DOMO Domo Inc

Domo, Inc. (Nasdaq: DOMO) today announced results for its fiscal first quarter ended April 30, 2024.

Fiscal First Quarter Results

• Total revenue was $80.1 million, an increase of 1% year over year
• Subscription revenue was $72.1 million, an increase of 1% year over year
• Billings were $65.5 million, a decrease of 7% year over year
• Net cash provided by operating activities was $1.9 million
• GAAP operating margin decreased by 2 percentage points year over year
• Non-GAAP operating margin decreased by 7 percentage points year over year
• GAAP net loss was $26.0 million, and GAAP net loss per share was $0.69, based on 37.5 million weighted-average shares outstanding
• Non-GAAP net loss was $12.3 million, and non-GAAP net loss per share was $0.33, based on 37.5 million weighted-average shares outstanding
• Cash, cash equivalents, and restricted cash were $61.2 million as of April 30, 2024

“We’re hyper-focused on returning to growth, and feel optimistic about early signals from our strategic initiatives such as partner collaborations, consumption momentum and multi-use case customers,” said Josh James, founder and CEO, Domo. “Domo is a compelling solution for the current data and AI environment. We’re confident that our strategic priorities will continue to reinforce our competitive position.”

Recent Highlights

We believe the following announcements and recognition demonstrate our commitment to product innovation and customer value:

• Domo was the winner of five Dresner Advisory Services 2023 Technology Innovation Awards, as a top vendor in the following Wisdom of Crowds® thematic market reports: Analytical Platforms, Cloud Computing + BI, Embedded BI, Guided Analytics and Self-Service BI.
• In addition, Domo was ranked the number one vendor in the Dresner Advisory Services’ 2024 Wisdom of Crowds® Cloud Computing and Business Intelligence (BI) Market Study for the eighth consecutive year, as well as the number one vendor in Dresner Advisory Services’ 2024 Self-Service Business Intelligence (BI) Market Study for the sixth consecutive year.
• Domo was named to the Women Tech Council Shatter List, which showcases technology companies that are working to break the glass ceiling for women in tech, for the seventh consecutive year.

Business Outlook

Based on information available as of May 23, 2024, Domo is providing the following guidance for its second quarter of fiscal 2025:

• Revenue is expected to be in the range of $76.0 million to $77.0 million
• Non-GAAP net loss per share, basic and diluted, is expected to be between $0.26 and $0.30 based on 38.4 million weighted-average shares outstanding, basic and diluted

We have not reconciled guidance for non-GAAP metrics to their most directly comparable GAAP measures because certain items that impact these measures are not within our control or cannot be reasonably predicted.

Earnings Call Details

Domo plans to host a conference call today to review its fiscal 2025 first quarter financial results and to discuss its financial outlook. The call is scheduled to begin at 3:00 p.m. MT/ 5:00 p.m. ET. A live webcast of the event will be available on the Domo Investor Relations website at https://www.domo.com/ir and a live dial-in is available at (877) 484-6065 or (201) 689-8846.

A replay will be available at (877) 660-6853 or (201) 612-7415 with the access ID# 13746630 following the completion of the conference call until 11:59p.m. (ET) June 23, 2024.

About Domo

Domo puts data to work for everyone so they can multiply their impact on the business. Our cloud-native data experience platform goes beyond traditional business intelligence and analytics, making data visible and actionable with user-friendly dashboards and apps. Underpinned by AI, data science and a secure data foundation that connects with existing cloud and legacy systems, Domo helps companies optimize critical business processes at scale and in record time to spark the bold curiosity that powers exponential business results.

For more information, visit www.domo.com. You can also follow Domo on You can also follow Domo on LinkedIn, X and Facebook.

