Domo, Inc. (Nasdaq: DOMO) today announced results for its fiscal
fourth quarter ended January 31, 2024.
Fiscal Fourth Quarter Results
- Total revenue was $80.2 million, an increase of 1% year over
year
- Subscription revenue was $71.9 million, an increase of 2% year
over year
- Billings were $105.4 million, an increase of 1% year over
year
- Net cash provided by operating activities was $5.4 million
- GAAP operating margin increased by 4 percentage points year
over year
- Non-GAAP operating margin increased by 1 percentage point year
over year
- GAAP net loss was $18.7 million, and GAAP net loss per share
was $0.51, based on 36.8 million weighted-average shares
outstanding
- Non-GAAP net loss was $1.9 million, and non-GAAP net loss per
share was $0.05, based on 36.8 million weighted-average shares
outstanding
- Cash, cash equivalents, and restricted cash were $60.9 million
as of January 31, 2024
Full Year Fiscal 2024 Results
- Total revenue was $319.0 million, an increase of 3% year over
year
- Subscription revenue was $285.5 million, an increase of 5% year
over year
- Billings were $321.1 million, a decrease of 1% year over
year
- Net cash provided by operating activities was $2.6 million
- GAAP operating margin increased by 12 percentage points year
over year
- Non-GAAP operating margin increased by 5 percentage points year
over year
- GAAP net loss was $75.6 million, and GAAP net loss per share
was $2.10, based on 36.1 million weighted-average shares
outstanding
- Non-GAAP net loss was $8.8 million, and non-GAAP net loss per
share was $0.25, based on 36.1 million weighted-average shares
outstanding
“The strategic investments we’re making this year will help
customers capitalize on the new opportunities offered through
artificial intelligence (AI) and data, making it easier and faster
to scale Domo’s full suite of solutions across the entire
organization,” said Josh James, founder and CEO, Domo. “We’re
confident in our focus areas to build on our momentum, and to
position Domo for growth in the coming year.”
Recent Highlights
We believe the following announcements and recognition
demonstrate our commitment to product innovation and customer
value:
- Domo received several 2023 Ventana Research Buyers Guides,
including being named an Overall Leader in the Buyers Guide for
Collaborative Analytics and an Exemplary Vendor in the Buyers
Guides for: Analytics and Data; Augmented Analytics; Embedded
Analytics; and Mobile Analytics.
- Domo was the number one vendor in the latest Dresner Advisory
Wisdom of Crowds® Analytical Platforms Market Study.
- Domo's Domo.AI solution was named a finalist in the 2023 Cloud
Awards' Best Use of AI category.
- For the twelfth consecutive year, Domo was named a Best Company
to Work For by Utah Business Magazine.
Business Outlook
Based on information available as of March 7, 2024, Domo is
providing the following guidance for its first fiscal quarter and
full year fiscal 2025:
Q1 Fiscal 2025
- Revenue is expected to be in the range of $79.0 million to
$80.0 million
- Non-GAAP net loss per share, basic and diluted, is expected to
be between $0.21 and $0.25 based on 37.4 million weighted-average
shares outstanding, basic and diluted
Full Year Fiscal 2025
- Revenue is expected to be in the range of $315.0 million to
$323.0 million
- Non-GAAP net loss per share, basic and diluted, is expected to
be between $0.36 and $0.46 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
2024 fourth 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# 13744597 following the completion of the
conference call until 11:59p.m. (ET) April 7, 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, 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: 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, 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 expenses 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.
During fiscal year 2024, we revised our definition for non-GAAP
statement of operations line items to adjust for executive
severance expenses. We have revised the prior period amounts to
conform to our current period presentation.
