What is the expected impact of macroeconomic factors (e.g., inflation, interest rates) on Domo's upcoming performance?

Macroeconomic backdrop

Domo (NASDAQ: DOMO) is a cloud‑based analytics SaaS that sells primarily to mid‑size and large enterprises. In a high‑inflation, higher‑for‑long interest‑rate environment, two macro‑driven forces tend to bite most directly on a company like Domo: (1) enterprise IT spend discipline and (2) cost‑of‑capital for growth‑oriented SaaS firms. When inflation stays above target and the Fed keeps rates elevated, corporate budgets are tightened, especially for discretionary software and consulting projects. That can compress Domo’s new‑logo pipeline and pressure renewal rates, which in turn may weigh on top‑line growth and margin expansion. On the flip side, Domo’s subscription model is relatively low‑capex and its platform can help customers improve data‑driven efficiency—an attribute that often gains a premium when firms are looking to offset rising input costs.

What to expect in the Q2 FY2026 call

If Domo’s management signals that revenue growth is holding up despite the macro drag (e.g., double‑digit YoY SaaS‑revenue growth, stable churn, and a modest‑to‑moderate expansion‑rate on existing accounts), the market will likely view the stock as a defensive SaaS play and reward it with a bounce. Conversely, any guidance that reflects a slowdown in new‑logo bookings, a widening net‑new ARR shortfall, or a need to raise pricing to protect margins will be read as a head‑on‑collision with the inflation‑rate squeeze, prompting a sell‑off.

Trading implications

• Short‑term catalyst: The earnings release on 28 Aug 2025 is the most immediate catalyst. A beat‑‑‑or‑‑miss on revenue or adjusted EBITDA versus consensus will drive the next 1‑2 weeks of price action.
  
• Technical context: Domo has been trading near its 200‑day moving average (≈ $30) with a recent swing‑low around $27. A breakout above $30 on strong Q2 results could trigger a short‑term upside to the next resistance at $35–$38, while a miss that pushes the price below $27 may open a downside toward $24.
  
• Positioning: In a macro‑sensitive environment, a cautious long on the back‑of‑the‑envelope “beat‑‑‑and‑‑hold” scenario (target $35) is justified if the company emphasizes resilient enterprise demand and lifts its ARR guidance. If guidance is muted or indicates macro‑driven contraction, a protective short (target $24) or a stop‑loss‑protected hedge around $30 is advisable.
  

Bottom line: The key macro lens is whether Domo can demonstrate that its subscription model and data‑efficiency value proposition insulate it from inflation‑driven spending cuts and higher financing costs. The earnings call will reveal whether the company is still on a growth trajectory or is beginning to feel the macro‑headwinds, and that will dictate the short‑term trade direction.