December 2, 2022

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Business is my step

Domo Announces Third Quarter Fiscal 2021 Financial Results

9 min read

SILICON SLOPES, Utah–(BUSINESS WIRE)–Dec 3, 2020–

Domo, Inc. (Nasdaq: DOMO) today announced results for its fiscal third quarter ended October 31, 2020.

Fiscal Third Quarter Results

  • Total revenue was $53.6 million, an increase of 20% year over year
  • Subscription revenue was $46.9 million, an increase of 24% year over year
  • Subscription revenue represented 87% of total revenue
  • Billings were $55.7 million or 25% year-over-year growth
  • Revenue allocated to remaining performance obligations (RPO) was $248.8 million as of October 31, 2020, an increase of 21% year over year
  • RPO expected to be recognized as revenue in the next twelve months was $153.9 million as of October 31, 2020, an increase of 22% year over year
  • Net cash used in operating activities was $1.7 million, while adjusted net cash provided by operating activities was $1.4 million
  • GAAP subscription gross margin was 80%, an improvement of 4 percentage points from Q3 FY20
  • Non-GAAP subscription gross margin was 81%, an improvement of 4 percentage points from Q3 FY20
  • GAAP operating margin improved by 24 percentage points year over year
  • Non-GAAP operating margin improved by 31 percentage points year over year
  • GAAP net loss was $22.2 million, and GAAP net loss per share was $0.75, based on 29.5 million weighted-average shares outstanding
  • Non-GAAP net loss was $11.9 million, and non-GAAP net loss per share was $0.40, based on 29.5 million weighted-average shares outstanding
  • Cash and cash equivalents were $83.8 million as of October 31, 2020

“In Q3, we achieved strong growth and delivered on the commitment we made at our IPO to grow revenue while getting to cash-flow positive with the cash we had on hand,” said Josh James, founder and CEO. “This is a huge financial milestone for our company and a result of listening to our customers and building what they need, and having every employee put their hearts and souls into this mission. Our strong results and our improved financial position give us the confidence to invest in the significant growth opportunity in front of us. I want to extend a huge thank you to our customers, our employees and investors who have been part of this ongoing journey of building a world-class enterprise software business.”

Recent Highlights

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

Business Outlook

Based on information available as of December 3, 2020, Domo is providing the following guidance for its fourth fiscal quarter and full year fiscal 2021:

Q4 Fiscal 2021

  • Revenue is expected to be in the range of $53.3 million to $54.3 million
  • Non-GAAP net loss per share is expected to be between $0.42 and $0.46 based on 30.1 million weighted-average shares outstanding

Full Year Fiscal 2021

  • Revenue is expected to be in the range of $206.6 million to $207.6 million
  • Non-GAAP net loss per share is expected to be between $1.83 and $1.87 based on 29.3 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 2021 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 http://www.directeventreg.com/registration/event/4296169. Instructions will be shared on how to join the call after registering.

A replay will be available at (800) 585-8367 or (416) 621-4642 with conference ID #4296169 following the completion of the conference call until 11:59 p.m. (ET) December 17, 2020.

About Domo

Domo is the Business Cloud, empowering organizations of all sizes with BI leverage at cloud scale in record time. With Domo, BI-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 about how Domo (Nasdaq: DOMO) helps its customers go fast, go big and go bold, 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.

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 net cash used in operating activities. 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 its fourth fiscal quarter and full fiscal year 2021, 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 10, 2020 and the Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2020 expected to be filed with the SEC on or about December 10, 2020, as well as risks to our business related to the COVID-19 outbreak. 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,

2019

 

2020

 

2019

 

2020

Revenue:
Subscription

$

37,841

 

$

46,906

 

$

107,105

 

$

133,689

 

Professional services and other

 

6,925

 

 

6,739

 

 

20,119

 

 

19,648

 

Total revenue

 

44,766

 

 

53,645

 

 

127,224

 

 

153,337

 

Cost of revenue:
Subscription (1)

 

9,045

 

 

9,372

 

 

25,896

 

 

27,288

 

Professional services and other (1)

 

5,418

 

 

5,106

 

 

15,582

 

 

14,948

 

Total cost of revenue

 

14,463

 

 

14,478

 

 