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 our future, expectations for RPO in the next
12 months, our financial outlook for our first fiscal quarter and
full fiscal year 2025, 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, our most recent Quarterly Report on Form
10-Q filed with the SEC on December 8, 2023 and the Annual Report
on Form 10-K for the year ended January 31, 2024 expected to be
filed with the SEC on or about April 1, 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 Year Ended January 31,
January 31,
2023
2024
2023
2024
Revenue: Subscription
$
70,268
$
71,906
$
271,290
$
285,500
Professional services and other
9,356
8,278
37,355
33,489
Total revenue
79,624
80,184
308,645
318,989
Cost of revenue: Subscription (1)
10,574
12,457
43,295
46,045
Professional services and other (1)
7,616
6,578
29,783
29,425
Total cost of revenue
18,190
19,035
73,078
75,470
Gross profit
61,434
61,149
235,567
243,519
Operating expenses: Sales and marketing (1), (3)
42,001
39,438
173,300
163,902
Research and development (1)
21,985
21,118
95,093
85,049
General and administrative (1), (2), (3)
13,533
13,940
56,047
49,449
Total operating expenses
77,519
74,496
324,440
298,400
Loss from operations
(16,085
)
(13,347
)
(88,873
)
(54,881
)
Other expense, net (1)
(3,116
)
(4,882
)
(15,499
)
(19,431
)
Loss before income taxes
(19,201
)
(18,229
)
(104,372
)
(74,312
)
Provision for income taxes
612
456
1,179
1,257
Net loss
$
(19,813
)
$
(18,685
)
$
(105,551
)
$
(75,569
)
Net loss per share (basic and diluted)
$
(0.57
)
$
(0.51
)
$
(3.10
)
$
(2.10
)
Weighted-average number of shares (basic and diluted)
34,681
36,759
34,092
36,050
(1) Includes stock-based compensation expenses, as
follows: Cost of revenue: Subscription
$
500
$
852
$
2,676
$
2,810
Professional services and other
483
424
1,822
1,735
Sales and marketing
7,352
5,755
30,636
25,015
Research and development
5,139
5,306
24,335
19,520
General and administrative
5,361
3,923
23,680
14,565
Other expense, net
160
187
710
703
Total stock-based compensation expenses
$
18,995
$
16,447
$
83,859
$
64,348
(2) Includes amortization of certain intangible assets, as
follows: General and administrative
$
20
$
20
$
80
$
80
(3) Includes executive officer severance, as follows: Sales
and marketing
$
-
$
307
$
620
$
750
General and administrative
-
-
-
1,553
Total executive officer severance
$
-
$
307
$
620
$
2,303
Domo, Inc. Condensed Consolidated Balance Sheets
(in thousands) (unaudited) January 31,
January 31,
2023
2024
Assets Current assets: Cash, cash equivalents, and
restricted cash
$
66,500
$
60,939
Accounts receivable, net
78,958
67,197
Contract acquisition costs
15,908
16,006
Prepaid expenses and other current assets
7,447
9,602
Total current assets
168,813
153,744
Property and equipment, net
21,375
27,003
Right-of-use assets
15,255
11,746
Contract acquisition costs, noncurrent
22,299
19,542
Intangible assets, net
2,794
2,740
Goodwill
9,478
9,478
Other assets
2,102
1,407
Total assets
$
242,116
$
225,660
Liabilities and stockholders' deficit Current
liabilities: Accounts payable
$
12,120
$
4,313
Accrued expenses and other current liabilities
49,306
43,430
Lease liabilities
4,905
4,807
Current portion of deferred revenue
182,273
185,250
Total current liabilities
248,604
237,800
Lease liabilities, noncurrent
15,271
11,135
Deferred revenue, noncurrent
3,609
2,736
Other liabilities, noncurrent
12,425
14,001
Long-term debt
108,607
113,534
Total liabilities
388,516
379,206
Commitments and contingencies Stockholders' deficit:
Common stock
35
37
Additional paid-in capital
1,183,921
1,252,200
Accumulated other comprehensive loss
(322
)
(180
)
Accumulated deficit
(1,330,034
)
(1,405,603
)
Total stockholders' deficit
(146,400
)
(153,546
)
Total liabilities and stockholders' deficit
$
242,116
$
225,660
Domo, Inc. Condensed Consolidated Statements of Cash
Flows (in thousands) (unaudited) Three
Months Ended Year Ended January 31, January
31,
2023
2024
2023
2024
Cash flows from operating activities Net loss
$
(19,813
)
$
(18,685
)
$
(105,551
)
$
(75,569
)
Adjustments to reconcile net loss to net cash (used in) provided by
operating activities: Depreciation and amortization
1,201
1,884
5,290
6,622
Non-cash lease expense
1,365
1,083
4,727
4,318
Amortization of contract acquisition costs
4,118
4,416
16,943
17,770
Stock-based compensation
18,995
16,447
83,859
64,348
Other, net
3,741
1,092
6,768
4,735
Changes in operating assets and liabilities: Accounts receivable,
net
(25,644
)
(11,989
)
(14,809
)
11,761
Contract acquisition costs
(5,312
)
(4,403
)
(16,999
)
(15,324
)
Prepaid expenses and other assets
327
(1,420
)
2,390
(1,593
)
Accounts payable
(6,344
)
(6,008
)
6,947
(6,974
)
Operating lease liabilities
(2,801
)
(1,123
)
(6,179
)
(5,177
)
Accrued and other liabilities
2,469
(1,077
)
(9,403
)
(4,438
)
Deferred revenue
24,867
25,228
15,127
2,104
Net cash (used in) provided by operating activities
(2,831
)
5,445
(10,890
)
2,583
Cash flows from investing activities Purchases of
property and equipment
(2,923
)
(2,520
)
(7,996
)
(11,734
)
Purchases of intangible assets
-
-
-
(26
)
Net cash used in investing activities
(2,923
)
(2,520
)
(7,996
)
(11,760
)
Cash flows from financing activities Proceeds from
shares issued in connection with employee stock purchase plan
-
-
1,563
3,406
Proceeds from structured payables
-
-
6,624
-
Payments on structured payables
-
-
(6,624
)
-
Proceeds from exercise of stock options
-
-
861
65
Net cash provided by financing activities
-
-
2,424
3,471
Effect of exchange rate changes on cash, cash equivalents, and
restricted cash
1,172
627
(599
)
145
Net (decrease) increase in cash, cash equivalents, and restricted
cash
(4,582
)
3,552
(17,061
)
(5,561
)
Cash, cash equivalents, and restricted cash at beginning of period
71,082
57,387
83,561
66,500
Cash, cash equivalents, and restricted cash at end of period
$
66,500
$
60,939
$
66,500
$
60,939
Domo, Inc.
