Home Business Wire Domo Announces Fourth Quarter and Fiscal 2024 Financial Results

Domo Announces Fourth Quarter and Fiscal 2024 Financial Results

SILICON SLOPES, Utah–(BUSINESS WIRE)–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.

 

Contacts

Media –

Cynthia Cowen

PR@domo.com

Investors –
Peter Lowry
IR@domo.com

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