Domo Announces First Quarter Fiscal 2025 Financial Results
Domo (Nasdaq: DOMO) announced its fiscal first quarter 2025 results, ending April 30, 2024. Total revenue rose 1% year-over-year to $80.1 million, with subscription revenue also up by 1% to $72.1 million. However, billings decreased by 7% to $65.5 million. The company reported a GAAP net loss of $26 million, equating to $0.69 per share, and a non-GAAP net loss of $12.3 million, or $0.33 per share. Domo's cash reserves stood at $61.2 million. Despite the losses, CEO Josh James expressed optimism about returning to growth through strategic initiatives. Domo also received several awards for innovation and customer value from Dresner Advisory Services. For the second quarter of fiscal 2025, Domo forecasts revenue between $76 million and $77 million and a non-GAAP net loss per share between $0.26 and $0.30.
- Total revenue increased by 1% year-over-year to $80.1 million.
- Subscription revenue rose by 1% year-over-year to $72.1 million.
- Net cash provided by operating activities was $1.9 million.
- Domo's cash, cash equivalents, and restricted cash stood at $61.2 million.
- Domo won five Dresner Advisory Services 2023 Technology Innovation Awards.
- Domo ranked number one in Dresner Advisory Services' 2024 Cloud Computing and BI Market Study for the eighth consecutive year.
- Domo was named to the Women Tech Council Shatter List for the seventh consecutive year.
- Billings decreased by 7% year-over-year to $65.5 million.
- GAAP operating margin decreased by 2 percentage points year-over-year.
- Non-GAAP operating margin decreased by 7 percentage points year-over-year.
- GAAP net loss was $26 million, equating to a loss of $0.69 per share.
- Non-GAAP net loss was $12.3 million, equating to a loss of $0.33 per share.
- Q2 fiscal 2025 guidance projects a non-GAAP net loss per share between $0.26 and $0.30.
Insights
Domo’s fiscal first quarter results indicate a mixed performance. The total revenue increased by
The drop in GAAP operating margin by 2 percentage points and non-GAAP operating margin by 7 percentage points year over year suggests that profitability is taking a hit. The GAAP net loss was
The guidance for the next quarter forecasts a revenue range of
For investors, the key takeaway is to monitor how well Domo can execute its strategic initiatives aimed at growth. The decline in billings and margins are areas of concern that could impact long-term profitability and stock performance.
Domo’s recognition in various Dresner Advisory Services reports highlights their strong performance and innovation in the Business Intelligence (BI) and Cloud Computing sectors. Winning five Technology Innovation Awards and being ranked as the number one vendor in multiple categories for consecutive years underscores their competitive edge.
This positive recognition could enhance their market reputation and attract new customers, particularly those seeking reliable and cutting-edge BI solutions. However, it's important for investors to consider whether these accolades translate into substantial revenue growth and market share gains. While awards and rankings are beneficial for brand image, the impact on the financials is the critical measure.
For retail investors, seeing consistent high rankings for product quality and innovation can be promising. However, the tangible results in terms of financial performance will be the deciding factor for long-term investment optimism.
Domo’s strategic focus on partner collaborations and multi-use case customers is aimed at diversifying and stabilizing revenue streams. In the current data and AI-driven business environment, having diverse use cases and strong partnerships can significantly enhance market penetration and customer retention.
The CEO's statement reflects a forward-looking approach, but investors should remain cautious until these strategies produce clear financial improvements. The decline in billings is a red flag that suggests Domo might face challenges in sustaining its revenue growth despite strategic efforts.
For retail investors, the ongoing strategic initiatives are worth monitoring as they could play a important role in Domo’s ability to return to growth. Patience and vigilance will be needed to evaluate if these strategies will yield the expected positive outcomes in the forthcoming quarters.