Domo Disclosure Channels to Disseminate Information

Domo investors and others should note that we announce material information to the public about our company, products and services, and other issues through a variety of means, including Domo’s website, press releases, SEC filings, blogs and social media, in order to achieve broad, non-exclusionary distribution of information to the public. We intend to use the Domo Facebook page, the Domo LinkedIn page, the Domo blog, the @Domotalk X account and the @JoshJames X account as a means of disclosing information about the Company and its services and for complying with the disclosure obligations under Regulation FD. The information we post through these social media channels may be deemed material. Accordingly, we encourage investors and others to monitor these social media channels in addition to following our press releases, SEC filings and public conference calls and webcasts. The social media channels that we intend to use as a means of disclosing the information described here may be updated from time to time as listed on our investor relations webpage.

Use of Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), we reference in this press release and the accompanying tables the following non-GAAP financial measures: billings, non-GAAP subscription gross margin, non-GAAP operating expenses, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share, and adjusted free cash flow. In computing these measures, we exclude the effects of certain items including stock-based compensation expense, amortization of certain intangible assets, severance of executive officers who report to the Chief Executive Officer, remeasurement of warrant liability, and proceeds from shares issued in connection with the employee stock purchase plan.

As it relates to adjusted free cash flow, we add back amounts equal to the proceeds from shares issued in connection with employee stock purchase plan to reflect the non-cash nature of these transactions. Because no cash is exchanged in these transactions, showing proceeds in the financing section of the statement of cash flows as required by GAAP results in a corresponding decrease in the operating section, which management believes is not indicative of actual cash used in or provided by our operations. We believe that this non-GAAP cash metric is useful because it provides investors with the same information that management uses to consistently evaluate, forecast and measure the Company’s actual cash flows and its ability to achieve and maintain positive cash flows.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our ongoing core business operating results. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and planning, forecasting, and analyzing future periods.

For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned "Reconciliation of Non-GAAP Financial Measures" included at the end of this release.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements of our Chief Executive Officer, statements regarding competitive positions, our financial outlook for our second fiscal quarter, and results for future periods. Forward-looking statements are subject to risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings with the SEC, including, without limitation, the Annual Report on Form 10-K filed with the SEC on March 27, 2023 and the Quarterly Report on Form 10-Q for the year ended April 30, 2024 expected to be filed with the SEC on or about June 10, 2024. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update this information unless required by law.

Domo is a registered trademark of Domo, Inc.

Domo, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited)   Three Months Ended April 30,

2023

2024

Revenue: Subscription

$

71,090

 

$

72,110

 

Professional services and other

 

8,368

 

 

7,993

 

Total revenue

 

79,458

 

 

80,103

 

Cost of revenue: Subscription (1)

 

10,612

 

 

12,775

 

Professional services and other (1)

 

7,957

 

 

7,939

 

Total cost of revenue

 

18,569

 

 

20,714

 

Gross profit

 

60,889

 

 

59,389

 

  Operating expenses: Sales and marketing (1), (3)

 

43,162

 

 

42,219

 

Research and development (1)

 

23,435

 

 

22,719

 

General and administrative (1), (2), (3)

 

14,001

 

 

15,901

 

Total operating expenses

 

80,598

 

 

80,839

 

Loss from operations

 

(19,709

)

 

(21,450

)

  Other expense, net (1), (4)

 

(4,495

)

 

(4,431

)

Loss before income taxes

 

(24,204

)

 

(25,881

)

Provision for income taxes

 

199

 

 

126

 

Net loss

$

(24,403

)

$

(26,007

)

  Net loss per share (basic and diluted)

$

(0.69

)

$

(0.69

)

Weighted-average number of shares (basic and diluted)

 

35,222

 

 

37,482

 

    (1) Includes stock-based compensation expenses, as follows: Cost of revenue: Subscription

$

618

 

$

798

 

Professional services and other

 

479

 

 

333

 

Sales and marketing

 

6,730

 

 

5,314

 

Research and development

 

4,975

 

 

4,422

 

General and administrative

 

3,508

 

 

3,084

 

Other expense, net

 

162

 

 

191

 

Total stock-based compensation expenses

$

16,472

 

$

14,142

 

  (2) Includes amortization of certain intangible assets, as follows: General and administrative

$

20

 

$

142

 

  (3) Includes executive officer severance, as follows: Sales and marketing

$

443

 

$

-

 

General and administrative

 

1,328

 

 

-

 

