Financial Performance - Total revenue for the three months ended April 30, 2023, was $79.5 million, reflecting a year-over-year increase of 7% from $74.5 million in the same period of 2022[161] - Total revenue rose by $5.0 million (7%) from $74.5 million in Q2 2022 to $79.5 million in Q2 2023[193] - Gross profit increased by $4.1 million (7%) from $56.8 million in Q2 2022 to $60.9 million in Q2 2023, with gross margin improving from 76% to 77%[195] - Net loss narrowed from $32.9 million in Q2 2022 to $24.4 million in Q2 2023, representing a reduction of $8.5 million[189] Revenue Expectations - The company expects revenue growth rate to decline in the near term due to macroeconomic conditions affecting the software sales cycle[162] - The amount of RPO expected to be recognized as revenue in the next twelve months increased to $237.5 million, a 6% year-over-year growth from $225.0 million in 2022[160] Customer Metrics - The company had over 2,500 customers as of April 30, 2023, with enterprise customers accounting for 47% of revenue, down from 49% in 2022[167] - Gross retention rate decreased to 88% for the 12 months ended April 30, 2023, down from 93% in the previous year[171] - Subscription revenue increased by $6.5 million (10%) from $64.6 million in Q2 2022 to $71.1 million in Q2 2023, driven by a 7% increase in customer count[193] Expenses - Sales and marketing expense as a percentage of total revenue was 54% for the three months ended April 30, 2023, compared to 61% in the same period of 2022[174] - Research and development expense as a percentage of total revenue decreased to 29% for the three months ended April 30, 2023, from 31% in 2022[176] - Total operating expenses decreased by $4.8 million (6%) from $85.4 million in Q2 2022 to $80.6 million in Q2 2023, with sales and marketing expenses down by $2.4 million (5%)[198] Cash and Debt - Cash, cash equivalents, and restricted cash totaled $66.0 million as of April 30, 2023, with $3.7 million classified as restricted cash[203] - The company has a $100 million credit facility, fully drawn as of April 30, 2023[203] - The company incurred total debt of $109.8 million as of April 30, 2023, with an interest rate of approximately 10.7%[227][228] - The credit facility allows for up to $100 million in term loan borrowings, all of which had been drawn as of April 30, 2023[209] Cash Flow - Net cash provided by operating activities for the three months ended April 30, 2023 was $828,000, compared to $781,000 for the same period in 2022, reflecting an increase[212] - Cash collected from customers during the three months ended April 30, 2023 was $93.6 million, exceeding cash outflows of $92.8 million[215] - Net cash used in investing activities for the three months ended April 30, 2023 was $3.6 million, compared to $1.9 million for the same period in 2022[212] Other Financial Metrics - Remaining performance obligations (RPO) as of April 30, 2023, were $356.7 million, representing a year-over-year growth of 1% from $351.5 million in 2022[160] - Other expense, net increased by $430,000 (11%) due to a rise in interest expense, which is expected to continue increasing modestly[201] - The provision for income taxes increased by $11,000 (6%) from $188,000 in Q2 2022 to $199,000 in Q2 2023[202] - Significant cash outflows for the three months ended April 30, 2023 included $53.8 million for personnel costs and $18.0 million for marketing programs[215] Financial Covenants - The company is required to maintain a minimum balance of unrestricted cash and cash equivalents equal to $10.0 million until adjusted cash flow is greater than zero[208] - The maximum debt ratio financial covenant is set at 0.500, measured quarterly based on annualized recurring revenue[210] International Operations - The company has not engaged in hedging foreign currency transactions to date but is considering the costs and benefits of such a program as it expands international operations[230]

Financial Data and Key Metrics Changes - In Q1, total revenue grew by 7% year-over-year, reaching $79.5 million, with subscription revenue growth at 10% [8][31] - Billings for Q1 were $70.3 million, reflecting a year-over-year decline of nearly 4% [31] - Current Remaining Performance Obligations (RPO) grew by 6% year-over-year to $237.5 million, while total RPO increased by 1% to $356.7 million [32] - The company reported a net loss of $6.1 million, an improvement from a loss of $7.6 million a year ago [35] Business Line Data and Key Metrics Changes - Subscription revenue constituted 89% of total revenue and grew at 10% year-over-year [33] - Subscription gross margin improved to 85.9%, up 1.3 percentage points from the previous year [33] Market Data and Key Metrics Changes - International revenue represented 21% of total revenue, consistent with the same quarter last year [33] - The company has seen a stable demand environment in established relationships, particularly in Japan, which continues to perform well [72] Company Strategy and Development Direction - The company is focused on rebuilding its growth trajectory through customer engagement and a motivated sales team [8][29] - A shift to a consumption-based pricing model is expected to enhance customer adoption and align pricing with the value delivered [19][20] - The company aims to leverage AI technologies to enhance its data experience platform, integrating AI solutions that provide flexibility and control to customers [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's prospects, citing a reenergized sales force and improved customer relationships [29][31] - The macroeconomic environment is challenging, but the company believes it can find opportunities to close deals and upsell within existing accounts [50][72] - The company anticipates that efforts to stabilize and grow will begin to show results in the next 2 to 3 quarters [29] Other Important Information - The company was recognized as a leader in the Nucleus Research 2023 Analytics Technology Value Matrix for the third consecutive year [25] - The AI service layer is set to be available in June, with several AI features already accessible [28] Q&A Session Summary Question: What initiatives are being taken to rebuild the large deal pipeline? - The CEO mentioned reengaging with existing customers and leveraging established relationships to facilitate conversations and close deals [42][47] Question: How is the consumption pricing model being implemented? - The CEO explained that the consumption model allows customers to try features without upfront costs, leading to higher adoption rates and upsells [51][53] Question: What is the demand environment like across different geographies? - The CEO noted that established relationships are crucial for closing deals, with Japan performing particularly well, while cold calls have become less effective in the current environment [68][72]