SILICON SLOPES,
Fiscal First Quarter Results
-
Total revenue was
$80.1 million 1% year over year -
Subscription revenue was
$72.1 million 1% year over year -
Billings were
$65.5 million 7% year over year -
Net cash provided by operating activities was
$1.9 million - GAAP operating margin decreased by 2 percentage points year over year
- Non-GAAP operating margin decreased by 7 percentage points year over year
-
GAAP net loss was
$26.0 million $0.69 -
Non-GAAP net loss was
$12.3 million $0.33 -
Cash, cash equivalents, and restricted cash were
$61.2 million
“We’re hyper-focused on returning to growth, and feel optimistic about early signals from our strategic initiatives such as partner collaborations, consumption momentum and multi-use case customers,” said Josh James, founder and CEO, Domo. “Domo is a compelling solution for the current data and AI environment. We’re confident that our strategic priorities will continue to reinforce our competitive position.”
Recent Highlights
We believe the following announcements and recognition demonstrate our commitment to product innovation and customer value:
- Domo was the winner of five Dresner Advisory Services 2023 Technology Innovation Awards, as a top vendor in the following Wisdom of Crowds® thematic market reports: Analytical Platforms, Cloud Computing + BI, Embedded BI, Guided Analytics and Self-Service BI.
- In addition, Domo was ranked the number one vendor in the Dresner Advisory Services’ 2024 Wisdom of Crowds® Cloud Computing and Business Intelligence (BI) Market Study for the eighth consecutive year, as well as the number one vendor in Dresner Advisory Services’ 2024 Self-Service Business Intelligence (BI) Market Study for the sixth consecutive year.
- Domo was named to the Women Tech Council Shatter List, which showcases technology companies that are working to break the glass ceiling for women in tech, for the seventh consecutive year.
Business Outlook
Based on information available as of May 23, 2024, Domo is providing the following guidance for its second quarter of fiscal 2025:
-
Revenue is expected to be in the range of
$76.0 million $77.0 million -
Non-GAAP net loss per share, basic and diluted, is expected to be between
$0.26 $0.30
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 2025 first 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# 13746630 following the completion of the conference call until 11:59p.m. (ET) June 23, 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 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, 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
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 items 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 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 competitive positions, our financial outlook for our second fiscal quarter, 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 year ended April 30, 2024 expected to be filed with the SEC on or about June 10, 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 | |||||||
| April 30, | |||||||
2023 |
2024 |
||||||
| Revenue: | |||||||
| Subscription | $ |
71,090 |
|
$ |
72,110 |
|
|
| Professional services and other |
|
8,368 |
|
|
7,993 |
|
|
| Total revenue |
|
79,458 |
|
|
80,103 |
|
|
| Cost of revenue: | |||||||
