Shares of Domo (DOMO) have been strong performers lately, with the stock up 31.1% over the past month. The stock hit a new 52-week high of $17.9 in the previous session. Domo has gained 150.7% since the start of the year compared to the 21.4% gain for the Zacks Computer and Technology sector and the 26% return for the Zacks Internet - Software industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of t ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

[Form 10-Q Cover Page](index=1&type=section&id=Form%2010-Q%20Cover%20Page) This section confirms Domo, Inc. filed its Quarterly Report on Form 10-Q for the period ended July 31, 2025, detailing outstanding common stock shares - Domo, Inc. filed its Quarterly Report on Form 10-Q for the quarterly period ended July 31, 2025[2](index=2&type=chunk) Class B Common Stock Registration | Title of each class | Trading symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Class B Common Stock, par value $0.001 per share | DOMO | The Nasdaq Global Market | - As of September 2, 2025, there were approximately **3.26 million** shares of Class A common stock and **37.97 million** shares of Class B common stock outstanding[8](index=8&type=chunk) [TABLE OF CONTENTS](index=3&type=section&id=TABLE%20OF%20CONTENTS) This section provides an organized listing of all major sections and subsections within the Form 10-Q report [SUMMARY RISK FACTORS](index=4&type=section&id=SUMMARY%20RISK%20FACTORS) This section provides a high-level overview of the significant risks and uncertainties that could adversely affect Domo, Inc.'s business, operating results, and financial condition - The company has a history of losses and may not achieve or maintain profitability[12](index=12&type=chunk) - Effective management of growth is crucial, and failure to do so could adversely affect business and operating results[12](index=12&type=chunk) - The company faces intense competition, which could reduce demand for its platform and negatively impact business, growth, revenue, and market share[12](index=12&type=chunk) [PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents Domo, Inc.'s unaudited condensed consolidated financial statements, including the balance sheets, statements of operations, comprehensive loss, stockholders' deficit, and cash flows for the periods ended July 31, 2025, along with accompanying notes detailing significant accounting policies, financial instrument valuations, and other relevant financial information [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | Item | As of January 31, 2025 | As of July 31, 2025 | | :------------------------------------------------------------------------------------------------ | :--------------------- | :------------------ | | Total current assets | $141,677 | $117,405 | | Total assets | $214,340 | $195,715 | | Total current liabilities | $254,949 | $246,365 | | Total liabilities | $391,586 | $387,201 | | Total stockholders' deficit | $(177,246) | $(191,486) | - Total assets decreased from **$214.3 million** as of January 31, 2025, to **$195.7 million** as of July 31, 2025[15](index=15&type=chunk) - Total stockholders' deficit increased from **$(177.2) million** to **$(191.5) million** during the six-month period[15](index=15&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | Item | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $78,407 | $79,718 | $158,510 | $159,829 | | Gross profit | $58,283 | $59,643 | $117,672 | $119,086 | | Loss from operations | $(14,487) | $(7,251) | $(35,937) | $(21,597) | | Net loss | $(19,490) | $(22,932) | $(45,497) | $(40,984) | | Net loss per share, basic and diluted | $(0.51) | $(0.56) | $(1.20) | $(1.02) | - Total revenue increased by **1.7%** for the three months ended July 31, 2025, compared to the same period in 2024, and by **0.8%** for the six months ended July 31, 2025[17](index=17&type=chunk) - Net loss increased to **$(22.9) million** for the three months ended July 31, 2025, from **$(19.5) million** in the prior year, but decreased to **$(41.0) million** for the six months ended July 31, 2025, from **$(45.5) million** in the prior year[17](index=17&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Condensed Consolidated Statements of Comprehensive Loss (in thousands) | Item | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(19,490) | $(22,932) | $(45,497) | $(40,984) | | Foreign currency translation adjustments | $346 | $(222) | $100 | $1,137 | | Comprehensive loss | $(19,144) | $(23,154) | $(45,397) | $(39,847) | - Comprehensive loss for the three months ended July 31, 2025, was **$(23.2) million**, an increase from **$(19.1) million** in the prior year, primarily due to increased net loss and negative foreign currency translation adjustments[21](index=21&type=chunk) - For the six months ended July 31, 2025, comprehensive loss decreased to **$(39.8) million** from **$(45.4) million** in the prior year, benefiting from a lower net loss and positive foreign currency translation adjustments[21](index=21&type=chunk) [Condensed Consolidated Statements of Stockholders' Deficit](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Deficit) Changes in Stockholders' Deficit (in thousands, except share amounts) - Six Months Ended July 31, 2025 | Item | Class A Common Stock (Amount) | Class B Common Stock (Amount) | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit | Total Stockholders' Deficit | | :------------------------------------------------------------------------------------------------ | :---------------------------- | :---------------------------- | :------------------------- | :-------------------------------------------- | :------------------ | :-------------------------- | | Balance as of January 31, 2025 | $3 | $36 | $1,310,922 | $(669) | $(1,487,538) | $(177,246) | | Vesting of restricted stock units | — | $1 | — | — | — | $1 | | Shares repurchased for tax withholdings on vesting of restricted stock | — | — | $(486) | — | — | $(486) | | Issuance of common stock under employee stock purchase plan | — | — | $680 | — | — | $680 | | Stock-based compensation expense | — | — | $15,042 | — | — | $15,042 | | Other comprehensive income | — | — | — | $1,359 | — | $1,359 | | Net loss | — | — | — | — | $(18,052) | $(18,052) | | Balance as of April 30, 2025 | $3 | $37 | $1,326,158 | $690 | $(1,505,590) | $(178,702) | | Vesting of restricted stock units | — | $1 | — | — | — | $1 | | Shares repurchased for tax withholdings on vesting of restricted stock | — | — | $(1,119) | — | — | $(1,119) | | Stock-based compensation expense | — | — | $11,488 | — | — | $11,488 | | Other comprehensive loss | — | — | — | $(222) | — | $(222) | | Net loss | — | — | — | — | $(22,932) | $(22,932) | | Balance as of July 31, 2025 | $3 | $38 | $1,336,527 | $468 | $(1,528,522) | $(191,486) | - Total stockholders' deficit increased from **$(177.2) million** at January 31, 2025, to **$(191.5) million** at July 31, 2025, primarily due to net losses incurred during the period[29](index=29&type=chunk) - Additional paid-in capital increased by **$25.6 million** during the six months ended July 31, 2025, largely driven by stock-based compensation expense[29](index=29&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | | :---------------------------------------- | :----------------------------- | :----------------------------- | | Net cash (used in) provided by operating activities | $(4,270) | $7,319 | | Net cash used in investing activities | $(4,730) | $(5,276) | | Net cash provided by (used in) financing activities | $3,695 | $(1,353) | | Net (decrease) increase in cash, cash equivalents, and restricted cash | $(5,235) | $1,879 | | Cash, cash equivalents, and restricted cash at end of period | $55,704 | $47,143 | - Net cash provided by operating activities significantly improved to **$7.3 million** for the six months ended July 31, 2025, compared to net cash used of **$(4.3) million** in the prior year[33](index=33&type=chunk) - Net cash used in financing activities was **$(1.4) million** for the six months ended July 31, 2025, a decrease from **$3.7 million** provided in the prior year, primarily due to payments on short-term payable financing and share repurchases for tax withholdings[33](index=33&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. Overview and Basis of Presentation](index=12&type=section&id=1.%20Overview%20and%20Basis%20of%20Presentation) This note describes Domo, Inc.'s business as a cloud-based AI and data products platform provider, its incorporation in Delaware, and its global subsidiaries - Domo, Inc. provides a cloud-based AI and data products platform, digitally connecting employees with real-time data and insights[38](index=38&type=chunk)[174](index=174&type=chunk) - The unaudited condensed consolidated financial statements are prepared in conformity with GAAP and reflect all necessary adjustments, but results for the interim period are not necessarily indicative of future results[39](index=39&type=chunk)[40](index=40&type=chunk) - The Company operates as one operating segment, with the CEO reviewing consolidated financial information for decision-making[46](index=46&type=chunk) [2. Summary of Significant Accounting Policies](index=13&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This note details the significant accounting policies applied in preparing the financial statements, covering areas such as cash and equivalents, accounts receivable, contract acquisition costs, property and equipment, leases, internal-use software, goodwill and intangible assets, revenue recognition (subscription and professional services), cost of revenue, advertising, R&D, stock-based compensation, and income taxes - Revenue is primarily derived from subscription services (consumption-based and subscription-based agreements) and professional services, recognized as control is transferred to customers[66](index=66&type=chunk)[69](index=69&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) - Contract acquisition costs for initial contracts are deferred and amortized over approximately four years, while renewal contract costs are amortized over two years if the benefit period is greater than one year[50](index=50&type=chunk) - The Company has a full valuation allowance for domestic net deferred tax assets due to uncertainty of realization[84](index=84&type=chunk) - Recent accounting pronouncements include ASU 2023-09 (Income Tax Disclosures), ASU 2024-03 (Income Statement Expense Disaggregation), and ASU 2025-05 (Credit Losses for Accounts Receivable and Contract Assets), with the Company evaluating their impacts[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk) [3. Cash and Cash Equivalents](index=18&type=section&id=3.%20Cash%20and%20Cash%20Equivalents) This note provides a breakdown of the Company's cash and cash equivalents, which primarily consist of cash on hand and money market funds Cash and Cash Equivalents (in thousands) | Item | As of January 31, 2025 | As of July 31, 2025 | | :------------------ | :--------------------- | :------------------ | | Cash | $30,208 | $33,619 | | Money market funds | $15,056 | $13,524 | | Total | $45,264 | $47,143 | - Total cash and cash equivalents increased from **$45.3 million** to **$47.1 million** from January 31, 2025, to July 31, 2025[95](index=95&type=chunk)[98](index=98&type=chunk) [4. Fair Value Measurements](index=19&type=section&id=4.