Sep 30, 2026 earnings call — Acquisition of Domo and Q3 results
Closed Domo acquisition for $400 million; Domo steady-state revenue expected $280 million to $290 million.
Revenue $0.2B (est $0.2B) · EPS $1.69 (est $1.52) · Next-quarter revenue outlook $0.3B–$0.3B
Key quotes
"What makes the Domo business particularly exciting is its ability to connect data across the enterprise, apply AI to that data, and deliver trusted insights and actions directly into business workflows."
"Operating income of $105 million increased 6% year-over-year, resulting in an operating margin of 43%, up 300 basis points from a year ago."
"Now that the deal is closed, our outlook for Domo is that we expect the top line to settle at a steady state of approximately $280 million to $290 million."
Analyst Q&A 4
Where margins will improve after Domo buy
Q (Lawrence Vensko · Guggenheim): They asked where Progress will get the most cost leverage from integrating Domo — public company cuts, G&A, sales and marketing, or restructuring. They also asked if this quarter's strong free cash flow had any one-time factors that could affect next quarter.
A: Management said savings will come from eliminating duplicate public company costs and significant G&A synergies by using Progress' finance and HR systems. They also plan go-to-market changes and to move some professional services to partners. On cash flow, they said last year's ShareFile integration made 2025 light, 2026 is stronger due to improved systems and collections, and cash flow will probably normalize next year.
"And I am truly confident that we will get margins to the Progress range by end of FY '27." — Yogesh Gupta (CEO)
Data growth and consumption pricing
Q (Fatima Boolani · Citi): She asked how aggregate data growth and AI investments are influencing capacity growth per unit. She also asked whether Domo's consumption model can be applied to other Progress products and why or why not.
A: Management said data volumes are dramatically larger, increasing consumption on Domo and capacity needs on capacity-based products; most Progress products are driven by data or infrastructure volume. They have spent the last 90 days analyzing Domo's consumption model and see a big opportunity to apply consumption metrics across the portfolio, noting seat-based models are under pressure. On margins, they guide 38% to 39% but said SaaS mix could slightly compress gross margin and they are evaluating COGS and pricing.
"The volume of data that businesses are trying to now consume and they realize the value of -- has suddenly become dramatically larger, and it's growing larger." — Yogesh Gupta (CEO)
Domo margin timeline and R&D spend
Q (Lucky Schreiner · D.A. Davidson): He asked whether keeping Domo competitive requires continued investment that limits margin upside and how quickly margin improvement could appear. He also asked if any cross-sell was included in the $280 million to $290 million guide and rollout timing.
A: Management clarified that the roughly 30% margin for FY '27 reflects the year-of-acquisition run rate, not steady state, and once synergies are complete Domo should have margins similar to Progress. They will continue to invest in R&D at or above their usual upper-teen levels and expect to maintain product investment. They said no cross-sell is included in the $280 million to $290 million guide; cross-sell is upside and they will focus first on integration and retention before sizing it.
"So once synergies are done, expect the same type of margins as we've had in our recent past." — Yogesh Gupta (CEO)
Role of analytics and Domo with AI
Q (John DiFucci · Guggenheim): He asked whether traditional analytics still has a role in the AI era or will be displaced, and whether Domo will need to change.
A: Management said some analytics areas, especially presentation, will be disrupted by AI, but the hard work of data integration, transformation, semantics and reliable data prep remains vital for deterministic, repeatable answers. They said Domo leads in high-quality, business-specific data and that consumption-based usage shows stronger net retention, while seat-based BI faces pressure. They also noted Domo's recent revenue decline and expect stabilization in the $280 million to $290 million range.
"So high-quality data with integrity data that is business specific is something that Domo is one of the companies that actually leads in that market, and therefore, that's why I keep going back to the consumption side of the business." — Yogesh Gupta (CEO)