SILICON SLOPES, Utah--(BUSINESS WIRE)--Dec 8, 2022--
Domo, Inc. (Nasdaq: DOMO) today announced results for its fiscal third quarter ended October 31, 2022.
Fiscal Third Quarter Results
“Domo helps companies of all sizes better leverage data so every employee can be a multiplier of business impact,” said John Mellor, CEO, Domo. “I'm proud of the team for their continued focus on delivering customer value while operating the business with efficiency. Based on the size and health of the pipeline and the strong demand at the top of the funnel, we remain bullish on our long-term prospects.”
Domo also announced today that Bruce Felt is transitioning out as the company's Chief Financial Officer. Felt will remain in his current role until a successor is named. He is also an active member of the search team to find a replacement and is committed to a seamless transition once his successor is identified. Domo has initiated an executive search with the assistance of Heidrick & Struggles, a leading executive search firm.
Mellor remarked, “On behalf of everyone at Domo, I would like to thank Bruce for his many contributions to our company as CFO. He has played an important role in advancing our strategy, elevating our finance function and successfully navigating us through the pandemic. His leadership has put the company in a place where this change can occur without disruption to our customers, internal operations or other finance functions. We wish him all the best in his next chapter and appreciate his continued support during the transition period.”
Felt said, “The last eight years have been among the most rewarding for me professionally, and I am grateful to the Domo Board and leadership team for their collaboration and partnership. I’m proud of all that we have accomplished together and have enormous confidence in Domo’s continued success.”
Recent Highlights
We believe the following announcements and recognition demonstrate our commitment to product innovation and customer value:
Business Outlook
Based on information available as of December 8, 2022, Domo is providing the following guidance for its fourth fiscal quarter and full year fiscal 2023:
Q4 Fiscal 2023
Full Year Fiscal 2023
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 2023 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 22, 2022.
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 fourth fiscal quarter and full fiscal year 2023, 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, 2022 expected to be filed with the SEC on or about December 12, 2022. 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 | Nine Months Ended | |||||||||||||||
October 31, | October 31, | |||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||
Revenue: | ||||||||||||||||
Subscription | $ | 56,621 |
| $ | 69,041 |
| $ | 163,399 |
| $ | 201,022 |
| ||||
Professional services and other |
| 8,460 |
|
| 9,985 |
|
| 24,569 |
|
| 27,999 |
| ||||
Total revenue |
| 65,081 |
|
| 79,026 |
|
| 187,968 |
|
| 229,021 |
| ||||
Cost of revenue: | ||||||||||||||||
Subscription (1) |
| 10,514 |
|
| 11,342 |
|
| 29,590 |
|
| 32,721 |
| ||||
Professional services and other (1) |
| 6,630 |
|
| 7,572 |
|
| 19,030 |
|
| 22,167 |
| ||||
Total cost of revenue |
| 17,144 |
|
| 18,914 |
|
| 48,620 |
|
| 54,888 |
| ||||
Gross profit |
| 47,937 |
|
| 60,112 |
|
| 139,348 |
|
| 174,133 |
| ||||
Operating expenses: | ||||||||||||||||
Sales and marketing (1) |
| 37,503 |
|
| 41,012 |
|
| 104,335 |
|
| 131,299 |
| ||||
Research and development (1) |
| 21,984 |
|
| 24,583 |
|
| 57,511 |
|
| 73,108 |
| ||||
General and administrative (1), (2) |
| 13,430 |
|
| 13,029 |
|
| 36,032 |
|