%20Fair%20Value%20Measurements) This note outlines the Company's fair value measurements, categorizing financial instruments into Level 1, Level 2, and Level 3 based on input observability Fair Value Measurements (in thousands) | Item | As of January 31, 2025 | As of July 31, 2025 | | :---------------- | :--------------------- | :------------------ | | Money market funds (Level 1) | $15,056 | $13,524 | | Warrant liability (Level 3) | $11,208 | $20,491 | - The warrant liability, a Level 3 instrument, increased from **$11.2 million** to **$20.5 million**, with a **$10.4 million** change in fair value recognized in other expense, net for the three months ended July 31, 2025[99](index=99&type=chunk)[102](index=102&type=chunk) Warrant Liability Valuation Assumptions (Six months ended July 31, 2025) | Assumption | Value | | :---------------------- | :---------------- | | Expected stock price volatility | 69% - 72% | | Expected term | 2.6 - 3.6 years | | Risk-free interest rate | 3.58% - 4.32% | | Expected dividend yield | — | [5. Property and Equipment, Net](index=20&type=section&id=5.%20Property%20and%20Equipment,%20Net) This note details the Company's property and equipment, net, including capitalized internal-use software development costs, computer equipment, leasehold improvements, and office equipment Property and Equipment, Net (in thousands) | Item | As of January 31, 2025 | As of July 31, 2025 | | :------------------------------------------ | :--------------------- | :------------------ | | Capitalized internal-use software development costs | $65,225 | $71,085 | | Total property and equipment, gross | $73,943 | $79,980 | | Less accumulated depreciation and amortization | $(45,318) | $(50,539) | | Total property and equipment, net | $28,625 | $29,441 | - Capitalized internal-use software development costs increased by **$5.9 million** to **$71.1 million** as of July 31, 2025[104](index=104&type=chunk) - Amortization of capitalized software development costs was **$1.6 million** for the three months and **$3.3 million** for the six months ended July 31, 2025[105](index=105&type=chunk) [6. Intangible Assets](index=21&type=section&id=6.%20Intangible%20Assets) This note provides a breakdown of the Company's intangible assets, primarily intellectual property and patents, along with their accumulated amortization and remaining useful lives Intangible Assets (in thousands) | Item | As of January 31, 2025 | As of July 31, 2025 | | :-------------------------------- | :--------------------- | :------------------ | | Intellectual property excluding patents | $2,437 | $2,438 | | Patents | $950 | $950 | | Total intangible assets, gross | $3,387 | $3,388 | | Less accumulated amortization | $(1,262) | $(1,546) | | Total intangible assets, net | $2,125 | $1,842 | - Net intangible assets decreased from **$2.1 million** to **$1.8 million** from January 31, 2025, to July 31, 2025[107](index=107&type=chunk) - Amortization expense for intangible assets was **$0.2 million** for the three months and **$0.3 million** for the six months ended July 31, 2025[107](index=107&type=chunk) [7. Accrued Expenses and Other Current Liabilities](index=21&type=section&id=7.%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities) This note details the components of accrued expenses and other current liabilities, including accrued expenses, commissions, bonuses, payroll and benefits, short-term payable financing, and taxes Accrued Expenses and Other Current Liabilities (in thousands) | Item | As of January 31, 2025 | As of July 31, 2025 | | :-------------------------------- | :--------------------- | :------------------ | | Accrued expenses | $14,203 | $14,414 | | Accrued commissions | $8,297 | $9,143 | | Accrued bonus | $8,872 | $4,991 | | Short-term payable financing liability | $4,435 | $3,665 | | Total | $49,701 | $44,659 | - Total accrued expenses and other current liabilities decreased from **$49.7 million** to **$44.7 million** from January 31, 2025, to July 31, 2025[108](index=108&type=chunk) - Accrued bonus decreased significantly from **$8.9 million** to **$5.0 million** during the period[108](index=108&type=chunk) [8. Leases](index=21&type=section&id=8.%20Leases) This note provides information on the Company's operating leases for office space, including lease expense, sublease income, weighted-average remaining lease term, and discount rate Lease Expense (in thousands) | Item | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | | :------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total lease expense | $1,748 | $1,999 | $3,528 | $3,725 | | Sublease income | $365 | $310 | $554 | $616 | - Total lease expense increased to **$2.0 million** for the three months and **$3.7 million** for the six months ended July 31, 2025[113](index=113&type=chunk) Maturities of Lease Liabilities as of July 31, 2025 (in thousands) | Year Ending January 31: | Amount | | :---------------------- | :----- | | 2026 | $4,304 | | 2027 | $8,356 | | 2028 | $3,710 | | Thereafter | $925 | | Total lease payments | $17,295 | | Less imputed interest | $(2,055) | | Present value of lease liabilities | $15,240 | [9. Deferred Revenue and Performance Obligations](index=23&type=section&id=9.%20Deferred%20Revenue%20and%20Performance%20Obligations) This note details the changes in deferred revenue, unbilled receivables, and the transaction price allocated to remaining performance obligations (RPO) Deferred Revenue Changes (in thousands) - Six Months Ended July 31, 2025 | Item | Amount | | :-------------------------------------------------------------------- | :----- | | Balance as of January 31, 2025 | $181,104 | | Revenue recognized that was included in the deferred revenue balance at the beginning of the period | $(122,472) | | Increase due to billings excluding amounts recognized as revenue during the period | $96,879 | | Balance as of July 31, 2025 | $155,511 | - As of July 31, 2025, approximately **$409.8 million** of revenue was expected to be recognized from remaining performance obligations for subscription contracts, with **$220.2 million** expected within the next twelve months[119](index=119&type=chunk) - Unbilled receivables increased from **$0.9 million** as of January 31, 2025, to **$2.6 million** as of July 31, 2025[118](index=118&type=chunk) [10. Geographic Information](index=23&type=section&id=10.%20Geographic%20Information) This note presents the Company's revenue breakdown by geographic area, determined by the customer's billing address Revenue by Geographic Area (in thousands) | Region | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | United States | $62,391 | $63,736 | $126,372 | $128,094 | | International | $16,016 | $15,982 | $32,138 | $31,735 | | Total | $78,407 | $79,718 | $158,510 | $159,829 | | Percentage (US) | 80% | 80% | 80% | 80% | | Percentage (Intl) | 20% | 20% | 20% | 20% | - The United States consistently accounted for **80%** of total revenue for both the three and six months ended July 31, 2024 and 2025[120](index=120&type=chunk) - No other individual country exceeded **10%** of total revenue during these periods[120](index=120&type=chunk) [11. Debt](index=23&type=section&id=11.%20Debt) This note details the Company's credit facility, including term loan borrowings, recent amendments, interest rates (cash and capitalized), and financial covenants - The Company has a credit facility permitting up to **$125.3 million** in term loan borrowings, fully drawn as of July 31, 2025[123](index=123&type=chunk) - Amendments in February and August 2024 extended the maturity date to August 19, 2028, revised interest terms, and resulted in the issuance of **1,211,954** fully-vested Class B common stock warrants[124](index=124&type=chunk)[125](index=125&type=chunk)[144](index=144&type=chunk) - The credit facility includes a floating cash interest rate (approx. **7.3%** as of July 31, 2025) and a fixed **5.0%** capitalized interest rate, along with financial covenants for annualized recurring revenue, consolidated EBITDA, and minimum liquidity[126](index=126&type=chunk)[130](index=130&type=chunk) Long-Term Debt Balances (in thousands) | Item | As of January 31, 2025 | As of July 31, 2025 | | :-------------------------- | :--------------------- | :------------------ | | Principal | $128,238 | $131,492 | | Less: unamortized debt issuance costs | $(10,570) | $(9,552) | | Net carrying amount | $117,668 | $121,940 | [12. Commitments and Contingencies](index=25&type=section&id=12.%20Commitments%20and%20Contingencies) This note addresses the Company's commitments and contingencies, including legal proceedings, warranties, indemnification obligations, and other purchase commitments - Management believes the outcome of current legal proceedings will not have a material impact on the Company's financial condition, results of operations, or liquidity[133](index=133&type=chunk)[266](index=266&type=chunk) - The Company's subscription services are warranted to perform materially in accordance with terms, and arrangements generally include indemnification for intellectual property infringement[134](index=134&type=chunk) - No significant costs or liabilities have been accrued for warranties, indemnification, or service level agreement failures to date[134](index=134&type=chunk)[137](index=137&type=chunk) [13. Stockholders' Deficit](index=26&type=section&id=13.%20Stockholders'%20Deficit) This note details the Company's capital structure, including authorized and outstanding shares of Preferred Stock, Class A Common Stock, and Class B Common Stock - The Company has a dual-class common stock structure: Class A (**40 votes/share**) and Class B (**1 vote/share**)[140](index=140&type=chunk) - As of July 31, 2025, there were **3,263,659** shares of Class A common stock and **37,967,469** shares of Class B common stock issued and outstanding[141](index=141&type=chunk) - The Company may sell up to **$150.0 million** of Class B common stock through an 'at-the-market' offering program, with no shares sold to date[142](index=142&type=chunk)[233](index=233&type=chunk)[234](index=234&type=chunk) - As of July 31, 2025, there were **1,211,954** Class B common stock warrants outstanding with an exercise price of **$0.01** per share, expiring in 2028[144](index=144&type=chunk) [14. Equity Incentive Plans](index=27&type=section&id=14.%20Equity%20Incentive%20Plans) This note describes the Company's equity incentive plans, including the 2018 Equity Incentive Plan (2018 Plan) and the Employee Stock Purchase Plan (ESPP) - The 2018 Plan allows for various stock-based awards, with **2,130,656** shares available for grant as of July 31, 2025[146](index=146&type=chunk)[147](index=147&type=chunk) Stock-Based Compensation Expense (in thousands) | Item | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of revenue: Subscription | $807 | $947 | $1,605 | $1,617 | | Sales and marketing | $5,170 | $3,864 | $10,484 | $8,265 | | Research and development | $4,069 | $4,206 | $8,491 | $9,108 | | General and administrative | $5,911 | $3,700 | $8,995 | $8,686 | | Total | $16,473 | $13,228 | $30,615 | $28,683 | - Total stock-based compensation expense decreased to **$13.2 million** for the three months and **$28.7 million** for the six months ended July 31, 2025[149](index=149&type=chunk)[207](index=207&type=chunk) - As of July 31, 2025, there was **$68.4 million** of unrecognized stock-based compensation expense related to outstanding RSUs, expected to be recognized over **2.6 years**[156](index=156&type=chunk) [15. Income Taxes](index=29&type=section&id=15.