Domo Announces Fourth Quarter and Fiscal 2021 Financial Results

Domo, Inc. (Nasdaq: DOMO) today announced results for its fiscal fourth quarter and year ended January 31, 2021.

Fiscal Fourth Quarter Results

  • Total revenue was $56.8 million, an increase of 23% year over year
  • Subscription revenue was $50.0 million, an increase of 26% year over year
  • Subscription revenue represented 88% of total revenue
  • Billings were $82.8 million or 28% year-over-year growth
  • Revenue allocated to remaining performance obligations (RPO) was $282.3 million as of January 31, 2021, an increase of 21% year over year
  • RPO expected to be recognized as revenue in the next twelve months was $178.2 million as of January 31, 2021, an increase of 23% year over year
  • Net cash and adjusted net cash provided by operating activities was $3.5 million, free cash flow was $2.1 million
  • GAAP subscription gross margin was 81%, an improvement of 5 percentage points from Q4 FY20
  • Non-GAAP subscription gross margin was 82%, an improvement of 5 percentage points from Q4 FY20
  • GAAP operating margin improved by 29 percentage points year over year
  • Non-GAAP operating margin improved by 33 percentage points year over year
  • GAAP net loss was $19.6 million, and GAAP net loss per share was $0.65, based on 30.2 million weighted-average shares outstanding
  • Non-GAAP net loss was $9.8 million, and non-GAAP net loss per share was $0.32, based on 30.2 million weighted-average shares outstanding
  • Cash and cash equivalents were $90.8 million as of January 31, 2021

Full Year Fiscal 2021 Results

  • Total revenue was $210.2 million, an increase of 21% year over year
  • Subscription revenue was $183.6 million, an increase of 25% year over year
  • Subscription revenue represented 87% of total revenue
  • Billings were $232.7 million or 23% year-over-year growth
  • Net cash used in operating activities was $15.9 million, while adjusted net cash used in operating activities was $9.1 million, a year-over-year improvement of 80% and 87%, respectively
  • GAAP subscription gross margin was 80%, an improvement of 4 percentage points from FY20
  • Non-GAAP subscription gross margin was 81%, an improvement of 4 percentage points from FY20
  • GAAP operating margin improved by 32 percentage points year over year
  • Non-GAAP operating margin improved by 35 percentage points year over year
  • GAAP net loss was $84.6 million, and GAAP net loss per share was $2.89, based on 29.3 million weighted-average shares outstanding
  • Non-GAAP net loss was $50.8 million, and non-GAAP net loss per share was $1.73, based on 29.3 million weighted-average shares outstanding

“Q4 capped off an incredible year in which our entire team's commitment to customer success drove outstanding performance across the board," said Josh James, founder and CEO, Domo. “Our strong performance and much improved financial position has put us in an excellent position to continue to execute and I'm thrilled to be pursuing our growth initiatives in FY22."

Recent Highlights

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

  • Domo was named a Challenger in the 2021 Gartner Magic Quadrant for Analytics and Business Intelligence Platforms based on completeness of vision and ability to execute.
  • Domo was also named a multiple-category winner in the Dresner Advisory Services 2020 Technology Innovation Awards for being a top-ranked solution in multiple market reports throughout the year.
  • Domo was honored as the 2020-2021 Best Cloud Business Intelligence or Analytics Solution by The Cloud Awards.
  • Domo also achieved Premier Status in Snowflake's Partner Connect Program and announced a new native integration with Snowflake that allows customers to better leverage their Snowflake investments.

Business Outlook

Based on information available as of March 11, 2021, Domo is providing the following guidance for its first fiscal quarter and full year fiscal 2022:

Q1 Fiscal 2022

  • Revenue is expected to be in the range of $56.5 million to $57.5 million
  • Non-GAAP net loss per share is expected to be between $0.43 and $0.47 based on 31.1 million weighted-average shares outstanding

Full Year Fiscal 2022

  • Revenue is expected to be in the range of $240.0 million to $245.0 million
  • Non-GAAP net loss per share is expected to be between $1.53 and $1.63 based on 32.2 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 2021 fourth 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/7572047. 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 #7572047 following the completion of the conference call until 11:59 p.m. (ET) March 25, 2021.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About Domo

Domo is the Business Cloud, empowering organizations of all sizes with BI leverage at cloud scale, in record time. With Domo, BI-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 about how Domo (Nasdaq: DOMO) helps its customers go fast, go big and go bold, 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 first 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 10, 2020 and the Annual Report on Form 10-K for the fiscal year ended January 31, 2021 expected to be filed with the SEC on or about March 31, 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 EndedYear Ended
January 31,January 31,

2020

2021

2020

2021

Revenue:
Subscription

$

39,732

$

49,956

$

146,837

$

183,645

Professional services and other

6,439

6,887

26,558

26,535

Total revenue

46,171

56,843

173,395

210,180

Cost of revenue:
Subscription (1)

9,470

9,368

35,366

36,656

Professional services and other (1)

