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Domo Announces Third Quarter Fiscal 2022 Financial Results

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  • DOMO

SILICON SLOPES, Utah, December 02, 2021--(BUSINESS WIRE)--Domo, Inc. (Nasdaq: DOMO) today announced results for its fiscal third quarter ended October 31, 2021.

Fiscal Third Quarter Results

  • Total revenue was $65.1 million, an increase of 21% year over year

  • Subscription revenue was $56.6 million, an increase of 21% year over year

  • Subscription revenue represented 87% of total revenue

  • Billings were $70.2 million or 26% year-over-year growth

  • Remaining Performance Obligations (RPO) was $296.9 million as of October 31, 2021, an increase of 19% year over year

  • RPO expected to be recognized as revenue in the next twelve months was $190.6 million as of October 31, 2021, an increase of 24% year over year

  • Net cash provided by operating activities was $0.03 million

  • GAAP subscription gross margin was 81%, an improvement of 1 percentage point from Q3 FY21

  • Non-GAAP subscription gross margin was 83%, an improvement of 2 percentage points from Q3 FY21

  • GAAP operating margin declined by 3 percentage points year over year

  • Non-GAAP operating margin improved by 6 percentage points year over year

  • GAAP net loss was $28.5 million, and GAAP net loss per share was $0.88, based on 32.4 million weighted-average shares outstanding

  • Non-GAAP net loss was $10.3 million, and non-GAAP net loss per share was $0.32, based on 32.4 million weighted-average shares outstanding

  • Cash and cash equivalents were $84.2 million as of October 31, 2021

"We delivered strong results for the quarter, driven by continued market demand for our core modern BI solution and fueled by increasing demand for data-enabled apps to help our customers run their businesses on the Domo platform," said Josh James, founder and CEO, Domo.

Recent Highlights

We believe the following recognition and research demonstrate our commitment to product innovation, go-to-market initiatives and customer success:

Business Outlook

Based on information available as of December 2, 2021, Domo is providing the following guidance for its fourth fiscal quarter and full year fiscal 2022:

Q4 Fiscal 2022

  • Revenue is expected to be in the range of $66.5 million to $67.5 million

  • Non-GAAP net loss per share is expected to be between $0.37 and $0.41 based on 32.8 million weighted-average shares outstanding

Full Year Fiscal 2022

  • Revenue is expected to be in the range of $254.5 million to $255.5 million

  • Non-GAAP net loss per share is expected to be between $1.26 and $1.30 based on 32.0 million weighted-average shares outstanding

We have not reconciled guidance for non-GAAP metrics to their most directly comparable GAAP measures because such 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 2022 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/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) December 16, 2021.

About Domo

Domo (Nasdaq: DOMO) is the Business Cloud, transforming the way business is managed by delivering Modern BI for All™. With Domo, critical processes that took weeks, months or more can now be done on-the-fly, in minutes or seconds, at unbelievable scale. 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 and the @JoshJames 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, adjusted net cash used in operating activities, and 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. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

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 fourth fiscal quarter and full fiscal year 2022, 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 April 1, 2021 and the Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2021 expected to be filed with the SEC on or about December 10, 2021, as well as risks to our business related to the COVID-19 pandemic. 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, Domo Business Cloud and Domo is the Business Cloud are registered trademarks 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,

2020

2021

2020

2021

Revenue:

Subscription

$

46,906

$

56,621

$

133,689

$

163,399

Professional services and other

6,739

8,460

19,648

24,569

Total revenue

53,645

65,081

153,337

187,968

Cost of revenue:

Subscription (1)

9,372

10,514

27,288

29,590

Professional services and other (1)

5,106

6,630

14,948

19,030

Total cost of revenue

14,478

17,144

42,236

48,620

Gross profit

39,167

47,937

111,101

139,348

Operating expenses:

Sales and marketing (1)

29,609

37,503

86,089

104,335

Research and development (1)

16,504

21,984

49,874

57,511

General and administrative (1), (2)

11,929

13,430

31,355

36,032

Total operating expenses

58,042

72,917

167,318

197,878

Loss from operations

(18,875

)

(24,980

)

(56,217

)

(58,530

)

Other expense, net (1)

(3,215

)

(3,471

)

(8,356

)

(10,238

)

Loss before income taxes

(22,090

)

(28,451

)

(64,573

)

(68,768

)

Provision for income taxes

131

62

446

89

Net loss

$

(22,221

)

$

(28,513

)

$

(65,019

)

