Domo: I See A Microcap Turnaround With Fantastic Potential

Domo, Inc. is rated a Buy as recent results show a business turnaround, with billings up 8% YoY and improved customer retention. DOMO's shift to consumption-based pricing, higher AI-driven platform usage, and multiyear contracts are driving stronger net retention and margin expansion. Despite subdued near-term revenue due to accounting lag, profitability and cash flow have reached record levels, with gross margin at 78.2% and near break-even free cash flow.