Domo, Inc. (Nasdaq: DOMO) today announced results for its fiscal
third quarter ended October 31, 2024.
Fiscal Third Quarter Results
- Total revenue was $79.8 million
- Subscription revenue was $71.1 million
- Billings were $73.4 million
- Subscription Remaining Performance Obligations (RPO) was $354.1
million as of October 31, 2024, an increase of 3% year over
year
- Subscription RPO expected to be recognized beyond twelve months
was $145.9 million as of October 31, 2024, an increase of 14% year
over year
- Net cash used in operating activities was $13.7 million
- Adjusted free cash flow was negative $13.8 million
- GAAP operating margin was negative 14%
- Non-GAAP operating margin was 3%
- GAAP net loss was $18.8 million, and GAAP net loss per share
was $0.48, based on 38.8 million weighted-average shares
outstanding
- Non-GAAP net loss was $3.2 million, and non-GAAP net loss per
share was $0.08, based on 38.8 million weighted-average shares
outstanding
- Cash and cash equivalents were $40.9 million as of October 31,
2024
“Our focus on ecosystem-led growth, consumption-based contracts
and AI innovation is paying off with promising momentum, as we see
more demand for Domo as an anchor technology in customers’ data
stacks,” said Josh James, founder and CEO, Domo. “The data and AI
landscape is evolving to create new market opportunities for Domo,
and we feel confident we’re in the right position to capitalize on
this moment.”
Recent Highlights
We believe the following announcements and recognition
demonstrate our commitment to product innovation and customer
value:
- Domo was named a leader in Nucleus Research’s 2024 Embedded
Analytics Technology Value Matrix for the fourth consecutive
year.
- Domo ranked #1 in the 2024 Dresner Advisory Wisdom of Crowds®
Analytical Platforms Report for the fourth consecutive year, and
was ranked an “Overall Leader” in Dresner Advisory Services’ 2024
Wisdom of Crowds® Small and Midsize Enterprise (SME) Business
Intelligence (BI) Market Study for the eighth consecutive
year.
- Domo and Domo.AI were named a finalist in the Business
Intelligence or Analytics category of the 2024 SaaS Awards.
- Domo was recognized as a Business Intelligence (BI) One to
Watch in the Modern Marketing Data Stack 2025: How Leading
Marketers Are Thriving In a World Redefined By AI, Privacy and Data
Gravity executed and launched by Snowflake, the AI Data Cloud
company.
Business Outlook
Based on information available as of December 5, 2024, Domo is
providing the following guidance for its fourth quarter of fiscal
2025 and full year fiscal 2025:
Q4 Fiscal 2025
- Revenue is expected to be in the range of $77.5 million to
$78.5 million
- Non-GAAP net loss per share, basic and diluted, is expected to
be between $0.13 and $0.17 based on 39.3 million weighted-average
shares outstanding, basic and diluted
Full Year Fiscal 2025
- Revenue is expected to be in the range of $315.5 million to
$316.5 million
- Non-GAAP net loss per share, basic and diluted, is expected to
be between $0.60 and $0.64 based on 38.5 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 third 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#13750075 following the completion of the
conference call until 11:59 p.m. (ET) January 4, 2025.
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 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, filings with the U.S. Securities and
Exchange Commission (SEC), 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: 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, billings, and adjusted free cash flow.
In computing the measures other than billings and adjusted free
cash flow, we exclude the effects of stock-based compensation
expense, amortization of certain intangible assets, severance of
executive officers who report to the Chief Executive Officer, loss
on extinguishment of debt, and remeasurement of warrant liability.
Billings is defined as total revenue plus the change in deferred
revenue in a period. In computing adjusted free cash flow, we
exclude the effects of proceeds from shares issued in connection
with the employee stock purchase plan, purchases of property and
equipment, and net change in short-term payable financing.
