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Domo Announces Fourth Quarter and Fiscal 2023 Financial Results

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

Fiscal Fourth Quarter Results

  • Total revenue was $79.6 million, an increase of 14% year over year
  • Subscription revenue was $70.3 million, an increase of 18% year over year
  • Subscription revenue represented 88% of total revenue
  • Billings were $104.5 million, a decrease of 3% year over year
  • Remaining Performance Obligations (RPO) was $378.2 million as of January 31, 2023, an increase of 12% year over year
  • RPO expected to be recognized as revenue in the next 12 months was $243.8 million as of January 31, 2023, an increase of 10% year over year
  • Net cash used in operating activities was $2.8 million
  • GAAP subscription gross margin was 85%, an improvement of 4 percentage points from Q4 FY22
  • Non-GAAP subscription gross margin was 86%, an improvement of 3 percentage points from Q4 FY22
  • GAAP operating margin increased by 23 percentage points year over year
  • Non-GAAP operating margin increased by 18 percentage points year over year
  • GAAP net loss was $19.8 million, and GAAP net loss per share was $0.57, based on 34.7 million weighted-average shares outstanding
  • Non-GAAP net loss was $0.8 million, and non-GAAP net loss per share was $0.02, based on 34.7 million weighted-average shares outstanding
  • Cash, cash equivalents, and restricted cash were $66.5 million as of January 31, 2023

Full Year Fiscal 2023 Results

  • Total revenue was $308.6 million, an increase of 20% year over year
  • Subscription revenue was $271.3 million, an increase of 22% year over year
  • Subscription revenue represented 88% of total revenue
  • Billings were $323.8 million or 9% year-over-year growth
  • Net cash used in operating activities was $10.9 million
  • GAAP subscription gross margin was 84% in FY23, an improvement of 2 percentage points from FY22
  • Non-GAAP subscription gross margin was 85% in FY23, an improvement of 4 percentage points from FY22
  • GAAP operating margin increased by 6 percentage points year over year
  • Non-GAAP operating margin increased by 9 percentage points year over year
  • GAAP net loss was $105.6 million, and GAAP net loss per share was $3.10, based on 34.1 million weighted-average shares outstanding
  • Non-GAAP net loss was $21.6 million, and non-GAAP net loss per share was $0.63, based on 34.1 million weighted-average shares outstanding

Domo helps companies of all sizes better leverage data so every employee can be a multiplier of business impact,” said Josh James, Founder and CEO, Domo. “I’m proud of the team for their continued focus on delivering customer value. Based on our internal alignment, our sales capacity outlook, the size and health of the pipeline and the strong demand at the top of the funnel, I am very bullish on our long-term prospects.”

Recent Highlights

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

  • Domo was the top vendor in Dresner Advisory Services’ 2022 Analytical Platforms Market Study
  • Domo was named the winner of five Dresner Advisory Services 2022 Technology Innovation Awards
  • Domo Apps won as the Best Cloud Business Intelligence or Analytics Solution in the 2022-2023 Cloud Awards
  • Domo was named a Best Company to Work For by Utah Business magazine for the eleventh consecutive year

Business Outlook

Based on information available as of March 6, 2023, Domo is providing the following guidance for its first fiscal quarter and full year fiscal 2024:

Q1 Fiscal 2024

  • Revenue is expected to be in the range of $78.5 million to $79.5 million
  • Non-GAAP net loss per share is expected to be between $0.15 and $0.19 based on 35.3 million weighted-average shares outstanding

Full Year Fiscal 2024

  • Revenue is expected to be in the range of $323.0 million to $330.0 million
  • Non-GAAP net loss per share is expected to be between $0.27 and $0.39 based on 36.2 million weighted-average shares outstanding

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 2023 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. Participants can register for the call in advance by visiting https://conferencingportals.com/event/zYvDlnjs. 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) March 20, 2023.

About Domo

Domo transforms business by putting data to work for everyone. Domo’s low-code data app platform goes beyond traditional business intelligence and analytics to enable anyone to create data apps to power any action in their business, right where work gets done. With Domo’s fully integrated cloud-native platform, critical business processes can now be optimized in days instead of months or more. For more information, visit www.domo.com. You can also follow Domo on Twitter, 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 Twitter 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, the reversal of contingent tax-related accruals and proceeds from shares issued in connection with 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.

