Domo Announces Second Quarter Fiscal 2023 Financial Results

SILICON SLOPES, Utah – Domo, Inc. (Nasdaq: DOMO) today announced results for its fiscal second quarter ended July 31, 2022.

Fiscal Second Quarter Results

• Total revenue was $75.5 million, an increase of 20% year over year
• Subscription revenue was $67.4 million, an increase of 23% year over year
• Subscription revenue represented 89% of total revenue
• Billings were $72.3 million or 21% year-over-year growth
• Remaining Performance Obligations (RPO) was $349.1 million as of July 31, 2022, an increase of 22% year over year
• RPO expected to be recognized as revenue in the next twelve months was $225.3 million as of July 31, 2022, an increase of 23% year over year
• Net cash used in operating activities was $2.4 million
• GAAP subscription gross margin was 84%, an improvement of 2 percentage points from Q2 FY22
• Non-GAAP subscription gross margin was 85%, an improvement of 3 percentage points from Q2 FY22
• GAAP operating margin declined by 4 percentage points year over year
• Non-GAAP operating margin increased by 3 percentage points year over year
• GAAP net loss was $29.1 million, and GAAP net loss per share was $0.86, based on 0 million weighted-average shares outstanding
• Non-GAAP net loss was $8.7 million, and non-GAAP net loss per share was $0.26, based on 0 million weighted-average shares outstanding
• Cash and cash equivalents were $79.9 million as of July 31, 2022

“Domo is helping companies of all sizes leverage data across their organizations to increase revenue, improve efficiencies and drive better business outcomes — all at incredible speed,’ said John Mellor, CEO, Domo. “We continue to optimize for long-term, sustainable growth, as we deliver speed-to-value to line-of-business decision makers and support our customers’ success.”

Recent Highlights

We believe the following announcements and recognition demonstrate our commitment to product innovation and customer value:

• Domo was named in the Leaders category in the 2022 IDC MarketScape for U.S. business intelligence and analytics (BIA) platforms for its speed to deployment, collaboration functionality and self-service analytics capabilities.
• Domo was also named a Leader in Nucleus Research’s 2022 Analytics Technology Value Matrix for the second consecutive year, recognized for its integration development tools and enhancement of its multi-cloud capabilities.
• Domo announced it has been named an Overall Leader in the Business Intelligence (BI) category of the Dresner Advisory Services’ 2022 Wisdom of Crowds® Industry Excellence Awards for the sixth consecutive year. In addition, Domo was named an overall leader and received its sixth consecutive perfect recommendation score in the 2022 Dresner Wisdom of Crowds® BI Market Study.
• Domo achieved HITRUST Risk-based, 2-year Certification, passing rigorous third-party security review and validating its commitment to managing risk, improving security posture and meeting compliance requirements.
• Domo was named to the 2022 Org Best Companies for Women to Advance^TM List for the third consecutive year.

Business Outlook

Based on information available as of August 25, 2022, Domo is providing the following guidance for its third fiscal quarter and full year fiscal 2023:

Q3 Fiscal 2023

• Revenue is expected to be in the range of $76.0 million to $77.0 million
• Non-GAAP net loss per share is expected to be between $0.23 and $0.27 based on 4 million weighted-average shares outstanding

Full Year Fiscal 2023

• Revenue is expected to be in the range of $305.0 million to $310.0 million
• Non-GAAP net loss per share is expected to be between $0.88 and $0.96 based on 1 million weighted-average shares outstanding

We have not reconciled guidance for non-GAAP metrics to their most directly comparable GAAP measures because such items that impact these measures are not within our control or cannot be reasonably predicted.

Earnings Call Details

Domo plans to host a conference call today to review its fiscal 2023 second quarter financial results and to discuss its financial outlook. The call is scheduled to begin at 3:00 p.m. MT/ 5:00 p.m. ET. A live webcast of the event will be available on the Domo Investor Relations website at https://www.domo.com/ir. Participants can register for the call in advance by visiting https://conferencingportals.com/event/zYvDlnjs. Instructions will be shared on how to join the call after registering.

A replay will be available at (800) 770-2030 or (647) 362-9199 with conference ID #41576 following the completion of the conference call until 11:59 p.m. (ET) September 8, 2022.

About Domo

Domo transforms business by putting data to work for everyone. Domo’s low-code data app platform goes beyond traditional business intelligence and analytics to enable anyone to create data apps to power any action in their business, right where work gets done. With Domo’s fully integrated cloud-native platform, critical business processes can now be optimized in days instead of months or more. For more information, visit www.domo.com. You can also follow Domo on Twitter, Facebook and LinkedIn.

Domo Disclosure Channels to Disseminate Information

Domo investors and others should note that we announce material information to the public about our company, products and services, and other issues through a variety of means, including Domo’s website, press releases, SEC filings, blogs and social media, in order to achieve broad, non-exclusionary distribution of information to the public. We intend to use the Domo Facebook page, the Domo LinkedIn page, the Domo blog, the @Domotalk Twitter account as a means of disclosing information about the Company and its services and for complying with the disclosure obligations under Regulation FD. The information we post through these social media channels may be deemed material. Accordingly, we encourage investors and others to monitor these social media channels in addition to following our press releases, SEC filings and public conference calls and webcasts. The social media channels that we intend to use as a means of disclosing the information described here may be updated from time to time as listed on our investor relations webpage.

Use of Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), we reference in this press release and the accompanying tables the following non-GAAP financial measures: billings, non-GAAP subscription gross margin, non-GAAP operating expenses, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share, and adjusted free cash flow. In computing these measures, we exclude the effects of certain items including stock-based compensation expense, amortization of certain intangible assets, the reversal of contingent tax-related accruals and proceeds from shares issued in connection with employee stock purchase plan.

As it relates to adjusted free cash flow, we add back amounts equal to the proceeds from shares issued in connection with employee stock purchase plan to reflect the non-cash nature of these transactions. Because no cash is exchanged in these transactions, showing proceeds in the financing section of the statement of cash flows as required by GAAP results in a corresponding decrease in the operating section, which management believes is not indicative of actual cash used in or provided by our operations. We believe that this non-GAAP cash metric is useful because it provides investors with the same information that management uses to consistently evaluate, forecast and measure the Company’s actual cash flows and its ability to achieve and maintain positive cash flows.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our ongoing core business operating results. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and planning, forecasting, and analyzing future periods.

For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned “Reconciliation of Non-GAAP Financial Measures” included at the end of this release.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our future growth, demand for our products and services, our financial outlook for our third fiscal quarter and full fiscal year 2023, and results for future periods. Forward-looking statements are subject to risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption “Risk Factors” and elsewhere in our filings with the U.S. Securities and Exchange Commission, including, without limitation, the Annual Report on Form 10-K filed with the SEC on April 1, 2021 and the Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2022 expected to be filed with the SEC on or about September 9, 2022. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update this information unless required by law.

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Domo is a registered trademark of Domo, Inc.