Domo, Inc. (Nasdaq: DOMO) today announced results for its fiscal
second quarter ended July 31, 2024.
Fiscal Second Quarter Results
- Total revenue was $78.4 million, a decrease of 2% year over
year
- Subscription revenue was $70.9 million
- Billings were $68.6 million, a decrease of 3% year over
year
- Remaining Performance Obligations (RPO) was $358.9 million as
of July 31, 2024
- Net cash used in operating activities was $6.2 million
- Adjusted free cash flow was negative $5.6 million
- GAAP operating margin decreased by 5 percentage points year
over year
- Non-GAAP operating margin decreased by 3 percentage points year
over year
- GAAP net loss was $19.5 million, and GAAP net loss per share
was $0.51, based on 38.4 million weighted-average shares
outstanding
- Non-GAAP net loss was $2.7 million, and non-GAAP net loss per
share was $0.07, based on 38.4 million weighted-average shares
outstanding
- Cash, cash equivalents, and restricted cash were $55.7 million
as of July 31, 2024
“We've made great progress with ecosystem partnerships and
consumption customers in Q2, and are already seeing these strategic
initiatives deliver exciting new opportunities for Domo,” said Josh
James, founder and CEO, Domo. “We are now better positioned than
ever to compete in today’s data and AI landscape, and I’m
incredibly optimistic about our future.”
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 Business
Intelligence and Analytics Technology Value Matrix for the fourth
consecutive year. Additionally, Domo and customer, Manulife
Financial Corporation, were honored with a 2024 Nucleus Research
ROI Award for achieving a total ROI of 184% through the adoption of
the Domo platform.
- Domo was the top-ranked vendor in the Dresner Advisory
Services’ 2024 Collective Insights report, placing ahead of 14
other vendors, and was named an overall leader in Dresner's 2024
Wisdom of Crowds® Industry Excellence Awards. In addition, Domo was
named a leader in the Customer Experience and Vendor Credibility
Models and received its eighth consecutive perfect recommendation
score in Dresner's 2024 Wisdom of Crowds® Business Intelligence
(BI) Market Study in which Domo is ranked as a “High Value/Low TCO”
platform.
- Domo was named to the Q3 2024 Constellation ShortList™ for
Multicloud Analytics and Business Intelligence Platforms and the Q3
2024 ShortList for Marketing Analytics Solutions for the ninth
consecutive year. In addition, Domo was named to the Q3 2024
Embedded Analytics ShortList.
- At the Forrester B2B Summit North America 2024, Domo was
recognized as a B2B Program of the Year winner for improving
functional performance in engagement, set apart for the company's
ability to cultivate a user community, Domo Central, that
transformed customer relationships through strategic community
engagements.
- Domo was named to the 2024 Parity.Org Best Companies for Women
to AdvanceTM, a program recognizing organizations that are creating
the culture and conditions in which all employees have an equal
opportunity to compete and advance, for the fifth consecutive
year.
Business Outlook
Based on information available as of August 29, 2024, Domo
is providing the following guidance for its third quarter of fiscal
2025 and full year fiscal 2025:
Q3 Fiscal 2025
- Revenue is expected to be in the range of $77.0 million to
$78.0 million
- Non-GAAP net loss per share, basic and diluted, is expected to
be between $0.14 and $0.18 based on 38.9 million weighted-average
shares outstanding, basic and diluted
Full Year Fiscal 2025
- Revenue is expected to be in the range of $313.0 million to
$315.0 million
- Non-GAAP net loss per share, basic and diluted, is expected to
be between $0.69 and $0.77 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 second 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# 13748360 following the completion of the
conference call until 11:59 p.m. (ET) September 27, 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 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,
net change to structured payables, 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 also add back the net change to structured
payables 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 third 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 July 31, 2024 expected to be filed with the SEC
on or about September 9, 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
Six Months Ended
July 31,
July 31,
2023
2024
2023
2024
Revenue: Subscription
$