Customer Base and Revenue - As of January 31, 2023, Domo had over 2,500 organizations as customers, with an annual recurring revenue (ARR) net retention rate of 106% for the year ended January 31, 2023[24]. - Total revenue for Domo was $308.6 million for the year ended January 31, 2023, representing a year-over-year growth of 20%[25]. - As of January 31, 2023, the company had over 2,500 customers, with 78% of revenue derived from U.S. customers[78]. - 65% of customers were under multi-year contracts as of January 31, 2023, up from 62% in 2022 and 60% in 2021, enhancing subscription revenue predictability[80]. - A majority of annual recurring revenue is up for renewal during the fiscal year ending January 31, 2024, with potential fluctuations in renewal rates due to various factors[141]. Financial Performance - Domo's annual net loss was $105.6 million for the year ended January 31, 2023, compared to $102.1 million in 2022[25]. - The company incurred net losses of $105.6 million for the year ended January 31, 2023, with an accumulated deficit of $1,330.0 million[112]. - Cash used in operating activities was $10.9 million for the year ended January 31, 2023, while cash provided was $0.4 million for the year ended January 31, 2022[118]. - As of January 31, 2023, the company had $66.5 million in cash, cash equivalents, and restricted cash, with $3.7 million being restricted cash[118]. - The company has experienced negative or close to break-even cash flows from operating activities since inception[118]. Product and Technology - Domo's platform processes several hundred trillion rows from uncached queries on a typical business day, maintaining a subsecond average query response time[40]. - Domo offers more than 1,000 powerful connectors, enabling real-time data synchronization across a broad range of sources[23]. - The Domo platform allows for real-time access to data, enabling employees to design customized views and analyze trends effectively[28]. - The platform's artificial intelligence capabilities provide personalized alerts and recommendations based on real-time data analysis[29]. - Domo's data warehouse, Adrenaline, supports massive data storage and parallel querying, allowing simultaneous access for employees[23]. Research and Development - Domo has invested $730.4 million in research and development to enhance its platform, resulting in over 1,000 first-class connectors and a comprehensive cloud-based solution[44]. - Research and development expenses increased from $66.5 million in fiscal year 2021 to $95.1 million in fiscal year 2023[93]. - The company focuses on continuous research and development to introduce new platform enhancements and maintain competitiveness in the market[92]. - The company has made significant investments in research and development to enhance its platform and expand usage among existing customers[142]. Market Strategy and Expansion - The company aims to expand its international market presence, particularly in Japan, Asia Pacific, and EMEA regions[46]. - The company plans to continue investing in growth, including sales and marketing, technology enhancements, and international expansion[114]. - The company anticipates continued development of third-party relationships to support business growth[83]. - The company plans to continue expanding international operations as part of its growth strategy, facing various risks and challenges[197]. Operational Challenges - The sales cycle for new enterprise customers can vary from approximately six months to multiple years, leading to unpredictability in sales and operating performance[124]. - The company faces challenges in attracting new customers cost-effectively, which could slow revenue growth due to market acceptance and competitive pressures[139]. - A significant majority of the company's costs are expensed as incurred, while revenue is recognized over the subscription term, complicating financial performance management[122]. - The company may need to raise additional funds to support growth opportunities and product development[119]. Compliance and Legal Risks - The company is subject to securities class-action litigation, which could result in significant legal expenses and negatively impact business operations[186]. - The company is subject to various anti-bribery, anti-corruption, and anti-money laundering laws, which could lead to significant penalties and adverse consequences if violated[205]. - The California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA) impose new obligations on data handling, with enforcement anticipated to commence in July 2023[208]. - The General Data Protection Regulation (GDPR) imposes penalties of up to €20 million or 4% of global annual revenues for non-compliance, affecting operational costs and data handling practices[209]. Cybersecurity and Data Privacy - The company faces risks related to privacy and cybersecurity, with increasing regulatory scrutiny and potential liabilities due to evolving data protection laws[207]. - The company acknowledges the potential for unauthorized access and misuse of sensitive customer data due to security vulnerabilities[219]. - Techniques used in cyberattacks change frequently, making it difficult for the company to anticipate and implement preventative measures[219]. - Security breaches may remain undetected for extended periods, posing ongoing risks to the company's systems[219]. Human Resources and Management - The company had 967 employees as of January 31, 2023, with 773 located in the United States[106]. - The inability to attract, integrate, and retain qualified personnel could adversely affect the business, especially in new geographies[189]. - The effectiveness of sales and marketing efforts is critical for revenue growth, with challenges in recruiting and retaining qualified sales personnel[185]. - Management and board turnover has created uncertainties, with significant changes including the resignation and re-appointment of key executives[188].

