Tableau is the data viz tool I use the most and is one of the more popular products on the market. You’d think their stock would be a top performer. Well, you’d be mistaken. There’s another data viz company whose stock outperformed Tableau this year – and that company is Domo.
I had never heard of Domo, prior to researching this article. They're a data visualization software company based in Utah. The company is named after the word thanks in Japanese (which makes me hope that another data viz company will one day come out called You’re Welcome). They have an impressive customer list, according to their website. National Geographic, eBay, Univision, and Goodwill are a few they mention.
Domo went public about a year ago. The stock did not perform well initially, but starting in January, the stock has beat out every publicly traded, BI-focused company I researched.
I thought it was odd that Domo’s stock outperformed the rest, especially Tableau. Both are growth stocks, which means they don’t report a profit and most price performance is based on expectations of future growth. Even with that said, Tableau’s fundamentals are stronger, both in terms of revenue growth and financing.
Tableau’s revenue grew from $877 million in 2017 to $1,155 million in 2018, which is a 31.7% growth. Domo’s revenue grew from $109 million to $142 million, which is 30.3% growth.
Tableau’s net loss has gone from ($185M) in 2017 to ($77M) in 2018, which is a 58% decline. Domo’s net loss has gone from ($176M) in 2017 to ($154M), which is a 12.5% decline. That means Tableau is growing their revenue to the point it may finally catch up with their expenses.
Domo is the only company that needs further financing to continue operations. Domo issued nearly a $97 million in long-term debt to fund its operations the past two years. With only $177 million in cash on hand, it must reduce its loss or continue borrowing to stay afloat.
Tableau, on the other hand, is in a far better financial position. It has no long-term debt and has $653 million in cash. That means it can continue losing the same amount of money for 8 years and stay operational.