May 17, 2024

SILICON SLOPES, Utah–(BUSINESS WIRE)–Domo, Inc. (Nasdaq: DOMO) today announced results for its fiscal third quarter ended October 31, 2023.

Fiscal Third Quarter Results

  • Total revenue was $79.7 million, an increase of 1% year over year
  • Subscription revenue was $71.3 million, an increase of 3% year over year
  • Subscription revenue represented 89% of total revenue
  • Billings were $74.8 million, an increase of 1% year-over-year
  • Remaining Performance Obligations (RPO) was $367.2 million as of October 31, 2023, an increase of 4% year over year
  • RPO expected to be recognized as revenue in the next 12 months was $230.8 million as of October 31, 2023, consistent with Q3 FY23
  • Net cash used in operating activities was $4.3 million
  • GAAP subscription gross margin was 84%, consistent with Q3 FY23
  • Non-GAAP subscription gross margin was 85%, consistent with Q3 FY23
  • GAAP operating margin increased by 9 percentage points year over year
  • Non-GAAP operating margin increased by 5 percentage points year over year
  • GAAP net loss was $16.4 million, and GAAP net loss per share was $0.45, based on 36.3 million weighted-average shares outstanding
  • Non-GAAP net loss was $24.0 thousand, and non-GAAP net loss per share was $0.00, based on 36.3 million weighted-average shares outstanding
  • Cash, cash equivalents, and restricted cash were $57.4 million as of October 31, 2023

In Q3, we exceeded guidance for key top-line metrics and delivered record operating margin. I am confident we are focused on the right initiatives–such as driving consumption and offering a true freemium model–to help accelerate our path to long-term, profitable growth,” said Josh James, founder and CEO, Domo. “Customers continue to realize significant value from our platform, and I’m incredibly proud of the talent and dedication of our team in helping us deliver on our mission to put data to work for everyone.”

Recent Highlights

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

Business Outlook

Based on information available as of November 30, 2023, Domo is providing the following guidance for its fourth fiscal quarter and full year fiscal 2024:

Q4 Fiscal 2024

  • 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 $0.05 and $0.09 based on 36.8 million weighted-average shares outstanding, basic and diluted

Full Year Fiscal 2024

  • Revenue is expected to be in the range of $317.8 million to $318.8 million, representing year-over-year growth of 2-4%.
  • Non-GAAP net loss per share, basic and diluted, is expected to be between $0.24 and $0.28 based on 36.1 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 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. Participants can register for the call in advance by visiting https://conferencingportals.com/event/UamMeXVB. Instructions will be shared on how to join the call after registering.

A replay will be available at (800) 770-2030 or (647) 362-9199 with conference ID #41576 following the completion of the conference call until 11:59 p.m. (ET) December 14, 2023.

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 X, Facebook and LinkedIn.

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, 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 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.

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 fourth fiscal quarter and full fiscal year 2024, 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 fiscal quarter ended October 31, 2023 expected to be filed with the SEC on or about December 11, 2023. 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,

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

Revenue:
Subscription

$

69,041

 

$

71,293

 

$

201,022

 

$

213,594

 

Professional services and other

 

9,985

 

 

8,382

 

 

27,999

 

 

25,211

 

Total revenue

 

79,026

 

 

79,675

 

 

229,021

 

 

238,805

 

Cost of revenue:
Subscription (1)

 

11,342

 

 

11,523

 

 

32,721

 

 

33,588

 

Professional services and other (1)

 

7,572

 

 

7,253

 

 

22,167

 

 

22,847

 

Total cost of revenue

 

18,914

 

 

18,776

 

 

54,888

 

 

56,435

 

Gross profit

 

60,112

 

 

60,899

 

 

174,133

 

 

182,370

 

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

 

41,012

 

 

40,262

 

 

131,299

 

 

124,464

 

Research and development (1)

 

24,583

 

 

19,729

 

 

73,108

 

 

63,931

 