Domo, Inc. (NASDAQ:DOMO) Q4 2023 Results Conference Call March 6, 2023 5:00 PM ET Company Participants Peter Lowry - Investor Relations John Mellor - CEO (Outgoing) Josh James - CEO Julie Kehoe - Chief Communications Officer David Jolley - CFO Conference Call Participants Eric Martinez - Lake Street Capital Markets Derrick Wood - Cowen Kamil Mielczarek - William Blair Sanjit Singh - Morgan Stanley Operator Good afternoon, ladies and gentlemen, and welcome to the Domo Q4 Fiscal Year 2023 Earnings Conference ...

Domo, Inc. (NASDAQ:DOMO) Q3 2023 Earnings Conference Call December 8, 2022 5:00 PM ET Corporate Participants Peter Lowry - Vice President of Investor Relations Julie Kehoe - Chief Communications Officer John Mellor - Chief Executive Officer Bruce Felt - Chief Financial Officer Conference Call Participants Derrick Wood - Cowen Pat Walravens - JMP Securities Eric Martinuzzi - Lake Street Capital Markets Operator Hello, everyone, and welcome to the Domo Q3 Fiscal Year 2023 Earnings Call. Today's call is being ...

Revenue and Growth - Total revenue for the three months ended October 31, 2022, was $79.0 million, reflecting a year-over-year increase of 21% from $65.1 million in the same period of 2021[198]. - Billings for the three months ended October 31, 2022, were $74.0 million, compared to $70.2 million in the same period of 2021, indicating growth in subscription renewals and upsells[221]. - Subscription revenue increased by 22% from $56,621 thousand in Q3 2021 to $69,041 thousand in Q3 2022, driven by a $7.5 million increase from new customers and a $4.9 million increase from existing customers[238]. - Total revenue for Q3 2022 was $79,026 thousand, up 21% from $65,081 thousand in Q3 2021[238]. - Subscription revenue increased by $37.6 million, or 23%, from $163.4 million in the nine months ended October 31, 2021, to $201.0 million in the same period of 2022[249]. - Total revenue rose by $41.1 million, or 22%, from $188.0 million to $229.0 million during the same period[249]. Customer Metrics - Remaining performance obligations (RPO) grew by 19% year-over-year, reaching $354.3 million as of October 31, 2022, compared to $296.9 million in 2021[197]. - The gross retention rate improved to 91% for the 12 months ended October 31, 2022, up from 90% in the previous year[212]. - As of October 31, 2022, the company had over 2,500 customers, with enterprise customers accounting for 50% of revenue for the three months ended October 31, 2022[207]. - Customer count increased by 14% from October 31, 2021, to October 31, 2022[238]. Financial Performance - The company incurred a net loss of $23.7 million for the three months ended October 31, 2022, compared to a net loss of $28.5 million in the same period of 2021[201]. - The company reported a net loss of $23,711 thousand in Q3 2022, compared to a net loss of $28,513 thousand in Q3 2021[234]. - Gross profit rose by 25% from $47,937 thousand in Q3 2021 to $60,112 thousand in Q3 2022, resulting in a gross margin increase from 74% to 76%[240]. - Gross profit improved by $34.8 million, or 25%, from $139.3 million to $174.1 million, with total gross margin increasing from 74% to 76%[251]. Expenses and Costs - Research and development expenses as a percentage of total revenue decreased to 31% for the three months ended October 31, 2022, from 34% in the same period of 2021[218]. - Sales and marketing expenses as a percentage of total revenue decreased to 52% for the three months ended October 31, 2022, compared to 58% in the same period of 2021[216]. - Total operating expenses increased from $72,917 thousand in Q3 2021 to $78,624 thousand in Q3 2022, with sales and marketing expenses rising from $37,503 thousand to $41,012 thousand[234]. - Operating expenses increased by $49.0 million, or 25%, from $197.9 million to $246.9 million, with sales and marketing expenses rising by $26.9 million, or 26%[254]. - The cost of subscription revenue increased by 8% from $10,514 thousand in Q3 2021 to $11,342 thousand in Q3 2022, primarily due to a $1.4 million increase in third-party web hosting services[240]. Cash and Debt Management - As of October 31, 2022, the company had $71.1 million in cash and cash equivalents, with a $100 million credit facility fully drawn[260]. - The company has drawn the full $100 million from its credit facility, with a term loan maturity date set for April 1, 2025, and an interest rate of approximately 9.3% as of October 31, 2022[266][287]. - The company had total debt outstanding of $107.4 million as of October 31, 2022, with a maximum allowable debt-to-annualized recurring revenue ratio of 0.525[267][288]. - The structured payables agreement allows for a maximum outstanding principal balance of $5.0 million, with an annual limit of $60.0 million, and no interest expense was recognized related to this agreement during the three and nine months ended October 31, 2022[269]. - The company had $71.1 million in cash, cash equivalents, and restricted cash as of October 31, 2022, with $3.7 million classified as restricted cash[286]. Future Outlook - The company expects revenue growth rates to decline in the near term due to decreased sales capacity from higher turnover among sales