Upgrade to SI Premium - Free Trial

Domo Announces Fourth Quarter and Fiscal 2020 Financial Results

March 10, 2020 7:31 AM

SILICON SLOPES, Utah, March 10, 2020 (GLOBE NEWSWIRE) -- Domo, Inc. (Nasdaq: DOMO) today announced results for the fiscal 2020 fourth quarter and year ended January 31, 2020.

Fiscal Fourth Quarter Results

Full Year Fiscal 2020 Results

Recent Highlights

We believe the following points and accolades from the last quarter are additional indicators of what’s to come in our business through our commitment to product innovation, go-to-market initiatives and customer success:

Business Outlook

Based on information available as of March 10, 2020, Domo is providing the following guidance for Q1 and full year fiscal 2021:

Q1 Fiscal 2021

Full Year Fiscal 2021

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 2020 fourth quarter financial results and to discuss its financial outlook. The call is scheduled to begin at 6:30 a.m. MT/ 8:30 a.m. ET. A live webcast of the event will be available on the Domo Investor Relations website at https://www.domo.com/ir. A live dial-in is available domestically at (877) 491-5762 and internationally at (763) 416-6939, with conference ID#1578527. A replay will be available via webcast or at (855) 859-2056 or (404) 537-3406 until midnight (ET) March 24, 2020.

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 and adjusted net cash used in operating activities. 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 Q1 fiscal quarter and full fiscal year 2021, 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 15, 2019 and the Annual Report on Form 10-K for the fiscal year ended January 31, 2020 expected to be filed with the SEC on or about March 31, 2020, 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.

Contact: Domo, Inc.
Investors: [email protected]
Media: [email protected]


Domo, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
January 31, January 31,
2019 2020 2019 2020
Revenue:
Subscription $31,930 $39,732 $117,157 $146,837
Professional services and other 7,478 6,439 25,307 26,558
Total revenue 39,408 46,171 142,464 173,395
Cost of revenue:
Subscription (1) 8,267 9,470 32,781 35,366
Professional services and other (1) 4,276 4,982 16,773 20,564
Total cost of revenue 12,543 14,452 49,554 55,930
Gross profit 26,865 31,719 92,910 117,465
Operating expenses:
Sales and marketing (1) 29,389 32,333 131,081 127,567
Research and development (1) 16,954 17,501 75,740 69,224
General and administrative (1), (2), (3) 8,270 9,059 30,176 35,941
Total operating expenses 54,613 58,893 236,997 232,732
Loss from operations (27,748) (27,174) (144,087) (115,267)
Other expense, net (1) (1,786) (2,460) (8,974) (9,635)
Loss before provision for income taxes (29,534) (29,634) (153,061) (124,902)
Provision for income taxes 339 225 1,248 754
Net loss $(29,873) $(29,859) $(154,309) $(125,656)
Net loss per share (basic and diluted) $(1.13) $(1.06) $(9.43) $(4.57)
Weighted-average number of shares (basic and diluted) 26,461 28,042 16,358 27,520
(1) Includes stock-based compensation expenses, as follows:
Cost of revenue:
Subscription $75 $166 $219 $507
Professional services and other 42 128 154 404
Sales and marketing 1,897 2,586 7,387 10,770
Research and development 1,413 1,487 6,519 6,339
General and administrative 1,436 1,684 7,492 5,637
Other expense, net 25 48 30 190
Total stock-based compensation expenses $4,888 $6,099 $21,801 $23,847
(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 $- $- $(3,513) $(1,293)



Domo, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
January 31, January 31,
2019 2020
Assets
Current assets:
Cash and cash equivalents$176,973 $80,843
Short-term investments - 17,967
Accounts receivable, net 48,421 47,967
Contract acquisition costs 10,425 12,676
Prepaid expenses and other current assets 10,935 12,809
Total current assets 246,754 172,262
Property and equipment, net 12,595 12,816
Contract acquisition costs, noncurrent 18,030 17,083
Intangible assets, net 4,415 3,865
Goodwill 9,478 9,478
Other assets 1,360 1,234
Total assets$292,632 $216,738
Liabilities and stockholders' equity (deficit)
Current liabilities:
Accounts payable$2,609 $2,298
Accrued expenses and other current liabilities 48,139 46,473
Current portion of deferred revenue 88,959 105,290
Total current liabilities 139,707 154,061
Deferred revenue, noncurrent 4,943 4,454
Other liabilities, noncurrent 6,210 6,329
Long-term debt 97,245 101,074
Total liabilities 248,105 265,918
Commitments and contingencies
Stockholders' equity (deficit):
Common stock 26 28
Additional paid-in capital 956,145 988,141
Accumulated other comprehensive income 438 389
Accumulated deficit (912,082) (1,037,738)
Total stockholders' equity (deficit) 44,527 (49,180)
Total liabilities and stockholders' equity (deficit)$292,632 $216,738



