Business Wire | Aug 26, 2021 04:05PM EDT

Domo Announces Second Quarter Fiscal 2022 Financial Results

Aug. 26, 2021

SILICON SLOPES, Utah--(BUSINESS WIRE)--Aug. 26, 2021--Domo, Inc. (Nasdaq: DOMO) today announced results for its fiscal second quarter ended July 31, 2021.

Fiscal Second Quarter Results

* Total revenue was $62.8 million, an increase of 23% year over year * Subscription revenue was $54.7 million, an increase of 23% year over year * Subscription revenue represented 87% of total revenue * Billings were $60.0 million or 26% year-over-year growth * Remaining performance obligations (RPO) was $286.8 million as of July 31, 2021, an increase of 24% year over year * RPO expected to be recognized as revenue in the next twelve months was $183.1 million as of July 31, 2021, an increase of 23% year over year * Net cash provided by operating activities was $2.2 million * GAAP subscription gross margin was 82%, an improvement of 2 percentage points from Q2 FY21 * Non-GAAP subscription gross margin was 83%, an improvement of 2 percentage points from Q2 FY21 * GAAP operating margin remained flat year over year * Non-GAAP operating margin improved by 6 percentage points year over year * GAAP net loss was $22.2 million, and GAAP net loss per share was $0.70, based on 31.9 million weighted-average shares outstanding * Non-GAAP net loss was $9.6 million, and non-GAAP net loss per share was $0.30, based on 31.9 million weighted-average shares outstanding * Cash and cash equivalents were $86.4 million as of July 31, 2021

"We have seen the demand for modern BI continue as companies look to unlock and democratize data for every person and every action that moves their business forward," said Josh James, founder and CEO, Domo. "As the first cloud-native, modern BI platform, Domo was built to help companies put data to work in new ways with the speed and scale that most organizations haven't seen to date. I am confident in Domo's ability to execute on this mission for the remainder of FY22."

Recent Highlights

We believe the following recognition and research demonstrate our commitment to product innovation, go-to-market initiatives and customer success:

* Domo was named a Leader in The Forrester WaveTM: Augmented Business Intelligence (BI) Platforms, Q3 2021.

* Domo was named an Overall Leader in the Dresner Advisory Services 2021 Wisdom of Crowds(r) BI Market Study, and received for the fifth consecutive year, a perfect recommendation score from customers. Domo was also named an Overall Leader in Dresner Advisory Services' 2021 Industry Excellence Awards and was recognized as best in class in integration with third-party technologies and in ease of installation.

* Domo announced a new integration with Snowflake's Snowpark to make it easier for developers, data engineers and data scientists to build and extend custom data-driven solutions across the enterprise.

* Domo launched our new Domo Everywhere offering that allows organizations to quickly build and deliver powerful differentiated data experiences for their customers and partners via low and no code software capabilities.

* Domo was named to Parity.org's Best Companies for Women to Advance List for the second consecutive year.

Business Outlook

Based on information available as of August 26, 2021, Domo is providing the following guidance for its third fiscal quarter and full year fiscal 2022:

Q3 Fiscal 2022

* Revenue is expected to be in the range of $63.5 million to $64.5 million * Non-GAAP net loss per share is expected to be between $0.33 and $0.37 based on 32.4 million weighted-average shares outstanding

Full Year Fiscal 2022

* Revenue is expected to be in the range of $252.0 million to $256.0 million * Non-GAAP net loss per share is expected to be between $1.31 and $1.39 based on 32.0 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 2022 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 http://www.directeventreg.com/registration/event/3315929. Instructions will be shared on how to join the call after registering.

A replay will be available at (800) 585-8367 or (416) 621-4642 with conference ID #3315929 following the completion of the conference call until 11:59 p.m. (ET) September 9, 2021.