representatives[199]. - The company expects total revenue growth rate to decrease for the remainder of fiscal 2023 and likely into the first half of fiscal 2024[238]. - The company plans to continue investing in growth opportunities, product development, and sales and marketing over the long term[262]. Other Considerations - The company experienced net cash provided by financing activities of $2.4 million for the nine months ended October 31, 2022, compared to a net cash used of $0.8 million in the same period of 2021[271][279]. - Significant cash outflows for the nine months ended October 31, 2022 included $150.5 million for personnel costs and $45.0 million for marketing programs and events[274]. - The company is required to comply with a financial covenant based on the ratio of outstanding indebtedness to annualized recurring revenue, with compliance confirmed as of January 31, 2022, and October 31, 2022[268]. - The company has not engaged in hedging foreign currency transactions to date but is considering the costs and benefits of such a program as it expands international operations[290]. - Inflation has not materially affected the company's financial condition or results of operations to date, with subscription contracts often tied to the Consumer Price Index[291].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION __________________________ WASHINGTON, D.C. 20549 __________________________ Form 10-Q __________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to . Commission File Number 001-38553. DOMO, INC. (Exact Name of Registrant as Spe ...

Financial Data and Key Metrics Changes - In Q2 2023, the company reported a 21% growth in billings, a 20% increase in total revenue, and a 23% rise in subscription revenue [4][14] - Subscription gross margin reached a record 85.3%, up 2.6 percentage points year-over-year [16] - The net loss for the quarter was $8.7 million, an improvement from $9.6 million a year ago, with a net loss per share of $0.26 [17] Business Line Data and Key Metrics Changes - Corporate sales experienced over 25% growth in new Annual Contract Value (ACV) and revenue growth exceeding 30% [5][6] - In contrast, enterprise revenue growth was only about 10% with ACV growth of 6%, indicating challenges in this segment [7][8] - The company is reallocating resources towards corporate sales due to more efficient growth opportunities [8][9] Market Data and Key Metrics Changes - International revenue represented 22% of total revenue, up from 21% in the previous quarter [16] - The company continues to add new logo customers, with notable wins in the corporate sector, including a Fortune 50 pharmaceutical company and HelloFresh [10][11] Company Strategy and Development Direction - The company is focusing on driving digital transformation for organizations of all sizes, which is expected to fuel long-term growth [9] - A cost reduction plan has been implemented for the second half of the year to improve profitability and cash flow [8][20] - The company aims to achieve a non-GAAP positive operating margin and meaningful cash flow in the long term [8][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the changes made to the enterprise go-to-market strategy did not yield the expected results, leading to increased turnover [7][28] - The company remains committed to enterprise customer success but is prioritizing corporate sales for more predictable growth [8][29] - The outlook for Q3 has been adjusted, with billings growth expected to be around 13% year-over-year, down from previous estimates [20][21] Other Important Information - The company hired Wendy Steinle as Chief Marketing Officer, bringing extensive B2B software marketing experience [12] - Domo was recognized as a leader in various industry analyst reports, validating its technology and market position [12] Q&A Session Summary Question: What are the drivers of the full-year guidance? - Management indicated that the lower revenue guidance is primarily driven by internal factors related to sales capacity rather than macroeconomic conditions [23] Question: What went wrong with the enterprise strategy? - Management noted that the enterprise segment faced challenges with predictability and the cost and time required to sell to these customers [28] Question: What is the new strategy for the enterprise part of the business? - The company will continue to maintain a significant enterprise go-to-market strategy but will shift more resources towards corporate sales [29] Question: What caused the recent turnover in sales reps? - The turnover was attributed to changes in quotas and territory assignments, which impacted ramped reps' performance [42] Question: How is the company addressing the sales capacity issue? - Management is focused on improving retention and ramping capacity among new hires, with a record number of sales headcount currently onboard [25][30]

