Domo(DOMO)2023-03-26 16:00Customer 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].