$

(68,857

)

Net loss per share (basic and diluted)

$

(0.75

)

$

(0.88

)

$

(2.24

)

$

(2.17

)

Weighted-average number of shares (basic and diluted)

29,533

32,363

28,998

31,758

(1) Includes stock-based compensation expenses, as follows:

Cost of revenue:

Subscription

$

377

$

800

$

750

$

1,768

Professional services and other

273

563

494

1,168

Sales and marketing

3,301

6,718

7,670

15,192

Research and development

2,716

5,363

6,595

10,603

General and administrative

3,452

4,543

8,172

11,596

Other expense, net

172

176

267

524

Total stock-based compensation expenses

$

10,291

$

18,163

$

23,948

$

40,851

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

General and administrative

$

20

$

20

$

60

$

60

Domo, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

January 31,

October 31,

2021

2021

Assets

Current assets:

Cash and cash equivalents

$

90,794

$

84,245

Accounts receivable, net

48,272

38,895

Contract acquisition costs

13,894

13,795

Prepaid expenses and other current assets

12,216

7,314

Total current assets

165,176

144,249

Property and equipment, net

14,745

16,998

Right-of-use assets

3,663

17,738

Contract acquisition costs, noncurrent

18,605

18,474

Intangible assets, net

3,356

2,895

Goodwill

9,478

9,478

Other assets

1,415

1,301

Total assets

$

216,438

$

211,133

Liabilities and stockholders' deficit

Current liabilities:

Accounts payable

$

1,085

$

12,021

Accrued expenses and other current liabilities

51,950

44,903

Lease liabilities

3,808

3,117

Current portion of deferred revenue

129,079

130,385

Total current liabilities

185,922

190,426

Lease liabilities, noncurrent

1,556

17,565

Deferred revenue, noncurrent

3,173

2,352

Other liabilities, noncurrent

9,637

10,495

Long-term debt

99,609

102,852

Total liabilities

299,897

323,690

Commitments and contingencies

Stockholders' deficit:

Common stock

30

32

Additional paid-in capital

1,038,006

1,077,993

Accumulated other comprehensive income

877

647

Accumulated deficit

(1,122,372

)

(1,191,229

)

Total stockholders' deficit

(83,459

)

(112,557

)

Total liabilities and stockholders' deficit

$

216,438

$

211,133

Domo, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Three Months Ended

Nine Months Ended

October 31,

October 31,

2020

2021

2020

2021

Cash flows from operating activities

Net loss

$

(22,221

)

$

(28,513

)

$

(65,019

)

$

(68,857

)

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

Depreciation and amortization

1,126

1,533

3,490

3,789

Non-cash lease expense

1,044

1,224

2,997

3,540

Amortization of contract acquisition costs

3,657

3,944

10,577

11,779

Stock-based compensation

10,291

18,163

23,948

40,851

Other, net

1,634

877

3,456

2,663

Changes in operating assets and liabilities:

Accounts receivable, net

(2,855

)

(7,746

)

10,179

9,377

Contract acquisition costs

(4,047

)

(4,354

)

(9,939

)

(11,719

)

Prepaid expenses and other assets

474

664

4,039

4,949

Accounts payable

2,991

4,652

2,397

10,965

Operating lease liabilities

(996

)

(669

)

(2,564

)

(2,380

)

Accrued and other liabilities

5,159

5,131

506

(5,972

)

Deferred revenue

2,027

5,123

(3,487

)

485

Net cash (used in) provided by operating activities

(1,716

)

29

(19,420

)

(530

)

Cash flows from investing activities

Purchases of property and equipment

(1,105

)

(1,547

)

(4,259

)

(4,965

)

Purchases of securities available for sale

-

-

(11,149

)

-

Proceeds from maturities of securities available for sale

4,900

-

29,200

-

Purchases of intangible assets

(6

)

-

(111

)

-

Net cash provided by (used in) investing activities

3,789

(1,547

)

13,681

(4,965

)

Cash flows from financing activities

Proceeds from shares issued in connection with employee stock purchase plan

3,099

-

6,748

4,133

Shares repurchased for tax withholdings on vesting of restricted stock

(194

)

(1,280

)

(717

)

(8,858

)

Proceeds from exercise of stock options

446

745

2,505

3,908

Net cash provided by (used in) financing activities

3,351

(535

)

8,536

(817

)

Effect of exchange rate changes on cash and cash equivalents

(66

)

(75

)

173

(237

)