Total executive officer severance

$

1,771

 

$

-

 

  (4) Includes remeasurement of warrant liability, as follows: Other expense, net

$

-

 

$

(566

)

Domo, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited)   January 31, April 30,

2024

2024

Assets Current assets: Cash, cash equivalents, and restricted cash

$

60,939

 

$

61,158

 

Accounts receivable, net

 

67,197

 

 

47,848

 

Contract acquisition costs

 

16,006

 

 

15,403

 

Prepaid expenses and other current assets

 

9,602

 

 

9,760

 

Total current assets

 

153,744

 

 

134,169

 

  Property and equipment, net

 

27,003

 

 

27,240

 

Right-of-use assets

 

11,746

 

 

11,709

 

Contract acquisition costs, noncurrent

 

19,542

 

 

17,733

 

Intangible assets, net

 

2,740

 

 

2,550

 

Goodwill

 

9,478

 

 

9,478

 

Other assets

 

1,407

 

 

1,525

 

Total assets

$

225,660

 

$

204,404

 

  Liabilities and stockholders' deficit Current liabilities: Accounts payable

$

4,313

 

$

10,867

 

Accrued expenses and other current liabilities

 

43,430

 

 

41,139

 

Lease liabilities

 

4,807

 

 

5,385

 

Current portion of deferred revenue

 

185,250

 

 

170,813

 

Total current liabilities

 

237,800

 

 

228,204

 

  Lease liabilities, noncurrent

 

11,135

 

 

10,319

 

Deferred revenue, noncurrent

 

2,736

 

 

2,566

 

Other liabilities, noncurrent

 

14,001

 

 

12,673

 

Long-term debt

 

113,534

 

 

114,123

 

Total liabilities

 

379,206

 

 

367,885

 

  Commitments and contingencies   Stockholders' deficit: Common stock

 

37

 

 

38

 

Additional paid-in capital

 

1,252,200

 

 

1,268,516

 

Accumulated other comprehensive loss

 

(180

)

 

(426

)

Accumulated deficit

 

(1,405,603

)

 

(1,431,609

)

Total stockholders' deficit

 

(153,546

)

 

(163,481

)

Total liabilities and stockholders' deficit

$

225,660

 

$

204,404

 

Domo, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)   Three Months Ended April 30,

2023

2024

Cash flows from operating activities Net loss

$

(24,403

)

$

(26,007

)

Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization

 

1,491

 

 

2,356

 

Non-cash lease expense

 

1,149

 

 

1,080

 

Amortization of contract acquisition costs

 

4,568

 

 

4,301

 

Stock-based compensation

 

16,472

 

 

14,142

 

Remeasurement of warrant liability

 

-

 

 

(566

)

Other, net

 

1,517

 

 

1,058

 

Changes in operating assets and liabilities: Accounts receivable, net

 

22,068

 

 

19,349

 

Contract acquisition costs

 

(3,073

)

 

(1,995

)

Prepaid expenses and other assets

 

(1,397

)

 

(345

)

Accounts payable

 

1,490

 

 

6,678

 

Operating lease liabilities

 

(1,597

)

 

(1,280

)

Accrued and other liabilities

 

(8,298

)

 

(2,263

)

Deferred revenue

 

(9,159

)

 

(14,607

)

Net cash provided by operating activities

 

828

 

 

1,901

 

  Cash flows from investing activities Purchases of property and equipment

 

(3,576

)

 

(2,526

)

Net cash used in investing activities

 

(3,576

)

 

(2,526

)

  Cash flows from financing activities Proceeds from shares issued in connection with employee stock purchase plan

 

2,032

 

 

1,121

 

Net cash provided by financing activities

 

2,032

 

 

1,121

 

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

204

 

 

(277

)

Net (decrease) increase in cash, cash equivalents, and restricted cash

 

(512

)

 

219

 

Cash, cash equivalents, and restricted cash at beginning of period

 

66,500

 

 

60,939

 

Cash, cash equivalents, and restricted cash at end of period

$

65,988

 

$

61,158

 