| 42,514 |
| ||||
Total operating expenses |
| 72,917 |
|
| 78,624 |
|
| 197,878 |
|
| 246,921 |
| ||||
Loss from operations |
| (24,980 | ) |
| (18,512 | ) |
| (58,530 | ) |
| (72,788 | ) | ||||
Other expense, net (1) |
| (3,471 | ) |
| (5,032 | ) |
| (10,238 | ) |
| (12,383 | ) | ||||
Loss before income taxes |
| (28,451 | ) |
| (23,544 | ) |
| (68,768 | ) |
| (85,171 | ) | ||||
Provision for income taxes |
| 62 |
|
| 167 |
|
| 89 |
|
| 567 |
| ||||
Net loss | $ | (28,513 | ) | $ | (23,711 | ) | $ | (68,857 | ) | $ | (85,738 | ) | ||||
Net loss per share (basic and diluted) | $ | (0.88 | ) | $ | (0.69 | ) | $ | (2.17 | ) | $ | (2.53 | ) | ||||
Weighted-average number of shares (basic and diluted) |
| 32,363 |
|
| 34,392 |
|
| 31,758 |
|
| 33,893 |
| ||||
(1) Includes stock-based compensation expenses, as follows: | ||||||||||||||||
Cost of revenue: | ||||||||||||||||
Subscription | $ | 800 |
| $ | 667 |
| $ | 1,768 |
| $ | 2,176 |
| ||||
Professional services and other |
| 563 |
|
| 308 |
|
| 1,168 |
|
| 1,339 |
| ||||
Sales and marketing |
| 6,718 |
|
| 7,336 |
|
| 15,192 |
|
| 23,284 |
| ||||
Research and development |
| 5,363 |
|
| 5,909 |
|
| 10,603 |
|
| 19,196 |
| ||||
General and administrative |
| 4,543 |
|
| 4,807 |
|
| 11,596 |
|
| 18,319 |
| ||||
Other expense, net |
| 176 |
|
| 180 |
|
| 524 |
|
| 550 |
| ||||
Total stock-based compensation expenses | $ | 18,163 |
| $ | 19,207 |
| $ | 40,851 |
| $ | 64,864 |
| ||||
(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, | ||||||
2022 | 2022 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash, cash equivalents, and restricted cash | $ | 83,561 |
| $ | 71,082 |
| |
Accounts receivable, net |
| 64,149 |
|
| 53,314 |
| |
Contract acquisition costs |
| 15,417 |
|
| 15,146 |
| |
Prepaid expenses and other current assets |
| 9,975 |
|
| 7,457 |
| |
Total current assets |
| 173,102 |
|
| 146,999 |
| |
Property and equipment, net |
| 17,584 |
|
| 19,834 |
| |
Right-of-use assets |
| 16,392 |
|
| 14,871 |
| |
Contract acquisition costs, noncurrent |
| 23,177 |
|
| 21,390 |
| |
Intangible assets, net |
| 2,875 |
|
| 2,814 |
| |
Goodwill |
| 9,478 |
|
| 9,478 |
| |
Other assets |
| 1,981 |
|
| 1,945 |
| |
Total assets | $ | 244,589 |
| $ | 217,331 |
| |
Liabilities and stockholders' deficit | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 4,770 |
| $ | 17,843 |
| |
Accrued expenses and other current liabilities |
| 59,976 |
|
| 45,928 |
| |
Lease liabilities |
| 3,439 |
|
| 4,062 |
| |
Current portion of deferred revenue |
| 168,335 |
|
| 157,915 |
| |
Total current liabilities |
| 236,520 |
|
| 225,748 |
| |
Lease liabilities, noncurrent |
| 16,757 |
|
| 15,239 |
| |
Deferred revenue, noncurrent |
| 2,420 |
|
| 3,100 |
| |
Other liabilities, noncurrent |
| 10,882 |
|
| 11,945 |
| |
Long-term debt |
| 103,988 |
|
| 107,424 |
| |
Total liabilities |
| 370,567 |
|
| 363,456 |
| |
Commitments and contingencies | |||||||
Stockholders' deficit: | |||||||
Common stock |
| 33 |
|
| 34 |
| |
Additional paid-in capital |
| 1,098,084 |
|
| 1,165,522 |
| |
Accumulated other comprehensive income |
| 388 |
|
| (1,460 | ) | |
Accumulated deficit |
| (1,224,483 | ) |
| (1,310,221 | ) | |
Total stockholders' deficit |
| (125,978 | ) |
| (146,125 | ) | |
Total liabilities and stockholders' deficit | $ | 244,589 |
| $ | 217,331 |
|
Domo, Inc. | |||||||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||||||
(in thousands) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended |
| Nine Months Ended | |||||||||||||
October 31, |
| October 31, | |||||||||||||
2021 |
| 2022 |
| 2021 |
| 2022 | |||||||||
Cash flows from operating activities | |||||||||||||||
