Domo (Domo -43.13%) Stocks are down in trading on Friday. The data software company’s share price was down 42.1% at 11:45 a.m. ET, according to data from Standard & Poor’s Global Market Intelligence.
Domo released its second quarter results after the market closed yesterday, posting sales and earnings for the period that actually came ahead of Wall Street targets. The company reported a non-GAAP (adjusted) loss per share of $0.02 on sales of $79.67 million in the quarter, while analyst median estimates called for a loss per share of $0.09 on revenue of $78.9. million US dollars. While second quarter results beat expectations, the company had some bad news regarding the demand outlook.
Domo’s revenue grew nearly 5% year-over-year (YOY) in the second quarter and managed to post a smaller-than-expected loss, but other metrics also point to weaker demand ahead. The company finished the quarter with remaining performance obligations (RPO) of $357.6 million — up just 2% year-over-year. The business intelligence software specialist also issued significant downward revisions to future performance guidance.
For the third quarter, Domo expects sales to be between $78.5 million and $79.5 million. It also expects an adjusted loss per share of between $0.10 and $0.14. Considering that the company posted sales of $79 million and an adjusted net loss of $0.13 in the year-ago quarter, there’s not much to get excited about.
For the full year, management is guiding sales of between $316 million and $320 million, implying annual growth of about 3% at the mid-target. The company is also projecting an adjusted loss per share of between $0.39 and $0.47 in the period.
Prior to its second quarter release, Domo’s latest guidance called for sales to be between $323 million and $330 million and for its adjusted loss to be between $0.27 per share and $0.39 per share. Meanwhile, the median of analyst estimates had expected the company to post an adjusted loss of $0.36 per share on sales of about $325.5 million in the period.
Keith Noonan does not have a position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
“Typical beer advocate. Future teen idol. Unapologetic tv practitioner. Music trailblazer.”