Net increase (decrease) in cash and cash equivalents

5,358

(2,128

)

2,970

(6,549

)

Cash and cash equivalents at beginning of period

78,455

86,373

80,843

90,794

Cash and cash equivalents at end of period

$

83,813

$

84,245

$

83,813

$

84,245

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,

2020

2021

2020

2021

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

Revenue:

Subscription

$

46,906

$

56,621

$

133,689

$

163,399

Cost of revenue:

Subscription

9,372

10,514

27,288

29,590

Subscription gross profit on a GAAP basis

37,534

46,107

106,401

133,809

Subscription gross margin on a GAAP basis

80

%

81

%

80

%

82

%

Stock-based compensation

377

800

750

1,768

Subscription gross profit on a non-GAAP basis

$

37,911

$

46,907

$

107,151

$

135,577

Subscription gross margin on a non-GAAP basis

81

%

83

%

80

%

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

$

58,042

$

72,917

$

167,318

$

197,878

Stock-based compensation

(9,469

)

(16,624

)

(22,437

)

(37,391

)

Amortization of certain intangible assets

(20

)

(20

)

(60

)

(60

)

Total operating expenses on a non-GAAP basis

$

48,553

$

56,273

$

144,821

$

160,427

Reconciliation of Operating Loss on a GAAP Basis to Operating Loss on a Non-GAAP Basis:

Operating loss on a GAAP basis

$

(18,875

)

$

(24,980

)

$

(56,217

)

$

(58,530

)

Stock-based compensation

10,119

17,987

23,681

40,327

Amortization of certain intangible assets

20

20

60

60

Operating loss on a non-GAAP basis

$

(8,736

)

$

(6,973

)

$

(32,476

)

$

(18,143

)

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

Operating margin on a GAAP basis

(35

)%

(38

)%

(37

)%

(31

)%

Stock-based compensation

19

27

16

21

Operating margin on a non-GAAP basis

(16

)%

(11

)%

(21

)%

(10

)%

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

Net loss on a GAAP basis

$

(22,221

)

$

(28,513

)

$

(65,019

)

$

(68,857

)

Stock-based compensation

10,291

18,163

23,948

40,851

Amortization of certain intangible assets

20

20

60

60

Net loss on a non-GAAP basis

$

(11,910

)

$

(10,330

)

$

(41,011

)

$

(27,946

)

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

$

(0.75

)

$

(0.88

)

$

(2.24

)

$

(2.17

)

Stock-based compensation

0.35

0.56

0.83

1.29

Net loss per share on a non-GAAP basis

$

(0.40

)

$

(0.32

)

$

(1.41

)

$

(0.88

)

Billings:

Total revenue

$

53,645

$

65,081

$

153,337

$

187,968

Add:

Deferred revenue (end of period)

103,075

130,385

103,075

130,385

Deferred revenue, noncurrent (end of period)

3,182

2,352

3,182

2,352

Less:

Deferred revenue (beginning of period)

(101,982

)

(126,381

)

(105,290

)

(129,079

)

Deferred revenue, noncurrent (beginning of period)

(2,248

)

(1,233

)

(4,454

)

(3,173

)

Increase (decrease) in deferred revenue (current and noncurrent)

2,027

5,123

(3,487

)

485

Billings

$

55,672

$

70,204

$

149,850

$

188,453

Reconciliation of Net Cash (Used in) Provided by Operating Activities to Adjusted Net Cash Provided by (Used in) Operating Activities:

Net cash (used in) provided by operating activities

$

(1,716

)

$

29

$

(19,420

)

$

(530

)

Proceeds from shares issued in connection with employee stock purchase plan

3,099

-

6,748

4,133

Adjusted net cash provided by (used in) operating activities

$

1,383

$

29

$

(12,672

)

$

3,603

Reconciliation of Net Cash (Used in) Provided by Operating Activities to Free Cash Flow:

Net cash (used in) provided by operating activities

$

(1,716

)

$

29

$

(19,420

)

$

(530

)

Proceeds from shares issued in connection with employee stock purchase plan

3,099

-

6,748

4,133

Purchases of property and equipment

(1,105

)

(1,547

)

(4,259

)

(4,965

)

Free cash flow

$

278

$

(1,518

)

$

(16,931

)

$

(1,362

)

View source version on businesswire.com: https://www.businesswire.com/news/home/20211202005938/en/

Contacts

Media –
Julie Kehoe
PR@domo.com

Investors –
Peter Lowry
IR@domo.com

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