41,478

 

 

42,236

 

Gross profit

 

30,303

 

 

39,167

 

 

85,746

 

 

111,101

 

 
Operating expenses:
Sales and marketing (1)

 

29,784

 

 

29,609

 

 

95,234

 

 

86,089

 

Research and development (1)

 

17,578

 

 

16,504

 

 

51,723

 

 

49,874

 

General and administrative (1), (2), (3)

 

9,590

 

 

11,929

 

 

26,882

 

 

31,355

 

Total operating expenses

 

56,952

 

 

58,042

 

 

173,839

 

 

167,318

 

Loss from operations

 

(26,649

)

 

(18,875

)

 

(88,093

)

 

(56,217

)

 
Other expense, net (1)

 

(2,368

)

 

(3,215

)

 

(7,175

)

 

(8,356

)

Loss before provision for income taxes

 

(29,017

)

 

(22,090

)

 

(95,268

)

 

(64,573

)

Provision for income taxes

 

84

 

 

131

 

 

529

 

 

446

 

Net loss

$

(29,101

)

$

(22,221

)

$

(95,797

)

$

(65,019

)

 
Net loss per share (basic and diluted)

$

(1.05

)

$

(0.75

)

$

(3.50

)

$

(2.24

)

Weighted-average number of shares (basic and diluted)

 

27,638

 

 

29,533

 

 

27,345

 

 

28,998

 

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

$

151

 

$

377

 

$

341

 

$

750

 

Professional services and other

 

123

 

 

273

 

 

276

 

 

494

 

Sales and marketing

 

2,135

 

 

3,301

 

 

8,184

 

 

7,670

 

Research and development

 

1,493

 

 

2,716

 

 

4,852

 

 

6,595

 

General and administrative

 

1,533

 

 

3,452

 

 

3,953

 

 

8,172

 

Other expense, net

 

47

 

 

172

 

 

142

 

 

267

 

Total stock-based compensation expenses

$

5,482

 

$

10,291

 

$

17,748

 

$

23,948

 

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

$

20

 

$

20

 

$

60

 

$

60

 

 
(3) Includes reversal of contingent tax-related accrual, as follows:
General and administrative

$

 

$

 

$

(1,293

)

$

 










































Domo, Inc.
Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)
 

January 31,

 

October 31,

2020

 

2020

Assets
Current assets:
Cash and cash equivalents

$

80,843

 

$

83,813

 

Short-term investments

 

17,967

 

 

 

Accounts receivable, net

 

47,967

 

 

37,788

 

Contract acquisition costs

 

12,676

 

 

13,013

 

Prepaid expenses and other current assets

 

12,809

 

 

9,112

 

Total current assets

 

172,262

 

 

143,726

 

 
Property and equipment, net

 

12,816

 

 

14,259

 

Right-of-use assets

 

 

 

5,009

 

Contract acquisition costs, noncurrent

 

17,083

 

 

16,201

 

Intangible assets, net

 

3,865

 

 

3,515

 

Goodwill

 

9,478

 

 

9,478

 

Other assets

 

1,234

 

 

954

 

Total assets

$

216,738

 

$

193,142

 

 
Liabilities and stockholders’ deficit
Current liabilities:
Accounts payable

$

2,298

 

$

4,756

 

Accrued expenses and other current liabilities

 

46,473

 

 

45,911

 

Lease liabilities

 

 

 

4,169

 

Current portion of deferred revenue

 

105,290

 

 

103,075

 

Total current liabilities

 

154,061

 

 

157,911

 

 
Lease liabilities, noncurrent

 

 

 

2,693

 

Deferred revenue, noncurrent

 

4,454

 

 

3,182

 

Other liabilities, noncurrent

 

6,329

 

 

9,324

 

Long-term debt

 

101,074

 

 

98,548

 

Total liabilities

 

265,918

 

 

271,658

 

 
Commitments and contingencies
 
Stockholders’ deficit:
Common stock

 

28

 

 

30

 

Additional paid-in capital

 

988,141

 

 

1,023,662

 

Accumulated other comprehensive income

 

389

 

 

549

 

Accumulated deficit

 

(1,037,738

)

 

(1,102,757

)

Total stockholders’ deficit

 