71,211
$
70,921
$
142,301
$
143,031
Professional services and other
8,461
7,486
16,829
15,479
Total revenue
79,672
78,407
159,130
158,510
Cost of revenue: Subscription (1)
11,453
13,301
22,065
26,076
Professional services and other (1)
7,637
6,823
15,594
14,762
Total cost of revenue
19,090
20,124
37,659
40,838
Gross profit
60,582
58,283
121,471
117,672
Operating expenses: Sales and marketing (1), (3)
41,040
36,627
84,202
78,846
Research and development (1)
20,767
21,969
44,202
44,688
General and administrative (1), (2), (3)
9,378
14,174
23,379
30,075
Total operating expenses
71,185
72,770
151,783
153,609
Loss from operations
(10,603
)
(14,487
)
(30,312
)
(35,937
)
Other expense, net (1), (4)
(5,124
)
(4,752
)
(9,619
)
(9,183
)
Loss before income taxes
(15,727
)
(19,239
)
(39,931
)
(45,120
)
Provision for income taxes
341
251
540
377
Net loss
$
(16,068
)
$
(19,490
)
$
(40,471
)
$
(45,497
)
Net loss per share (basic and diluted)
$
(0.45
)
$
(0.51
)
$
(1.14
)
$
(1.20
)
Weighted-average number of shares (basic and diluted)
35,884
38,389
35,558
37,943
(1) Includes stock-based compensation expenses, as
follows: Cost of revenue: Subscription
$
670
$
807
$
1,288
$
1,605
Professional services and other
473
314
952
647
Sales and marketing
6,166
5,170
12,896
10,484
Research and development
4,618
4,069
9,593
8,491
General and administrative
2,960
5,911
6,468
8,995
Other expense, net
173
202
335
393
Total stock-based compensation expenses
$
15,060
$
16,473
$
31,532
$
30,615
(2) Includes amortization of certain intangible assets, as
follows: General and administrative
$
20
$
142
$
40
$
284
(3) Includes executive officer severance, as follows: Sales
and marketing
$
-
$
-
$
443
$
-
General and administrative
225
-
1,553
-
Total executive officer severance
$
225
$
-
$
1,996
$
-
(4) Includes remeasurement of warrant liability, as follows:
Other expense, net
$
-
$
144
$
-
$
(422
)
Domo, Inc. Condensed Consolidated Balance
Sheets (in thousands) (unaudited)
January 31,
July 31,
2024
2024
Assets Current assets: Cash, cash equivalents, and
restricted cash
$
60,939
$
55,704
Accounts receivable, net
67,197
48,688
Contract acquisition costs
16,006
15,266
Prepaid expenses and other current assets
9,602
9,171
Total current assets
153,744
128,829
Property and equipment, net
27,003
27,195
Right-of-use assets
11,746
10,942
Contract acquisition costs, noncurrent
19,542
17,339
Intangible assets, net
2,740
2,409
Goodwill
9,478
9,478
Other assets
1,407
1,565
Total assets
$
225,660
$
197,757
Liabilities and stockholders' deficit Current
liabilities: Accounts payable
$
4,313
$
18,418
Accrued expenses and other current liabilities
43,430
39,004
Lease liabilities
4,807
5,597
Current portion of deferred revenue
185,250
161,601
Total current liabilities
237,800
224,620
Lease liabilities, noncurrent
11,135
9,110
Deferred revenue, noncurrent
2,736
1,997
Other liabilities, noncurrent
14,001
13,180
Long-term debt
113,534
115,211
Total liabilities
379,206
364,118
Commitments and contingencies Convertible preferred
stock
-
-
Stockholders' deficit: Common stock
37
38
Additional paid-in capital
1,252,200
1,284,781
Accumulated other comprehensive loss
(180
)
(80
)
Accumulated deficit
(1,405,603
)
(1,451,100
)
Total stockholders' deficit
(153,546
)
(166,361
)
Total liabilities and stockholders' deficit
$
225,660
$
197,757
Domo, Inc. Condensed Consolidated Statements of Cash
Flows (in thousands) (unaudited)
Three Months Ended
Six Months Ended
July 31,
July 31,
2023
2024
2023
2024
Cash flows from operating activities Net loss
$
(16,068
)
$
(19,490
)
$
(40,471
)
$
(45,497
)
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: Depreciation and amortization
1,611
2,507
3,102
4,863
Non-cash lease expense
1,023
1,098
2,172
2,178
Amortization of contract acquisition costs
4,388
4,426
8,956
8,727
Stock-based compensation
15,060
16,473
31,532
30,615
Remeasurement of warrant liability
-
143
-
(423
)
Other, net
1,054
886
2,571
1,944
Changes in operating assets and liabilities: Accounts receivable,
net
4,704
(840
)
26,772
18,509
Contract acquisition costs
(3,832
)
(3,809
)
(6,905
)
(5,804
)
Prepaid expenses and other assets
933
621
(464
)
276
Accounts payable
(3,454
)
4,825
(1,964
)
11,503
Operating lease liabilities
(1,220
)
(1,328
)
(2,817
)
(2,608
)
Accrued and other liabilities
5,545
(1,902
)
(2,753
)
(4,165
)
Deferred revenue
(9,109
)
(9,781
)
(18,268
)
(24,388
)
Net cash provided by (used in) operating activities
635
(6,171
)
1,463
(4,270
)
Cash flows from investing activities Purchases of