About Domo

Domo (Nasdaq: DOMO) is the Business Cloud, transforming the way business is managed by delivering Modern BI for AllTM. With Domo, critical processes that took weeks, months or more can now be done on-the-fly, in minutes or seconds, at unbelievable scale. 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 and the @JoshJames 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, adjusted net cash used in operating activities, and 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. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

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 2022, 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, 2021 expected to be filed with the SEC on or about September 9, 2021, as well as risks to our business related to the COVID-19 outbreak. 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.

Domo, Domo Business Cloud and Domo is the Business Cloud are registered trademarks of Domo, Inc.

Domo, Inc.Condensed Consolidated Statements of Operations(in thousands, except per share data)(unaudited) Three Months Ended Six Months Ended

July 31, July 31,

2020 2021 2020 2021

Revenue:Subscription $ 44,347 $ 54,666 $ 86,783 $ 106,778

Professional services 6,784 8,159 12,909 16,109 and otherTotal revenue 51,131 62,825 99,692 122,887

Cost of revenue:Subscription (1) 8,811 10,019 17,916 19,076

Professional services 4,838 6,299 9,842 12,400 and other (1)Total cost of revenue 13,649 16,318 27,758 31,476

Gross profit 37,482 46,507 71,934 91,411

Operating expenses:Sales and marketing (1) 27,384 33,378 56,480 66,832

Research and development 15,917 19,341 33,370 35,527 (1)General and 9,557 12,384 19,426 22,602 administrative (1), (2)Total operating expenses 52,858 65,103 109,276 124,961

Loss from operations (15,376 ) (18,596 ) (37,342 ) (33,550 )

Other expense, net (1) (2,417 ) (3,505 ) (5,141 ) (6,767 )

Loss before provision (17,793 ) (22,101 ) (42,483 ) (40,317 )for income taxesProvision for income 110 139 315 27 taxesNet loss $ (17,903 ) $ (22,240 ) $ (42,798 ) $ (40,344 )

Net loss per share $ (0.62 ) $ (0.70 ) $ (1.49 ) $ (1.28 )(basic and diluted)Weighted-average number 29,001 31,883 28,728 31,451 of shares (basic anddiluted) (1) Includes stock-basedcompensation expenses,as follows:Cost of revenue:Subscription $ 147 $ 549 $ 373 $ 968

Professional services 118 271 221 605 and otherSales and marketing 2,543 4,747 4,369 8,474

Research and development 2,002 2,751 3,879 5,240

General and 2,323 4,137 4,720 7,053 administrativeOther expense, net 48 171 95 348

Total stock-based $ 7,181 $ 12,626 $ 13,657 $ 22,688 compensation expenses (2) Includesamortization of certainintangible assets, asfollows:General and $ 20 $ 20 $ 40 $ 40 administrative Domo, Inc.Condensed Consolidated Balance Sheets(in thousands)(unaudited)January 31,

July 31,

2021

2021

AssetsCurrent assets:Cash and cash equivalents$

90,794

$

86,373

Accounts receivable, net48,272

31,149

Contract acquisition costs13,894

13,733

Prepaid expenses and other current assets12,216

8,035

Total current assets165,176

139,290

Property and equipment, net14,745

16,569

Right-of-use assets3,663

18,935

Contract acquisition costs, noncurrent18,605

18,207

Intangible assets, net3,356

3,049

Goodwill9,478

9,478

Other assets1,415

1,268

Total assets$

216,438

$

206,796

Liabilities and stockholders' deficitCurrent liabilities:Accounts payable$

1,085

$

7,379

Accrued expenses and other current liabilities51,950

40,169

Lease liabilities3,808

3,858

Current portion of deferred revenue129,079

126,381

Total current liabilities185,922

177,787

Lease liabilities, noncurrent1,556

17,383

Deferred revenue, noncurrent3,173

1,233

Other liabilities, noncurrent9,637

10,189

Long-term debt99,609

101,742

Total liabilities299,897

308,334

Commitments and contingenciesStockholders' deficit:Common stock30

32

Additional paid-in capital1,038,006

1,060,419

Accumulated other comprehensive income877

727

Accumulated deficit(1,122,372

)

