Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Domo Announces Second Quarter Fiscal 2024 Financial Results By: Domo, Inc. via Business Wire August 24, 2023 at 16:05 PM EDT Domo, Inc. (Nasdaq: DOMO) today announced results for its fiscal second quarter ended July 31, 2023. Fiscal Second Quarter Results Total revenue was $79.7 million, an increase of 5% year over year Subscription revenue was $71.2 million, an increase of 6% year over year Subscription revenue represented 89% of total revenue Billings were $70.6 million, a decrease of 2% year-over-year Remaining Performance Obligations (RPO) was $357.6 million as of July 31, 2023, an increase of 2% year over year RPO expected to be recognized as revenue in the next 12 months was $232.1 million as of July 31, 2023, an increase of 3% year over year Net cash provided by operating activities was $0.6 million GAAP subscription gross margin was 84%, consistent with Q2 FY23 Non-GAAP subscription gross margin was 85%, consistent with Q2 FY23 GAAP operating margin increased by 21 percentage points year over year Non-GAAP operating margin increased by 12 percentage points year over year GAAP net loss was $16.1 million, and GAAP net loss per share was $0.45, based on 35.9 million weighted-average shares outstanding Non-GAAP net loss was $0.8 million, and non-GAAP net loss per share was $0.02, based on 35.9 million weighted-average shares outstanding Cash, cash equivalents, and restricted cash were $63.9 million as of July 31, 2023 “Domo’s data experience platform helps companies of all sizes put data to work for everyone so they can multiply their impact on the business with real-time insights and action,” said Josh James, founder and CEO, Domo. James continued, “I’m excited about the momentum in consumption pricing; we believe this will drive improved relationships with customers and enable meaningful impact to our business model. I’m also thrilled with our advancements in AI and the new possibilities it will deliver for customers to innovate and grow. I feel confident we have the right priorities, roadmap and people to drive Domo’s long-term growth.” Recent Highlights We believe the following announcements and recognition demonstrate our commitment to product innovation and customer value: Domo was ranked as the number one vendor in the Dresner Advisory Services’ 2023 Self-Service Business Intelligence (BI) Market Study for the fifth consecutive year, placing ahead of 15 other vendors. In addition, Domo was named an overall leader and received its seventh consecutive perfect recommendation score in Dresner Advisory Services’ 2023 Wisdom of Crowds ® Business Intelligence (BI) Market Study and its Customer Experience and Vendor Credibility Models. Domo announced its placement in the Q2 2023 Constellation Research ShortList™ for Multicloud Analytics and Business Intelligence Platforms (BI) for the eighth consecutive year. Domo was also named to Constellation's first-ever Q2 2023 Embedded Analytics ShortList. For the fourth consecutive year, Domo was named to the 2023 Parity.Org Best Companies for Women to Advance™, which spotlights companies that are committed to supporting women and creating opportunities for them to advance their careers. Business Outlook Based on information available as of August 24, 2023, Domo is providing the following guidance for its third fiscal quarter and full year fiscal 2024: Q3 Fiscal 2024 Revenue is expected to be in the range of $78.5 million to $79.5 million Non-GAAP net loss per share, basic and diluted, is expected to be between $0.10 and $0.14 based on 36.3 million weighted-average shares outstanding, basic and diluted Full Year Fiscal 2024 Revenue is expected to be in the range of $316.0 million to $320.0 million, representing year-over-year growth of 2-4% Non-GAAP net loss per share, basic and diluted, is expected to be between $0.39 and $0.47 based on 36.1 million weighted-average shares outstanding, basic and diluted We have not reconciled guidance for non-GAAP metrics to their most directly comparable GAAP measures because certain 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 2024 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/UamMeXVB. 