Revenue Growth - Total revenue increased by 28% year-over-year, from $31.9 million in Q1 2018 to $40.8 million in Q1 2019[189] - Revenue from enterprise customers grew by 33% year-over-year, reaching $19.4 million in Q1 2019[189] - Total revenue for the three months ended April 30, 2019, was $40.8 million, an increase of $8.9 million, or 28%, compared to $31.9 million for the same period in 2018[217] - Subscription revenue was $34.4 million, representing 84% of total revenue for the three months ended April 30, 2019, up from $26.7 million, or 83%, in the same period of 2018[217] Customer Base and Contracts - As of April 30, 2019, 45% of customers were under multi-year contracts, enhancing subscription revenue predictability[188] - The customer base grew to over 1,800 as of April 30, 2019, indicating significant market penetration opportunities[192] - The transition to multi-year contracts is expected to improve revenue stability and customer retention over time[188] Financial Performance - The company reported net losses of $35.5 million for the three months ended April 30, 2019, with an accumulated deficit of $947.6 million[190] - Net loss for the three months ended April 30, 2019, was $35.5 million, compared to a net loss of $45.5 million in the same period of 2018[217] - Gross profit increased to $28.0 million for the three months ended April 30, 2019, a rise of $7.6 million, or 37%, from $20.4 million in the same period of 2018[220] Expenses and Cost Management - Total operating expenses decreased by $2.3 million, or 4%, to $61.1 million for the three months ended April 30, 2019, compared to $63.4 million in 2018[224] - Sales and marketing expenses as a percentage of total revenue decreased from 124% in 2018 to 88% in 2019[226] - Research and development expenses decreased by $2.0 million, or 10%, to $17.1 million for the three months ended April 30, 2019[227] - General and administrative expenses increased by $3.4 million, or 73%, to $8.0 million for the three months ended April 30, 2019, primarily due to lower reversals of contingent tax-related accruals[229] Cash Flow and Investments - Net cash used in operating activities for the three months ended April 30, 2019 was $80.8 million, with cash collected from customers amounting to $54.1 million[246] - Significant cash outflows during the same period included $38.9 million for personnel costs and $22.4 million for marketing programs and events[246] - Net cash used in investing activities for the three months ended April 30, 2019 was $64.5 million, primarily due to $63.0 million in purchases of short-term investments[248] - The company provided $4.5 million in net cash from financing activities during the three months ended April 30, 2019, mainly from shares issued in connection with the employee stock purchase plan[250] Debt and Financing - The company drew a total of $100 million from its credit facility, with an interest rate of approximately 8.1% as of April 30, 2019[238] - Total debt outstanding as of April 30, 2019 was $98.2 million, with a hypothetical 10% change in interest rates not expected to materially impact fair value[261] - The company is required to maintain a minimum debt ratio of 0.85 as of January 31, 2019 and April 30, 2019, decreasing to 0.60 by July 31, 2021[240] - The company has no current agreements for potential investments or acquisitions but may seek additional equity financing in the future[237] Strategic Initiatives - The company plans to invest in machine learning and AI technologies to enhance platform functionality and customer engagement[199] - Sales and marketing expenses are focused on increasing efficiency and targeting enterprise customers to drive higher initial contract values[198] - The company aims to expand its international business, with 74% of revenue from U.S. customers in Q1 2019[189] - The company does not engage in hedging of foreign currency transactions but is considering the costs and benefits of such a program as it expands internationally[263]

Financial Data and Key Metrics Changes - In Q1, the company reported a 28% year-over-year growth in revenue, reaching $48.8 million, and a 22% year-over-year growth in billings, totaling $41.1 million [8][31] - Subscription revenue grew by 29%, representing 84% of total revenue, with international revenue increasing to 26% of total revenue, up from 22% in the previous quarter [32] - The subscription gross margin improved to 77%, up 270 basis points from the previous quarter and significantly higher than 69.8% from the same quarter last year [32][33] - The net loss for the quarter was $29.2 million, with a net loss per share of $1.08, reflecting a decrease in operating expenses by 10% year-over-year [34][35] Business Line Data and Key Metrics Changes - The corporate business saw a 30% year-over-year increase in average new deal size, indicating strong growth in this segment [13] - The company added 458 enterprise customers, a 19% year-over-year increase, with enterprise revenue growing by 33% year-over-year [12] Market Data and Key Metrics Changes - The company reported a dollar-based net revenue retention rate greater than 100%, with 45% of customers now on multiyear contracts, up from 35% a year ago [31] - The remaining performance obligation (RPO) grew by 34% compared to the same quarter last year, indicating strong future revenue visibility [31] Company Strategy and Development Direction - The company is focused on becoming cash flow positive without raising additional capital, emphasizing the power of its platform and expanding within its enterprise customer base [9] - A new pricing model was piloted to enhance customer value and facilitate easier expansion across organizations, which has shown positive impacts on deal sizes and customer engagement [10][11] - The company is investing in its ecosystem and partnerships, including the Domo Integration Cloud and the Domo Business Automation Engine, to enhance its product offerings and customer value [21][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about customer engagement and the strength of the pipeline, noting an increase in seven-figure opportunities [41] - The competitive environment remains favorable, with the company positioned well due to its differentiated product offerings [39][40] - Management expects to see continued improvements in cash flow and operating expenses, with a goal of reducing cash burn each quarter [36][37] Other Important Information - The company ranked number one in a recent report on self-service BI, highlighting its strong market position and customer satisfaction [29][30] - The company is expanding its training and certification programs to enhance customer skills and engagement with its platform [28] Q&A Session Summary Question: Changes in competitive environment or customer purchasing behavior - Management noted that the product remains differentiated and customers are increasingly embracing the platform's capabilities [39][40] Question: Sales capacity increase and productivity improvements - Management confirmed plans to increase sales capacity by 30% and reported positive metrics in productivity and pipeline coverage [44] Question: Drivers of increase in corporate deal sizes - The increase is attributed to strategic relationships and the new pricing model, which facilitates larger contracts and longer terms [48][49] Question: Forecasting big deals and sales cycles - Management indicated that big deals often stem from established relationships and that they are closely monitoring the pipeline for forecasting accuracy [60][61] Question: Insights on pricing changes and their impact - The new pricing model is expected to reduce friction in deal flow and facilitate larger initial engagements, enhancing customer relationships [64][67] Question: Thoughts on Looker acquisition and market positioning - Management views Looker as a smaller competitor and emphasizes the company's agnostic approach to cloud data solutions, which positions it favorably in the market [70][73] Question: Focus areas for management - The CEO is focused on efficiently acquiring new customers, while the CFO is focused on supporting growth initiatives and managing costs effectively [76][78]

SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________ Form 10-K __________________________ Emerging growth company ý (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the annual period ended January 31, 2019 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 Specified in its Char ...