(1,162,716

)

Total stockholders' deficit(83,459

)

(101,538

)

Total liabilities and stockholders' deficit$

216,438

$

206,796

Domo, Inc.Condensed Consolidated Balance Sheets(in thousands)(unaudited) January 31, July 31,

2021 2021

AssetsCurrent assets:Cash and cash equivalents $ 90,794 $ 86,373

Accounts receivable, net 48,272 31,149

Contract acquisition costs 13,894 13,733

Prepaid expenses and other current assets 12,216 8,035

Total current assets 165,176 139,290

Property and equipment, net 14,745 16,569

Right-of-use assets 3,663 18,935

Contract acquisition costs, noncurrent 18,605 18,207

Intangible assets, net 3,356 3,049

Goodwill 9,478 9,478

Other assets 1,415 1,268

Total assets $ 216,438 $ 206,796

Liabilities and stockholders' deficitCurrent liabilities:Accounts payable $ 1,085 $ 7,379

Accrued expenses and other current liabilities 51,950 40,169

Lease liabilities 3,808 3,858

Current portion of deferred revenue 129,079 126,381

Total current liabilities 185,922 177,787

Lease liabilities, noncurrent 1,556 17,383

Deferred revenue, noncurrent 3,173 1,233

Other liabilities, noncurrent 9,637 10,189

Long-term debt 99,609 101,742

Total liabilities 299,897 308,334

Commitments and contingencies Stockholders' deficit:Common stock 30 32

Additional paid-in capital 1,038,006 1,060,419

Accumulated other comprehensive income 877 727

Accumulated deficit (1,122,372 ) (1,162,716 )

Total stockholders' deficit (83,459 ) (101,538 )

Total liabilities and stockholders' deficit $ 216,438 $ 206,796

Domo, Inc.Condensed Consolidated Statements of Cash Flows(in thousands)(unaudited)Three Months Ended

Six Months Ended

July 31,

July 31,

2020

2021

2020

2021

Cash flows from operating activitiesNet loss$

(17,903

)

$

(22,240

)

$

(42,798

)

$

(40,344

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:Depreciation and amortization1,071

1,228

2,364

2,256

Non-cash lease expense1,002

1,373

1,953

2,316

Amortization of contract acquisition costs3,512

3,932

6,920

7,835

Stock-based compensation7,181

12,626

13,657

22,688

Other, net943

921

1,822

1,786

Changes in operating assets and liabilities:Accounts receivable, net(5,289

)

1,852

13,034

17,123

Contract acquisition costs(3,966

)

(3,753

)

(5,892

)

(7,365

)

Prepaid expenses and other assets3,352

1,774

3,565

4,285

Accounts payable(639

)

2,930

(594

)

6,313

Operating lease liabilities(663

)

(631

)

(1,568

)

(1,711

)

Accrued and other liabilities10,098

4,976

(4,653

)

(11,103

)

Deferred revenue(3,490

)

(2,819

)

(5,514

)

(4,638

)

Net cash (used in) provided by operating activities(4,791

)

2,169

(17,704

)

(559

)

Cash flows from investing activitiesPurchases of property and equipment(1,791

)

(1,640

)

(3,154

)

(3,418

)

Purchases of securities available for sale-

-

(11,149

)

-

Proceeds from maturities of securities available for sale7,700

-

24,300

-

Purchases of intangible assets(1

)

-

(105

)

-

Net cash provided by (used in) investing activities5,908

(1,640

)

9,892

(3,418

)

Cash flows from financing activitiesProceeds from shares issued in connection with employee stock purchase plan(10

)

-

3,649

4,133

Shares repurchased for tax withholdings on vesting of restricted stock(485

)

(1,334

)

(523

)

(7,578

)

Proceeds from exercise of stock options2,048

2,509

2,059

3,163

Net cash provided by (used in) financing activities1,553

1,175

5,185

(282

)