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 also add back the net change to short-term
payable financing to adjusted free cash flow. 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 fourth 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 28, 2024 and the Quarterly Report on Form 10-Q for the
quarter ended October 31, 2024 expected to be filed with the SEC on
or about December 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 Nine Months
Ended October 31, October 31,
2023
2024
2023
2024
Revenue: Subscription
$
71,293
$
71,113
$
213,594
$
214,144
Professional services and other
8,382
8,651
25,211
24,130
Total revenue
79,675
79,764
238,805
238,274
Cost of revenue: Subscription (1)
11,523
13,334
33,588
39,410
Professional services and other (1)
7,253
6,627
22,847
21,389
Total cost of revenue
18,776
19,961
56,435
60,799
Gross profit
60,899
59,803
182,370
177,475
Operating expenses: Sales and marketing (1), (3)
40,262
37,194
124,464
116,040
Research and development (1)
19,729
21,264
63,931
65,952
General and administrative (1), (2), (3)
12,130
12,429
35,509
42,504
Total operating expenses
72,121
70,887
223,904
224,496
Loss from operations
(11,222
)
(11,084
)
(41,534
)
(47,021
)
Other expense: Loss on extinguishment of debt
-
(1,850
)
-
(1,850
)
Other expense, net (1), (4)
(4,930
)
(5,622
)
(14,549
)
(14,805
)
Total other expense
(4,930
)
(7,472
)
(14,549
)
(16,655
)
Loss before income taxes
(16,152
)
(18,556
)
(56,083
)
(63,676
)
Provision for income taxes
261
205
801
582
Net loss
$
(16,413
)
$
(18,761
)
$
(56,884
)
$
(64,258
)
Net loss per share (basic and diluted)
$
(0.45
)
$
(0.48
)
$
(1.59
)
$
(1.68
)
Weighted-average number of shares (basic and diluted)
36,310
38,832
35,812
38,243
(1) Includes stock-based compensation expenses, as
follows: Cost of revenue: Subscription
$
670
$
784
$
1,958
$
2,389
Professional services and other
359
295
1,311
942
Sales and marketing
6,364
4,754
19,260
15,238
Research and development
4,621
4,038
14,214
12,529
General and administrative
4,174
3,080
10,642
12,075
Other expense, net
181
210
516
603
Total stock-based compensation expenses
$
16,369
$
13,161
$
47,901
$
43,776
(2) Includes amortization of certain intangible assets, as
follows: General and administrative
$
20
$
142
$
60
$
426
(3) Includes executive officer severance, as follows: Sales
and marketing
$
-
$
-
$
443
$
-
General and administrative
-
-
1,553
-
Total executive officer severance
$
-
$
-
$
1,996
$
-
(4) Includes remeasurement of warrant liability, as follows:
Other expense, net
$
-
$
455
$
-
$
33
Domo, Inc. Condensed Consolidated Balance Sheets
(in thousands) (unaudited) January 31,
October 31,
2024
2024
Assets Current assets: Cash, cash equivalents, and
restricted cash
$
60,939
$
40,925
Accounts receivable, net
67,197
57,177
Contract acquisition costs
16,006
15,288
Prepaid expenses and other current assets
9,602
7,083
Total current assets
153,744
120,473
Property and equipment, net
27,003
27,937
Right-of-use assets
11,746
10,108
Contract acquisition costs, noncurrent
19,542
17,420
Intangible assets, net
2,740
2,267
Goodwill
9,478
9,478
Other assets
1,407
2,528
Total assets
$
225,660
$
190,211
Liabilities and stockholders' deficit Current
liabilities: Accounts payable
$
4,313
$
8,403
Accrued expenses and other current liabilities
43,430
58,392
Lease liabilities
4,807
5,506
Current portion of deferred revenue
185,250
153,919
Total current liabilities
237,800
226,220
Lease liabilities, noncurrent
11,135
8,125
Deferred revenue, noncurrent
2,736
3,311
Other liabilities, noncurrent
14,001
8,151
Long-term debt
113,534
115,574
Total liabilities
379,206
361,381
Commitments and contingencies Stockholders' deficit:
Common stock
37
39
Additional paid-in capital
1,252,200
1,298,596
Accumulated other comprehensive (loss) income
(180
)
56
Accumulated deficit
(1,405,603
)
(1,469,861
)
Total stockholders' deficit
(153,546
)
(171,170
)
Total liabilities and stockholders' deficit
$
225,660
$
190,211
Domo, Inc.
