Powerful third-quarter results were posted by cloud computing software provider Domo Inc. (DOMO). The news contributed to the rise of the company’s stock, and the share of DOMO has gained about 75% since posting the results on December 4.
Domo offers an enterprise portal that provides all workers with access to data. The company’s portfolio provides solutions for different areas of industry. The Domo Publish solution provides information for tracking supply chains to be made available in real-time. The Zoom Productivity Tracker app, designed to assess the efficiency of remote workers, is also provided by Domo. During the COVID-19 pandemic and the sharp rise in the number of employees working remotely, such a product, which measures employee participation in collaboration and the use of various resources, has become especially common.
Domo’s revenue rose 20 percent year on year to $53.6 million in the third quarter, exceeding the expectations of Wall Street analysts. After adjustments, the net loss was $0.4 per share, which was better than expected as well.
A rise in the selling of subscription services was the key driver of Domo’s growth – growth in this segment was 24 percent year-on-year.
For the fourth quarter, Domo management also issued a forecast. Revenue will rise by about 16 percent year-on-year to $53.8 million, according to the company’s plans. Also, compared to a loss of $0.85 in the same period last year, the company estimates an adjusted loss per share of $0.44.
After the pandemic, the Domo program for coordinating remote work is likely to remain in demand. Many major corporations have stated that they plan to continue long-term remote work. This means that during the pandemic, Domo could maintain most of the clients who joined the business.
Domo Inc. (DOMO) stock rose 10.80% on Thursday to close the session at $66.99.