When Domo Inc. (NASDAQ: DOMO) reported its third-quarter financial results after the markets closed on Thursday, the cloud software company said that it had a net loss of $0.40 per share on $53.6 million in revenue. Consensus estimates had called for a net loss of $0.44 per share and $51.1 million in revenue. The same period of last year reportedly had a net loss of $0.85 per share on $44.77 million in revenue.
During the latest quarter, subscription revenue totaled $46.9 million, an increase of 24% year over year, and represented 87% of total revenue.
At the same time, billings grew 25% from last year to $55.7 million.
Revenue allocated to remaining performance obligations (RPO) increased 21% year over year to $248.8 million at the end of the quarter. RPO expected to be recognized as revenue in the next 12 months was $153.9 million, an increase of 22% year over year.
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Management noted that the firm achieved strong growth and delivered on the commitment that it made at the IPO to grow revenue while getting to cash-flow positive with the cash on hand. The strong results and improved financial position give management the confidence to invest in the significant growth opportunity.
Cash, cash equivalents and short-term investments totaled $83.8 million at the end of the quarter, down from $98.8 million at the end of the previous fiscal year.
Looking ahead to the fiscal fourth quarter, Domo expects to see a net loss of $0.42 to $0.46 per share and $53.3 million to $54.3 million in revenue. The consensus estimates are calling for a net loss of $0.43 per share on $53.31 million in revenue.
Domo stock traded up 14% to $43.67 on Friday, in a 52-week range of $7.62 to $47.25. The consensus price target is $47.17.
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