%20Income%20Taxes) This note details the Company's income tax provision, which is primarily attributable to foreign and state taxes - Income tax expense was **$0.2 million** for the three months and **$0.4 million** for the six months ended July 31, 2025[162](index=162&type=chunk) - The effective tax rate differs from the U.S. statutory rate primarily due to a full valuation allowance on U.S. net deferred tax assets[163](index=163&type=chunk) [16. Net Loss Per Share](index=29&type=section&id=16.%20Net%20Loss%20Per%20Share) This note presents the calculation of basic and diluted net loss per share using the two-class method Net Loss Per Share (in thousands, except per share amounts) | Item | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | | :-------------------------------------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss per share, basic and diluted (Class A) | $(0.51) | $(0.56) | $(1.20) | $(1.02) | | Net loss per share, basic and diluted (Class B) | $(0.51) | $(0.56) | $(1.20) | $(1.02) | | Weighted-average number of shares used in computing net loss per share, basic and diluted (Class A) | 3,264 | 3,264 | 3,264 | 3,264 | | Weighted-average number of shares used in computing net loss per share, basic and diluted (Class B) | 35,125 | 37,379 | 34,679 | 36,932 | - Net loss per share (basic and diluted) for Class B common stock was **$(0.56)** for the three months and **$(1.02)** for the six months ended July 31, 2025[168](index=168&type=chunk) - Potentially dilutive securities were excluded from diluted EPS calculations as they were anti-dilutive due to the Company's net loss position[168](index=168&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Domo, Inc.'s financial condition and results of operations, highlighting key business developments, macroeconomic impacts, and factors affecting performance [Overview](index=32&type=section&id=Overview) This section provides a high-level summary of Domo's business, its cloud-based AI and data platform, and key financial metrics for the reporting periods - Domo provides a cloud-based AI and data products platform to connect employees with real-time data and insights[174](index=174&type=chunk) - **76%** of Annual Recurring Revenue (ARR) is now from consumption-based services, expected to increase[176](index=176&type=chunk) Key Financial Overview (in millions) | Metric | 3 Months Ended July 31, 2024 | 3 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | | :---------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total Revenue | $78.4 | $79.7 | $158.5 | $159.8 | | Net Loss | $(19.5) | $(22.9) | $(45.5) | $(41.0) | | Total RPO | $358.9 (July 31, 2024) | $430.9 (July 31, 2025) | | | [Impact of Macroeconomic Conditions](index=32&type=section&id=Impact%20of%20Macroeconomic%20Conditions) This section discusses how macroeconomic conditions have influenced Domo's sales cycles, deal scrutiny, and renewal discussions, and the company's strategic response - Macroeconomic conditions have elongated software sales cycles, increased deal scrutiny, and made renewal discussions more challenging[181](index=181&type=chunk) - The company is focusing on cost control and sales team alignment to improve margins, achieve sustained positive cash flow, and efficient long-term growth[182](index=182&type=chunk) [Factors Affecting Performance](index=33&type=section&id=Factors%20Affecting%20Performance) [Continue to Attract New Customers](index=33&type=section&id=Continue%20to%20Attract%20New%20Customers) Domo's growth depends on attracting new customers, defined as entities generating over $2,500 in revenue per quarter - As of July 31, 2025, Domo had over **2,500** customers[184](index=184&type=chunk) - Enterprise customers (over **$1 billion** in revenue) accounted for **44%** of revenue for the six months ended July 31, 2025[184](index=184&type=chunk) - The company plans to further develop its partner ecosystem to expand customer and geographic coverage[184](index=184&type=chunk) [Customer Upsell and Retention](index=33&type=section&id=Customer%20Upsell%20and%20Retention) Domo's performance relies on retaining existing customers and expanding their platform usage - The trailing twelve-month gross retention rate was **85%** as of July 31, 2025, up from **84%** in the prior year[188](index=188&type=chunk) - Customer retention has been affected by macroeconomic conditions and challenging renewals from COVID-19 related use cases[188](index=188&type=chunk) - The company expects customer retention to increase long-term through partner ecosystem expansion and wider strategic adoptions[189](index=189&type=chunk) [Sales and Marketing Efficiency](index=34&type=section&id=Sales%20and%20Marketing%20Efficiency) Domo is focused on improving the efficiency of its sales and marketing efforts through enhanced account targeting, messaging, and sales training - Sales and marketing expense as a percentage of total revenue decreased from **47%** for the three months ended July 31, 2024, to **44%** for the same period in 2025[191](index=191&type=chunk) - The company expects sales and marketing expense as a percentage of revenue to increase in the near term and decrease in the long term[215](index=215&type=chunk) [Leverage Research and Development Investments for Future Growth](index=34&type=section&id=Leverage%20Research%20and%20Development%20Investments%20for%20Future%20Growth) Domo plans to continue investing in research and development to expand platform functionality, including machine learning, predictive analytics, and AI technologies - Investments will focus on machine learning algorithms, predictive analytics, and other artificial intelligence technologies[192](index=192&type=chunk) - Research and development expense as a percentage of total revenue decreased from **28%** for the three months ended July 31, 2024, to **24%** for the same period in 2025[193](index=193&type=chunk) - The company expects R&D expense as a percentage of revenue to decrease in the long term[217](index=217&type=chunk) [Key Business Metric](index=34&type=section&id=Key%20Business%20Metric) [Billings](index=34&type=section&id=Billings) Billings, a key business metric, represent total revenue plus the change in deferred revenue - Billings are calculated as total revenue plus the change in deferred revenue[194](index=194&type=chunk) Billings (in thousands) | Period | 2024 | 2025 | | :------------------------ | :----- | :----- | | Three Months Ended July 31, | $68,626 | $70,333 | | Six Months Ended July 31, | $134,122 | $134,236 | - Billings for the six months ended July 31, 2025, were **$134.2 million**, a slight increase from **$134.1 million** in the prior year[195](index=195&type=chunk) [Components of Results of Operations](index=34&type=section&id=Components%20of%20Results%20of%20Operations) This section defines the key components of Domo's results of operations: Revenue (subscription and professional services), Cost of Revenue (subscription and professional services), Operating Expenses (sales and marketing, research and development, general and administrative), Other Expense, Net, and Income Taxes - Subscription revenue includes consumption-based and subscription-based agreements, recognized ratably over the contractual term[196](index=196&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk) - Cost of subscription revenue primarily includes third-party hosting, employee-related costs for cloud infrastructure and support, and amortization of capitalized software[200](index=200&type=chunk) - Operating expenses include sales and marketing (with deferred contract acquisition costs), research and development (expensed as incurred, except capitalized software), and general and administrative costs[202](index=202&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) This section provides a detailed comparative analysis of Domo's financial performance for the three and six months ended July 31, 2025, versus the corresponding periods in 2024 [Discussion of the Three Months Ended July 31, 2024 and 2025](index=37&type=section&id=Discussion%20of%20the%20Three%20Months%20Ended%20July%2031,%202024%20and%202025) For the three months ended July 31, 2025, total revenue increased slightly, driven by new customers, while professional services revenue decreased Revenue (in thousands) | Revenue Type | 2024 | 2025 | $ Change | % Change | | :-------------------------- | :----- | :----- | :------- | :------- | | Subscription | $70,921 | $72,730 | $1,809 | 3% | | Professional services and other | $7,486 | $6,988 | $(498) | (7)% | | Total revenue | $78,407 | $79,718 | $1,311 | 2% | - Subscription revenue increased by **$1.8 million (3%)** due to new customers, partially offset by a net decrease from existing customers[210](index=210&type=chunk) Gross Profit and Margin (in thousands) | Item | 2024 | 2025 | $ Change | % Change | | :-------------------------- | :----- | :----- | :------- | :------- | | Total cost of revenue | $20,124 | $20,075 | $(49) | —% | | Gross profit | $58,283 | $59,643 | $1,360 | 2% | | Total gross margin | 74% | 75% | | | - Operating expenses decreased by **$5.9 million (8%)**, driven by lower employee-related costs in sales & marketing, R&D, and G&A[215](index=215&type=chunk)[216](index=216&type=chunk)[218](index=218&type=chunk) - Total other expense, net, increased by **$10.7 million (225%)** primarily due to a **$10.3 million** revaluation of warrant liability[219](index=219&type=chunk) [Discussion of the Six Months Ended July 31, 2024 and 2025](index=39&type=section&id=Discussion%20of%20the%20Six%20Months%20Ended%20July%2031,%202024%20and%202025) For the six months ended July 31, 2025, total revenue saw a modest increase, with subscription revenue growing from new customers and professional services increasing due to training Revenue (in thousands) | Revenue Type | 2024 | 2025 | $ Change | % Change | | :-------------------------- | :----- | :----- | :------- | :------- | | Subscription | $143,031 | $144,119 | $1,088 | 1% | | Professional services and other | $15,479 | $15,710 | $231 | 1% | | Total revenue | $158,510 | $159,829 | $1,319 | 1% | - Subscription revenue increased by **$1.1 million (1%)** due to new customers, partially offset by a net decrease from existing customers[221](index=221&type=chunk) Gross Profit and Margin (in thousands) | Item | 2024 | 2025 | $ Change | % Change | | :-------------------------- | :----- | :----- | :------- | :------- | | Total cost of revenue | $40,838 | $40,743 | $(95) | —% | | Gross profit | $117,672 | $119,086 | $1,414 | 1% | | Total gross margin | 74% | 75% | | | - Operating expenses decreased by **$12.9 million (8%)**, primarily due to lower employee-related costs in sales & marketing and R&D, and a decrease in professional and legal fees in G&A[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk) - Total other expense, net, increased by **$9.8 million (106%)** primarily due to a **$9.7 million** revaluation of warrant liability[228](index=228&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) Domo's liquidity is supported by $47.1 million in cash and cash equivalents and a fully drawn $125.3 million credit facility - As of July 31, 2025, the Company had **$47.1 million** in cash and cash equivalents[230](index=230&type=chunk) - The **$125.3 million** credit facility was fully drawn as of July 31, 2025[230](index=230&type=chunk)[236](index=236&type=chunk) - The Company believes existing cash and equivalents will meet operating requirements for at least the next **12 months**[232](index=232&type=chunk) - An 