PART I. FINANCIAL INFORMATION This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis for the period [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for Domo, Inc., including the balance sheets, statements of operations, comprehensive loss, stockholders' deficit, and cash flows, along with detailed notes explaining the accounting policies and specific financial line items [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's assets, liabilities, and stockholders' deficit at specific points in time Condensed Consolidated Balance Sheets | Metric | As of Jan 31, 2022 (in millions) | As of Apr 30, 2022 (in millions) | | :-------------------------- | :------------------------------- | :------------------------------- | | Total Assets | $244.589 | $231.872 | | Total Liabilities | $370.567 | $363.826 | | Total Stockholders' Deficit | $(125.978) | $(131.954) | - Total assets decreased by **approximately $12.7 million**, while total liabilities decreased by **approximately $6.7 million**, leading to an increased stockholders' deficit of **approximately $6 million** from January 31, 2022, to April 30, 2022[11](index=11&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, expenses, and net loss over a specific reporting period Condensed Consolidated Statements of Operations | Metric | Three Months Ended Apr 30, 2021 (in millions) | Three Months Ended Apr 30, 2022 (in millions) | Change ($) | Change (%) | | :-------------------------- | :-------------------------------------------- | :-------------------------------------------- | :--------- | :--------- | | Total Revenue | $60.062 | $74.464 | $14.402 | 24% | | Gross Profit | $44.904 | $56.803 | $11.899 | 26% | | Total Operating Expenses | $59.858 | $85.438 | $25.580 | 43% | | Loss from Operations | $(14.954) | $(28.635) | $(13.681) | 91% | | Net Loss | $(18.104) | $(32.888) | $(14.784) | 82% | | Net Loss per Share (basic & diluted) | $(0.580) | $(0.990) | $(0.410) | 71% | - Total revenue increased by **24%** year-over-year, driven by subscription and professional services growth. However, total operating expenses increased by **43%**, leading to a significant increase in net loss by **82%** and net loss per share by **71%**[14](index=14&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) This section presents the net loss and other comprehensive income or loss components, leading to the total comprehensive loss Condensed Consolidated Statements of Comprehensive Loss | Metric | Three Months Ended Apr 30, 2021 (in millions) | Three Months Ended Apr 30, 2022 (in millions) | | :----------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net Loss | $(18.104) | $(32.888) | | Foreign currency translation adjustments | $(0.004) | $(0.703) | | Comprehensive Loss | $(18.108) | $(33.591) | - Comprehensive loss significantly increased from **$(18.1) million** in 2021 to **$(33.6) million** in 2022, primarily due to the higher net loss and a substantial increase in negative foreign currency translation adjustments[18](index=18&type=chunk) [Condensed Consolidated Statements of Stockholders' Deficit](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Deficit) This section outlines changes in the components of stockholders' deficit, including accumulated deficit and additional paid-in capital Condensed Consolidated Statements of Stockholders' Deficit | Metric | As of Jan 31, 2022 (in millions) | As of Apr 30, 2022 (in millions) | | :-------------------------------------- | :------------------------------- | :------------------------------- | | Total Stockholders' Deficit | $(125.978) | $(131.954) | | Additional Paid-in Capital | $1,098.084 | $1,125.699 | | Accumulated Deficit | $(1,224.483) | $(1,257.371) | | Accumulated Other Comprehensive Income (Loss) | $0.388 | $(0.315) | - The accumulated deficit increased by **approximately $32.9 million** from January 31, 2022, to April 30, 2022, reflecting the net loss for the period. Additional paid-in capital increased by **$27.6 million**, partly due to stock-based compensation expense[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section reports the cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows | Metric | Three Months Ended Apr 30, 2021 (in millions) | Three Months Ended Apr 30, 2022 (in millions) | | :-------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net cash (used in) provided by operating activities | $(2.728) | $0.781 | | Net cash used in investing activities | $(1.778) | $(1.937) | | Net cash (used in) provided by financing activities | $(1.457) | $2.287 | | Net (decrease) increase in cash and cash equivalents | $(5.968) | $0.434 | | Cash and cash equivalents at end of period | $84.826 | $83.995 | - The company shifted from net cash used in operating activities (**$2.7 million**) in Q1 2021 to net cash provided by operating activities (**$0.8 million**) in Q1 2022. Net cash from financing activities also turned positive, contributing to a net increase in cash and cash equivalents in Q1 2022, compared to a decrease in Q1 2021[27](index=27&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the accounting policies, significant estimates, and specific line items within the financial statements - Domo, Inc. provides a cloud-based platform that digitally connects everyone from the CEO to the frontline employee with all the data, systems and people in an organization, giving them access to real-time data and insights and allowing them to manage their business from their smartphones[29](index=29&type=chunk) - The preparation of the condensed