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 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 regarding our future growth, demand for our products and services, our financial outlook for our first 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 U.S. Securities and Exchange Commission, including, without limitation, the Annual Report on Form 10-K filed with the SEC on March 23, 2022, our most recent Quarterly Report on Form 10-Q filed with the SEC on December 9, 2022, and the Annual Report on Form 10-K for the fiscal year ended January 31, 2023 expected to be filed with the SEC on or about April 3, 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 Year Ended
January 31, January 31,

2022

2023

2022

2023

Revenue:
Subscription

$

59,611

 

$

70,268

 

$

223,010

 

$

271,290

 

Professional services and other

 

10,382

 

 

9,356

 

 

34,951

 

 

37,355

 

Total revenue

 

69,993

 

 

79,624

 

 

257,961

 

 

308,645

 

Cost of revenue:
Subscription (1)

 

11,317

 

 

10,574

 

 

40,907

 

 

43,295

 

Professional services and other (1)

 

7,209

 

 

7,616

 

 

26,239

 

 

29,783

 

Total cost of revenue

 

18,526

 

 

18,190

 

 

67,146

 

 

73,078

 

Gross profit

 

51,467

 

 

61,434

 

 

190,815

 

 

235,567

 

 
Operating expenses:
Sales and marketing (1)

 

39,387

 

 

42,001

 

 

143,722

 

 

173,300

 

Research and development (1)

 

23,516

 

 

21,985

 

 

81,027

 

 

95,093

 

General and administrative (1), (2)

 

18,504

 

 

13,533

 

 

54,536

 

 

56,047

 

Total operating expenses

 

81,407

 

 

77,519

 

 

279,285

 

 

324,440

 

Loss from operations

 

(29,940

)

 

(16,085

)

 

(88,470

)

 

(88,873

)

 
Other expense, net (1)

 

(3,864

)

 

(3,116

)

 

(14,102

)

 

(15,499

)

Loss before income taxes

 

(33,804

)

 

(19,201

)

 

(102,572

)

 

(104,372

)

(Benefit from) provision for income taxes

 

(550

)

 

612

 

 

(461

)

 

1,179

 

Net loss

$

(33,254

)

$

(19,813

)

$

(102,111

)

$

(105,551

)

 
Net loss per share (basic and diluted)

$

(1.01

)

$

(0.57

)

$

(3.19

)

$

(3.10

)

Weighted-average number of shares (basic and diluted)

 

32,802

 

 

34,681

 

 

32,021

 

 

34,092

 

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

$

1,051

 

$

500

 

$

2,819

 

$

2,676

 

Professional services and other

 

585

 

 

483

 

 

1,753

 

 

1,822

 

Sales and marketing

 

6,049

 

 

7,352

 

 

21,241

 

 

30,636

 

Research and development

 

5,250

 

 

5,139

 

 

15,853

 

 

24,335

 

General and administrative

 

6,559

 

 

5,361

 

 

18,155

 

 

23,680

 

Other expense, net

 

181

 

 

160

 

 

705

 

 

710

 

Total stock-based compensation expenses

$

19,675

 

$

18,995

 

$

60,526

 

$

83,859

 

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

$

20

 

$

20

 

$

80

 

$

80

 

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

January 31,

January 31,

2022

2023

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

$

83,561

 

$

66,500

 

Accounts receivable, net

 

64,149

 

 

78,958

 

Contract acquisition costs

 

15,417

 

 

15,908

 

Prepaid expenses and other current assets

 

9,975

 

 

7,447

 

Total current assets

 

173,102

 

 

168,813

 

 
Property and equipment, net

 

17,584

 

 

21,375

 

Right-of-use assets

 

16,392

 

 

15,255

 

Contract acquisition costs, noncurrent

 

23,177

 

 

22,299

 

Intangible assets, net

 

2,875

 

 

2,794

 

Goodwill

 

9,478

 

 

9,478

 

Other assets

 

1,981

 

 

2,102

 

Total assets

$

244,589

 

$

242,116

 

 
Liabilities and stockholders’ deficit
Current liabilities:
Accounts payable

$

4,770

 