'at-the-market' offering program allows for the sale of up to **$150.0 million** of Class B common stock, though no shares have been sold yet[233](index=233&type=chunk)[234](index=234&type=chunk) [Historical Cash Flow Trends](index=43&type=section&id=Historical%20Cash%20Flow%20Trends) [Operating Activities](index=43&type=section&id=Operating%20Activities) Cash flows from operating activities improved significantly, moving from a net cash outflow of $(4.3) million in the six months ended July 31, 2024, to a net cash inflow of $7.3 million in the same period of 2025 - Net cash provided by operating activities was **$7.3 million** for the six months ended July 31, 2025, compared to net cash used of **$(4.3) million** in the prior year[242](index=242&type=chunk) - Cash collected from customers was **$161.8 million**, exceeding cash outflows of **$154.5 million** for the six months ended July 31, 2025[245](index=245&type=chunk) [Investing Activities](index=43&type=section&id=Investing%20Activities) Net cash used in investing activities increased to $(5.3) million for the six months ended July 31, 2025, primarily due to higher capitalized development costs for internal-use software - Net cash used in investing activities was **$(5.3) million** for the six months ended July 31, 2025, up from **$(4.7) million** in the prior year[242](index=242&type=chunk) - Capitalized development costs for internal-use software were **$4.9 million** for the six months ended July 31, 2025, compared to **$3.5 million** in the prior year[247](index=247&type=chunk) [Financing Activities](index=43&type=section&id=Financing%20Activities) Net cash used in financing activities was $(1.4) million for the six months ended July 31, 2025, a shift from $3.7 million provided in the prior year - Net cash used in financing activities was **$(1.4) million** for the six months ended July 31, 2025[242](index=242&type=chunk) - Significant outflows included **$7.0 million** in payments on short-term payable financing and **$1.6 million** for share repurchases for tax withholdings[250](index=250&type=chunk) - Inflows included **$7.0 million** from short-term payable financing and **$0.7 million** from employee stock purchase plan proceeds[250](index=250&type=chunk) [Contractual Obligations and Commitments](index=44&type=section&id=Contractual%20Obligations%20and%20Commitments) The Company's principal commitments include long-term debt, operating lease obligations, and non-cancelable contracts for cloud infrastructure services - Principal commitments include long-term debt, operating leases, and non-cancelable cloud infrastructure contracts[251](index=251&type=chunk) - No material changes in contractual obligations and commitments since the Annual Report on Form 10-K[251](index=251&type=chunk) [Critical Accounting Policies and Estimates](index=44&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section states that there have been no material changes to the Company's critical accounting policies and estimates as previously disclosed in its Annual Report on Form 10-K - No material changes to critical accounting policies and estimates since the Annual Report on Form 10-K[253](index=253&type=chunk) - Preparation of financial statements requires estimates and assumptions that affect reported amounts[252](index=252&type=chunk) [Recent Accounting Pronouncements](index=44&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to Note 2 of the condensed consolidated financial statements for information regarding recent accounting pronouncements, including ASU 2023-09, ASU 2024-03, and ASU 2025-05 - Refer to Note 2 for details on recent accounting pronouncements[254](index=254&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses Domo's exposure to market risks, including interest rate risk, foreign currency exchange rate risk, and inflation risk [Interest Rate Risk](index=45&type=section&id=Interest%20Rate%20Risk) Domo is exposed to interest rate risk primarily through its cash and cash equivalents and its credit facility - The Company had **$47.1 million** in cash and cash equivalents as of July 31, 2025, primarily in cash and money market funds[255](index=255&type=chunk) - The **$125.3 million** credit facility has a floating interest rate (approx. **7.3%** cash interest as of July 31, 2025), exposing the Company to interest rate movements[256](index=256&type=chunk) - A hypothetical **100 basis point** change in interest rates would not materially impact the fair value of outstanding debt or returns on cash[257](index=257&type=chunk) [Foreign Currency Exchange Risk](index=45&type=section&id=Foreign%20Currency%20Exchange%20Risk) Domo faces foreign currency exchange risk due to international operations with revenues and expenses denominated in currencies other than the U.S. dollar, primarily Japanese Yen, British Pound Sterling, and Australian Dollar - Foreign currency risks arise from revenue and operating expenses denominated in currencies like Japanese Yen, British Pound Sterling, and Australian Dollar[258](index=258&type=chunk) - Changes in the U.S. dollar's value relative to other currencies can affect revenue and operating results[258](index=258&type=chunk) - The Company does not currently hedge foreign currency transactions but may do so in the future[259](index=259&type=chunk) [Inflation Risk](index=45&type=section&id=Inflation%20Risk) Domo does not believe inflation has materially affected its business to date, as subscription contracts often include CPI-tied pricing - Inflation has not had a material effect on the business to date[260](index=260&type=chunk) - Subscription contracts often contain pricing terms tied to the Consumer Price Index (CPI)[260](index=260&type=chunk) - Inability to offset higher costs from significant inflationary pressure with price increases could adversely affect business[260](index=260&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) This section addresses the effectiveness of Domo's disclosure controls and procedures and internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=46&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Management, including the principal executive and financial officers, evaluated the effectiveness of disclosure controls and procedures as of July 31, 2025 - Disclosure controls and procedures were evaluated as effective at a reasonable assurance level as of July 31, 2025[261](index=261&type=chunk) [Changes in Internal Control Over Financial Reporting](index=46&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) There were no changes in internal control over financial reporting during the period covered by this report that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting - No material changes in internal control over financial reporting occurred during the period[262](index=262&type=chunk) [Inherent Limitations on Effectiveness of Disclosure Controls and Procedures](index=46&type=section&id=Inherent%20Limitations%20on%20Effectiveness%20of%20Disclosure%20Controls%20and%20Procedures) Management acknowledges that disclosure controls and internal control over financial reporting, no matter how well designed, can only provide reasonable, not absolute, assurance due to inherent limitations - Control systems provide only reasonable, not absolute, assurance due to inherent limitations[263](index=263&type=chunk) - Limitations include faulty judgments, simple errors, circumvention by individual acts or collusion, and management override[263](index=263&type=chunk) [PART II. OTHER INFORMATION](index=47&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) Domo is involved in legal proceedings in the normal course of business, but management believes these will not have a material impact on the Company's financial condition, results of operations, or liquidity - The Company is involved in legal proceedings arising in the normal course of business[266](index=266&type=chunk) - Management believes the outcome of these proceedings will not materially impact the Company's financial condition, results of operations, or liquidity[266](index=266&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) This section details various risk factors that could materially and adversely affect Domo's business, operating results, and financial condition [Risks Related to Our Financial Position and Capital Needs](index=47&type=section&id=Risks%20Related%20to%20Our%20Financial%20Position%20and%20Capital%20Needs) Domo faces risks related to its financial position, including a history of net losses and an accumulated deficit of $1.5 billion as of July 31, 2025 - The Company has incurred significant net losses, with an accumulated deficit of **$1,528.5 million** as of July 31, 2025[268](index=268&type=chunk)[273](index=273&type=chunk) - Future capital raising may be limited, potentially hindering growth or forcing delays in product development[273](index=273&type=chunk)[274](index=274&type=chunk) - Operating results may fluctuate significantly due to factors like customer expansion, contract terms, competition, and seasonal sales variations[277](index=277&type=chunk)[279](index=279&type=chunk) - The credit facility contains restrictive and financial covenants, including minimum annualized recurring revenue and consolidated EBITDA, which could limit operating flexibility or trigger default if not met[285](index=285&type=chunk)[286](index=286&type=chunk)[130](index=130&type=chunk) - The Company's ability to use its net operating loss (NOL) carryforwards (federal: **$1.2 billion**, state: **$1.4 billion** as of Jan 31, 2025) may be subject to limitations due to ownership changes or regulatory changes[295](index=295&type=chunk)[296](index=296&type=chunk) [Risks Related to Our Relationships with Customers and Third Parties](index=53&type=section&id=Risks%20Related%20to%20Our%20Relationships%20with%20Customers%20and%20Third%20Parties) Domo's business success is highly dependent on its relationships with customers and third parties - Failure to attract new customers cost-effectively or retain existing ones could harm revenue growth and operating results[301](index=301&type=chunk)[303](index=303&type=chunk) - The loss of key customers or failure to renew contracts could significantly affect revenue, reputation, and ability to acquire new customers[308](index=308&type=chunk) - Dependence on third-party data centers and technology systems creates vulnerability to outages, interruptions, and performance problems, which could disrupt operations and harm reputation[311](index=311&type=chunk)[313](index=313&type=chunk)[316](index=316&type=chunk) - Contractual disputes with customers, including non-payment, could be costly, time-consuming, and damage the Company's reputation[317](index=317&type=chunk)[318](index=318&type=chunk) [Risks Related to Our Products and Solutions](index=56&type=section&id=Risks%20Related%20to%20Our%20Products%20and%20Solutions) Domo faces intense competition in a rapidly evolving technology market, which could reduce demand for its platform - The market for Domo's platform is intensely competitive, with large software companies and business analytics providers as key competitors[319](index=319&type=chunk)[320](index=320&type=chunk) - The transition to a consumption-based pricing model, while representing **76%** of ARR, is relatively new and carries risks such as lower net retention if customers use less data than expected[327](index=327&type=chunk) - Failure to adapt to rapidly changing technology, evolving