Domo(US:DOMO)2025-12-09 00:43Revenue Performance - Total revenue for the three months ended October 31, 2025, was $79.4 million, compared to $79.8 million for the same period in 2024, indicating a slight decline [178]. - For the nine months ended October 31, 2025, total revenue was $239.2 million, up from $238.3 million in 2024, reflecting a year-over-year increase of approximately 0.4% [178]. - Total revenue for the same period was $79,403, a slight decrease of $361 thousand compared to $79,764 in 2024 [210]. - Total revenue for the nine months ended October 31, 2025, was $239.2 million, a slight increase of $958, or 0.4%, compared to the prior year [223]. Customer Metrics - As of October 31, 2025, 80% of annual recurring revenue (ARR) was derived from consumption-based service agreements, with expectations for this percentage to increase [175]. - The company had over 2,400 customers as of October 31, 2025, with enterprise customers accounting for 44% of revenue during the same period [183]. Financial Losses and Profitability - The company incurred net losses of $10.4 million for the three months ended October 31, 2025, compared to $18.8 million for the same period in 2024, indicating a reduction in losses [179]. - The net loss for the three months ended October 31, 2025, was $10,388, compared to a net loss of $18,761 in 2024 [207]. Expenses and Cost Management - Sales and marketing expenses as a percentage of total revenue decreased from 47% in Q3 2024 to 43% in Q3 2025, indicating improved efficiency [191]. - Research and development expenses as a percentage of total revenue increased from 27% in Q3 2024 to 24% in Q3 2025, reflecting ongoing investment in platform functionality [193]. - Total cost of revenue increased to $20,504, up 3% from $19,961 in 2024, with subscription costs rising by 7% to $14,281 [211]. - Operating expenses decreased to $65,829, down 7% from $70,887 in 2024, with sales and marketing expenses dropping by 8% to $34,120 [215]. - Research and development expenses fell to $19,062, a 10% decrease from $21,264 in 2024, reflecting lower headcount [216]. - General and administrative expenses increased from 15% to 16% of revenue, with a $1.6 million rise in employee-related costs due to stock-based compensation [218]. Cash Flow and Financing - As of October 31, 2025, the company had $47.9 million in cash and cash equivalents, with a $125.3 million credit facility fully drawn [233]. - For the nine months ended October 31, 2025, net cash provided by operating activities was $10.7 million, with cash collected from customers totaling $232.1 million [242][245]. - During the same period, net cash used in investing activities was $7.6 million, primarily for capitalized development costs related to internal-use software [242][247]. - The company experienced net cash used in financing activities of $1.5 million for the nine months ended October 31, 2025, primarily due to payments on short-term payable financing [242][250]. Debt and Credit Facilities - The company had total debt outstanding of $124.2 million as of October 31, 2025, with a credit facility allowing for term loan borrowings up to $125.3 million [256][257]. - The credit facility was amended in August 2024, extending the maturity date to August 19, 2028, and included the issuance of 1,022,918 fully-vested warrants [239]. Market and Economic Conditions - The company does not believe that inflation has had a material effect on its business, financial condition, or results of operations to date [260]. - The company has foreign currency exchange risks related to revenue and operating expenses denominated in currencies other than the U.S. dollar, primarily the Japanese Yen, British Pound Sterling, and the Australian Dollar [258]. Other Financial Metrics - Remaining performance obligations (RPO) increased from $368.2 million in 2024 to $428.6 million in 2025, with $231.1 million expected to be recognized as revenue in the next twelve months [177]. - The gross retention rate remained stable at 84% for both the trailing twelve months ending October 31, 2024, and 2025, despite macroeconomic challenges [188]. - Subscription revenue for the three months ended October 31, 2025, was $71,879, a 1% increase from $71,113 in 2024, driven by a $3.3 million increase from new customers [210]. - Subscription gross margin was 80% for the three months ended October 31, 2025, down from 81% in 2024, attributed to increased costs from third-party web hosting services [211]. - Income tax provision increased by $52, or 9%, to $634, primarily due to higher taxable income from international subsidiaries [232]. - The company entered into a Controlled Equity Offering Sales Agreement to sell up to $150 million of Class B common stock, with no shares sold to date [236]. - Remeasurement of warrant liability resulted in a $7.5 million net change during the nine months ended October 31, 2025 [231].