Huckleberry.ai, Inc.

What they do

Domo provides a cloud-based platform that integrates, analyzes, visualizes, and automates business data, enabling customers to build data products and leverage AI capabilities. The platform connects to major cloud data platforms like Snowflake and Databricks, offers over 1,000 connectors, and includes low-code development and workflow automation tools. Domo employs a land, expand, and retain model, selling primarily on a consumption-based pricing model.

Revenue drivers

• Subscription revenue — Subscription revenue was $69.8 million in Q1 FY2027 (April 30, 2026), representing the core recurring revenue stream. As of that quarter, 89% of ARR came from consumption-based agreements.
• Consumption-based agreements — The majority of ARR derives from consumption-based pricing, where customers make annual commitments based on estimated usage with a tiered pricing structure, paid upfront. This model is expected to grow as a percentage of ARR.
• Enterprise-wide agreements (ELAs) — ELAs provide unlimited users with a data cap, contributing to the remaining ARR. These agreements are part of the shift to consumption-based services and support customer expansion.

Recent performance

For the fiscal first quarter ended April 30, 2026, Domo reported total revenue of $79.4 million, with subscription revenue of $69.8 million. GAAP operating margin improved to negative 14%, up 4 percentage points year over year, while non-GAAP operating margin was 6%. GAAP net loss was $14.2 million, and non-GAAP net loss was $0.9 million. Cash and cash equivalents were $39.1 million as of April 30, 2026, and the company reported total assets of $196.6 million, total liabilities of $382.9 million, and shareholder equity of negative $186.3 million.

Strategy

Domo's Board of Directors initiated a formal strategic alternatives review in February 2026 and has concluded that pursuing a strategic transaction is the best path to maximize shareholder value. The company is in advanced negotiations regarding a potential transaction, though no definitive agreement has been executed. Management also continues to focus on expanding the platform's AI capabilities and consumption-based offerings. The company has addressed capital structure and liquidity needs, including a forbearance agreement with its lender following noncompliance with a debt covenant.

Risks

• Going concern and liquidity — The company has a history of losses, an accumulated deficit of $1,546.9 million, negative shareholder equity, and recently disclosed going concern risk due to covenant noncompliance and limited liquidity.
• Strategic transaction uncertainty — Although Domo is in advanced negotiations for a potential transaction, there is no assurance a deal will close, and the outcome of the strategic review could adversely affect the business.
• Debt covenant breach — The company breached a minimum annualized recurring revenue covenant under its credit facility, leading to a forbearance agreement that may limit operational flexibility.
• Competition and market adoption — Domo faces intense competition in the business intelligence software market, and if customers do not renew or expand usage, revenue could decline.

Outlook

Management has not provided financial guidance for future periods. The company anticipates announcing a potential strategic transaction in the near term if negotiations progress, subject to definitive agreements and customary closing conditions. Domo expects to continue investing in its platform, particularly in AI and data products, while managing costs and pursuing improved operating margins. The company also expects the percentage of ARR from consumption-based services to increase.