Domo reported a standout QQ2 2026 quarter, marking a meaningful inflection in growth and profitability progression amid its strategic shift to a consumption-based, AI-enabled analytics platform. Revenue of $79.7 million surpassed guidance on billings and revenue, with the company delivering its first positive non-GAAP EPS and generating positive free cash flow. Importantly, Domo’s consumption cohort is delivering strong retention and expansion dynamics, highlighted by a 108% net revenue retention (NRR) for customers who originally purchased on a consumption contract, and a consumption-based ARR share of over 75% as the year advances. Management framed these results as validation of a multi-year transformation: a broadened ecosystem through CDWs, hyperscalers, and partner-led go-to-market, coupled with an AI-first product and platform that goes beyond dashboards to end-to-end AI-enabled analytics.
International momentum was a standout theme, with Japan delivering new records: new ACV doubled year over year, TCV at all-time highs, and renewal deals yielding an NRR near 130%. The company also expanded its ecosystem with deeper integrations into Snowflake, Databricks, Oracle, and Google, and highlighted several high-profile wins across industries that benefited from consumption-based pricing and platform breadth (Workflows, Domo Everywhere, and AI capabilities). Domo reiterated its plan to keep investing in AI innovations, partner enablement, and the consumption model, while aiming to lift gross retention meaningfully in Q4 and sustain retention gains into FY27. Management guidance was raised for FY26 exiting metrics (billings growth to ~6% and non-GAAP operating margin to ~6%), with expectations of further lifts to ~10% on both metrics in FY27. The combination of AI-driven product value, ecosystem leverage, and a more scalable procurement path through CDWs and marketplaces underpins an investment thesis built on durable, profitable growth.”