Domo, Inc. Reconciliation of Non-GAAP Financial Measures (in thousands, except per share data) (unaudited)   Three Months Ended April 30,

2023

2024

Reconciliation of Subscription Gross Margin on a GAAP Basis to Subscription Gross Margin on a Non-GAAP Basis: Revenue: Subscription

$

71,090

 

$

72,110

 

Cost of revenue: Subscription

 

10,612

 

 

12,775

 

Subscription gross profit on a GAAP basis

 

60,478

 

 

59,335

 

Subscription gross margin on a GAAP basis

 

85

%

 

82

%

  Stock-based compensation

 

618

 

 

798

 

Subscription gross profit on a non-GAAP basis

$

61,096

 

$

60,133

 

Subscription gross margin on a non-GAAP basis

 

86

%

 

83

%

  Reconciliation of Total Operating Expenses on a GAAP Basis to Total Operating Expenses on a Non-GAAP Basis: Total operating expenses on a GAAP basis

$

80,598

 

$

80,839

 

Stock-based compensation

 

(15,213

)

 

(12,820

)

Amortization of certain intangible assets

 

(20

)

 

(142

)

Executive officer severance

 

(1,771

)

 

-

 

Total operating expenses on a non-GAAP basis

$

63,594

 

$

67,877

 

  Reconciliation of Operating Loss on a GAAP Basis to Operating Loss on a Non-GAAP Basis: Operating loss on a GAAP basis

$

(19,709

)

$

(21,450

)

Stock-based compensation

 

16,310

 

 

13,951

 

Amortization of certain intangible assets

 

20

 

 

142

 

Executive officer severance

 

1,771

 

 

-

 

Operating loss on a non-GAAP basis

$

(1,608

)

$

(7,357

)

  Reconciliation of Operating Margin on a GAAP Basis to Operating Margin on a Non-GAAP Basis: Operating margin on a GAAP basis

 

(25

)%

 

(27

)%

Stock-based compensation

 

21

 

 

18

 

Executive officer severance

 

2

 

 

-

 

Operating margin on a non-GAAP basis

 

(2

)%

 

(9

)%

  Reconciliation of Net Loss on a GAAP Basis to Net Loss on a Non-GAAP Basis: Net loss on a GAAP basis

$

(24,403

)

$

(26,007

)

Stock-based compensation

 

16,472

 

 

14,142

 

Amortization of certain intangible assets

 

20

 

 

142

 

Executive officer severance

 

1,771

 

 

-

 

Remeasurement of warrant liability

 

-

 

 

(566

)

Net loss on a non-GAAP basis

$

(6,140

)

$

(12,289

)

  Reconciliation of Net Loss per Share on a GAAP Basis to Net Loss per Share on a Non-GAAP Basis: Net loss per share on a GAAP basis

$

(0.69

)

$

(0.69

)

Stock-based compensation

 

0.47

 

 

0.38

 

Executive officer severance

 

0.05

 

 

—

 

Remeasurement of warrant liability

 

—

 

 

(0.02

)

Net loss per share on a non-GAAP basis

$

(0.17

)

$

(0.33

)

  Billings: Total revenue

$

79,458

 

$

80,103

 

Add: Deferred revenue (end of period)

 

173,646

 

 

170,813

 

Deferred revenue, noncurrent (end of period)

 

3,077

 

 

2,566

 

Less: Deferred revenue (beginning of period)

 

(182,273

)

 

(185,250

)

Deferred revenue, noncurrent (beginning of period)

 

(3,609

)

 

(2,736

)

Decrease in deferred revenue (current and noncurrent)

 

(9,159

)

 

(14,607

)

Billings

$

70,299

 

$

65,496

 

  Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow: Net cash provided by operating activities

$

828

 

$

1,901

 

Proceeds from shares issued in connection with employee stock purchase plan

 

2,032

 

 

1,121

 

Purchases of property and equipment

 

(3,576

)

 

(2,526

)

Adjusted free cash flow

$

(716

)

$

496

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240523447895/en/

Media – Cynthia Cowen PR@domo.com

Investors – Peter Lowry IR@domo.com