consolidated financial statements requires management to make estimates, judgments and assumptions that affect the amounts reported, including for revenue recognition, contract acquisition costs, and stock-based compensation[33](index=33&type=chunk) - Revenue is primarily derived from subscriptions to its cloud-based platform (recognized ratably over the contractual term) and professional services (recognized as services are provided)[61](index=61&type=chunk)[64](index=64&type=chunk)[67](index=67&type=chunk) - Amortization expense related to contract acquisition costs was **$4.3 million** for the three months ended April 30, 2022, up from **$3.9 million** in the prior year[43](index=43&type=chunk) - Total stock-based compensation expense was **$25.3 million** for the three months ended April 30, 2022, a significant increase from **$10.1 million** in the prior year[149](index=149&type=chunk) - The company has a credit facility permitting up to **$100.0 million** in term loan borrowings, all of which had been drawn as of April 30, 2022. The interest rate was **approximately 7%** as of April 30, 2022[119](index=119&type=chunk)[121](index=121&type=chunk) - Total remaining performance obligations (RPO) were **$351.5 million** as of April 30, 2022, representing a year-over-year growth of **24%**. Approximately **$205.7 million** of subscription RPO and **$19.3 million** of professional services RPO are expected to be recognized in the next twelve months[181](index=181&type=chunk)[115](index=115&type=chunk) - Revenue from customers with billing addresses in the United States comprised **79%** of total revenue for the three months ended April 30, 2022, up from **77%** in the prior year. Japan accounted for **9%** and other regions **12%**[118](index=118&type=chunk) - The financial statements are unaudited and prepared in conformity with GAAP, reflecting all necessary adjustments for fair presentation[31](index=31&type=chunk) - The company's fiscal year ends on January 31[30](index=30&type=chunk) - Results for the three months ended April 30, 2022, are not necessarily indicative of results to be expected for the fiscal year ending January 31, 2023, or any other future period[31](index=31&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, highlighting key trends, factors affecting performance, and future outlook. It also includes a discussion of the impact of COVID-19 and critical accounting policies - Domo's vision is to digitally connect everyone within the enterprise with real-time, rich, relevant data, enabling collaboration and business management from smartphones[178](index=178&type=chunk) - As of April 30, 2022, **64%** of customers were under multi-year contracts on a dollar-weighted basis, up from **62%** as of January 31, 2022, which has enhanced the predictability of subscription revenue[180](index=180&type=chunk) - Total revenue increased by **24%** year-over-year to **$74.5 million** for the three months ended April 30, 2022[182](index=182&type=chunk) - The company incurred net losses of **$32.9 million** for the three months ended April 30, 2022, and expects to incur losses for the foreseeable future, with an accumulated deficit of **$1,257.4 million**[184](index=184&type=chunk) - The COVID-19 pandemic's full impact is uncertain, potentially affecting customer acquisition, retention, and technology spending. Sales and professional services activities have largely shifted to remote work[186](index=186&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk) - The company had over **2,400** customers as of April 30, 2022. Enterprise customers (over **$1 billion** in revenue) accounted for **49%** of revenue in Q1 2022, down from **55%** in Q1 2021[192](index=192&type=chunk) - Gross retention rate improved to **93%** for the 12 months ended April 30, 2022, from **89%** in the prior year[197](index=197&type=chunk) - Sales and marketing expense as a percentage of total revenue increased to **61%** for Q1 2022 from **56%** for Q1 2021, with plans to continue hiring more sales representatives[201](index=201&type=chunk)[199](index=199&type=chunk) - The company plans to continue investments in machine learning algorithms, predictive analytics, and other artificial intelligence technologies. Research and development expense as a percentage of total revenue increased to **31%** for Q1 2022 from **27%** for Q1 2021[202](index=202&type=chunk)[203](index=203&type=chunk) - Billings increased to **$72.9 million** for the three months ended April 30, 2022, from **$58.2 million** in the prior year[206](index=206&type=chunk) - As of April 30, 2022, cash and cash equivalents were **$84.0 million**, and the **$100 million** credit facility was fully drawn. Management believes existing cash will be sufficient for at least the next 12 months[232](index=232&type=chunk)[234](index=234&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses the company's exposure to market risks, specifically interest rate risk and foreign currency exchange rate risk, and how these risks are managed - As of April 30, 2022, the company had **$84.0 million** in cash and cash equivalents, primarily in money market funds and certificates of deposit, with no material exposure to