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

 

13,029

 

 

12,130

 

 

42,514

 

 

35,509

 

Total operating expenses

 

78,624

 

 

72,121

 

 

246,921

 

 

223,904

 

Loss from operations

 

(18,512

)

 

(11,222

)

 

(72,788

)

 

(41,534

)

 
Other expense, net (1)

 

(5,032

)

 

(4,930

)

 

(12,383

)

 

(14,549

)

Loss before income taxes

 

(23,544

)

 

(16,152

)

 

(85,171

)

 

(56,083

)

Provision for income taxes

 

167

 

 

261

 

 

567

 

 

801

 

Net loss

$

(23,711

)

$

(16,413

)

$

(85,738

)

$

(56,884

)

 
Net loss per share (basic and diluted)

$

(0.69

)

$

(0.45

)

$

(2.53

)

$

(1.59

)

Weighted-average number of shares (basic and diluted)

 

34,392

 

 

36,310

 

 

33,893

 

 

35,812

 

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

$

667

 

$

670

 

$

2,176

 

$

1,958

 

Professional services and other

 

308

 

 

359

 

 

1,339

 

 

1,311

 

Sales and marketing

 

7,336

 

 

6,364

 

 

23,284

 

 

19,260

 

Research and development

 

5,909

 

 

4,621

 

 

19,196

 

 

14,214

 

General and administrative

 

4,807

 

 

4,174

 

 

18,319

 

 

10,642

 

Other expense, net

 

180

 

 

181

 

 

550

 

 

516

 

Total stock-based compensation expenses

$

19,207

 

$

16,369

 

$

64,864

 

$

47,901

 

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

$

20

 

$

20

 

$

60

 

$

60

 

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

$

113

 

$

 

$

620

 

$

443

 

General and administrative

 

 

 

 

 

 

 

1,553

 

Total executive officer severance

$

113

 

$

 

$

620

 

$

1,996

 

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

 

2023

 

 

2023

 

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

$

66,500

 

$

57,387

 

Accounts receivable, net

 

78,958

 

 

55,208

 

Contract acquisition costs

 

15,908

 

 

15,794

 

Prepaid expenses and other current assets

 

7,447

 

 

7,881

 

Total current assets

 

168,813

 

 

136,270

 

 
Property and equipment, net

 

21,375

 

 

26,130

 

Right-of-use assets

 

15,255

 

 

12,333

 

Contract acquisition costs, noncurrent

 

22,299

 

 

19,601

 

Intangible assets, net

 

2,794

 

 

2,760

 

Goodwill

 

9,478

 

 

9,478

 

Other assets

 

2,102

 

 

1,647

 

Total assets

$

242,116

 

$

208,219

 

 
Liabilities and stockholders’ deficit
Current liabilities:
Accounts payable

$

12,120

 

$

10,451

 

Accrued expenses and other current liabilities

 

49,306

 

 

43,510

 

Lease liabilities

 

4,905

 

 

4,407

 

Current portion of deferred revenue

 

182,273

 

 

158,522

 

Total current liabilities

 

248,604

 

 

216,890

 

 
Lease liabilities, noncurrent

 

15,271

 

 

12,161

 

Deferred revenue, noncurrent

 

3,609

 

 

4,236

 

Other liabilities, noncurrent

 

12,425

 

 

13,448

 

Long-term debt

 

108,607

 

 

112,255

 

Total liabilities

 

388,516

 

 

358,990

 

 
Commitments and contingencies
 
Stockholders’ deficit:
Common stock

 

35

 

 

36

 

Additional paid-in capital

 

1,183,921

 

 

1,236,895

 

Accumulated other comprehensive loss

 

(322

)

 

(784

)

Accumulated deficit

 

(1,330,034

)

 

(1,386,918

)

Total stockholders’ deficit

 

(146,400

)

 

(150,771

)

Total liabilities and stockholders’ deficit

$

242,116

 

$

208,219

 

