Domo (DOMO) Tops Q2 EPS by 51c, Revenues Beat; Offers FY19 Revenue Outlook Above Consensus

Domo (NASDAQ: DOMO) reported Q2 EPS of ($3.44), $0.51 better than the analyst estimate of ($3.95). Revenue for the quarter came in at $34.3 million versus the consensus estimate of $32.02 million.

• Total revenue was $34.3 million, an increase of 32% year over year
• Subscription revenue represented 82% of total revenue
• Billings were $35.7 million or 35% year-over-year growth, compared to 22% year-over-year growth for Q1 FY19
• GAAP subscription gross margin was 71% compared to 64% in Q2 FY18
• Non-GAAP subscription gross margin was 71% compared to 64% in Q2 FY18
• GAAP operating margin improved by 41 percentage points year over year
• Non-GAAP operating margin improved by 62 percentage points year over year
• GAAP operating expenses increased 11% year over year
• Non-GAAP operating expenses decreased 3% year over year
• GAAP net loss was $46.4 million, and GAAP net loss per share was $4.41, based on 10.51 million weighted-average shares outstanding
• Non-GAAP net loss was $36.2 million, and non-GAAP net loss per share was $3.44, based on 10.51 million weighted-average shares outstanding
• Cash and cash equivalents were $238.8 million

Comments“I’d like to thank our employees, customers and investors for helping us achieve the recent milestone of becoming a public company. While we’re early in our journey of fulfilling our vision and realizing our full value, we’re off to a great start. We’re delivering on our top two priorities of focusing on customers and growing the top line, which we’ve grown by more than 30%, and we’re doing so more efficiently,” said Josh James, Domo founder and CEO. “Because Domo can digitally connect any organization and empower each of its employees, we believe our market potential is every working person with a mobile device. The IPO has given us the capital needed to successfully execute our business plan. We are well positioned for future growth.”

“As our unique capabilities are more widely recognized and used throughout our customer base, we believe our growth will accelerate. We are particularly proud that more than 400 CEOs, including Fortune 500 CEOs, are using Domo to manage their business, with more than half doing so from their mobile device,” added James.

“Q2 was a strong quarter for us,” said Bruce Felt, CFO. “We improved execution across all functions of the organization. We are pleased with the productivity gains from sales and marketing. We believe, as we displayed this quarter, there is leverage throughout the entire organization to efficiently drive growth.”

GUIDANCE:

Domo sees FY2019 EPS of ($9.55)-($9.50), versus the consensus of $0.00. Domo sees FY2019 revenue of $136.7-137.1 million, versus the consensus of $131.38 million.

For earnings history and earnings-related data on Domo (DOMO) click here.

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