnings per share of $1.44 topping forecasts, while Hut 8 gained 6.0% after Morgan Stanley initiated coverage with an Overweight rating and a $263 price target.
Domo to sell its AI and data platform to Progress Software for $400 million
Domo has agreed to sell substantially all of its assets and certain liabilities to Progress Software for $400 million in cash. The deal, unanimously approved by Domo's board, will leave the company with net cash of approximately $246 million, or $4.84 per share, representing an 81% premium to the 30-day volume weighted average price. Domo will remain a publicly listed corporation under a new name and ticker, preserving more than $900 million of net operating loss carryforwards and certain retained assets. Progress will acquire and operate Domo's AI and data platform, while Domo's holding company will seek to monetize its tax attributes and consider returning capital to shareholders. The transaction is expected to close before November 30, 2026, subject to regulatory approvals and other customary conditions.
Cadence Design Systems, Domo, and PubMatic Shares Plummet on Tech Headwinds
Shares of Cadence Design Systems, Domo, and PubMatic fell sharply in afternoon trading as tech stocks faced a dual headwind of deteriorating macro conditions and an unwinding of retail leverage. Cadence Design Systems dropped 9.4%, Domo fell 6.9%, and PubMatic declined 5.1%. The sell-off was triggered by a reinstated U.S. naval blockade on Iran that pushed Brent crude past $85 a barrel, raising expectations the Federal Reserve will hold rates in the 3.50% to 3.75% range. Higher cost of capital could drive stricter scrutiny of AI investments, making investors hesitant to fund massive infrastructure buildouts without clear returns.
BRENT · Geopolitics · Positive Reinstated U.S. naval blockade on Iran pushes Brent crude past $85 a barrel.
CDNS · Monetary · Negative Higher cost of capital from expected Fed rate hold could reduce AI investment, hurting Cadence's semiconductor design software demand.
DOMO · Monetary · Negative Higher cost of capital from expected Fed rate hold could reduce tech spending, impacting Domo's cloud analytics platform.
PUBM · Monetary · Negative Higher cost of capital from expected Fed rate hold could reduce digital ad spending, affecting PubMatic's ad tech revenue.
StockStory flags Domo, Enterprise Financial, and Community Bank as Russell 2000 stocks to avoid
StockStory identified three Russell 2000 stocks that raise concerns and suggested investors consider alternatives. Domo, with a market cap of $150.4 million, showed weak 1.3% average billings growth over the last year and a projected 1.7% sales decline over the next 12 months. Enterprise Financial Services, valued at $2.51 billion, posted 7.7% annual sales growth below typical banking companies and saw its efficiency ratio worsen by 8.7 percentage points over four years. Community Bank, at a $3.73 billion market cap, reported 7% annual net interest income growth that lagged peers and 4.1% annual earnings per share growth that underperformed its revenue gains over five years.
Dynatrace named top software pick while Domo and Asure Software flagged as risky
StockStory identified Dynatrace as a resilient software stock with promising prospects, while advising caution on Domo and Asure Software. Dynatrace, with an $11.77 billion market cap, benefits from 24% average billings growth, an 81.7% gross margin, and a 26.2% free cash flow margin. Domo faces underwhelming 1.3% billings growth and a projected 1.7% sales decline, trading at 0.5 times forward price-to-sales. Asure Software's 12.3% annual growth lagged peers, with estimated growth slowing to 10.4% and a weak 5.3% free cash flow margin, trading at 1.4 times forward price-to-sales.
BofA Names Snowflake Among Top U.S. Stock Ideas For Q3
BofA Securities named Snowflake as one of its top U.S. stock ideas for the third quarter of 2026, citing optimism that accelerated adoption of its AI products and data cloud platform will drive revenue growth. The stock has an average analyst price target of $300, representing a 17.88% upside from its current price of $254.50, with 87% of 52 analysts assigning a Buy rating. Separately, cloud software company Domo announced that automotive retailer Ken Garff Automotive Group is using Domo with Snowflake to modernize its data architecture, securely managing over four billion records of operational data.
Palantir Technologies Leads Data Analytics Q1 Earnings with 84.7% Revenue Surge
Palantir Technologies delivered the strongest performance among data analytics stocks in the first quarter, with revenue jumping 84.7% year on year to $1.63 billion, beating analyst estimates by 6.1%. The company also posted the largest analyst estimate beat, the highest guidance raise, and the fastest revenue growth in the group. CLEAR Secure reported revenue of $253 million, up 19.7% and exceeding expectations by 3.5%, while Domo was the weakest performer with flat revenue of $79.4 million that missed estimates by 0.6%. Health Catalyst saw revenue decline 10.9% to $70.76 million, and Strategy grew revenue 11.9% to $124.3 million. Despite the strong results, Palantir's stock fell 19.7% after reporting, reflecting investor expectations that were even higher than published analyst projections.
D.A. Davidson Reiterates Neutral Rating on Domo Inc with $3.50 Price Target
D.A. Davidson reiterated its Neutral rating on Domo Inc stock with a price target of $3.50 following mixed fiscal first-quarter 2027 results. Revenue fell to $79.4 million from $80.1 million a year ago, missing the $79.6 million consensus, while the adjusted loss per share of $0.02 beat the expected $0.08 loss. Subscription revenue declined to $69.8 million from $71.4 million, which the brokerage cited as a factor in maintaining the Neutral rating. Domo CEO Josh James noted the company is approaching $300 million in recurring revenue and exited the quarter with $39.1 million in cash. D.A. Davidson also highlighted that Domo continues to search for an acquirer and has secured additional time for that process.
Domo and DigitalOcean Shares Fall Amid Broader Software Selloff
Shares of Domo and DigitalOcean declined sharply in afternoon trading as a broader selloff hit the software sector, driven by fears that artificial intelligence agents will erode traditional subscription-based enterprise software models. Domo fell 6.4 percent and DigitalOcean dropped 5.3 percent, while larger peers like Salesforce and Adobe have seen year-to-date declines of roughly 43 percent and 49 percent respectively. The selloff was triggered by high-profile AI talent departures from Alphabet and a regulatory overhang, compounded by Accenture's near-20 percent single-day drop the previous week after it cut its growth outlook and cited AI compressing demand for traditional IT services. Domo's decline adds to a 72.1 percent year-to-date loss, with the stock trading at $2.32 per share, 87.3 percent below its 52-week high, following recent disclosures of a covenant breach and advanced negotiations for a potential sale of the company.
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