Domo Announces Term Loan Extended to 2028
Domo (Nasdaq: DOMO) has announced an amendment to its existing debt facility, extending the maturity date to August 2028. The modification includes a reduction in both the overall interest rate and annual cash interest cost. David Jolley, Domo's CFO, emphasized the company's focus on returning to growth through strategic initiatives such as:
- Converting the customer base to a consumption-based pricing model
- Expanding go-to-market capabilities through partnerships
Jolley expressed satisfaction with the continued support from funds and accounts managed by BlackRock, stating that the amended terms are mutually beneficial. This modification is expected to allow Domo to invest in opportunities that the company believes will have the greatest impact on its business performance.
Domo (Nasdaq: DOMO) ha annunciato una modifica alla sua attuale linea di credito, estendendo la data di scadenza a agosto 2028. La modifica include una riduzione sia del tasso di interesse complessivo che del costo annuale degli interessi. David Jolley, CFO di Domo, ha sottolineato l'impegno dell'azienda nel tornare alla crescita attraverso iniziative strategiche come:
- La conversione della base clienti a un modello di pricing basato sul consumo
- Il potenziamento delle capacità di mercato attraverso partnership
Jolley ha espresso soddisfazione per il continuo supporto da parte di fondi e conti gestiti da BlackRock, affermando che le nuove condizioni sono reciprocamente vantaggiose. Questa modifica dovrebbe consentire a Domo di investire in opportunità che l'azienda ritiene avranno il maggiore impatto sulle sue prestazioni aziendali.
Domo (Nasdaq: DOMO) ha anunciado una enmienda a su línea de crédito existente, extendiendo la fecha de vencimiento a agosto de 2028. La modificación incluye una reducción tanto en la tasa de interés total como en el costo anual de intereses en efectivo. David Jolley, CFO de Domo, enfatizó el enfoque de la compañía en regresar al crecimiento a través de iniciativas estratégicas como:
- Convertir la base de clientes a un modelo de precios basado en el consumo
- Ampliar las capacidades de comercialización a través de asociaciones
Jolley expresó satisfacción por el continuo apoyo de fondos y cuentas administradas por BlackRock, afirmando que los términos enmendados son mutuamente beneficiosos. Se espera que esta modificación permita a Domo invertir en oportunidades que la compañía cree tendrán el mayor impacto en su rendimiento empresarial.
Domo (Nasdaq: DOMO)는 기존 채무 기구에 대한 수정안을 발표하며 만기일을 2028년 8월로 연장했습니다. 이 수정안은 전체 이자율과 연간 현금 이자 비용의 감소를 포함합니다. Domo의 CFO인 David Jolley는 소비 기반 가격 모델로 고객 기반을 전환하고, 파트너십을 통해 시장 진입 능력을 확대하는 전략적 이니셔티브를 통해 성장을 다시 이루겠다는 회사의 의지를 강조했습니다:
- 고객 기반을 소비 기반 가격 모델로 전환
- 파트너십을 통한 시장 진입 능력 확대
Jolley는 BlackRock이 관리하는 자금과 계좌의 지속적인 지원에 대해 만족감을 표명하며 수정된 조건이 상호 이익이 될 것이라고 말했습니다. 이번 수정은 Domo가 사업 성과에 가장 큰 영향을 미칠 것으로 판단되는 기회에 투자할 수 있도록 할 것으로 기대됩니다.
Domo (Nasdaq: DOMO) a annoncé un amendement à sa ligne de crédit existante, en prolongeant la date d'échéance jusqu'à août 2028. La modification inclut une réduction du taux d'intérêt global ainsi que du coût d'intérêt annuel en espèces. David Jolley, CFO de Domo, a souligné l'engagement de l'entreprise à retrouver la croissance par le biais d'initiatives stratégiques telles que :
- La conversion de la base de clients à un modèle de tarification basé sur la consommation
- Le renforcement des capacités d'accès au marché grâce à des partenariats
Jolley a exprimé sa satisfaction quant au soutien continu des fonds et comptes gérés par BlackRock, affirmant que les conditions amendées sont mutuellement bénéfiques. Cette modification devrait permettre à Domo d'investir dans des opportunités que l'entreprise estime avoir le plus grand impact sur ses performances.