industry standards, and customer needs, especially concerning AI and IoT, could make solutions less competitive[330](index=330&type=chunk)[333](index=333&type=chunk)[338](index=338&type=chunk) - The use of AI tools on the platform raises novel and complex issues, including potential for deficiencies, inaccuracies, biases, and evolving legal/regulatory landscapes (e.g., EU AI Act, Utah AI Policy Act)[333](index=333&type=chunk)[334](index=334&type=chunk) - Inability to timely and effectively scale technology, meet service level commitments, or manage open-source software could lead to performance problems, customer dissatisfaction, and increased costs[340](index=340&type=chunk)[342](index=342&type=chunk)[349](index=349&type=chunk) [Risks Related to Our Personnel and Operations](index=61&type=section&id=Risks%20Related%20to%20Our%20Personnel%20and%20Operations) Domo's operational success is tied to its personnel and operational strategies - Failure to effectively align, develop, and expand sales and marketing capabilities with the new pricing structure could harm customer acquisition and platform acceptance[352](index=352&type=chunk) - The Company may be subject to litigation, which could be costly, time-consuming, and harm its reputation[354](index=354&type=chunk)[355](index=355&type=chunk) - Inability to attract, integrate, and retain qualified personnel, especially top technical talent, could adversely affect the business due to intense competition and high training costs[357](index=357&type=chunk) - Expanding international operations subjects the Company to various risks, including significant investments, localization needs, regulatory changes, currency fluctuations, and political instability[363](index=363&type=chunk)[364](index=364&type=chunk) - Future acquisitions could disrupt business, divert resources, and expose the Company to integration difficulties and financial risks[370](index=370&type=chunk) [Risks Related to Privacy and Cybersecurity](index=66&type=section&id=Risks%20Related%20to%20Privacy%20and%20Cybersecurity) Domo is subject to extensive and evolving governmental laws and regulations related to privacy, data protection, and cybersecurity globally - The Company is subject to evolving privacy and data protection laws globally (e.g., CCPA, CPRA, GDPR, PIPL, LGPD, NIS2, DORA), with non-compliance potentially leading to significant penalties and reputational harm[376](index=376&type=chunk)[378](index=378&type=chunk)[382](index=382&type=chunk)[385](index=385&type=chunk)[387](index=387&type=chunk) - Security breaches, unauthorized access to customer data, or other security incidents (including those from third-party hosting, open-source libraries, or AI-generated code) could disrupt operations, damage reputation, and incur significant remediation costs[389](index=389&type=chunk)[390](index=390&type=chunk)[391](index=391&type=chunk)[392](index=392&type=chunk)[397](index=397&type=chunk) - The use of generative AI technologies may expose sensitive information, intellectual property, and source code, triggering legal and compliance risks[393](index=393&type=chunk) - Insider threats, whether malicious or inadvertent, pose significant risks to data confidentiality, integrity, and availability[394](index=394&type=chunk) - Insurance coverage for security and privacy damages may not be sufficient for all liabilities incurred[400](index=400&type=chunk) [Risks Related to Our Intellectual Property](index=72&type=section&id=Risks%20Related%20to%20Our%20Intellectual%20Property) Domo's business heavily relies on its brand recognition and the protection of its intellectual property (IP) - Maintaining and enhancing the Domo brand and reputation is critical, and negative publicity or reviews could adversely affect business and operating results[408](index=408&type=chunk)[409](index=409&type=chunk)[411](index=411&type=chunk) - The Company faces risks of third-party claims of intellectual property infringement, which could lead to costly litigation, require expensive licenses, or force redesigns of its platform[412](index=412&type=chunk)[414](index=414&type=chunk) - Indemnity provisions in customer agreements could expose the Company to substantial liability for IP infringement and other losses[415](index=415&type=chunk) - The success of the business depends on protecting and enforcing its proprietary technology, including **82** issued U.S. patents, but patent protection is expensive, time-consuming, and may not provide competitive advantages or be enforceable in all jurisdictions[416](index=416&type=chunk)[417](index=417&type=chunk) - Unauthorized use of intellectual property, including in the context of artificial intelligence, may occur, requiring significant resources for monitoring and enforcement, potentially leading to costly litigation[420](index=420&type=chunk)[421](index=421&type=chunk) [Risks Related to Our Corporate Governance](index=75&type=section&id=Risks%20Related%20to%20Our%20Corporate%20Governance) Domo's corporate governance structure, particularly its dual-class common stock, concentrates voting control with Joshua G. James, the founder and CEO - The dual-class common stock structure concentrates approximately **78%** of voting control with Joshua G. James, limiting other stockholders' influence[422](index=422&type=chunk) - Concentrated control may delay or prevent a change in control and could affect the market price of Class B common stock[422](index=422&type=chunk) - As a 'controlled company' under Nasdaq rules, Domo may rely on exemptions from certain corporate governance requirements, potentially reducing protections for stockholders[424](index=424&type=chunk)[425](index=425&type=chunk) - The dual-class structure may result in a lower or more volatile market price and potential exclusion from certain stock indexes[426](index=426&type=chunk) [Risks Related to Our Financial Reporting and Disclosure](index=76&type=section&id=Risks%20Related%20to%20Our%20Financial%20Reporting%20and%20Disclosure) Domo's financial reporting and disclosure are subject to risks from changes in GAAP, increased costs as a public company, and the need to maintain effective internal controls - Changes in GAAP or their interpretations could significantly affect reported financial results and comparability with other companies[427](index=427&type=chunk) - As a public company, Domo incurs increased legal, accounting, and compliance costs, including those related to corporate governance and Sarbanes-Oxley Act Section 404[428](index=428&type=chunk)[429](index=429&type=chunk)[430](index=430&type=chunk) - Failure to comply with Section 404 requirements or identification of material weaknesses in internal controls could lead to stock price decline and regulatory sanctions[430](index=430&type=chunk)[431](index=431&type=chunk) [Other Risks Related to Ownership of Our Class B Common Stock](index=77&type=section&id=Other%20Risks%20Related%20to%20Ownership%20of%20Our%20Class%20B%20Common%20Stock) Ownership of Domo's Class B common stock carries risks including high market price volatility due to various factors, such as operating results, competitor actions, and economic conditions - The market price of Class B common stock may be highly volatile due to fluctuations in operating results, competitor actions, analyst coverage, and general market conditions[432](index=432&type=chunk)[433](index=433&type=chunk)[434](index=434&type=chunk)[435](index=435&type=chunk) - Future sales of a large number of Class B common shares, including those from equity compensation plans or shares pledged by the CEO, could cause the stock price to fall[436](index=436&type=chunk)[437](index=437&type=chunk)[438](index=438&type=chunk)[439](index=439&type=chunk) - Anti-takeover provisions in charter documents and Delaware law could make an acquisition difficult and limit stockholders' ability to influence management or receive a premium for their shares[440](index=440&type=chunk)[441](index=441&type=chunk) - The amended and restated bylaws designate Delaware courts as the exclusive forum for certain disputes, potentially limiting stockholders' choice of judicial forum[442](index=442&type=chunk)[443](index=443&type=chunk) [General Risk Factors](index=80&type=section&id=General%20Risk%20Factors) Domo's business is susceptible to general economic uncertainties or downturns, both domestically and internationally - Economic uncertainties or downturns, including those from inflation, recession, and military conflicts, could adversely affect business investments and demand for the platform[445](index=445&type=chunk) - Challenging economic times can lead to tightened customer budgets, delayed payments, and increased allowance for doubtful accounts[446](index=446&type=chunk) - Elevated inflation rates (e.g., **2.9%** in 2024) and labor shortages could increase expenses and operating costs[447](index=447&type=chunk) [Item 5. Other Information](index=80&type=section&id=Item%205.%20Other%20Information) This section provides details on compensatory arrangements for certain officers and information regarding securities trading plans [Compensatory Arrangements of Certain Officers](index=80&type=section&id=Compensatory%20Arrangements%20of%20Certain%20Officers) On July 2, 2025, the compensation committee approved a one-time grant of 450,000 performance-based restricted stock units (PSUs) to CEO Joshua G. James - A one-time grant of **450,000** performance-based restricted stock units (PSUs) was approved for CEO Joshua G. James on July 2, 2025[450](index=450&type=chunk) - PSUs vest upon Class B common stock achieving specific 30-trading day average closing price hurdles (**$20, $25, $35, $45** per share) within a four-year period, alongside service-based conditions[450](index=450&type=chunk) [Securities Trading Plans of Directors and Executive Officers](index=80&type=section&id=Securities%20Trading%20Plans%20of%20Directors%20and%20Executive%20Officers) During the last fiscal quarter, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the last fiscal quarter[451](index=451&type=chunk) [Item 6. Exhibits](index=81&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including organizational documents, certifications from the principal executive and financial officers, and Inline XBRL documents - Exhibits include Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, and certifications from principal executive and financial officers[452](index=452&type=chunk) - Inline XBRL documents (Instance, Schema, Calculation, Definition, Label, Presentation Linkbase Documents, and Cover Page Interactive Data File) are also filed[452](index=452&type=chunk) [SIGNATURES](index=82&type=section&id=SIGNATURES) This section contains the required signatures for the Form 10-Q report, confirming its submission by authorized personnel - The report was signed on September 4, 2025, by Tod Crane, Chief Financial Officer (Principal Financial and Accounting Officer) of Domo, Inc[457](index=457&type=chunk)

Domo (DOMO) Q2 2026 Earnings Call August 27, 2025 05:00 PM ET Company ParticipantsPeter Lowry - VP, IRJosh James - CEO & DirectorTod Crane - CFODerrick Wood - Managing DirectorBrett Huff - Managing DirectorRJ Tracy - Chief Revenue OfficerConference Call ParticipantsPat Walravens - Director - Technology Research & Senior AnalystYi Fu Lee - VP & Senior Software Equity Research AnalystEric Martinuzzi - Senior Research AnalystOperatorGreetings, and welcome to the Domo Second Quarter Fiscal Year twenty twenty si ...

