Domo(US:DOMO)2019-06-13 01:20Revenue 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]