Domo, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended Year Ended
January 31, January 31,
2019 2020 2019 2020
Cash flows from operating activities
Net loss$(29,873) $(29,859) $(154,309) $(125,656)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 2,035 1,610 8,787 6,917
Amortization of contract acquisition costs 2,418 3,274 8,168 11,777
Stock-based compensation 4,888 6,099 21,801 23,847
Other, net 652 1,143 (1,276) 1,959
Changes in operating assets and liabilities:
Accounts receivable, net (18,616) (13,916) (12,937) 454
Contract acquisition costs (6,434) (4,161) (15,677) (13,178)
Prepaid expenses and other assets (3,077) (1,377) (4,824) (1,739)
Accounts payable (2,175) (596) (8,651) (292)
Accrued and other liabilities 4,647 3,726 4,605 (150)
Deferred revenue 17,833 18,779 22,946 15,842
Net cash used in operating activities (27,702) (15,278) (131,367) (80,219)
Cash flows from investing activities
Purchases of property and equipment (1,700) (1,606) (6,373) (6,466)
Purchases of securities available for sale - (8,753) - (102,084)
Proceeds from maturities of securities available for sale - 13,300 - 84,800
Purchases of intangible assets (1,603) (65) (1,603) (65)
Net cash (used in) provided by investing activities (3,303) 2,876 (7,976) (23,815)
Cash flows from financing activities
Proceeds from initial public offering, net of underwriting discounts and commissions - - 206,627 -
Payments of costs related to initial public offering 10 - (4,053) -
Proceeds from issuance of convertible preferred stock, net of issuance costs - - (87) -
Proceeds from shares issued in connection with employee stock purchase plan - - - 7,812
Shares repurchased for tax withholdings on vesting of restricted stock - (318) - (1,428)
Debt proceeds, net of issuance costs (9) - 49,642 -
Proceeds from exercise of stock options 1,974 99 2,250 1,600
Principal payments on capital lease obligations - - (44) -
Net cash provided by (used in) financing activities 1,975 (219) 254,335 7,984
Effect of exchange rate changes on cash and cash equivalents 4 (47) 9 (80)
Net (decrease) increase in cash and cash equivalents (29,026) (12,668) 115,001 (96,130)
Cash and cash equivalents at beginning of period 205,999 93,511 61,972 176,973
Cash and cash equivalents at end of period$176,973 $80,843 $176,973 $80,843



Domo, Inc.
Reconciliation of Non-GAAP Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
January 31, January 31,
2019 2020 2019 2020
Reconciliation of Subscription Gross Margin on a GAAP Basis to Subscription Gross Margin on a Non-GAAP Basis:
Revenue:
Subscription $31,930 $39,732 $117,157 $146,837
Cost of revenue:
Subscription 8,267 9,470 32,781 35,366
Subscription gross profit on a GAAP basis 23,663 30,262 84,376 111,471
Subscription gross margin on a GAAP basis 74% 76% 72% 76%
Stock-based compensation 75 166 219 507
Subscription gross profit on a non-GAAP basis $23,738 $30,428 $84,595 $111,978
Subscription gross margin on a non-GAAP basis 74% 77% 72% 76%
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 $54,613 $58,893 $236,997 $232,732
Stock-based compensation (4,746) (5,757) (21,398) (22,746)
Amortization of certain intangible assets (20) (20) (80) (80)
Reversal of contingent tax-related accrual - - 3,513 1,293
Total operating expenses on a non-GAAP basis $49,847 $53,116 $219,032 $211,199
Reconciliation of Operating Loss on a GAAP Basis to Operating Loss on a Non-GAAP Basis:
Operating loss on a GAAP basis $(27,748) $(27,174) $(144,087) $(115,267)
Stock-based compensation 4,863 6,051 21,771 23,657
Amortization of certain intangible assets 20 20 80 80
Reversal of contingent tax-related accrual - - (3,513) (1,293)
Operating loss on a non-GAAP basis $(22,865) $(21,103) $(125,749) $(92,823)
Reconciliation of Operating Margin on a GAAP Basis to Operating Margin on a Non-GAAP Basis:
Operating margin on a GAAP basis (70)% (59)% (101)% (66)%
Stock-based compensation 12 13 15 13
Amortization of certain intangible assets - - - -
Reversal of contingent tax-related accrual - - (2) (1)
Operating margin on a non-GAAP basis (58)% (46)% (88)% (54)%
Reconciliation of Net Loss on a GAAP Basis to Net Loss on a Non-GAAP Basis:
Net loss on a GAAP basis $(29,873) $(29,859) $(154,309) $(125,656)
Stock-based compensation 4,888 6,099 21,801 23,847
Amortization of certain intangible assets 20 20 80 80
Reversal of contingent tax-related accrual - - (3,513) (1,293)
Net loss on a non-GAAP basis $(24,965) $(23,740) $(135,941) $(103,022)
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 $(1.13) $(1.06) $(9.43) $(4.57)
Stock-based compensation 0.19 0.21 1.33 0.88
Amortization of certain intangible assets - - - -
Reversal of contingent tax-related accrual - - (0.21) (0.05)
Net loss per share on a non-GAAP basis $(0.94) $(0.85) $(8.31) $(3.74)
Billings:
Total revenue $39,408 $46,171 $142,464 $173,395
Add:
Deferred revenue (end of period) 88,959 105,290 88,959 105,290
Deferred revenue, noncurrent (end of period) 4,943 4,454 4,943 4,454
Less:
Deferred revenue (beginning of period) (72,862) (88,214) (66,712) (88,959)
Deferred revenue, noncurrent (beginning of period) (3,207) (2,751) (4,244) (4,943)
Increase in deferred revenue (current and noncurrent) 17,833 18,779 22,946 15,842
Billings $57,241 $64,950 $165,410 $189,237
Reconciliation of Net Cash Used in Operating Activities to Adjusted Net Cash Used in Operating Activities:
Net cash used in operating activities $(27,702) $(15,278) $(131,367) $(80,219)
Proceeds from shares issued in connection with employee stock purchase plan - - - 7,812
Adjusted net cash used in operating activities $(27,702) $(15,278) $(131,367) $(72,407)





Categories

Globe Newswire Press Releases

Next Articles