Financial Data and Key Metrics Changes - In Q2, the company exceeded guidance on billings, revenue, and delivered its first positive non-GAAP EPS while generating positive free cash flow [23][24] - Total revenue was $79.7 million, and billings were $70.3 million, marking a significant performance improvement [23][24] - Non-GAAP net income was $0.9 million, with non-GAAP diluted earnings per share at $0.02 based on 43.6 million diluted weighted average shares outstanding [29][30] - Subscription gross margin rose to 81.9%, and operating margin reached 7.7%, the highest in company history [26][28] Business Line Data and Key Metrics Changes - New ACV growth accelerated to nearly 20%, the highest in 3.5 years, with sales force productivity growth increasing from 19% to 67% year-over-year [6][26] - Subscription RPO growth accelerated from 3% to 19% year-over-year, with current subscription RPO growing 4% to $220.2 million and total subscription RPO growing 19% to $409.8 million [26][27] Market Data and Key Metrics Changes - International momentum was strong, particularly in Japan, where new ACV nearly doubled year-over-year, and TCV hit all-time highs [15][16] - Japan's NRR reached close to 130%, indicating robust customer retention and growth in that market [15] Company Strategy and Development Direction - The company is focused on sustainable profitable growth, emphasizing a partner-centric go-to-market strategy and a shift to a consumption-based model [4][5] - The strategy includes deepening partnerships with cloud data warehouse (CDW) partners and enhancing AI capabilities [10][11] - The company aims to maintain a disciplined financial execution while investing in AI innovation and partner enablement [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation and momentum, highlighting the strong demand for advanced AI solutions [9][10] - The company expects to see continued improvement in gross retention rates and new ACV growth, particularly from consumption contracts [41][90] - Management anticipates that the impact of recent strategic initiatives will accelerate in the coming quarters [9][40] Other Important Information - The company was recognized as a leader in several industry reports and awards, reflecting its commitment to innovation and talent advancement [21][22] - The company plans to continue investing in partnerships and AI innovations to drive future growth [22][29] Q&A Session Summary Question: How has the Snowflake Conference impacted the business? - The Snowflake event generated thousands of leads and significantly increased new ACV, with expectations for continued growth in Q3 [34][36] Question: Can you elaborate on the 108% NRR and customer migration to the consumption model? - The 108% NRR is for customers who originally purchased on a consumption basis, and management expects retention rates to improve as more customers transition to this model [41][44] Question: What insights can you provide on international markets and verticals? - Japan has shown exceptional performance, with strong retention and growth across various industries, while other regions in Asia Pacific and EMEA are also performing well [63][64] Question: How does the consumption model affect customer engagement and use cases? - The consumption model allows for broader user access and encourages experimentation with different use cases, leading to increased adoption and retention [70][72] Question: What is the outlook for future growth and profitability? - Future growth is expected to be driven by improved retention rates, new ACV growth, and strong demand for AI-driven solutions [90][91]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Domo's Q2 FY26 saw accelerating ACV, strong subscription RPO, and record non-GAAP operating margin, alongside industry recognition for BI leadership and workplace equality [CEO's Strategic Commentary](index=1&type=section&id=CEO%27s%20Strategic%20Commentary) Domo's CEO highlighted accelerating ACV, strong subscription RPO, and expanding partnerships as key growth drivers. The company achieved record operating margin and its first positive non-GAAP EPS, with 108% NRR for consumption contracts, positioning Domo for leadership in the evolving data and AI landscape - CEO Josh James noted accelerating ACV, strong subscription RPO, and expanding partnerships as key growth drivers[3](index=3&type=chunk) - Domo achieved **record operating margin** and its first ever **positive non-GAAP EPS**[3](index=3&type=chunk) - Reported **108% NRR** for customers on consumption contracts, indicating model effectiveness[3](index=3&type=chunk) - Positioned for leadership in data and AI through ongoing AI innovation, continued consumption growth, and a stronger partner ecosystem[3](index=3&type=chunk) [Recent Business Highlights](index=1&type=section&id=Recent%20Business%20Highlights) Domo received significant industry recognition, including being named a leader in Nucleus Research's 2025 Business Intelligence (BI) and Analytics Technology Value Matrix for the fifth consecutive year. The company also earned recognition in Dresner Advisory Services' 2025 BI Market Study and for equal advancement opportunity on the 2025 ParityLIST and the Shatter List - Named a leader in Nucleus Research's 2025 Business Intelligence (BI) and Analytics Technology Value Matrix for the fifth consecutive year[4](index=4&type=chunk) - Recognized as a leader in Dresner Advisory Services' 2025 Wisdom of Crowds® Business Intelligence (BI) Market Study for Customer Experience and Vendor Credibility Models, achieving its **ninth consecutive perfect recommendation score**[9](index=9&type=chunk) - Named to the 2025 ParityLIST and the Women Tech Council's Shatter List for the eighth consecutive year, recognizing equal advancement opportunity[9](index=9&type=chunk) [Fiscal Second Quarter Fiscal 2026 Financial Results](index=1&type=section&id=Fiscal%20Second%20Quarter%20Fiscal%202026%20Financial%20Results) Domo reported Q2 FY26 total revenue of $79.7 million, achieving positive non-GAAP EPS and operating margin, with improved cash flow from operations and adjusted free cash flow [Key Financial Highlights (Non-GAAP & GAAP)](index=1&type=section&id=Key%20Financial%20Highlights%20%28Non-GAAP%20%26%20GAAP%29) Domo reported total revenue of $79.7 million and subscription revenue of $72.7 million for Q2 FY26. Subscription RPO increased 19% year-over-year to $409.8 million. The company achieved a positive non-GAAP operating margin of 8% and non-GAAP net income of $0.9 million, resulting in diluted non-GAAP EPS of $0.02. Net cash provided by operating activities increased 155% year-over-year to $3.4 million, and adjusted free cash flow rose 125% year-over-year to $1.4 million Key Financial Highlights | Metric | Q2 FY26 Value | YoY Change | | :-------------------------------- | :---------------- | :--------- | | Total Revenue | $79.7 million | | | Subscription Revenue | $72.7 million | | | Billings | $70.3 million | | | Subscription RPO (as of July 31, 2025) | $409.8 million | +19% | | Current Subscription RPO (as of July 31, 2025) | $220.2 million | +4% | | Net Cash Provided by Operating Activities | $3.4 million | +155% | | Adjusted Free Cash Flow | $1.4 million | +125% | | GAAP Operating Margin | -9% | +9 percentage points | | Non-GAAP Operating Margin | +8% | +5 percentage points | | GAAP Net Loss | $22.9 million | | | GAAP Net Loss per Share (basic & diluted) | $0.56 | | | Non-GAAP Net Income | $0.9 million | | | Diluted Non-GAAP Net Income per Share | $0.02 | | | Cash and Cash Equivalents (as of July 31, 2025) | $47.1 million | | [GAAP Financial Statements](index=5&type=section&id=GAAP%20Financial%20Statements) Domo's GAAP financial statements for Q2 FY26 show total revenue of $79.7 million, with an improved operating loss of $7.3 million compared to $14.5 million in Q2 FY25. However, net loss increased to $22.9 million, resulting in a GAAP net loss per share of $0.56. The balance sheet indicates a decrease in total assets and a widening stockholders' deficit, while cash flow from operations turned positive at $3.4 million [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 FY26, Domo reported total revenue of $79.7 million, up from $78.4 million in Q2 FY25. Net loss increased to $22.9 million from $19.5 million in the prior year quarter, with GAAP net loss per share at $0.56. Operating loss improved to $7.3 million from $14.5 million year-over-year Condensed Consolidated Statements of Operations | Metric (in thousands) | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Total Revenue | $78,407 | $79,718 | $158,510 | $159,829 | | Gross Profit | $58,283 | $59,643 | $117,672 | $119,086 | | Loss from Operations | $(14,487) | $(7,251) | $(35,937) | $(21,597) | | Net Loss | $(19,490) | $(22,932) | $(45,497) | $(40,984) | | Net Loss per Share (basic and diluted) | $(0.51) | $(0.56) | $(1.20) | $(1.02) | | Weighted-average shares (basic and diluted) | 38,389 | 40,643 | 37,943 | 40,196 | - Total stock-based compensation expenses for Q2 FY26 were **$13.2 million**, down from $16.5 million in Q2 FY25[19](index=19&type=chunk) - Remeasurement of warrant liability significantly impacted other expense, net, increasing to **$10.4 million** in Q2 FY26 from $0.1 million in Q2 FY25[19](index=19&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of July 31, 2025, Domo's total assets were $195.7 million, a decrease from $214.3 million at January 31, 2025. Total liabilities also decreased to $387.2 million from $391.6 million. Cash and cash equivalents slightly increased to $47.1 million from $45.3 million, while the stockholders' deficit widened to $(191.5) million from $(177.2) million Condensed Consolidated Balance Sheets | Metric (in thousands) | January 31, 2025 | July 31, 2025 | | :-------------------------------- | :--------------- | :-------------- | | Cash and cash equivalents | $45,264 | $47,143 | | Total Current Assets | $141,677 | $117,405 | | Total Assets | $214,340 | $195,715 | | Total Current Liabilities | $254,949 | $246,365 | | Warrant Liability | $11,208 | $20,491 | | Total Liabilities | $391,586 | $387,201 | | Total Stockholders' Deficit | $(177,246) | $(191,486) | - Accounts receivable, net, decreased significantly from **$71.5 million to $47.3 million** between January 31, 2025, and July 31, 2025[21](index=21&type=chunk) - Warrant liability nearly doubled from **$11.2 million to $20.5 million** during the six-month period[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q2 FY26, net cash provided by operating activities was $3.4 million, a significant improvement from net cash used of $6.2 million in Q2 FY25. Net cash used in investing activities remained stable at $2.3 million. Net cash used in financing activities was $0.8 million, compared to $2.6 million provided in Q2 FY25, primarily due to payments on short-term payable financing and shares repurchased for tax withholdings Condensed Consolidated Statements of Cash Flows | Metric (in thousands) | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net cash (used in) provided by operating activities | $(6,171) | $3,368 | $(4,270) | $7,319 | | Net cash used in investing activities | $(2,204) | $(2,349) | $(4,730) | $(5,276) | | Net cash provided by (used in) financing activities | $2,574 | $(758) | $3,695 | $(1,353) | | Net (decrease) increase in cash, cash equivalents, and restricted cash | $(5,454) | $(37) | $(5,235) | $1,879 | | Cash, cash equivalents, and restricted cash at end of period | $55,704 | $47,143 | $55,704 | $47,143 | - The shift to **positive net cash