Condensed Consolidated Statements of Cash Flows (in
thousands) (unaudited) Three Months Ended
Nine Months Ended October 31, October 31,
2023
2024
2023
2024
Cash flows from operating activities Net loss
$
(16,413
)
$
(18,761
)
$
(56,884
)
$
(64,258
)
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization
1,636
2,254
4,738
7,117
Non-cash lease expense
1,063
1,142
3,235
3,320
Amortization of contract acquisition costs
4,398
4,454
13,354
13,181
Stock-based compensation
16,369
13,161
47,901
43,776
Loss on extinguishment of debt
-
1,850
-
1,850
Remeasurement of warrant liability
-
456
-
33
Other, net
1,072
2,390
3,643
4,334
Changes in operating assets and liabilities: Accounts receivable,
net
(3,022
)
(8,489
)
23,750
10,020
Contract acquisition costs
(4,016
)
(4,524
)
(10,921
)
(10,328
)
Prepaid expenses and other assets
291
1,543
(173
)
1,819
Accounts payable
998
(11,655
)
(966
)
(152
)
Operating lease liabilities
(1,237
)
(1,392
)
(4,054
)
(4,000
)
Accrued and other liabilities
(608
)
10,238
(3,361
)
6,073
Deferred revenue
(4,856
)
(6,368
)
(23,124
)
(30,756
)
Net cash used in operating activities
(4,325
)
(13,701
)
(2,862
)
(17,971
)
Cash flows from investing activities Purchases of
property and equipment
(2,714
)
(2,515
)
(9,214
)
(7,245
)
Purchases of intangible assets
-
-
(26
)
-
Net cash used in investing activities
(2,714
)
(2,515
)
(9,240
)
(7,245
)
Cash flows from financing activities Payments of
deferred offering costs for registration statement
-
(402
)
-
(402
)
Proceeds from shares issued in connection with employee stock
purchase plan
1,374
789
3,406
1,910
Shares repurchased for tax withholdings on vesting of restricted
stock
-
(296
)
-
(504
)
Debt proceeds, net of issuance costs
-
52,758
-
52,758
Repayment of debt and related fees
-
(53,177
)
-
(53,177
)
Proceeds from short-term payable financing
-
6,190
-
8,972
Payments on short-term payable financing
-
(4,536
)
-
(4,536
)
Proceeds from exercise of stock options
62
-
65
-
Net cash provided by financing activities
1,436
1,326
3,471
5,021
Effect of exchange rate changes on cash, cash equivalents, and
restricted cash
(862
)
111
(482
)
181
Net decrease in cash, cash equivalents, and restricted cash
(6,465
)
(14,779
)
(9,113
)
(20,014
)
Cash, cash equivalents, and restricted cash at beginning of period
63,852
55,704
66,500
60,939
Cash, cash equivalents, and restricted cash at end of period
$
57,387
$
40,925
$
57,387
$
40,925
Domo, Inc. Reconciliation of Non-GAAP Financial
Measures (in thousands, except per share data)
(unaudited) Three Months Ended Nine Months
Ended October 31, October 31,
2023
2024
2023
2024
Reconciliation of Subscription Gross Margin on a GAAP Basis to
Subscription Gross Margin on a Non-GAAP Basis: Revenue:
Subscription
$
71,293
$
71,113
$
213,594
$
214,144
Cost of revenue: Subscription
11,523
13,334
33,588
39,410
Subscription gross profit on a GAAP basis
59,770
57,779
180,006
174,734
Subscription gross margin on a GAAP basis
84
%
81
%
84
%
82
%
Stock-based compensation
670
784
1,958
2,389
Subscription gross profit on a non-GAAP basis
$
60,440
$
58,563
$
181,964
$
177,123