Net loss | $ | (28,513 | ) | $ | (23,711 | ) | $ | (68,857 | ) | $ | (85,738 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||||||
Depreciation and amortization |
| 1,533 |
|
| 1,269 |
|
| 3,789 |
|
| 4,089 |
| |||
Non-cash lease expense |
| 1,224 |
|
| 987 |
|
| 3,540 |
|
| 3,362 |
| |||
Amortization of contract acquisition costs |
| 3,944 |
|
| 4,247 |
|
| 11,779 |
|
| 12,825 |
| |||
Stock-based compensation |
| 18,163 |
|
| 19,207 |
|
| 40,851 |
|
| 64,864 |
| |||
Other, net |
| 877 |
|
| 1,135 |
|
| 2,663 |
|
| 3,027 |
| |||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable, net |
| (7,746 | ) |
| (4,166 | ) |
| 9,377 |
|
| 10,835 |
| |||
Contract acquisition costs |
| (4,354 | ) |
| (4,405 | ) |
| (11,719 | ) |
| (11,687 | ) | |||
Prepaid expenses and other assets |
| 664 |
|
| 1,282 |
|
| 4,949 |
|
| 2,063 |
| |||
Accounts payable |
| 4,652 |
|
| 384 |
|
| 10,965 |
|
| 13,291 |
| |||
Operating lease liabilities |
| (669 | ) |
| (1,239 | ) |
| (2,380 | ) |
| (3,378 | ) | |||
Accrued and other liabilities |
| 5,131 |
|
| 3,527 |
|
| (5,972 | ) |
| (11,872 | ) | |||
Deferred revenue |
| 5,123 |
|
| (4,999 | ) |
| 485 |
|
| (9,740 | ) | |||
Net cash provided by (used in) operating activities |
| 29 |
|
| (6,482 | ) |
| (530 | ) |
| (8,059 | ) | |||
Cash flows from investing activities | |||||||||||||||
Purchases of property and equipment |
| (1,547 | ) |
| (1,657 | ) |
| (4,965 | ) |
| (5,073 | ) | |||
Net cash used in investing activities |
| (1,547 | ) |
| (1,657 | ) |
| (4,965 | ) |
| (5,073 | ) | |||
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 |
| (1,280 | ) |
| - |
|
| (8,858 | ) |
| - |
| |||
Proceeds from structured payables |
| - |
|
| 6,624 |
|
| - |
|
| 6,624 |
| |||
Payments on structured payables |
| - |
|
| (6,624 | ) |
| - |
|
| (6,624 | ) | |||
Proceeds from exercise of stock options |
| 745 |
|
| 56 |
|
| 3,908 |
|
| 861 |
| |||
Net cash (used in) provided by financing activities |
| (535 | ) |
| 56 |
|
| (817 | ) |
| 2,424 |
| |||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
| (75 | ) |
| (729 | ) |
| (237 | ) |
| (1,771 | ) | |||
Net decrease in cash, cash equivalents, and restricted cash |
| (2,128 | ) |
| (8,812 | ) |
| (6,549 | ) |
| (12,479 | ) | |||
Cash, cash equivalents, and restricted cash at beginning of period |
| 86,373 |
|
| 79,894 |
|
| 90,794 |
|
| 83,561 |
| |||
Cash, cash equivalents, and restricted cash at end of period | $ | 84,245 |
| $ | 71,082 |
| $ | 84,245 |
| $ | 71,082 |
|
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, | ||||||||||||||||
2021 | 2022 | 2021 | 2022 | ||||||||||||||
Reconciliation of Subscription Gross Margin on a GAAP Basis to Subscription Gross Margin on a Non-GAAP Basis: | |||||||||||||||||
Revenue: | |||||||||||||||||
Subscription | $ | 56,621 |
| $ | 69,041 |
| $ | 163,399 |
| $ | 201,022 |
| |||||
Cost of revenue: | |||||||||||||||||
Subscription |
| 10,514 |
|
| 11,342 |
|
| 29,590 |
|
| 32,721 |
| |||||
Subscription gross profit on a GAAP basis |
| 46,107 |
|
| 57,699 |
|
| 133,809 |
|
| 168,301 |
| |||||
Subscription gross margin on a GAAP basis |
| 81 | % |
| 84 | % |
| 82 | % |
| 84 | % | |||||
Stock-based compensation |
| 800 |
|
| 667 |
|
| 1,768 |
|
| 2,176 |
| |||||
Subscription gross profit on a non-GAAP basis | $ | 46,907 |
| $ | 58,366 |
| $ | 135,577 |
| $ | 170,477 |
| |||||
Subscription gross margin on a non-GAAP basis |
| 83 | % |
| 85 | % |
| 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 | $ | 72,917 |
| $ | 78,624 |
| $ | 197,878 |
| $ | 246,921 |
| |||||
Stock-based compensation |
| (16,624 | ) |
| (18,052 | ) |
| (37,391 | ) |
| (60,799 | ) | |||||
Amortization of certain intangible assets |
