Domo reported Q2 2025 revenue of $78.4 million, down marginally year over year (-2%), with a solid gross margin of 74.3% and a small non-GAAP operating profit (2.5% margin). The quarter featured a meaningful shift in the company’s go-to-market model toward ecosystem-led growth and a greater emphasis on consumption-based ARR, supported by an expanding partner ecosystem (CDWs such as Snowflake and Databricks, plus Google, Oracle, IBM, and others). Management pointed to a pivotal 8-figure, multi-year contract secured via consumption and a large seven-figure upsell as illustrative deployments of this strategy. At the same time, reported GAAP results remained negative, underscoring ongoing profitability and liquidity challenges typical of growth-stage SaaS firms—though the balance sheet was strengthened by a debt-refinancing initiative that extended maturities to August 2028 and reduced cash interest.
Management guided Q3 revenue of $77–$78 million (GAAP) with non-GAAP billings of $70–$75 million and a non-GAAP loss per share of $0.14–$0.18. For the full year, guidance called for roughly $305–$315 million in billings and $313–$315 million in GAAP revenue, with non-GAAP EPS of −$0.69 to −$0.77. The company expects the benefit of ecosystem-driven growth to materialize more meaningfully over the next 12–24 months as partner-driven deals convert and ARR shifts toward consumption; importantly, management reiterated its target of majority ARR on consumption by year-end. A leadership transition in the CFO role was announced, with Todd Crane assuming the CFO position while David Jolley transitions to a senior advisory role, underscoring a continued emphasis on disciplined cost management and financing flexibility.
Overall, DOMO’s QQ2 2025 results and commentary reflect a company pivoting toward scalable, partner-enabled growth, with early signs of demand generation and larger, strategic contracts. The key questions for investors remain: (1) how quickly the ecosystem-led model translates into meaningful top-line growth and improved profitability, (2) the sustainability of higher gross retention and consumption-driven ARR, and (3) the trajectory of cash flow and balance sheet health as investment in partnerships continues.