Domo(US:DOMO)2024-03-28 11:00Financial Performance - Total revenue for the fiscal years ended January 31, 2022, 2023, and 2024 was $258.0 million, $308.6 million, and $319.0 million, representing year-over-year growth of 20% and 3% respectively[25]. - The annual recurring revenue (ARR) net retention rate was 109%, 106%, and 96% for the years ended January 31, 2022, 2023, and 2024 respectively[24]. - The company reported a net loss of $102.1 million, $105.6 million, and $75.6 million for the fiscal years ended January 31, 2022, 2023, and 2024 respectively[25]. - As of January 31, 2024, the company had over 2,600 customers, with 79% of revenue derived from U.S. customers[87]. - 66% of customers were under multi-year contracts on a dollar-weighted basis, up from 65% in 2023 and 62% in 2022, enhancing subscription revenue predictability[91]. - Approximately 60% of annual recurring revenue is up for renewal during the fiscal year ending January 31, 2025[92]. Customer Base and Market Strategy - As of January 31, 2024, the company had over 2,600 organizations as customers, employing a land, expand, and retain business model[24]. - The company aims to expand its customer base internationally, particularly in markets like Japan, Asia Pacific, and EMEA, as the demand for real-time data access grows[51]. - The company has developed go-to-market partnerships with key technology and consulting partners to enhance customer validation and introductions[95]. - 2,600 customers span various industries and sizes, with no single customer representing more than 10% of revenue[87]. Product and Technology - The Domo platform can process several hundred trillion rows from uncached queries on a typical business day, maintaining a subsecond average query response time[20]. - Domo offers more than 1,000 powerful connectors, enabling real-time data synchronization across a broad range of data sources[22]. - The Domo Magic ETL tool allows customers to combine and enrich data using low-code capabilities, supporting SQL and Python/R scripts[22]. - Domo's AI infrastructure includes AutoML capabilities and model management for building and deploying machine learning models[26]. - The platform is designed to provide real-time access to data, enabling employees to design customized views and analyze trends effectively[28]. - Domo's mobile application allows all employees to manage business operations and receive alerts directly on their smartphones, enhancing accessibility[36]. - Domo's cloud-based architecture allows for massive scalability, accommodating large volumes of data and providing a fast query engine for immediate insights[50]. - Domo's platform enables organizations to share data and collaborate with external partners, enhancing productivity and decision-making[39]. - Domo's continuous product innovation focuses on enhancing ease of use, scalability, and the integration of IoT and AI functionalities[51]. - Domo's fast query layer supports datasets comprised of billions of records, providing subsecond average query response time for real-time data consumption[57]. - Domo Magic ETL allows users to easily join, aggregate, and cleanse data from multiple sources, enabling self-service data transformation[59]. - Domo AI Model Management supports deployment and training of AI models, including those hosted by third parties like OpenAI and Amazon Bedrock[73]. - Domo's AutoML capability automatically identifies key drivers in datasets, generating feature importance datasets to help users understand data impacts[76]. - The Domo Appstore offers hundreds of apps developed internally and by partners, enhancing the platform's functionality across various industries[75]. - Domo's mobile applications enable real-time data access and collaboration, ensuring users can manage responsibilities from anywhere[78]. - Domo provides extensive self-service features for data governance, including access management and logging tools for administrators[80]. - The Domo Data Warehouse allows IT professionals to manage data sources dynamically, identifying potential issues and understanding data relationships[84]. - Domo Sandbox enables users to create and test new content in a separate environment, minimizing disruptions to daily operations[86]. Security and Compliance - Domo's security features, including customer-controlled encryption key management, have attracted enterprise customers in highly regulated industries[40]. - The platform's governance capabilities allow IT departments to monitor data health and control access in real-time, ensuring compliance with security standards[42]. - Domo's Bring Your Own Key (BYOK) feature allows organizations to control encryption keys, enhancing data security by revoking access as needed[85]. - The company maintains a security program to ensure the integrity of customer data and has completed SOC 1 and SOC 2 audits[115]. Financial Position and Investments - The company had $60.9 million in cash, cash equivalents, and restricted cash, with $3.7 million being restricted cash[419]. - The company has a credit facility allowing up to $100 million in term loan borrowings, all of which had been drawn as of January 31, 2024, with an interest rate of approximately 11.1%[420]. - Total debt outstanding as of January 31, 2024, was $113.5 million, which approximates fair value[421]. - The company committed to spend an aggregate of $106.0 million with Amazon Web Services between October 2022 and September 2027[101]. - Research and development expenses were $85.0 million for the fiscal year ended January 31, 2024, compared to $95.1 million in 2023 and $81.0 million in 2022[105]. Risks and Economic Factors - The company is exposed to foreign currency exchange risks primarily related to the Japanese Yen, British Pound Sterling, and Australian Dollar, but does not believe a 10% change in currency values would materially affect operating results[422]. - The company has not engaged in hedging foreign currency transactions to date but is considering the costs and benefits of such a program as it expands international operations[423]. - Inflation has not materially affected the company's business, with subscription contracts often tied to the Consumer Price Index (CPI)[424].