Effect of exchange rate changes on cash and cash equivalents242

(157

)

239

(162

)

Net increase (decrease) in cash and cash equivalents2,912

1,547

(2,388

)

(4,421

)

Cash and cash equivalents at beginning of period75,543

84,826

80,843

90,794

Cash and cash equivalents at end of period$

78,455

$

86,373

$

78,455

$

86,373

Domo, Inc.Condensed Consolidated Statements of Cash Flows(in thousands)(unaudited) Three Months Ended Six Months Ended

July 31, July 31,

2020 2021 2020 2021

Cash flows from operatingactivitiesNet loss $ (17,903 ) $ (22,240 ) $ (42,798 ) $ (40,344 )

Adjustments to reconcilenet loss to net cash(used in) provided byoperating activities:Depreciation and 1,071 1,228 2,364 2,256 amortizationNon-cash lease expense 1,002 1,373 1,953 2,316

Amortization of contract 3,512 3,932 6,920 7,835 acquisition costsStock-based compensation 7,181 12,626 13,657 22,688

Other, net 943 921 1,822 1,786

Changes in operatingassets and liabilities:Accounts receivable, net (5,289 ) 1,852 13,034 17,123

Contract acquisition (3,966 ) (3,753 ) (5,892 ) (7,365 )costsPrepaid expenses and 3,352 1,774 3,565 4,285 other assetsAccounts payable (639 ) 2,930 (594 ) 6,313

Operating lease (663 ) (631 ) (1,568 ) (1,711 )liabilitiesAccrued and other 10,098 4,976 (4,653 ) (11,103 )liabilitiesDeferred revenue (3,490 ) (2,819 ) (5,514 ) (4,638 )

Net cash (used in) (4,791 ) 2,169 (17,704 ) (559 )provided by operatingactivities Cash flows from investingactivitiesPurchases of property and (1,791 ) (1,640 ) (3,154 ) (3,418 )equipmentPurchases of securities - - (11,149 ) - available for saleProceeds from maturities 7,700 - 24,300 - of securities availablefor salePurchases of intangible (1 ) - (105 ) - assetsNet cash provided by 5,908 (1,640 ) 9,892 (3,418 )(used in) investingactivities Cash flows from financingactivitiesProceeds from sharesissued in connection with (10 ) - 3,649 4,133 employee stock purchaseplanShares repurchased fortax withholdings on (485 ) (1,334 ) (523 ) (7,578 )vesting of restrictedstockProceeds from exercise of 2,048 2,509 2,059 3,163 stock optionsNet cash provided by 1,553 1,175 5,185 (282 )(used in) financingactivitiesEffect of exchange rate 242 (157 ) 239 (162 )changes on cash and cashequivalentsNet increase (decrease) 2,912 1,547 (2,388 ) (4,421 )in cash and cashequivalentsCash and cash equivalents 75,543 84,826 80,843 90,794 at beginning of periodCash and cash equivalents $ 78,455 $ 86,373 $ 78,455 $ 86,373 at end of period Domo, Inc.Reconciliation of Non-GAAP Financial Measures(in thousands, except per share data)(unaudited)Three Months Ended

Six Months Ended

July 31,

July 31,

2020

2021

2020

2021

Reconciliation of Subscription Gross Margin on a GAAP Basis to Subscription Gross Margin on a Non-GAAP Basis:Revenue:Subscription$

44,347

$

54,666

$

86,783

$

106,778

Cost of revenue:Subscription8,811

10,019

17,916

19,076

Subscription gross profit on a GAAP basis35,536

44,647

68,867

87,702

Subscription gross margin on a GAAP basis80

%

82

%

79

%

82

%

Stock-based compensation147

549

373

968

Subscription gross profit on a non-GAAP basis$

35,683

$

45,196

$

69,240

$

88,670

Subscription gross margin on a non-GAAP basis80

%

83

%

80

%

83

%

Reconciliation of Total Operating Expenses on a GAAP Basis to Total Operating Expenses on a Non-GAAP Basis:Total operating expenses on a GAAP basis$