from operating activities** in Q2 FY26 was driven by adjustments including stock-based compensation, remeasurement of warrant liability, and changes in accounts receivable[23](index=23&type=chunk) - Payments on short-term payable financing amounted to **$3.3 million** in Q2 FY26, contributing to the net cash used in financing activities[23](index=23&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) Domo provides non-GAAP reconciliations for various metrics, excluding stock-based compensation, amortization of certain intangible assets, and remeasurement of warrant liability. For Q2 FY26, non-GAAP subscription gross margin was 82%, non-GAAP operating income was $6.1 million (compared to a GAAP operating loss of $7.3 million), and non-GAAP net income was $0.9 million, resulting in non-GAAP diluted EPS of $0.02. Billings for Q2 FY26 were $70.3 million, and adjusted free cash flow was $1.4 million [Non-GAAP Subscription Gross Margin Reconciliation](index=8&type=section&id=Non-GAAP%20Subscription%20Gross%20Margin%20Reconciliation) Non-GAAP subscription gross margin for Q2 FY26 remained stable at 82%, consistent with Q2 FY25, after adjusting for stock-based compensation Non-GAAP Subscription Gross Margin Reconciliation | Metric | Three Months Ended July 31, 2024 (in thousands) | Three Months Ended July 31, 2025 (in thousands) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Subscription gross profit on a GAAP basis | $57,620 | $58,587 | | Subscription gross margin on a GAAP basis | 81% | 81% | | Stock-based compensation | $807 | $947 | | Subscription gross profit on a non-GAAP basis | $58,427 | $59,534 | | Subscription gross margin on a non-GAAP basis | 82% | 82% | [Non-GAAP Operating Expenses and Operating Income (Loss) Reconciliation](index=8&type=section&id=Non-GAAP%20Operating%20Expenses%20and%20Operating%20Income%20%28Loss%29%20Reconciliation) Non-GAAP total operating expenses for Q2 FY26 decreased to $55.0 million from $57.5 million in Q2 FY25. This led to a non-GAAP operating income of $6.1 million in Q2 FY26, a significant improvement from $1.9 million in Q2 FY25, and a non-GAAP operating margin of 8% Non-GAAP Operating Expenses and Operating Income (Loss) Reconciliation | Metric | Three Months Ended July 31, 2024 (in thousands) | Three Months Ended July 31, 2025 (in thousands) | | :------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Total operating expenses on a GAAP basis | $72,770 | $66,894 | | Total operating expenses on a non-GAAP basis | $57,478 | $54,982 | | Operating loss on a GAAP basis | $(14,487) | $(7,251) | | Operating income (loss) on a non-GAAP basis | $1,926 | $6,119 | | Operating margin on a GAAP basis | (18)% | (9)% | | Operating margin on a non-GAAP basis | 2% | 8% | - The improvement in non-GAAP operating income and margin was primarily due to the exclusion of stock-based compensation and amortization of intangible assets[25](index=25&type=chunk) [Non-GAAP Net Income (Loss) and EPS Reconciliation](index=8&type=section&id=Non-GAAP%20Net%20Income%20%28Loss%29%20and%20EPS%20Reconciliation) Domo achieved non-GAAP net income of $0.9 million in Q2 FY26, a substantial improvement from a non-GAAP net loss of $2.7 million in Q2 FY25. This translated to a diluted non-GAAP net income per share of $0.02, compared to a loss of $0.07 in the prior year Non-GAAP Net Income (Loss) and EPS Reconciliation | Metric | Three Months Ended July 31, 2024 (in thousands, except per share data) | Three Months Ended July 31, 2025 (in thousands, except per share data) | | :------------------------------------------ | :--------------------------------------------------------------------- | :--------------------------------------------------------------------- | | Net loss on a GAAP basis | $(19,490) | $(22,932) | | Net (loss) income on a non-GAAP basis | $(2,731) | $879 | | Net loss per share on a GAAP basis (diluted) | $(0.51) | $(0.56) | | Net (loss) income per share on a non-GAAP basis (diluted) | $(0.07) | $0.02 | | Weighted-average shares used (diluted) | 38,389 | 43,554 | - The significant improvement in non-GAAP net income was largely due to the exclusion of stock-based compensation and the remeasurement of warrant liability[25](index=25&type=chunk) [Billings and Adjusted Free Cash Flow Reconciliation](index=9&type=section&id=Billings%20and%20Adjusted%20Free%20Cash%20Flow%20Reconciliation) Billings for Q2 FY26 were $70.3 million, an increase from $68.6 million in Q2 FY25. Adjusted free cash flow showed a positive $1.4 million in Q2 FY26, a notable turnaround from a negative $5.6 million in Q2 FY25 Billings and Adjusted Free Cash Flow Reconciliation | Metric | Three Months Ended July 31, 2024 (in thousands) | Three Months Ended July 31, 2025 (in thousands) | | :------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Billings | $68,626 | $70,333 | | Adjusted free cash flow | $(5,593) | $1,380 | - The positive adjusted free cash flow in Q2 FY26 was achieved by adjusting net cash from operating activities for employee stock purchase plan proceeds, property and equipment purchases, and short-term payable financing[27](index=27&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) Domo provides Q3 and full-year FY26 guidance, projecting revenue between $78.5-$79.5 million for Q3 and $316.0-$320.0 million for the full year, with anticipated non-GAAP net losses per share [Q3 Fiscal 2026 Guidance](index=2&type=section&id=Q3%20Fiscal%202026%20Guidance) For Q3 Fiscal 2026, Domo expects revenue to be between $78.5 million and $79.5 million. Non-GAAP net loss per share is projected to be between $0.03 and $0.07, based on 41.5 million weighted-average shares Q3 Fiscal 2026 Guidance | Metric | Q3 Fiscal 2026 Guidance | | :------------------------------------ | :---------------------- | | Revenue | $78.5 million to $79.5 million | | Non-GAAP Net Loss per Share (basic & diluted) | $0.03 to $0.07 | | Weighted-average shares outstanding (basic & diluted) | 41.5 million | [Full Year Fiscal 2026 Guidance](index=2&type=section&id=Full%20Year%20Fiscal%202026%20Guidance) For the full fiscal year 2026, Domo anticipates revenue in the range of $316.0 million to $320.0 million. Non-GAAP net loss per share is expected to be between $0.11 and $0.19, based on 41.0 million weighted-average shares Full Year Fiscal 2026 Guidance | Metric | Full Year Fiscal 2026 Guidance | | :------------------------------------ | :----------------------------- | | Revenue | $316.0 million to $320.0 million | | Non-GAAP Net Loss per Share (basic & diluted) | $0.11 to $0.19 | | Weighted-average shares outstanding (basic & diluted) | 41.0 million | [Additional Company Information](index=2&type=section&id=Additional%20Company%20Information) This section details Domo's Q2 FY26 earnings call, company profile, public disclosure practices, rationale for non-GAAP financial measures, and important forward-looking statement disclaimers [Earnings Call Details](index=2&type=section&id=Earnings%20Call%20Details) Domo scheduled a conference call for August 27, 2025, at 3:00 p.m. MT/ 5:00 p.m. ET to review Q2 FY26 financial results and discuss its financial outlook. A live webcast and dial-in options were provided, with a replay available until September 27, 2025 - Conference call held on **August 27, 2025, at 3:00 p.m. MT/ 5:00 p.m. ET**[7](index=7&type=chunk) - Live webcast available on Domo Investor Relations website; dial-in and replay options provided[7](index=7&type=chunk)[8](index=8&type=chunk) [About Domo](index=2&type=section&id=About%20Domo) Domo is an AI and Data Products platform that helps companies leverage data and AI to drive value. Its platform, powered by Domo.AI and enriched by a partner ecosystem, enables users to prepare, visualize, automate, distribute, and build end-to-end data products, from hydrating data foundations to deploying AI models and embedded applications - Domo is an **AI and Data Products platform** designed to help companies leverage data and AI for value creation[9](index=9&type=chunk) - The platform supports the entire data journey, enabling users to prepare, visualize, automate, distribute, and build end-to-end data products, including fully embedded applications and AI model deployment[10](index=10&type=chunk) [Disclosure Channels](index=3&type=section&id=Disclosure%20Channels) Domo uses various public channels to disseminate material information, including its website, press releases, SEC filings, blogs, and social media (Facebook, LinkedIn, X accounts @Domotalk and @JoshJames) to ensure broad, non-exclusionary distribution and comply with Regulation FD. Investors are encouraged to monitor these channels - Domo disseminates material information through its **website, press releases, SEC filings, blogs, and social media** (Facebook, LinkedIn, @Domotalk X, @JoshJames X)[11](index=11&type=chunk) - These channels are used for broad, non-exclusionary distribution and to comply with Regulation FD disclosure obligations[11](index=11&type=chunk) [Use of Non-GAAP Financial Measures](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Domo uses non-GAAP financial measures such as non-GAAP subscription gross margin, operating expenses, operating loss/margin, net loss/EPS, billings, and adjusted free cash flow to supplement GAAP statements. These measures exclude stock-based compensation, amortization of certain intangible assets, and remeasurement of warrant liability, and are used for internal decision-making and external performance evaluation, as they provide insights into core business operating results and liquidity - Non-GAAP measures include **non-GAAP subscription gross margin, operating expenses, operating loss/margin, net loss/EPS, billings, and adjusted free cash flow**[12](index=12&type=chunk) - Exclusions from non-GAAP measures typically include **stock-based compensation expense, amortization of certain intangible assets, and remeasurement of warrant liability**[12](index=12&type=chunk) - Management uses these non-GAAP measures for financial and operational decision-making, period-to-period comparisons, and to provide meaningful supplemental information about core business performance and liquidity[14](index=14&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements, including CEO statements, competitive positions, strategic priorities, and financial outlook, which are subject to risks and uncertainties. Actual results may differ materially from predictions due to factors outlined in SEC filings, such as the Annual Report on Form 10-K. Domo undertakes no duty to update this information unless legally required - The press release contains forward-looking statements regarding competitive positions, strategic priorities, and financial outlook[16](index=16&type=chunk) - These statements are subject to **risks and uncertainties**, and actual results may differ materially from predictions[16](index=16&type=chunk) - Risks are detailed in SEC filings, including the Annual Report on Form 10-K, and Domo does not undertake to update this information unless required by law[16](index=16&type=chunk)

The company gets a pundit's thumbs-up on the day before publishing quarterly earnings.On Tuesday, one day before it's slated to publish its latest set of quarterly earnings, data analytics company Domo (DOMO 16.11%) earned a recommendation upgrade from an analyst. Investors took this to heart, pushing the company's share price up in excess of 16%. That performance was miles better than the S&P 500 index's 0.4% increase.A pre-earnings upgradeThe upgrade came from TD Cowen's Derrick Wood, who now feels Domo s ...