| (20 | ) |
| (20 | ) |
| (60 | ) |
| (60 | ) | |||||
Total operating expenses on a non-GAAP basis | $ | 56,273 |
| $ | 60,552 |
| $ | 160,427 |
| $ | 186,062 |
| |||||
Reconciliation of Operating Loss on a GAAP Basis to Operating (Loss) Income on a Non-GAAP Basis: | |||||||||||||||||
Operating loss on a GAAP basis | $ | (24,980 | ) | $ | (18,512 | ) | $ | (58,530 | ) | $ | (72,788 | ) | |||||
Stock-based compensation |
| 17,987 |
|
| 19,027 |
|
| 40,327 |
|
| 64,314 |
| |||||
Amortization of certain intangible assets |
| 20 |
|
| 20 |
|
| 60 |
|
| 60 |
| |||||
Operating (loss) income on a non-GAAP basis | $ | (6,973 | ) | $ | 535 |
| $ | (18,143 | ) | $ | (8,414 | ) | |||||
Reconciliation of Operating Margin on a GAAP Basis to Operating Margin on a Non-GAAP Basis: | |||||||||||||||||
Operating margin on a GAAP basis |
| (38 | )% |
| (23 | )% |
| (31 | )% |
| (32 | )% | |||||
Stock-based compensation |
| 27 |
|
| 24 |
|
| 21 |
|
| 28 |
| |||||
Operating margin on a non-GAAP basis |
| (11 | )% |
| 1 | % |
| (10 | )% |
| (4 | )% | |||||
Reconciliation of Net Loss on a GAAP Basis to Net Loss on a Non-GAAP Basis: | |||||||||||||||||
Net loss on a GAAP basis | $ | (28,513 | ) | $ | (23,711 | ) | $ | (68,857 | ) | $ | (85,738 | ) | |||||
Stock-based compensation |
| 18,163 |
|
| 19,207 |
|
| 40,851 |
|
| 64,864 |
| |||||
Amortization of certain intangible assets |
| 20 |
|
| 20 |
|
| 60 |
|
| 60 |
| |||||
Net loss on a non-GAAP basis | $ | (10,330 | ) | $ | (4,484 | ) | $ | (27,946 | ) | $ | (20,814 | ) | |||||
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 | $ | (0.88 | ) | $ | (0.69 | ) | $ | (2.17 | ) | $ | (2.53 | ) | |||||
Stock-based compensation |
| 0.56 |
|
| 0.56 |
|
| 1.29 |
|
| 1.92 |
| |||||
Net loss per share on a non-GAAP basis | $ | (0.32 | ) | $ | (0.13 | ) | $ | (0.88 | ) | $ | (0.61 | ) | |||||
Billings: | |||||||||||||||||
Total revenue | $ | 65,081 |
| $ | 79,026 |
| $ | 187,968 |
| $ | 229,021 |
| |||||
Add: | |||||||||||||||||
Deferred revenue (end of period) |
| 130,385 |
|
| 157,915 |
|
| 130,385 |
|
| 157,915 |
| |||||
Deferred revenue, noncurrent (end of period) |
| 2,352 |
|
| 3,100 |
|
| 2,352 |
|
| 3,100 |
| |||||
Less: | |||||||||||||||||
Deferred revenue (beginning of period) |
| (126,381 | ) |
| (163,454 | ) |
| (129,079 | ) |
| (168,335 | ) | |||||
Deferred revenue, noncurrent (beginning of period) |
| (1,233 | ) |
| (2,560 | ) |
| (3,173 | ) |
| (2,420 | ) | |||||
Increase (decrease) in deferred revenue (current and noncurrent) |
| 5,123 |
|
| (4,999 | ) |
| 485 |
|
| (9,740 | ) | |||||
Billings | $ | 70,204 |
| $ | 74,027 |
| $ | 188,453 |
| $ | 219,281 |
| |||||
Reconciliation of Net Cash Provided by (Used in) Operating Activities to Adjusted Free Cash Flow: | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | 29 |
| $ | (6,482 | ) | $ | (530 | ) | $ | (8,059 | ) | |||||
Proceeds from shares issued in connection with employee stock purchase plan |
| - |
|
| - |
|
| 4,133 |
|
| 1,563 |
| |||||
Purchases of property and equipment |
| (1,547 | ) |
| (1,657 | ) |
| (4,965 | ) |
| (5,073 | ) | |||||
Adjusted free cash flow | $ | (1,518 | ) | $ | (8,139 | ) | $ | (1,362 | ) | $ | (11,569 | ) |
View source version on businesswire.com:https://www.businesswire.com/news/home/20221208005045/en/
CONTACT: Media –
Julie Kehoe
PR@domo.comInvestors –
Peter Lowry
IR@domo.com
KEYWORD: UNITED STATES NORTH AMERICA UTAH
INDUSTRY KEYWORD: PROFESSIONAL SERVICES DATA MANAGEMENT APPS/APPLICATIONS TECHNOLOGY DATA ANALYTICS SOFTWARE
SOURCE: Domo, Inc.
Copyright Business Wire 2022.
PUB: 12/08/2022 04:05 PM/DISC: 12/08/2022 04:06 PM
http://www.businesswire.com/news/home/20221208005045/en