$

12,120

 

Accrued expenses and other current liabilities

 

59,976

 

 

49,306

 

Lease liabilities

 

3,439

 

 

4,905

 

Current portion of deferred revenue

 

168,335

 

 

182,273

 

Total current liabilities

 

236,520

 

 

248,604

 

 
Lease liabilities, noncurrent

 

16,757

 

 

15,271

 

Deferred revenue, noncurrent

 

2,420

 

 

3,609

 

Other liabilities, noncurrent

 

10,882

 

 

12,425

 

Long-term debt

 

103,988

 

 

108,607

 

Total liabilities

 

370,567

 

 

388,516

 

 
Commitments and contingencies
 
Stockholders’ deficit:
Common stock

 

33

 

 

35

 

Additional paid-in capital

 

1,098,084

 

 

1,183,921

 

Accumulated other comprehensive income (loss)

 

388

 

 

(322

)

Accumulated deficit

 

(1,224,483

)

 

(1,330,034

)

Total stockholders’ deficit

 

(125,978

)

 

(146,400

)

Total liabilities and stockholders’ deficit

$

244,589

 

$

242,116

 

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

2022

2023

2022

2023

Cash flows from operating activities
Net loss

$

(33,254

)

$

(19,813

)

$

(102,111

)

$

(105,551

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization

 

1,574

 

 

1,201

 

 

5,363

 

 

5,290

 

Non-cash lease expense

 

1,299

 

 

1,365

 

 

4,839

 

 

4,727

 

Amortization of contract acquisition costs

 

4,056

 

 

4,118

 

 

15,835

 

 

16,943

 

Stock-based compensation

 

19,675

 

 

18,995

 

 

60,526

 

 

83,859

 

Other, net

 

955

 

 

3,741

 

 

3,618

 

 

6,768

 

Changes in operating assets and liabilities:
Accounts receivable, net

 

(25,254

)

 

(25,644

)

 

(15,877

)

 

(14,809

)

Contract acquisition costs

 

(10,539

)

 

(5,312

)

 

(22,258

)

 

(16,999

)

Prepaid expenses and other assets

 

(3,404

)

 

327

 

 

1,545

 

 

2,390

 

Accounts payable

 

(7,210

)

 

(6,344

)

 

3,755

 

 

6,947

 

Operating lease liabilities

 

(685

)

 

(2,801

)

 

(3,065

)

 

(6,179

)

Accrued and other liabilities

 

15,678

 

 

2,469

 

 

9,706

 

 

(9,403

)

Deferred revenue

 

38,018

 

 

24,867

 

 

38,503

 

 

15,127

 

Net cash provided by (used in) operating activities

 

909

 

 

(2,831

)

 

379

 

 

(10,890

)

 
Cash flows from investing activities
Purchases of property and equipment

 

(1,552

)

 

(2,923

)

 

(6,517

)

 

(7,996

)

Net cash used in investing activities

 

(1,552

)

 

(2,923

)

 

(6,517

)

 

(7,996

)

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

 

 

 

 

 

4,133

 

 

1,563

 

Shares repurchased for tax withholdings on vesting of restricted stock

 

(1,457

)

 

 

 

(10,315

)

 

 

Proceeds from structured payables

 

 

 

 

 

 

 

6,624

 

Payments on structured payables

 

 

 

 

 

 

 

(6,624

)

Proceeds from exercise of stock options

 

1,713

 

 

 

 

5,621

 

 

861

 

Net cash provided by (used in) financing activities

 

256

 

 

 

 

(561

)

 

2,424

 

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

 

(297

)

 

1,172

 

 

(534

)

 

(599

)

Net decrease in cash, cash equivalents, and restricted cash

 

(684

)

 

(4,582

)

 

(7,233

)

 

(17,061

)

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

 

84,245

 

 

71,082

 

 

90,794

 

 

83,561

 

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

$

83,561

 

$

66,500

 

$

83,561

 

$

66,500

 

Domo, Inc.
Reconciliation of Non-GAAP Financial Measures
(in thousands, except per share data)
(unaudited)
 
Three Months Ended Year Ended
January 31, January 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

$

59,611

 

$

70,268

 