| Subscription (1) |
|
10,612 |
|
|
12,775 |
|
|
| Professional services and other (1) |
|
7,957 |
|
|
7,939 |
|
|
| Total cost of revenue |
|
18,569 |
|
|
20,714 |
|
|
| Gross profit |
|
60,889 |
|
|
59,389 |
|
|
| Operating expenses: | |||||||
| Sales and marketing (1), (3) |
|
43,162 |
|
|
42,219 |
|
|
| Research and development (1) |
|
23,435 |
|
|
22,719 |
|
|
| General and administrative (1), (2), (3) |
|
14,001 |
|
|
15,901 |
|
|
| Total operating expenses |
|
80,598 |
|
|
80,839 |
|
|
| Loss from operations |
|
(19,709 |
) |
|
(21,450 |
) |
|
| Other expense, net (1), (4) |
|
(4,495 |
) |
|
(4,431 |
) |
|
| Loss before income taxes |
|
(24,204 |
) |
|
(25,881 |
) |
|
| Provision for income taxes |
|
199 |
|
|
126 |
|
|
| Net loss | $ |
(24,403 |
) |
$ |
(26,007 |
) |
|
| Net loss per share (basic and diluted) | $ |
(0.69 |
) |
$ |
(0.69 |
) |
|
| Weighted-average number of shares (basic and diluted) |
|
35,222 |
|
|
37,482 |
|
|
| (1) Includes stock-based compensation expenses, as follows: | |||||||
| Cost of revenue: | |||||||
| Subscription | $ |
618 |
|
$ |
798 |
|
|
| Professional services and other |
|
479 |
|
|
333 |
|
|
| Sales and marketing |
|
6,730 |
|
|
5,314 |
|
|
| Research and development |
|
4,975 |
|
|
4,422 |
|
|
| General and administrative |
|
3,508 |
|
|
3,084 |
|
|
| Other expense, net |
|
162 |
|
|
191 |
|
|
| Total stock-based compensation expenses | $ |
16,472 |
|
$ |
14,142 |
|
|
| (2) Includes amortization of certain intangible assets, as follows: | |||||||
| General and administrative | $ |
20 |
|
$ |
142 |
|
|
| (3) Includes executive officer severance, as follows: | |||||||
| Sales and marketing | $ |
443 |
|
$ |
- |
|
|
| General and administrative |
|
1,328 |
|
|
- |
|
|
| Total executive officer severance | $ |
1,771 |
|
$ |
- |
|
|
| (4) Includes remeasurement of warrant liability, as follows: | |||||||
| Other expense, net | $ |
- |
|
$ |
(566 |
) |
|
| Domo, Inc. | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (in thousands) | |||||||
| (unaudited) | |||||||
| January 31, | April 30, | ||||||
2024 |
2024 |
||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash, cash equivalents, and restricted cash | $ |
60,939 |
|
$ |
61,158 |
|
|
| Accounts receivable, net |
|
67,197 |
|
|
47,848 |
|
|
| Contract acquisition costs |
|
16,006 |
|
|
15,403 |
|
|
| Prepaid expenses and other current assets |
|
9,602 |
|
|
9,760 |
|
|
| Total current assets |
|
153,744 |
|
|
134,169 |
|
|
| Property and equipment, net |
|
27,003 |
|
|
27,240 |
|
|
| Right-of-use assets |
|
11,746 |
|
|
11,709 |
|
|
| Contract acquisition costs, noncurrent |
|
19,542 |
|
|
17,733 |
|
|
| Intangible assets, net |
|
2,740 |
|
|
2,550 |
|
|
| Goodwill |
|
9,478 |
|
|
9,478 |
|
|
| Other assets |
|
1,407 |
|
|
1,525 |
|
|
| Total assets | $ |
225,660 |
|
$ |
204,404 |
|
|
| Liabilities and stockholders' deficit | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ |
4,313 |
|
$ |
10,867 |
|
|
| Accrued expenses and other current liabilities |
|
43,430 |
|
|
41,139 |
|
|
| Lease liabilities |
|
4,807 |
|
|
5,385 |
|
|
| Current portion of deferred revenue |
|
185,250 |
|
|
170,813 |
|
|
| Total current liabilities |
|
237,800 |
|
|
228,204 |
|
|
| Lease liabilities, noncurrent |
|
11,135 |
|
|
10,319 |
|
|