Domo, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
Three Months Ended Nine Months Ended
October 31, October 31,

 

2022

 

 

2023

 

 

2022

 

 

2023

 

Cash flows from operating activities
Net loss

$

(23,711

)

$

(16,413

)

$

(85,738

)

$

(56,884

)

Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization

 

1,269

 

 

1,636

 

 

4,089

 

 

4,738

 

Non-cash lease expense

 

987

 

 

1,063

 

 

3,362

 

 

3,235

 

Amortization of contract acquisition costs

 

4,247

 

 

4,398

 

 

12,825

 

 

13,354

 

Stock-based compensation

 

19,207

 

 

16,369

 

 

64,864

 

 

47,901

 

Other, net

 

1,135

 

 

1,072

 

 

3,027

 

 

3,643

 

Changes in operating assets and liabilities:
Accounts receivable, net

 

(4,166

)

 

(3,022

)

 

10,835

 

 

23,750

 

Contract acquisition costs

 

(4,405

)

 

(4,016

)

 

(11,687

)

 

(10,921

)

Prepaid expenses and other assets

 

1,282

 

 

291

 

 

2,063

 

 

(173

)

Accounts payable

 

384

 

 

998

 

 

13,291

 

 

(966

)

Operating lease liabilities

 

(1,239

)

 

(1,237

)

 

(3,378

)

 

(4,054

)

Accrued and other liabilities

 

3,527

 

 

(608

)

 

(11,872

)

 

(3,361

)

Deferred revenue

 

(4,999

)

 

(4,856

)

 

(9,740

)

 

(23,124

)

Net cash used in operating activities

 

(6,482

)

 

(4,325

)

 

(8,059

)

 

(2,862

)

 
Cash flows from investing activities
Purchases of property and equipment

 

(1,657

)

 

(2,714

)

 

(5,073

)

 

(9,214

)

Purchases of intangible assets

 

 

 

 

 

 

 

(26

)

Net cash used in investing activities

 

(1,657

)

 

(2,714

)

 

(5,073

)

 

(9,240

)

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

 

 

 

1,374

 

 

1,563

 

 

3,406

 

Proceeds from structured payables

 

6,624

 

 

 

 

6,624

 

 

 

Payments on structured payables

 

(6,624

)

 

 

 

(6,624

)

 

 

Proceeds from exercise of stock options

 

56

 

 

62

 

 

861

 

 

65

 

Net cash provided by financing activities

 

56

 

 

1,436

 

 

2,424

 

 

3,471

 

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

 

(729

)

 

(862

)

 

(1,771

)

 

(482

)

Net decrease in cash, cash equivalents, and restricted cash

 

(8,812

)

 

(6,465

)

 

(12,479

)

 

(9,113

)

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

 

79,894

 

 

63,852

 

 

83,561

 

 

66,500

 

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

$

71,082

 

$

57,387

 

$

71,082

 

$

57,387

 

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,

 

2022

 

 

2023

 

 

2022

 

 

2023

 

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

$

69,041

 

$

71,293

 

$

201,022

 

$

213,594

 

Cost of revenue:
Subscription

 

11,342

 

 

11,523

 

 

32,721

 

 

33,588

 

Subscription gross profit on a GAAP basis

 

57,699

 

 

59,770

 

 

168,301

 

 

180,006

 

Subscription gross margin on a GAAP basis

 

84

%

 

84

%

 

84

%

 

84

%

 
Stock-based compensation

 

667

 

 

670

 

 

2,176

 

 

1,958

 

Subscription gross profit on a non-GAAP basis

$

58,366

 

$

60,440

 

$

170,477

 

$

181,964

 

Subscription gross margin on a non-GAAP basis

 

85

%

 

85

%

 

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

$

78,624

 

$

72,121

 

$

246,921

 

$

223,904

 

Stock-based compensation

 

(18,052

)

 

(15,159

)

 

(60,799

)

 