4,982

5,144

20,564

20,092

Total cost of revenue

14,452

14,512

55,930

56,748

Gross profit

31,719

42,331

117,465

153,432

 
Operating expenses:
Sales and marketing (1)

32,333

31,246

127,567

117,335

Research and development (1)

17,501

16,600

69,224

66,474

General and administrative (1), (2), (3)

9,059

11,353

35,941

42,708

Total operating expenses

58,893

59,199

232,732

226,517

Loss from operations

(27,174

)

(16,868

)

(115,267

)

(73,085

)

 
Other expense, net (1)

(2,460

)

(2,784

)

(9,635

)

(11,140

)

Loss before provision for income taxes

(29,634

)

(19,652

)

(124,902

)

(84,225

)

Provision for income taxes

225

(37

)

754

409

Net loss

$

(29,859

)

$

(19,615

)

$

(125,656

)

$

(84,634

)

 
Net loss per share (basic and diluted)

$

(1.06

)

$

(0.65

)

$

(4.57

)

$

(2.89

)

Weighted-average number of shares (basic and diluted)

28,042

30,230

27,520

29,308

 
 
(1) Includes stock-based compensation expenses, as follows:
Cost of revenue:
Subscription

$

166

$

463

$

507

$

1,213

Professional services and other

128

349

404

843

Sales and marketing

2,586

3,266

10,770

10,936

Research and development

1,487

2,500

6,339

9,095

General and administrative

1,684

3,046

5,637

11,218

Other expense, net

48

177

190

444

Total stock-based compensation expenses

$

6,099

$

9,801

$

23,847

$

33,749

 
(2) Includes amortization of certain intangible assets, as follows:
General and administrative

$

20

$

20

$

80

$

80

 
(3) Includes reversal of contingent tax-related accrual, as follows:
General and administrative

$

-

$

-

$

(1,293

)

$

-

 

Domo, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

January 31,

January 31,

2020

2021

Assets
Current assets:
Cash and cash equivalents

$

80,843

$

90,794

Short-term investments

17,967

-

Accounts receivable, net

47,967

48,272

Contract acquisition costs

12,676

13,894

Prepaid expenses and other current assets

12,809

12,216

Total current assets

172,262

165,176

 
Property and equipment, net

12,816

14,745

Right-of-use assets

-

3,663

Contract acquisition costs, noncurrent

17,083

18,605

Intangible assets, net

3,865

3,356

Goodwill

9,478

9,478

Other assets

1,234

1,415

Total assets

$

216,738

$

216,438

 
Liabilities and stockholders' deficit
Current liabilities:
Accounts payable

$

2,298

$

1,085

Accrued expenses and other current liabilities

46,473

51,950

Lease liabilities

-

3,808

Current portion of deferred revenue

105,290

129,079

Total current liabilities

154,061

185,922

 
Lease liabilities, noncurrent

-

1,556

Deferred revenue, noncurrent

4,454

3,173

Other liabilities, noncurrent

6,329

9,637

Long-term debt

101,074

99,609

Total liabilities

265,918

299,897

 
Commitments and contingencies
 
Stockholders' deficit:
Common stock

28

30

Additional paid-in capital

988,141

1,038,006

Accumulated other comprehensive income

389

877

Accumulated deficit

(1,037,738

)

(1,122,372

)

Total stockholders' deficit

(49,180

)

(83,459

)

Total liabilities and stockholders' deficit

$

216,738

$

216,438

 

Domo, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

Three Months Ended

Year Ended

January 31,

January 31,

2020

2021

2020

2021

Cash flows from operating activities
Net loss

$

(29,859

)

$

(19,615

)

$

(125,656

)

$

(84,634

)

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

1,610

1,275

6,917

4,765

Non-cash lease expense

-

972

-

3,969

Amortization of contract acquisition costs

3,274

3,799

11,777

14,376

Stock-based compensation

6,099

9,801

23,847

33,749

Other, net

1,143

884

1,959

4,340

Changes in operating assets and liabilities:
Accounts receivable, net

(13,916

)

(10,484

)

454

(305

)

Contract acquisition costs

(4,161

)

(6,836

)

(13,178

)

(16,775

)

Prepaid expenses and other assets

(1,377

)

(3,473

)

(1,739

)

566

Accounts payable

(596

)

(3,738

)

(292

)

(1,341

)

Operating lease liabilities

-

(1,121

)

-

(3,685

)

Accrued and other liabilities

3,726

6,089

(150

)

6,595

Deferred revenue

18,779

25,995

15,842

22,508

Net cash (used in) provided by operating activities

(15,278

)

3,548

(80,219

)

(15,872

)

 
Cash flows from investing activities
Purchases of property and equipment

(1,606

)

(1,447

)

(6,466

)

(5,706

)

Purchases of securities available for sale

(8,753

)

-

(102,084

)

(11,149

)

Proceeds from maturities of securities available for sale

13,300

-

84,800

29,200

Purchases of intangible assets

(65

)

6

(65

)

(105

)

Net cash provided by (used in) investing activities

2,876

(1,441

)