$

223,010

 

$

271,290

 

Cost of revenue:
Subscription

 

11,317

 

 

10,574

 

 

40,907

 

 

43,295

 

Subscription gross profit on a GAAP basis

 

48,294

 

 

59,694

 

 

182,103

 

 

227,995

 

Subscription gross margin on a GAAP basis

 

81

%

 

85

%

 

82

%

 

84

%

 
Stock-based compensation

 

1,051

 

 

500

 

 

2,819

 

 

2,676

 

Subscription gross profit on a non-GAAP basis

$

49,345

 

$

60,194

 

$

184,922

 

$

230,671

 

Subscription gross margin on a non-GAAP basis

 

83

%

 

86

%

 

83

%

 

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

$

81,407

 

$

77,519

 

$

279,285

 

$

324,440

 

Stock-based compensation

 

(17,858

)

 

(17,852

)

 

(55,249

)

 

(78,651

)

Amortization of certain intangible assets

 

(20

)

 

(20

)

 

(80

)

 

(80

)

Total operating expenses on a non-GAAP basis

$

63,529

 

$

59,647

 

$

223,956

 

$

245,709

 

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

$

(29,940

)

$

(16,085

)

$

(88,470

)

$

(88,873

)

Stock-based compensation

 

19,494

 

 

18,835

 

 

59,821

 

 

83,149

 

Amortization of certain intangible assets

 

20

 

 

20

 

 

80

 

 

80

 

Operating (loss) income on a non-GAAP basis

$

(10,426

)

$

2,770

 

$

(28,569

)

$

(5,644

)

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

 

(43

)%

 

(20

)%

 

(34

)%

 

(29

)%

Stock-based compensation

 

28

 

 

23

 

 

23

 

 

27

 

Operating margin on a non-GAAP basis

 

(15

)%

 

3

%

 

(11

)%

 

(2

)%

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

$

(33,254

)

$

(19,813

)

$

(102,111

)

$

(105,551

)

Stock-based compensation

 

19,675

 

 

18,995

 

 

60,526

 

 

83,859

 

Amortization of certain intangible assets

 

20

 

 

20

 

 

80

 

 

80

 

Net loss on a non-GAAP basis

$

(13,559

)

$

(798

)

$

(41,505

)

$

(21,612

)

 
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

$

(1.01

)

$

(0.57

)

$

(3.19

)

$

(3.10

)

Stock-based compensation

 

0.60

 

 

0.55

 

 

1.89

 

 

2.47

 

Net loss per share on a non-GAAP basis

$

(0.41

)

$

(0.02

)

$

(1.30

)

$

(0.63

)

 
Billings:
Total revenue

$

69,993

 

$

79,624

 

$

257,961

 

$

308,645

 

Add:
Deferred revenue (end of period)

 

168,335

 

 

182,273

 

 

168,335

 

 

182,273

 

Deferred revenue, noncurrent (end of period)

 

2,420

 

 

3,609

 

 

2,420

 

 

3,609

 

Less:
Deferred revenue (beginning of period)

 

(130,385

)

 

(157,915

)

 

(129,079

)

 

(168,335

)

Deferred revenue, noncurrent (beginning of period)

 

(2,352

)

 

(3,100

)

 

(3,173

)

 

(2,420

)

Increase in deferred revenue (current and noncurrent)

 

38,018

 

 

24,867

 

 

38,503

 

 

15,127

 

Billings

$

108,011

 

$

104,491

 

$

296,464

 

$

323,772

 

 
Reconciliation of Net Cash Provided by (Used in) Operating Activities to Adjusted Free Cash Flow:
Net cash provided by (used in) operating activities

$

909

 

$

(2,831

)

$

379

 

$

(10,890

)

Proceeds from shares issued in connection with employee stock purchase plan

 

 

 

 

 

4,133

 

 

1,563

 

Purchases of property and equipment

 

(1,552

)

 

(2,923

)

 

(6,517

)

 

(7,996

)

Adjusted free cash flow

$

(643

)

$

(5,754

)

$

(2,005

)

$

(17,323

)

 

Contacts

Media –

Cynthia Cowen

PR@domo.com

Investors –
Peter Lowry

IR@domo.com