By reporting its first-ever positive non-GAAP earnings per share in the first quarter of 2025, Domo Inc. has seen its stock soar by 9.06 percent to 17.57 only to be pushed higher by after-market trading to 17.20 as the company transitions to a strategic focus on AI-powered analytics solutions and cloud data warehouse partnerships, with the company reporting impressive year-to-date returns of 127.54 percent on the move.
Domo transforms from dashboard provider to AI analytics powerhouse
The first positive non-GAAP EPS and a 7.7 percent operating margin in the second quarter of 2025 were a turning point in Domo, the last in its history, according to Investing.com. The company has been targeting the expansion of its AI capabilities and the reinforcement of its partnership with leading cloud platforms such as Snowflake and AWS, and this strategic focus has already been rewarded by positive reception in the market and enhanced financial results.
Total revenues amounted to $79.7 million and were billed at $70.3 million, with subscription RPO increasing 4 percent year-over-year to $220.2 million. CEO Josh James stressed that the idea of BI as a dashboard is dead and the company is changing to all-encompassing AI and analytics offers that may unlock the potential of large language models and artificial intelligence.
How the consumption model drives unprecedented customer expansion rates
The company stated that its clients who initially bought Domo on a consumption agreement realized a net revenue retention of 108 percent, which indicates that the prospect of growth is high as the business model transition speeds up. The fact that over 75% of annual recurrent revenues of Domo are now under consumption pricing, when it was only a matter of percentage points two years ago, is a phenomenal change.
The partnerships are gateways to colossal opportunities
Domo has also developed a partnership with five of the biggest cloud data warehouses, such as Snowflake and Databricks, Oracle, and Google, forming various avenues of customer acquisition and growth. The company also unveiled deeper integrations and functionalities with Snowflake and BigQuery, and their attendance at major industry events led to thousands of leads and dozens of meetings with sales staff of cloud data warehouse partners.
The 2025 growth of the new ACV has picked up speed (quarter on quarter) with a decrease of 20 digits in the 3rd quarter of the 2025 fiscal year, turning into the growth of nearly 20 percent in the current quarter, which is the highest growth seen in 3.5 years. The growth of sales force productivity has gone up to a staggering 67% year after year, as compared to 19% and subscription RPO growth went up to 19% against 3% the previous year.
Increased demand for more advanced AI solutions pushes businesses beyond dashboards to end-to-end modern platforms that provide business value via seamless access to data, high-quality ETL, semantic layer, workflow automation, security, and governance. Contrary to the established players in the dashboard market, Domo was the first company to construct a fully functional modern AI and analytics stack, which places the platform at the place business intelligence is going to, not where it has been.
International markets bring about increased momentum in growth
Q2 experienced a similar international momentum, with Japan recording new records with new ACV increasing almost twice on an annual basis. Total contract value reached a new all-time high, and transactions renewed in the quarter recorded net revenue retention of approximately 130% which reflects the effectiveness of the Domo international expansion policy.
The shift of Domo into a new AI-based analytics platform, based on its traditional business intelligence provider, qualifies the company as an investment opportunity in the fast-growing artificial intelligence infrastructure market, with a solid financial standing, rapidly growing growth rates, strategic collaborations with cloud providers, and a consumption model that generates unprecedented customer growth rates, which compose several catalysts to the continued profitable growth.