Reconciliation of Non-GAAP Financial Measures (in
thousands, except per share data) (unaudited)
Three Months Ended Year Ended January 31,
January 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
$
70,268
$
71,906
$
271,290
$
285,500
Cost of revenue:
Subscription
10,574
12,457
43,295
46,045
Subscription gross profit on a GAAP basis
59,694
59,449
227,995
239,455
Subscription gross margin on a GAAP basis
85
%
83
%
84
%
84
%
Stock-based compensation
500
852
2,676
2,810
Subscription gross profit on a non-GAAP basis
$
60,194
$
60,301
$
230,671
$
242,265
Subscription gross margin on a non-GAAP basis
86
%
84
%
85
%
85
%
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
$
77,519
$
74,496
$
324,440
$
298,400
Stock-based compensation
(17,852
)
(14,984
)
(78,651
)
(59,100
)
Amortization of certain intangible assets
(20
)
(20
)
(80
)
(80
)
Executive officer severance (1)
-
(307
)
(620
)
(2,303
)
Total operating expenses on a non-GAAP basis
$
59,647
$
59,185
$
245,089
$
236,917
Reconciliation of Operating Loss on a GAAP Basis to Operating
Income (Loss) on a Non-GAAP Basis:
Operating loss on a GAAP basis
$
(16,085
)
$
(13,347
)
$
(88,873
)
$
(54,881
)
Stock-based compensation
18,835
16,260
83,149
63,645
Amortization of certain intangible assets
20
20
80
80
Executive officer severance (1)
-
307
620
2,303
Operating income (loss) on a non-GAAP basis
$
2,770
$
3,240
$
(5,024
)
$
11,147
Reconciliation of Operating Margin on a GAAP Basis to Operating
Margin on a Non-GAAP Basis:
Operating margin on a GAAP basis
(20
)%
(17
)%
(29
)%
(17
)%
Stock-based compensation
23
21
27
19
Executive officer severance (1)
-
-
-
1
Operating margin on a non-GAAP basis
3
%
4
%
(2
)%
3
%
Reconciliation of Net Loss on a GAAP Basis to Net Loss on a
Non-GAAP Basis:
Net loss on a GAAP basis
$
(19,813
)
$
(18,685
)
(105,551
)
$
(75,569
)
Stock-based compensation
18,995
16,447
83,859
64,348
Amortization of certain intangible assets
20
20
80
80
Executive officer severance (1)
-
307
620
2,303
Net loss on a non-GAAP basis
$
(798
)
$
(1,911
)
$
(20,992
)
$
(8,838
)
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
$
(0.57
)
$
(0.51
)
$
(3.10
)
$
(2.10
)
Stock-based compensation
0.55
0.45
2.47
1.79
Executive officer severance (1)
—
0.01
0.01
0.06
Net loss per share on a non-GAAP basis
$
(0.02
)
$
(0.05
)
$
(0.62
)
$
(0.25
)
Billings:
Total revenue
$
79,624
$
80,184
$
308,645
$
318,989
Add:
Deferred revenue (end of period)
182,273
185,250
182,273
185,250
Deferred revenue, noncurrent (end of period)
3,609
2,736
3,609
2,736
Less:
Deferred revenue (beginning of period)
(157,915
)
(158,522
)
(168,335
)
(182,273
)
Deferred revenue, noncurrent (beginning of period)
(3,100
)
(4,236
)
(2,420
)
(3,609
)
Increase in deferred revenue (current and noncurrent)
24,867
25,228
15,127
2,104
Billings
$
104,491
$
105,412
$
323,772
$
321,093
Reconciliation of Net Cash (Used in) Provided by Operating
Activities to Adjusted Free Cash Flow:
Net cash (used in) provided by operating activities
$
(2,831
)
$
5,445
$
(10,890
)
$
2,583
Proceeds from shares issued in connection with employee stock
purchase plan
-
-
1,563
3,406
Purchases of property and equipment
(2,923
)
(2,520
)
(7,996
)
(11,734
)
Adjusted free cash flow
$
(5,754
)
$
2,925
$
(17,323
)
$
(5,745
)
(1) During the current fiscal year, we revised our definition for
non-GAAP statement of operations line items to adjust for executive
severance expenses. We have revised the prior period amounts to
conform to our current period presentation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240305440434/en/
Media – Cynthia Cowen PR@domo.com
Investors – Peter Lowry IR@domo.com
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