| Deferred revenue, noncurrent |
|
2,736 |
|
|
2,566 |
|
|
| Other liabilities, noncurrent |
|
14,001 |
|
|
12,673 |
|
|
| Long-term debt |
|
113,534 |
|
|
114,123 |
|
|
| Total liabilities |
|
379,206 |
|
|
367,885 |
|
|
| Commitments and contingencies | |||||||
| Stockholders' deficit: | |||||||
| Common stock |
|
37 |
|
|
38 |
|
|
| Additional paid-in capital |
|
1,252,200 |
|
|
1,268,516 |
|
|
| Accumulated other comprehensive loss |
|
(180 |
) |
|
(426 |
) |
|
| Accumulated deficit |
|
(1,405,603 |
) |
|
(1,431,609 |
) |
|
| Total stockholders' deficit |
|
(153,546 |
) |
|
(163,481 |
) |
|
| Total liabilities and stockholders' deficit | $ |
225,660 |
|
$ |
204,404 |
|
|
| Domo, Inc. | |||||||
| Condensed Consolidated Statements of Cash Flows | |||||||
| (in thousands) | |||||||
| (unaudited) | |||||||
| Three Months Ended | |||||||
| April 30, | |||||||
2023 |
2024 |
||||||
| Cash flows from operating activities | |||||||
| Net loss | $ |
(24,403 |
) |
$ |
(26,007 |
) |
|
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
| Depreciation and amortization |
|
1,491 |
|
|
2,356 |
|
|
| Non-cash lease expense |
|
1,149 |
|
|
1,080 |
|
|
| Amortization of contract acquisition costs |
|
4,568 |
|
|
4,301 |
|
|
| Stock-based compensation |
|
16,472 |
|
|
14,142 |
|
|
| Remeasurement of warrant liability |
|
- |
|
|
(566 |
) |
|
| Other, net |
|
1,517 |
|
|
1,058 |
|
|
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable, net |
|
22,068 |
|
|
19,349 |
|
|
| Contract acquisition costs |
|
(3,073 |
) |
|
(1,995 |
) |
|
| Prepaid expenses and other assets |
|
(1,397 |
) |
|
(345 |
) |
|
| Accounts payable |
|
1,490 |
|
|
6,678 |
|
|
| Operating lease liabilities |
|
(1,597 |
) |
|
(1,280 |
) |
|
| Accrued and other liabilities |
|
(8,298 |
) |
|
(2,263 |
) |
|
| Deferred revenue |
|
(9,159 |
) |
|
(14,607 |
) |
|
| Net cash provided by operating activities |
|
828 |
|
|
1,901 |
|
|
| Cash flows from investing activities | |||||||
| Purchases of property and equipment |
|
(3,576 |
) |
|
(2,526 |
) |
|
| Net cash used in investing activities |
|
(3,576 |
) |
|
(2,526 |
) |
|
| Cash flows from financing activities | |||||||
| Proceeds from shares issued in connection with employee stock purchase plan |
|
2,032 |
|
|
1,121 |
|
|
| Net cash provided by financing activities |
|
2,032 |
|
|
1,121 |
|
|
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
204 |
|
|
(277 |
) |
|
| Net (decrease) increase in cash, cash equivalents, and restricted cash |
|
(512 |
) |
|
219 |
|
|
| Cash, cash equivalents, and restricted cash at beginning of period |
|
66,500 |
|
|
60,939 |
|
|
| Cash, cash equivalents, and restricted cash at end of period | $ |
65,988 |
|
$ |
61,158 |
|
|
| Domo, Inc. | |||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||
| (in thousands, except per share data) | |||||||
| (unaudited) | |||||||
| Three Months Ended | |||||||
| April 30, | |||||||
2023 |
2024 |
||||||
| Reconciliation of Subscription Gross Margin on a GAAP Basis to Subscription Gross Margin on a Non-GAAP Basis: | |||||||
| Revenue: | |||||||
| Subscription | $ |
71,090 |
|
$ |
72,110 |
|
|
| Cost of revenue: | |||||||
| Subscription |
|
10,612 |
|
|
12,775 |
|
|
| Subscription gross profit on a GAAP basis |
|
60,478 |
|
|
59,335 |
|
|
| Subscription gross margin on a GAAP basis |