(44,116

)

Amortization of certain intangible assets

 

(20

)

 

(20

)

 

(60

)

 

(60

)

Executive officer severance (1)

 

(113

)

 

 

 

(620

)

 

(1,996

)

Total operating expenses on a non-GAAP basis

$

60,439

 

$

56,942

 

$

185,442

 

$

177,732

 

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

$

(18,512

)

$

(11,222

)

$

(72,788

)

$

(41,534

)

Stock-based compensation

 

19,027

 

 

16,188

 

 

64,314

 

 

47,385

 

Amortization of certain intangible assets

 

20

 

 

20

 

 

60

 

 

60

 

Executive officer severance (1)

 

113

 

 

 

 

620

 

 

1,996

 

Operating income (loss) on a non-GAAP basis

$

648

 

$

4,986

 

$

(7,794

)

$

7,907

 

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

 

(23

)%

 

(14

)%

 

(32

)%

 

(17

)%

Stock-based compensation

 

24

 

 

20

 

 

28

 

 

19

 

Executive officer severance (1)

 

 

 

 

 

1

 

 

1

 

Operating margin on a non-GAAP basis

 

1

%

 

6

%

 

(3

)%

 

3

%

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

$

(23,711

)

$

(16,413

)

$

(85,738

)

$

(56,884

)

Stock-based compensation

 

19,207

 

 

16,369

 

 

64,864

 

 

47,901

 

Amortization of certain intangible assets

 

20

 

 

20

 

 

60

 

 

60

 

Executive officer severance (1)

 

113

 

 

 

 

620

 

 

1,996

 

Net (loss) income on a non-GAAP basis

$

(4,371

)

$

(24

)

$

(20,194

)

$

(6,927

)

 
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

)

$

(0.45

)

$

(2.53

)

$

(1.59

)

Stock-based compensation

 

0.56

 

 

0.45

 

 

1.91

 

 

1.34

 

Executive officer severance (1)

 

 

 

 

 

0.01

 

 

0.06

 

Net loss per share on a non-GAAP basis

$

(0.13

)

$

 

$

(0.61

)

$

(0.19

)

 
Billings:
Total revenue

$

79,026

 

$

79,675

 

$

229,021

 

$

238,805

 

Add:
Deferred revenue (end of period)

 

157,915

 

 

158,522

 

 

157,915

 

 

158,522

 

Deferred revenue, noncurrent (end of period)

 

3,100

 

 

4,236

 

 

3,100

 

 

4,236

 

Less:
Deferred revenue (beginning of period)

 

(163,454

)

 

(164,882

)

 

(168,335

)

 

(182,273

)

Deferred revenue, noncurrent (beginning of period)

 

(2,560

)

 

(2,732

)

 

(2,420

)

 

(3,609

)

Decrease in deferred revenue (current and noncurrent)

 

(4,999

)

 

(4,856

)

 

(9,740

)

 

(23,124

)

Billings

$

74,027

 

$

74,819

 

$

219,281

 

$

215,681

 

 
Reconciliation of Net Cash Used in Operating Activities to Adjusted Free Cash Flow:
Net cash used in operating activities

$

(6,482

)

$

(4,325

)

$

(8,059

)

$

(2,862

)

Proceeds from shares issued in connection with employee stock purchase plan

 

 

 

1,374

 

 

1,563

 

 

3,406

 

Purchases of property and equipment

 

(1,657

)

 

(2,714

)

 

(5,073

)

 

(9,214

)

Adjusted free cash flow

$

(8,139

)

$

(5,665

)

$

(11,569

)

$

(8,670

)

 

(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.

 

Contacts

Media: Cynthia Cowen

PR@domo.com

Investors: Peter Lowry

IR@Domo.com

The post Domo Announces Third Quarter Fiscal 2024 Financial Results appeared first on Daily Host News.

Domo Announces Third Quarter Fiscal 2024 Financial Results first appeared on Web and IT News.

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