Domo (Nasdaq: DOMO) hat eine Änderung seiner bestehenden Kreditfazilität angekündigt, die Fälligkeit auf August 2028 zu verlängern. Die Modification umfasst eine Senkung sowohl des gesamten Zinssatzes als auch der jährlichen Barzinskosten. David Jolley, CFO von Domo, betonte den Fokus des Unternehmens, durch strategische Initiativen wie:
- Umstellung der Kundenbasis auf ein verbrauchsabhängiges Preismodell
- Erweiterung der Markteintrittsmöglichkeiten durch Partnerschaften
Jolley äußerte sich zufrieden über die fortgesetzte Unterstützung von durch BlackRock verwalteten Fonds und Konten und erklärte, dass die geänderten Bedingungen für beide Seiten vorteilhaft sind. Diese Änderung wird voraussichtlich Domo erlauben, in Chancen zu investieren, von denen das Unternehmen glaubt, dass sie den größten Einfluss auf seine Geschäftsergebnisse haben werden.
- Debt maturity extended to August 2028, providing longer-term financial stability
- Reduction in overall interest rate and annual cash interest cost, potentially improving profitability
- Continued support from BlackRock-managed funds and accounts
- Indication of ongoing debt reliance, which may impact financial flexibility
- Acknowledgment of need to return to growth, suggesting current growth challenges
Insights
Domo's debt restructuring marks a strategic financial move. The extended maturity to 2028 provides increased financial flexibility, allowing the company more time to execute its growth strategies. The reduced interest rate and annual cash interest cost are positive developments, potentially improving cash flow and profitability. However, investors should note that while this restructuring eases immediate financial pressures, it doesn't directly address Domo's core challenge of returning to growth.
The shift to a consumption-based pricing model could be a double-edged sword. While it may attract new customers and increase usage among existing ones, it could also lead to revenue volatility. The focus on partnerships for go-to-market expansion is promising, but success will depend on execution. Overall, this refinancing buys Domo time, but the company's ability to leverage this opportunity for sustainable growth remains to be seen.
Domo's debt restructuring reflects broader trends in the SaaS industry. The move towards a consumption-based pricing model aligns with industry shifts, as companies seek more flexible, scalable solutions. This could potentially improve Domo's competitive position, especially among cost-conscious enterprises. The focus on ecosystem partnerships is important in an increasingly integrated tech landscape, where interoperability and data flow between platforms are key selling points.
However, the market will be watching closely for signs of actual growth acceleration. The extended debt terms provide a runway, but Domo needs to show tangible progress in customer acquisition and revenue growth to maintain investor confidence. The company's ability to execute its new strategies effectively will be critical in a highly competitive business intelligence market dominated by larger players with deeper pockets.
Domo's strategic pivot towards a consumption-based model is technologically significant. This approach allows for more granular tracking of user engagement and value delivery, potentially leading to improved product development and customer satisfaction. The focus on ecosystem partnerships suggests a move towards a more open, integrated platform strategy, which could enhance Domo's value proposition in the increasingly complex data analytics landscape.
However, the transition to consumption-based pricing will require substantial backend infrastructure changes and could pose technical challenges. Domo will need to invest in robust usage monitoring, billing systems and potentially re-architect parts of their platform for more modular consumption. The success of this transition will heavily depend on Domo's technical execution and ability to deliver a seamless experience to customers during this shift.
SILICON SLOPES,
David Jolley, Domo’s Chief Financial Officer, commented, “Our priority is getting Domo back to growth through the prioritization of initiatives such as converting our customer base to a consumption-based pricing model and expanding our go-to-market capabilities through partnerships with other leaders in the ecosystem. We are very pleased with the continued support from funds and accounts managed by BlackRock and to modify the terms of our debt facility under what we believe are mutually beneficial terms. This amendment will allow Domo to invest in the opportunities that we believe will deliver the greatest impact for our business.”
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.
Forward-Looking Statements
This press release contains forward-looking statements or information within the meaning of applicable securities legislation, including Section 27A of the Securities Act of 1933, 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 Financial Officer and regarding our future opportunities, growth and go-to-market capabilities. 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 for the fiscal year ended January 31, 2024 filed with the SEC on March 28, 2024 and the Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2024 filed with the SEC on June 7, 2024. All information provided in this press release is as of the date hereof, and we undertake no duty to update, republish, or revise this information unless required by law.
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Media –
Cynthia Cowen
PR@domo.com
Investors –
Peter Lowry
IR@domo.com
Source: Domo
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