Domo(US:DOMO)2024-12-10 01:46Financial Performance - Total revenue for the three months ended October 31, 2023, was $79.7 million, compared to $79.8 million for the same period in 2024[199]. - Total revenue for the three months ended October 31, 2024, was $79,764, reflecting an increase of $89 from $79,675 in the prior year[235]. - Subscription revenue for the three months ended October 31, 2024, was $71,113, a slight decrease of $180 compared to $71,293 for the same period in 2023[235]. - Revenue from customers with billing addresses in the United States comprised 80% and 79% of total revenue for the three months ended October 31, 2023, and 2024, respectively[199]. - The total customer count remained relatively flat from October 31, 2023, to October 31, 2024, with subscription revenue impacted by a $4.4 million net decrease from existing customers[235]. Expenses and Losses - The company incurred net losses of $16.4 million and $18.8 million for the three months ended October 31, 2023, and 2024, respectively, with an accumulated deficit of $1,469.9 million as of October 31, 2024[201]. - Total operating expenses for the nine months ended October 31, 2024, were $224.50 million, a slight increase of $0.59 million or 0% compared to the previous year[252]. - Sales and marketing expenses decreased by $8.42 million to $116.04 million, representing 49% of total revenue[252]. - Research and development expenses increased by $2.02 million to $65.95 million, accounting for 28% of total revenue[253]. - General and administrative expenses rose by $6.99 million to $42.50 million, representing 17% of total revenue[254]. - The net loss for the three months ended October 31, 2024, was $18,761, compared to a net loss of $16,413 for the same period in 2023[230]. Revenue Recognition and Obligations - Remaining performance obligations (RPO) were $367.2 million and $368.2 million as of October 31, 2023, and 2024, respectively, with expected revenue recognition of $230.8 million and $220.6 million in the next twelve months[198]. - The gross retention rate declined to 84% as of October 31, 2024, down from 87% in the previous year, influenced by macroeconomic conditions[209]. Research and Development - Research and development expense as a percentage of total revenue was 27% for the three months ended October 31, 2024, compared to 25% for the same period in 2023[216]. - Research and development expenses for the three months ended October 31, 2024, were $21,264, an increase from $19,729 in the prior year[224]. - The company plans to enhance its platform functionality through investments in machine learning and artificial intelligence technologies[215]. Cash and Financing - As of October 31, 2024, the company had $40.9 million in cash and cash equivalents and a fully drawn credit facility of $123.0 million[259]. - The company is required to maintain a minimum liquidity of $25.0 million in unrestricted cash[268]. - The credit facility allows for up to $125.3 million in term loan borrowings, all of which had been drawn as of October 31, 2024, with a maturity date of August 19, 2028[286]. - The interest rate on the term loan was 8.1% as of October 31, 2024, with an additional fixed rate of 5.0% accruing on the outstanding principal[287]. - Net cash used in operating activities for the nine months ended October 31, 2024 was $254.4 million, with cash collected from customers totaling $236.4 million[273]. - Net cash provided by financing activities for the nine months ended October 31, 2024 was $5.0 million, primarily from debt proceeds[278]. Stock and Debt - The company entered into a Controlled Equity Offering Sales Agreement to sell up to $150.0 million of Class B common stock, with no shares sold to date[262]. - The company issued 1,022,918 fully-vested warrants to purchase Class B common stock as part of the credit facility amendment in August 2024[266]. - Loss on extinguishment of debt increased by $1.85 million due to an amendment to the credit facility[255]. Cost of Revenue and Profitability - Total cost of revenue increased to $19,961 for the three months ended October 31, 2024, up by $1,185 or 6% from $18,776 in the same period of 2023[236]. - Gross profit for the three months ended October 31, 2024, was $59,803, a decrease of $1,096 or 2% compared to $60,899 in the prior year[236]. - Subscription gross margin decreased to 81% for the three months ended October 31, 2024, down from 84% in the same period of 2023[236]. - Gross profit decreased by $4.90 million to $177.48 million, resulting in a total gross margin of 74%[249].