Subscription gross margin on a non-GAAP basis
85
%
82
%
85
%
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
$
72,121
$
70,887
$
223,904
$
224,496
Stock-based compensation
(15,159
)
(11,872
)
(44,116
)
(39,842
)
Amortization of certain intangible assets
(20
)
(142
)
(60
)
(426
)
Executive officer severance
-
-
(1,996
)
-
Total operating expenses on a non-GAAP basis
$
56,942
$
58,873
$
177,732
$
184,228
Reconciliation of Operating Loss on a GAAP Basis to
Operating Income (Loss) on a Non-GAAP Basis: Operating loss on
a GAAP basis
$
(11,222
)
$
(11,084
)
$
(41,534
)
$
(47,021
)
Stock-based compensation
16,188
12,951
47,385
43,173
Amortization of certain intangible assets
20
142
60
426
Executive officer severance
-
-
1,996
-
Operating income (loss) on a non-GAAP basis
$
4,986
$
2,009
$
7,907
$
(3,422
)
Reconciliation of Operating Margin on a GAAP Basis to
Operating Margin on a Non-GAAP Basis: Operating margin on a
GAAP basis
(14
)%
(14
)%
(17
)%
(20
)%
Stock-based compensation
20
17
19
19
Executive officer severance
-
-
1
-
Operating margin on a non-GAAP basis
6
%
3
%
3
%
(1
)%
Reconciliation of Net Loss on a GAAP Basis to Net Loss on
a Non-GAAP Basis: Net loss on a GAAP basis
$
(16,413
)
$
(18,761
)
$
(56,884
)
$
(64,258
)
Stock-based compensation
16,369
13,161
47,901
43,776
Amortization of certain intangible assets
20
142
60
426
Executive officer severance
-
-
1,996
-
Loss on extinguishment of debt
-
1,850
-
1,850
Remeasurement of warrant liability
-
455
-
33
Net loss on a non-GAAP basis
$
(24
)
$
(3,153
)
$
(6,927
)
$
(18,173
)
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
$
(0.45
)
$
(0.48
)
$
(1.59
)
$
(1.68
)
Stock-based compensation
0.45
0.34
1.34
1.15
Executive officer severance
—
—
0.06
—
Loss on extinguishment of debt
—
0.05
—
0.05
Remeasurement of warrant liability
—
0.01
—
—
Net loss per share on a non-GAAP basis
$
—
$
(0.08
)
$
(0.19
)
$
(0.48
)
Billings: Total revenue
$
79,675
$
79,764
$
238,805
$
238,274
Add: Deferred revenue (end of period)
158,522
153,919
158,522
153,919
Deferred revenue, noncurrent (end of period)
4,236
3,311
4,236
3,311
Less: Deferred revenue (beginning of period)
(164,882
)
(161,601
)
(182,273
)
(185,250
)
Deferred revenue, noncurrent (beginning of period)
(2,732
)
(1,997
)
(3,609
)
(2,736
)
Decrease in deferred revenue (current and noncurrent)
(4,856
)
(6,368
)
(23,124
)
(30,756
)
Billings
$
74,819
$
73,396
$
215,681
$
207,518
Reconciliation of Net Cash Provided by Operating
Activities to Adjusted Free Cash Flow: Net cash used in
operating activities
$
(4,325
)
$
(13,701
)
$
(2,862
)
$
(17,971
)
Proceeds from shares issued in connection with employee stock
purchase plan
1,374
789
3,406
1,910
Purchases of property and equipment
(2,714
)
(2,515
)
(9,214
)
(7,245
)
Proceeds from short-term payable financing
-
6,190
-
8,972
Payments on short-term payable financing
-
(4,536
)
-
(4,536
)
Adjusted free cash flow
$
(5,665
)
$
(13,773
)
$
(8,670
)
$
(18,870
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241205261989/en/
Media – Cynthia Cowen PR@domo.com
Investors – Peter Lowry IR@domo.com
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