Domo, Inc. (NASDAQ: DOMO) reported fiscal fourth‑quarter 2026 revenue of $79.6 million and adjusted earnings per share of $0.03, a beat over consensus estimates that ranged from a loss of $0.17 to $0.38 per share. Subscription revenue rose to $73.4 million, up 2 % year‑over‑year, while billings reached $111.2 million, an 8 % increase from the same period last year. Net retention for the consumption‑based cohort held at 106 %.
The earnings beat was driven by disciplined cost management and a shift to a consumption‑based pricing model that has improved margin dynamics. Operating margin climbed to a record 10 %, and the company’s focus on AI‑enabled data services has attracted higher‑margin contracts, offsetting the modest revenue miss.
Revenue fell slightly below the $80.2 million consensus estimate, a miss attributed to a mix shift toward lower‑priced subscription contracts and a slower uptake of new AI‑powered offerings in the first quarter of the year. Nevertheless, billings outpaced revenue growth, signaling a strong pipeline and customer demand for future revenue.
Domo’s full‑year guidance remains unchanged, with revenue projected at $317.5 million to $318.5 million. Management reiterated its expectation of positive adjusted free cash flow for FY2026, although it did not provide a formal guidance figure. The company also disclosed that it is exploring strategic alternatives, a development that introduces some uncertainty but could unlock shareholder value.
Investors reacted favorably to the results, citing the EPS beat, record billings, and improved retention as key drivers of confidence in Domo’s growth trajectory.
Josh James, founder and CEO, said, "We delivered our highest quarterly billings ever and our highest gross retention rate in over three years, reflecting strong demand from customers and the growing role Domo plays in their AI strategies." CFO Todd Crane added, "Operating margin for the quarter was a record high 10%, which contributed to the highest full‑year operating margin in company history at over 6 %" and "Our gross retention rate improved to over 88%, marking the highest level in 12 quarters and reflects the strength of our customer relationships as well as the progress we've made on moving to a consumption pricing model."
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