52,858

$

65,103

$

109,276

$

124,961

Stock-based compensation(6,868

)

(11,635

)

(12,968

)

(20,767

)

Amortization of certain intangible assets(20

)

(20

)

(40

)

(40

)

Total operating expenses on a non-GAAP basis$

45,970

$

53,448

$

96,268

$

104,154

Reconciliation of Operating Loss on a GAAP Basis to Operating Loss on a Non-GAAP Basis:Operating loss on a GAAP basis$

(15,376

)

$

(18,596

)

$

(37,342

)

$

(33,550

)

Stock-based compensation7,133

12,455

13,562

22,340

Amortization of certain intangible assets20

20

40

40

Operating loss on a non-GAAP basis$

(8,223

)

$

(6,121

)

$

(23,740

)

$

(11,170

)

Reconciliation of Operating Margin on a GAAP Basis to Operating Margin on a Non-GAAP Basis:Operating margin on a GAAP basis(30

)%

(30

)%

(37

)%

(27

)%

Stock-based compensation14

20

13

18

Operating margin on a non-GAAP basis(16

)%

(10

)%

(24

)%

(9

)%

Reconciliation of Net Loss on a GAAP Basis to Net Loss on a Non-GAAP Basis:Net loss on a GAAP basis$

(17,903

)

$

(22,240

)

$

(42,798

)

$

(40,344

)

Stock-based compensation7,181

12,626

13,657

22,688

Amortization of certain intangible assets20

20

40

40

Net loss on a non-GAAP basis$

(10,702

)

$

(9,594

)

$

(29,101

)

$

(17,616

)

Reconciliation of Net Loss per Share on a GAAP Basis to Net Loss per Share on a Non-GAAP Basis:Net loss per share on a GAAP basis$

(0.62

)

$

(0.70

)

$

(1.49

)

$

(1.28

)

Stock-based compensation0.25

0.40

0.48

0.72

Net loss per share on a non-GAAP basis$

(0.37

)

$

(0.30

)

$

(1.01

)

$

(0.56

)

Billings:Total revenue$

51,131

$

62,825

$

99,692

$

122,887

Add:Deferred revenue (end of period)101,982

126,381

101,982

126,381

Deferred revenue, noncurrent (end of period)2,248

1,233

2,248

1,233

Less:Deferred revenue (beginning of period)(104,804

)

(128,510

)

(105,290

)

(129,079

)

Deferred revenue, noncurrent (beginning of period)(2,916

)

(1,923

)

(4,454

)

(3,173

)

Decrease in deferred revenue (current and noncurrent)(3,490

)

(2,819

)

(5,514

)

(4,638

)

Billings$

47,641

$

60,006

$

94,178

$

118,249

Reconciliation of Net Cash Used in Operating Activities to Adjusted Net Cash (Used in) Provided by Operating Activities:Net cash (used in) provided by operating activities$

(4,791

)

$

2,169

$

(17,704

)

$

(559

)

Proceeds from shares issued in connection with employee stock purchase plan(10

)

-

3,649

4,133

Adjusted net cash (used in) provided by operating activities$

(4,801

)

$

2,169

$

(14,055

)

$

3,574

Reconciliation of Net Cash Used in Operating Activities to Free Cash Flow:Net cash (used in) provided by operating activities$

(4,791

)

$

2,169

$

(17,704

)

$

(559

)

Proceeds from shares issued in connection with employee stock purchase plan(10

)

-

3,649

4,133

Purchases of property and equipment(1,791

)

(1,640

)

(3,154

)

(3,418

)

Free cash flow$

(6,592

)

$

529

$

(17,209

)

$

156

View source version on businesswire.com: https://www.businesswire.com/news/home/20210826005734/en/

CONTACT: Media - Julie Kehoe PR@domo.com

CONTACT: Investors - Peter Lowry IR@domo.com