(49,180

)

 

(78,516

)

Total liabilities and stockholders’ deficit

$

216,738

 

$

193,142

 






































Domo, Inc.
Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)
 

Three Months Ended

 

Nine Months Ended

October 31,

 

October 31,

2019

 

2020

 

2019

 

2020

Cash flows from operating activities
Net loss

$

(29,101

)

$

(22,221

)

$

(95,797

)

$

(65,019

)

Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization

 

1,691

 

 

1,126

 

 

5,307

 

 

3,490

 

Non-cash lease expense

 

 

 

1,044

 

 

 

 

2,997

 

Amortization of contract acquisition costs

 

3,008

 

 

3,657

 

 

8,503

 

 

10,577

 

Stock-based compensation

 

5,482

 

 

10,291

 

 

17,748

 

 

23,948

 

Other, net

 

819

 

 

1,634

 

 

816

 

 

3,456

 

Changes in operating assets and liabilities:
Accounts receivable, net

 

(2,915

)

 

(2,855

)

 

14,370

 

 

10,179

 

Contract acquisition costs

 

(4,031

)

 

(4,047

)

 

(9,017

)

 

(9,939

)

Prepaid expenses and other assets

 

3,026

 

 

474

 

 

(362

)

 

4,039

 

Accounts payable

 

862

 

 

2,991

 

 

304

 

 

2,397

 

Operating lease liabilities

 

 

 

(996

)

 

 

 

(2,564

)

Accrued and other liabilities

 

1,978

 

 

5,159

 

 

(3,876

)

 

506

 

Deferred revenue

 

(338

)

 

2,027

 

 

(2,937

)

 

(3,487

)

Net cash used in operating activities

 

(19,519

)

 

(1,716

)

 

(64,941

)

 

(19,420

)

 
Cash flows from investing activities
Purchases of property and equipment

 

(1,683

)

 

(1,105

)

 

(4,860

)

 

(4,259

)

Purchases of securities available for sale

 

(14,387

)

 

 

 

(93,331

)

 

(11,149

)

Proceeds from maturities of securities available for sale

 

28,000

 

 

4,900

 

 

71,500

 

 

29,200

 

Purchases of intangible assets

 

 

 

(6

)

 

 

 

(111

)

Net cash provided by (used in) investing activities

 

11,930

 

 

3,789

 

 

(26,691

)

 

13,681

 

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

 

3,294

 

 

3,099

 

 

7,812

 

 

6,748

 

Shares repurchased for tax withholdings on vesting of restricted stock

 

(98

)

 

(194

)

 

(1,110

)

 

(717

)

Proceeds from exercise of stock options

 

70

 

 

446

 

 

1,501

 

 

2,505

 

Net cash provided by financing activities

 

3,266

 

 

3,351

 

 

8,203

 

 

8,536

 

Effect of exchange rate changes on cash and cash equivalents

 

(105

)

 

(66

)

 

(33

)

 

173

 

Net (decrease) increase in cash and cash equivalents

 

(4,428

)

 

5,358

 

 

(83,462

)

 

2,970

 

Cash and cash equivalents at beginning of period

 

97,939

 

 

78,455

 

 

176,973

 

 

80,843

 

Cash and cash equivalents at end of period

$

93,511

 

$

83,813

 

$

93,511

 

$

83,813

 


























































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,

2019

 

2020

 

2019

 

2020

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

$

37,841

$

46,906

 

$

107,105

 

$

133,689

Cost of revenue:
Subscription

 

9,045

 

 

9,372

 

 

25,896

 

 

27,288

 

Subscription gross profit on a GAAP basis

 

28,796

 

 

37,534

 

 

81,209

 

 

106,401

 

Subscription gross margin on a GAAP basis

 

76

%

 

80

%

 

76

%

 

80

%

 
Stock-based compensation

 

151

 

 

377

 

 

341

 

 

750

 

Subscription gross profit on a non-GAAP basis

$

28,947

 

$

37,911

 

$

81,550

 

$

107,151

 

Subscription gross margin on a non-GAAP basis

 

76

%

 

81

%

 

76

%

 

80

%

 
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

$

56,952

 

$

58,042

 

$

173,839

 

$

167,318

 

Stock-based compensation

 