property and equipment
(2,924
)
(2,204
)
(6,500
)
(4,730
)
Purchases of intangible assets
(26
)
-
(26
)
-
Net cash used in investing activities
(2,950
)
(2,204
)
(6,526
)
(4,730
)
Cash flows from financing activities Proceeds from
shares issued in connection with employee stock purchase plan
-
-
2,032
1,121
Shares repurchased for tax withholdings on vesting of restricted
stock
-
(208
)
-
(208
)
Proceeds from structured payables
-
2,782
-
2,782
Proceeds from exercise of stock options
3
-
3
-
Net cash provided by (used in) financing activities
3
2,574
2,035
3,695
Effect of exchange rate changes on cash, cash equivalents, and
restricted cash
176
347
380
70
Net decrease in cash, cash equivalents, and restricted cash
(2,136
)
(5,454
)
(2,648
)
(5,235
)
Cash, cash equivalents, and restricted cash at beginning of period
65,988
61,158
66,500
60,939
Cash, cash equivalents, and restricted cash at end of period
$
63,852
$
55,704
$
63,852
$
55,704
Domo, Inc. Reconciliation of Non-GAAP Financial
Measures (in thousands, except per share data)
(unaudited)
Three Months Ended
Six Months Ended
July 31,
July 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
$
71,211
$
70,921
$
142,301
$
143,031
Cost of revenue: Subscription
11,453
13,301
22,065
26,076
Subscription gross profit on a GAAP basis
59,758
57,620
120,236
116,955
Subscription gross margin on a GAAP basis
84
%
81
%
84
%
82
%
Stock-based compensation
670
807
1,288
1,605
Subscription gross profit on a non-GAAP basis
$
60,428
$
58,427
$
121,524
$
118,560
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
$
71,185
$
72,770
$
151,783
$
153,609
Stock-based compensation
(13,744
)
(15,150
)
(28,957
)
(27,970
)
Amortization of certain intangible assets
(20
)
(142
)
(40
)
(284
)
Executive officer severance
(225
)
-
(1,996
)
-
Total operating expenses on a non-GAAP basis
$
57,196
$
57,478
$
120,790
$
125,355
Reconciliation of Operating Loss on a GAAP Basis to
Operating Loss on a Non-GAAP Basis: Operating loss on a GAAP
basis
$
(10,603
)
$
(14,487
)
$
(30,312
)
$
(35,937
)
Stock-based compensation
14,887
16,271
31,197
30,222
Amortization of certain intangible assets
20
142
40
284
Executive officer severance
225
-
1,996
-
Operating loss on a non-GAAP basis
$
4,529
$
1,926
$
2,921
$
(5,431
)
Reconciliation of Operating Margin on a GAAP Basis to
Operating Margin on a Non-GAAP Basis: Operating margin on a
GAAP basis
(13
)%
(18
)%
(19
)%
(23
)%
Stock-based compensation
19
20
20
20
Executive officer severance
-
-
1
-
Operating margin on a non-GAAP basis
6
%
2
%
2
%
(3
)%
Reconciliation of Net Loss on a GAAP Basis to Net Loss on
a Non-GAAP Basis: Net loss on a GAAP basis
$
(16,068
)
$
(19,490
)
$
(40,471
)
$
(45,497
)
Stock-based compensation
15,060
16,473
31,532
30,615
Amortization of certain intangible assets
20
142
40
284
Executive officer severance
225
-
1,996
-
Remeasurement of warrant liability
-
144
-
(422
)
Net loss on a non-GAAP basis
$
(763
)
$
(2,731
)
$
(6,903
)
$
(15,020
)
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
)
$
(0.51
)
$
(1.14
)
$
(1.20
)
Stock-based compensation
0.42
0.43
0.89
0.81
Executive officer severance
0.01
—
0.06
—
Remeasurement of warrant liability
—
0.01
—
(0.01
)
Net loss per share on a non-GAAP basis
$
(0.02
)
$
(0.07
)
$
(0.19
)
$
(0.40
)
Billings: Total revenue
$
79,672
$
78,407
$
159,130
$
158,510
Add: Deferred revenue (end of period)
164,882
161,601
164,882
161,601
Deferred revenue, noncurrent (end of period)
2,732
1,997
2,732
1,997
Less: Deferred revenue (beginning of period)
(173,646
)
(170,813
)
(182,273
)
(185,250
)
Deferred revenue, noncurrent (beginning of period)
(3,077
)
(2,566
)
(3,609
)
(2,736
)
Decrease in deferred revenue (current and noncurrent)
(9,109
)
(9,781
)
(18,268
)
(24,388
)
Billings
$
70,563
$
68,626
$
140,862
$
134,122
Reconciliation of Net Cash Provided by Operating
Activities to Adjusted Free Cash Flow: Net cash provided by
(used in) operating activities
$
635
$
(6,171
)
$
1,463
$
(4,270
)
Proceeds from shares issued in connection with employee stock
purchase plan
-
-
2,032
1,121
Purchases of property and equipment
(2,924
)
(2,204
)
(6,500
)
(4,730
)
Proceeds from structured payables
-
2,782
-
2,782
Adjusted free cash flow
$
(2,289
)
$
(5,593
)
$
(3,005
)
$
(5,097
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240829900426/en/
Media – Cynthia Cowen PR@domo.com
Investors – Peter Lowry IR@domo.com
Grafico Azioni Domo (NASDAQ:DOMO)
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