changes in fair value from interest rate fluctuations due to their short-term nature[258](index=258&type=chunk) - The company had **$105.1 million** in total debt outstanding as of April 30, 2022. A hypothetical **10%** change in interest rates would not have a material impact on the fair value of outstanding debt or returns on cash[260](index=260&type=chunk) - A portion of the interest on the **$100 million** credit facility accrues at a floating rate (**approximately 7%** as of April 30, 2022), while another portion is capitalized at a fixed rate of **2.5%**[259](index=259&type=chunk) - The company is exposed to foreign currency risks related to revenue and operating expenses denominated in Japanese Yen, British Pound Sterling, and Australian Dollar. No hedging program is currently in place, but it is under consideration[261](index=261&type=chunk)[262](index=262&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the principal executive and financial officers, evaluated the effectiveness of disclosure controls and procedures, concluding they were effective at a reasonable assurance level as of April 30, 2022. No material changes to internal control over financial reporting were identified - Management concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of April 30, 2022[264](index=264&type=chunk) - There were no material changes in internal control over financial reporting during the period covered by this report[265](index=265&type=chunk) - Management acknowledges the inherent limitations of control systems, which can only provide reasonable assurance and may not prevent all errors or fraud[266](index=266&type=chunk) PART II. OTHER INFORMATION This section covers legal proceedings, risk factors, and other miscellaneous information pertinent to the company's operations and financial health [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) This section details ongoing legal proceedings, including a securities class action and a shareholder derivative lawsuit, and management's assessment of their potential impact - A securities class action complaint (Volonte v. Domo, Inc., et. al) alleging violations of securities laws related to the June 2018 IPO is currently on appeal after initial dismissal. Management believes the lawsuit is without merit[269](index=269&type=chunk) - A shareholder derivative complaint (Zalvin v. James, et al.) was filed in August 2021, alleging breaches of fiduciary duties by the former CEO and certain directors regarding excessive equity awards. A motion to dismiss has been filed[271](index=271&type=chunk)[272](index=272&type=chunk) - Management believes that the outcome of other legal proceedings will not have a material impact on the company's financial condition, results of operations, or liquidity[273](index=273&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This extensive section outlines numerous risks and uncertainties that could materially affect the company's business, operating results, and financial condition, categorized into risks related to financial position, customer relationships, products, personnel, privacy/cybersecurity, intellectual property, and corporate governance - The ongoing COVID-19 pandemic presents inherent uncertainties, potentially impacting customer acquisition, retention, technology spending, and overall business operations, with sales and professional services largely conducted remotely[277](index=277&type=chunk)[281](index=281&type=chunk) - The company has a history of net losses and an accumulated deficit of **$1,257.4 million** as of April 30, 2022, and expects to incur losses for the foreseeable future, making profitability uncertain[286](index=286&type=chunk) - A limited operating history makes forecasting future operating results difficult and subjects the company to uncertainties in planning future growth, market adoption, and competition[288](index=288&type=chunk) - The ability to raise future capital may be limited, and failure to secure needed funds could prevent growth or force delays/elimination of product development efforts[298](index=298&type=chunk) - The company faces intense and increasing competition from large software companies and business analytics providers, which could reduce demand for its platform and adversely affect business, growth, revenue, and market share[349](index=349&type=chunk)[350](index=350&type=chunk)[351](index=351&type=chunk) - Success depends on adapting to rapidly changing technology, evolving industry standards, and changing customer needs, requiring continuous enhancements and investments in R&D, including AI technologies[364](index=364&type=chunk) - As a cloud service provider, the company's operations involve storing and transmitting sensitive customer data, making it vulnerable to cyber-attacks, breaches, and data loss, which could damage reputation and incur significant liabilities[431](index=431&type=chunk)[435](index=435&type=chunk) - The company's success is dependent on protecting its proprietary technology, including **119** issued U.S. patents. However, patents may be challenged, and enforcement of intellectual property rights can be costly and time-consuming[458](index=458&type=chunk)[462](index=462&type=chunk) - The