Core Insights - Domo, Inc. is experiencing significant growth and positive market sentiment in 2021, with shares initially trading around $25 each [1] Company Overview - Domo, Inc. has been public for a couple of years, indicating a period of established market presence and investor interest [1]

Domo (DOMO) FY Conference Summary Company Overview - Domo is a data platform company that has undergone significant transformation over the past two years, shifting from a focus on being a cloud data warehouse (CDW) to partnering with existing CDWs in the market [2][5][6]. Key Points Industry and Market Position - Domo operates within the data analytics and business intelligence sector, focusing on providing a comprehensive data stack solution [2][3]. - The company has recognized the importance of aligning with CDWs, which has become a central strategy for growth and customer acquisition [19][20]. Transformation and Business Model Shift - Domo has transitioned from a seat-based revenue model to a consumption-based model, which now accounts for approximately 75% of its revenue, with expectations to reach 90% by the end of the year [7][8][26]. - This shift has allowed for greater flexibility for customers, enabling unlimited users and access to advanced capabilities without additional costs [30][31]. Financial Performance and Projections - Domo aims to exit the current year with 5% billings growth and a 5% operating margin, and to achieve 10% growth and margin by the end of the next year [9][10]. - The company has seen improvements in retention rates, with gross retention over 90% and net retention exceeding 100% for consumption customers [34]. Customer Engagement and Use Cases - Domo has expanded its customer base, particularly in the enterprise sector, leveraging relationships with CDWs to penetrate deeper into organizations [25][12]. - The company is witnessing increased use of AI and agentic solutions, with customers creating numerous AI agents to automate processes and enhance efficiency [55][56][66]. Competitive Landscape - Domo has positioned itself as a complementary solution to major CDWs like Snowflake and Databricks, moving away from a competitive stance to a collaborative one [76][78]. - The company has successfully won deals from customers dissatisfied with other solutions, such as Microsoft Fabric, showcasing its ability to deliver effective solutions quickly [80][82]. Future Outlook - Domo is optimistic about its growth trajectory, particularly with the ongoing partnerships with CDWs and the increasing demand for AI-driven solutions [91][92]. - The company is focused on maximizing shareholder value and is open to strategic options, including potential acquisition discussions, but emphasizes the importance of achieving fair valuation [84][88]. Additional Insights - Domo's ability to integrate with various CDWs and provide a seamless experience for customers is seen as a significant competitive advantage [19][20]. - The company is actively engaging in AI boot camps to educate customers on leveraging AI capabilities, which has accelerated the sales cycle and led to successful deal closures [65][66]. This summary encapsulates the key insights and developments discussed during the Domo FY Conference, highlighting the company's strategic shifts, financial outlook, and market positioning within the data analytics industry.

Revenue and Performance - Total revenue for the three months ended April 30, 2024 and 2025 was $80.1 million, remaining relatively flat year-over-year [161]. - Total revenue for the three months ended April 30, 2025, was $80,111 thousand, a slight increase of $8 thousand compared to $80,103 thousand in the same period of 2024 [189]. - Remaining performance obligations (RPO) increased from $346.3 million in 2024 to $427.5 million in 2025, with $241.0 million expected to be recognized as revenue in the next twelve months [160]. - Subscription revenue decreased by $721 thousand, or 1%, from $72,110 thousand in 2024 to $71,389 thousand in 2025, primarily due to a $4.3 million net decrease from existing customers [193]. - Professional services and other revenue increased by $729 thousand, or 9%, from $7,993 thousand in 2024 to $8,722 thousand in 2025, driven by increases in event sponsorship and consulting revenue [194]. Customer and Market Dynamics - As of April 30, 2025, 70% of annual recurring revenue (ARR) was derived from consumption-based service agreements, with expectations for this percentage to increase [158]. - The company had over 2,500 customers as of April 30, 2025, with enterprise customers accounting for 45% of revenue [167]. - The macroeconomic environment has elongated the software sales cycle and increased deal scrutiny, potentially impacting revenue growth in the near term [162]. Financial Performance - Net losses were $26.0 million for the three months ended April 30, 2024, and $18.1 million for the same period in 2025, with an accumulated deficit of $1.5056 billion as of April 30, 2025 [163]. - Net loss for the three months ended April 30, 2025, was $18,052 thousand, compared to a net loss of $26,007 thousand in 2024, reflecting an improvement of $7,955 thousand [189]. - Cash collected from customers during the three months ended April 30, 2025 was $93.2 million, exceeding cash outflows of $89.2 million [217]. - Net cash provided by operating activities for the three months ended April 30, 2025 was $3.951 million, compared to $1.901 million for the same period in 2024 [214]. Expenses and Cost Management - Total operating expenses decreased by $7,050 thousand, or 9%, from $80,839 thousand in 2024 to $73,789 thousand in 2025, with significant reductions in sales and marketing, research and development, and general and administrative expenses [199]. - Sales and marketing expenses as a percentage of total revenue increased from 50% in 2024 to 53% in 2025 [174]. - Research and development expenses as a percentage of total revenue increased from 25% in 2025 to 28% in 2024, indicating a focus on future growth [176]. - Research and development expenses decreased by $2,758 thousand, or 12%, from $22,719 thousand in 2024 to $19,961 thousand in 2025, with a decrease in employee-related costs [200]. - General and administrative expenses decreased by $1,734 thousand, or 11%, from $15,901 thousand in 2024 to $14,167 thousand in 2025, primarily due to a reduction in professional and legal fees [201]. Liquidity and Financing - Cash and cash equivalents as of April 30, 2025, totaled $47.2 million, held primarily for working capital purposes [204]. - The company has a $125.3 million credit facility, all of which had been drawn as of April 30, 2025 [204]. - The company is required to maintain a minimum liquidity of $25.0 million in unrestricted cash as per the credit facility [213]. - As of April 30, 2025, the cash interest rate on the term loan was approximately 7.3%, with an additional fixed rate of 5.0% accruing on the outstanding principal [212]. Economic and Inflation Considerations - The company does not believe inflation has materially affected its business or financial condition to date [232]. - Subscription contracts often contain pricing terms tied to the Consumer Price Index (CPI), and renewal pricing policies are designed to approximate CPI changes [232]. - If costs become subject to significant inflationary pressure, the company may not be able to fully offset these costs with price increases, which could adversely affect its financial condition [232]. - A hypothetical change in interest rates of 100 basis points would not have a material impact on the fair value of the company's outstanding debt [229]. Strategic Initiatives - The company entered into a Controlled Equity Offering Sales Agreement to sell up to $150.0 million of Class B common stock, with a commission of 3.0% on gross proceeds [208]. - The company has no current agreements for potential investments or acquisitions but may seek additional equity financing in the future [208]. - The company has experienced fluctuations in net loss due to transaction gains or losses from remeasuring current asset and liability balances in foreign currencies [231]. - The company has not engaged in hedging foreign currency transactions to date but is considering the costs and benefits of initiating such a program as it expands international operations [231].