(5,161

)

 

(9,469

)

 

(16,989

)

 

(22,437

)

Amortization of certain intangible assets

 

(20

)

 

(20

)

 

(60

)

 

(60

)

Reversal of contingent tax-related accrual

 

 

 

 

 

1,293

 

 

 

Total operating expenses on a non-GAAP basis

$

51,771

 

$

48,553

 

$

158,083

 

$

144,821

 

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

$

(26,649

)

$

(18,875

)

$

(88,093

)

$

(56,217

)

Stock-based compensation

 

5,435

 

 

10,119

 

 

17,606

 

 

23,681

 

Amortization of certain intangible assets

 

20

 

 

20

 

 

60

 

 

60

 

Reversal of contingent tax-related accrual

 

 

 

 

 

(1,293

)

 

 

Operating loss on a non-GAAP basis

$

(21,194

)

$

(8,736

)

$

(71,720

)

$

(32,476

)

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

 

(60

)%

 

(35

)%

 

(69

)%

 

(37

)%

Stock-based compensation

 

13

 

 

19

 

 

14

 

 

16

 

Amortization of certain intangible assets

 

 

 

 

 

 

 

 

Reversal of contingent tax-related accrual

 

 

 

 

 

(1

)

 

 

Operating margin on a non-GAAP basis

 

(47

)%

 

(16

)%

 

(56

)%

 

(21

)%

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

$

(29,101

)

$

(22,221

)

$

(95,797

)

$

(65,019

)

Stock-based compensation

 

5,482

 

 

10,291

 

 

17,748

 

 

23,948

 

Amortization of certain intangible assets

 

20

 

 

20

 

 

60

 

 

60

 

Reversal of contingent tax-related accrual

 

 

 

 

 

(1,293

)

 

 

Net loss on a non-GAAP basis

$

(23,599

)

$

(11,910

)

$

(79,282

)

$

(41,011

)

 
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

$

(1.05

)

$

(0.75

)

$

(3.50

)

$

(2.24

)

Stock-based compensation

 

0.20

 

 

0.35

 

 

0.65

 

 

0.83

 

Amortization of certain intangible assets

 

 

 

 

 

 

 

 

Reversal of contingent tax-related accrual

 

 

 

 

 

(0.05

)

 

 

Net loss per share on a non-GAAP basis

$

(0.85

)

$

(0.40

)

$

(2.90

)

$

(1.41

)

 
Billings:
Total revenue

$

44,766

 

$

53,645

 

$

127,224

 

$

153,337

 

Add:
Deferred revenue (end of period)

 

88,214

 

 

103,075

 

 

88,214

 

 

103,075

 

Deferred revenue, noncurrent (end of period)

 

2,751

 

 

3,182

 

 

2,751

 

 

3,182

 

Less:
Deferred revenue (beginning of period)

 

(87,616

)

 

(101,982

)

 

(88,959

)

 

(105,290

)

Deferred revenue, noncurrent (beginning of period)

 

(3,687

)

 

(2,248

)

 

(4,943

)

 

(4,454

)

(Decrease) increase in deferred revenue (current and noncurrent)

 

(338

)

 

2,027

 

 

(2,937

)

 

(3,487

)

Billings

$

44,428

 

$

55,672

 

$

124,287

 

$

149,850

 

 
Reconciliation of Net Cash Used in Operating Activities to Adjusted Net Cash Used in Operating Activities:
Net cash used in operating activities

$

(19,519

)

$

(1,716

)

$

(64,941

)

$

(19,420

)

Proceeds from shares issued in connection with employee stock purchase plan

 

3,294

 

 

3,099

 

 

7,812

 

 

6,748

 

Adjusted net cash (used in) provided by operating activities

$

(16,225

)

$

1,383

 

$

(57,129

)

$

(12,672

)

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20201203006015/en/

CONTACT: Media –

Julie Kehoe

[email protected]

Peter Lowry

[email protected]

KEYWORD: UTAH UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: SOFTWARE TECHNOLOGY INTERNET DATA MANAGEMENT

SOURCE: Domo, Inc.

Copyright Business Wire 2020.

PUB: 12/03/2020 04:05 PM/DISC: 12/03/2020 04:05 PM

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