|
85 |
% |
|
82 |
% |
|
| Stock-based compensation |
|
618 |
|
|
798 |
|
|
| Subscription gross profit on a non-GAAP basis | $ |
61,096 |
|
$ |
60,133 |
|
|
| Subscription gross margin on a non-GAAP basis |
|
86 |
% |
|
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 | $ |
80,598 |
|
$ |
80,839 |
|
|
| Stock-based compensation |
|
(15,213 |
) |
|
(12,820 |
) |
|
| Amortization of certain intangible assets |
|
(20 |
) |
|
(142 |
) |
|
| Executive officer severance |
|
(1,771 |
) |
|
- |
|
|
| Total operating expenses on a non-GAAP basis | $ |
63,594 |
|
$ |
67,877 |
|
|
| Reconciliation of Operating Loss on a GAAP Basis to Operating Loss on a Non-GAAP Basis: | |||||||
| Operating loss on a GAAP basis | $ |
(19,709 |
) |
$ |
(21,450 |
) |
|
| Stock-based compensation |
|
16,310 |
|
|
13,951 |
|
|
| Amortization of certain intangible assets |
|
20 |
|
|
142 |
|
|
| Executive officer severance |
|
1,771 |
|
|
- |
|
|
| Operating loss on a non-GAAP basis | $ |
(1,608 |
) |
$ |
(7,357 |
) |
|
| Reconciliation of Operating Margin on a GAAP Basis to Operating Margin on a Non-GAAP Basis: | |||||||
| Operating margin on a GAAP basis |
|
(25 |
)% |
|
(27 |
)% |
|
| Stock-based compensation |
|
21 |
|
|
18 |
|
|
| Executive officer severance |
|
2 |
|
|
- |
|
|
| Operating margin on a non-GAAP basis |
|
(2 |
)% |
|
(9 |
)% |
|
| Reconciliation of Net Loss on a GAAP Basis to Net Loss on a Non-GAAP Basis: | |||||||
| Net loss on a GAAP basis | $ |
(24,403 |
) |
$ |
(26,007 |
) |
|
| Stock-based compensation |
|
16,472 |
|
|
14,142 |
|
|
| Amortization of certain intangible assets |
|
20 |
|
|
142 |
|
|
| Executive officer severance |
|
1,771 |
|
|
- |
|
|
| Remeasurement of warrant liability |
|
- |
|
|
(566 |
) |
|
| Net loss on a non-GAAP basis | $ |
(6,140 |
) |
$ |
(12,289 |
) |
|
| 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 |
) |
$ |
(0.69 |
) |
|
| Stock-based compensation |
|
0.47 |
|
|
0.38 |
|
|
| Executive officer severance |
|
0.05 |
|
|
— |
|
|
| Remeasurement of warrant liability |
|
— |
|
|
(0.02 |
) |
|
| Net loss per share on a non-GAAP basis | $ |
(0.17 |
) |
$ |
(0.33 |
) |
|
| Billings: | |||||||
| Total revenue | $ |
79,458 |
|
$ |
80,103 |
|
|
| Add: | |||||||
| Deferred revenue (end of period) |
|
173,646 |
|
|
170,813 |
|
|
| Deferred revenue, noncurrent (end of period) |
|
3,077 |
|
|
2,566 |
|
|
| Less: | |||||||
| Deferred revenue (beginning of period) |
|
(182,273 |
) |
|
(185,250 |
) |
|
| Deferred revenue, noncurrent (beginning of period) |
|
(3,609 |
) |
|
(2,736 |
) |
|
| Decrease in deferred revenue (current and noncurrent) |
|
(9,159 |
) |
|
(14,607 |
) |
|
| Billings | $ |
70,299 |
|
$ |
65,496 |
|
|
| Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow: | |||||||
| Net cash provided by operating activities | $ |
828 |
|
$ |
1,901 |
|
|
| Proceeds from shares issued in connection with employee stock purchase plan |
|
2,032 |
|
|
1,121 |
|
|
| Purchases of property and equipment |
|
(3,576 |
) |
|
(2,526 |
) |
|
| Adjusted free cash flow | $ |
(716 |
) |
$ |
496 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240523447895/en/
Media –
Cynthia Cowen
PR@domo.com
Investors –
Peter Lowry
IR@domo.com
Source: Domo, Inc.
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