dual class structure of common stock concentrates voting control with Joshua G. James (**approximately 81%** voting power), limiting other stockholders' ability to influence important transactions, including a change in control[465](index=465&type=chunk) [Item 6. Exhibits](index=73&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including various certifications and interactive data files - The exhibits include certifications of the Principal Executive Officer and Principal Financial Officer (Exhibits 31.1, 31.2, 32.1)[496](index=496&type=chunk)[497](index=497&type=chunk)[500](index=500&type=chunk) - Interactive Data Files in Inline XBRL format are provided, including Instance, Schema, Calculation, Definition, Label, and Presentation Linkbase Documents (Exhibits 101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE)[498](index=498&type=chunk) - Management contracts related to Joshua James, including a Letter Agreement, Separation and Transition Agreement, and Registration Rights Agreement, are listed as exhibits[500](index=500&type=chunk) [Signatures](index=74&type=section&id=Signatures) This section contains the official signatures, confirming the submission of the report by Domo, Inc. - The report was signed by Bruce Felt, Chief Financial Officer (Principal Financial and Accounting Officer) of Domo, Inc. on June 7, 2022[505](index=505&type=chunk)

Financial Data and Key Metrics Changes - The company reported a billings growth of 25% and total revenue growth of 24% for Q1 2023, with subscription revenue also growing by 24% [4][23][28] - The subscription gross margin reached a record of over 84%, up 1.2 percentage points year-over-year [29] - The net loss for the quarter was $7.6 million, slightly improved from $8 million a year ago, with a net loss per share of $0.23 [31] Business Line Data and Key Metrics Changes - The corporate business showed strong growth, consistently generating new logos and achieving a gross retention rate of over 90% [24][25] - Subscription revenue represented 87% of total revenue, marking a substantial acceleration from 19% growth in the previous quarter [28] - The current remaining performance obligation (RPO) grew 24% year-over-year to $225 million [27] Market Data and Key Metrics Changes - International revenue accounted for 21% of total revenue, maintaining a similar mix to the previous quarter [29] - The company expects to exit fiscal year 2023 with subscription revenue growth of about 25% [29] Company Strategy and Development Direction - The company is focusing on three strategic priorities: maintaining growth, increasing enterprise cadence, and emphasizing data apps [10][11] - Domo aims to leverage existing resources to help businesses reduce costs and improve efficiencies, particularly in uncertain economic times [5][9] - The company is transitioning from a per-user pricing model to a consumption-based pricing model to encourage broader adoption of its platform [43] Management's Comments on Operating Environment and Future Outlook - Management noted that despite concerns about a potential economic slowdown, customer demand remained strong in Q1 [8][9] - The company believes that the modernization of business practices will continue, as organizations seek to unlock data value [9] - Management expressed confidence in navigating potential economic downturns, citing a resilient revenue stream primarily from renewals and upselling [46][55] Other Important Information - Domo appointed Ian Tickle as President of Global Revenue and Field Operations, succeeding Wolf Maasberg [19] - The company received industry recognition, being named the 1 vendor in Self-Service BI for the fifth consecutive year [20] - In Q1, 36% of new hires were diverse candidates, reflecting the company's commitment to building an inclusive workplace [21] Q&A Session Summary Question: How does Domo fit into the enterprise landscape amid potential spending slowdowns? - Management highlighted Domo's unique position in addressing the last mile of data utilization, emphasizing the importance of agility and speed in current business environments [40][41] Question: How has Domo's pricing model evolved? - The company is shifting from a per-seat model to a consumption-based model to encourage wider adoption and usage across organizations [43] Question: What are the assumptions behind the full-year guidance? - Management maintained guidance due to optimism about sales hiring and resilience in revenue streams, while also considering macroeconomic concerns [45][46] Question: What strategies are being implemented to improve enterprise go-to-market efforts? - The company is focusing on verticalization of the sales team to address specific business pains in various industries [51][52] Question: How does Domo differentiate itself from competitors like Microsoft? - Domo's value proposition lies in addressing clear business pains and delivering quick results, which has proven effective in competitive situations against Power BI [59] Question: What is the current state of the balance sheet? - The company has $84 million in cash and $105 million in debt, with no immediate need for additional cash, indicating a strong balance sheet position [60]