(23,815

)

12,240

 
Cash flows from financing activities
Proceeds from shares issued in connection with employee stock purchase plan

-

-

7,812

6,748

Shares repurchased for tax withholdings on vesting of restricted stock

(318

)

(1,028

)

(1,428

)

(1,745

)

Proceeds from exercise of stock options

99

5,587

1,600

8,092

Net cash (used in) provided by financing activities

(219

)

4,559

7,984

13,095

Effect of exchange rate changes on cash and cash equivalents

(47

)

315

(80

)

488

Net (decrease) increase in cash and cash equivalents

(12,668

)

6,981

(96,130

)

9,951

Cash and cash equivalents at beginning of period

93,511

83,813

176,973

80,843

Cash and cash equivalents at end of period

$

80,843

$

90,794

$

80,843

$

90,794

 

Domo, Inc.

Reconciliation of Non-GAAP Financial Measures

(in thousands, except per share data)

(unaudited)

 

Three Months Ended

Year Ended

January 31,

January 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

$

39,732

$

49,956

$

146,837

$

183,645

Cost of revenue:
Subscription

9,470

9,368

35,366

36,656

Subscription gross profit on a GAAP basis

30,262

40,588

111,471

146,989

Subscription gross margin on a GAAP basis

76

%

81

%

76

%

80

%

 
Stock-based compensation

166

463

507

1,213

Subscription gross profit on a non-GAAP basis

$

30,428

$

41,051

$

111,978

$

148,202

Subscription gross margin on a non-GAAP basis

77

%

82

%

76

%

81

%

 
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

$

58,893

$

59,199

$

232,732

$

226,517

Stock-based compensation

(5,757

)

(8,812

)

(22,746

)

(31,249

)

Amortization of certain intangible assets

(20

)

(20

)

(80

)

(80

)

Reversal of contingent tax-related accrual

-

-

1,293

-

Total operating expenses on a non-GAAP basis

$

53,116

$

50,367

$

211,199

$

195,188

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

$

(27,174

)

$

(16,868

)

$

(115,267

)

$

(73,085

)

Stock-based compensation

6,051

9,624

23,657

33,305

Amortization of certain intangible assets

20

20

80

80

Reversal of contingent tax-related accrual

-

-

(1,293

)

-

Operating loss on a non-GAAP basis

$

(21,103

)

$

(7,224

)

$

(92,823

)

$

(39,700

)

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

(59

)%

(30

)%

(66

)%

(35

)%

Stock-based compensation

13

17

13

16

Amortization of certain intangible assets

-

-

-

-

Reversal of contingent tax-related accrual

-

-

(1

)

-

Operating margin on a non-GAAP basis

(46

)%

(13

)%

(54

)%

(19

)%

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

$

(29,859

)

$

(19,615

)

$

(125,656

)

$

(84,634

)

Stock-based compensation

6,099

9,801

23,847

33,749

Amortization of certain intangible assets

20

20

80

80

Reversal of contingent tax-related accrual

-

-

(1,293

)

-

Net loss on a non-GAAP basis

$

(23,740

)

$

(9,794

)

$

(103,022

)

$

(50,805

)

 
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

$

(1.06

)

$

(0.65

)

$

(4.57

)

$

(2.89

)

Stock-based compensation

0.21

0.33

0.88

1.16

Amortization of certain intangible assets

-

-

-

-

Reversal of contingent tax-related accrual

-

-

(0.05

)

-

Net loss per share on a non-GAAP basis

$

(0.85

)

$

(0.32

)

$

(3.74

)

$

(1.73

)

 
Billings:
Total revenue

$

46,171

$

56,843

$

173,395

$

210,180

Add:
Deferred revenue (end of period)

105,290

129,079

105,290

129,079

Deferred revenue, noncurrent (end of period)

4,454

3,173

4,454

3,173

Less:
Deferred revenue (beginning of period)

(88,214

)

(103,075

)

(88,959

)

(105,290

)

Deferred revenue, noncurrent (beginning of period)

(2,751

)

(3,182

)

(4,943

)

(4,454

)

Increase in deferred revenue (current and noncurrent)

18,779

25,995

15,842

22,508

Billings

$

64,950

$

82,838

$

189,237

$

232,688

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

$

(15,278

)

$

3,548

$

(80,219

)

$

(15,872

)

Proceeds from shares issued in connection with employee stock purchase plan

-

-

7,812

6,748

Adjusted net cash (used in) provided by operating activities

$

(15,278

)

$

3,548

$

(72,407

)

$

(9,124

)

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

$

(15,278

)

$

3,548

$

(80,219

)

$

(15,872

)

Proceeds from shares issued in connection with employee stock purchase plan

-

-

7,812

6,748

Purchases of property and equipment

(1,606

)

(1,447

)

(6,466

)

(5,706

)

Free cash flow

$

(16,884

)

$

2,101

$

(78,873

)

$

(14,830

)

Contacts:

Media –
Julie Kehoe
PR@domo.com

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