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 7, 2023. About Domo Domo puts data to work for everyone so they can multiply their impact on the business. Our cloud-native data experience platform goes beyond traditional business intelligence and analytics, making data visible and actionable with user-friendly dashboards and apps. Underpinned by AI, data science and a secure data foundation that connects with existing cloud and legacy systems, Domo helps companies optimize critical business processes at scale and in record time to spark the bold curiosity that powers exponential business results. 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, filings with the U.S. Securities and Exchange Commission (SEC), 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 free cash flow. In computing these measures, we exclude the effects of certain items including stock-based compensation expense, amortization of certain intangible assets, severance of executive officers who report to the Chief Executive Officer, and proceeds from shares issued in connection with the 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. During the current fiscal year, we revised our definition for non-GAAP statement of operations line items to adjust for executive severance expenses. We have revised the prior period amounts to conform to our current period presentation. 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 press 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 of our Chief Executive Officer, statements regarding our future, expectations for RPO in the next 12 months, our financial outlook for our third fiscal quarter and full fiscal year 2024, 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 SEC, including, without limitation, the Annual Report on Form 10-K filed with the SEC on March 27, 2023 and the Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2023 expected to be filed with the SEC on or about September 11, 2023. 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 is a registered trademark 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, 2022 2023 2022 2023 Revenue: Subscription $ 67,406 $ 71,211 $ 131,981 $ 142,301 Professional services and other 8,125 8,461 18,014 16,829 Total revenue 75,531 79,672 149,995 159,130 Cost of revenue: Subscription (1) 10,712 11,453 21,379 22,065 Professional services and other (1) 7,601 7,637 14,595 15,594 Total cost of revenue 18,313 19,090 35,974 37,659 Gross profit 57,218 60,582 114,021 121,471 Operating expenses: Sales and marketing (1), (3) 44,700 41,040 90,287 84,202 Research and development (1) 25,334 20,767 48,525 44,202 General and administrative (1), (2), (3) 12,825 9,378 29,485 23,379 Total operating expenses 82,859 71,185 168,297 151,783 Loss from operations (25,641 ) (10,603 ) (54,276 ) (30,312 ) Other expense, net (1) (3,286 ) (5,124 ) (7,351 ) (9,619 ) Loss before income taxes (28,927 ) (15,727 ) (61,627 ) (39,931 ) Provision for income taxes 212 341 400 540 Net loss $ (29,139 ) $ (16,068 ) $ (62,027 ) $ (40,471 ) Net loss per share (basic and diluted) $ (0.86 ) $ (0.45 ) $ (1.84 ) $ (1.14 ) Weighted-average number of shares (basic and diluted) 33,973 35,884 33,640 35,558 (1) Includes stock-based compensation expenses, as follows: Cost of revenue: Subscription $ 778 $ 670 $ 1,509 $ 1,288 Professional services and other 563 473 1,031 952 Sales and marketing 7,873 6,166 15,948 12,896 Research and development 6,283 4,618 13,287 9,593 General and administrative 4,707 2,960 13,512 6,468 Other expense, net 189 173 370 335 Total stock-based compensation expenses $ 20,393 $ 15,060 $ 45,657 $ 31,532 (2) Includes amortization of certain intangible assets, as follows: General and administrative $ 20 $ 20 $ 40 $ 40 (3) Includes executive officer severance, as follows: Sales and marketing $ 507 $ - $ 507 $ 443 General and administrative - 225 - 1,553 Total executive officer severance $ 507 $ 225 $ 507 $ 1,996 Domo, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) January 31, July 31, 2023 2023 Assets Current assets: Cash, cash equivalents, and restricted cash $ 66,500 $ 63,852 Accounts receivable, net 78,958 52,186 Contract acquisition costs 15,908 15,867 Prepaid expenses and other current assets 7,447 8,053 Total current assets 168,813 139,958 Property and equipment, net 21,375 23,998 Right-of-use assets 15,255 13,804 Contract acquisition costs, noncurrent 22,299 20,190 Intangible assets, net 2,794 2,780 Goodwill 9,478 9,478 Other assets 2,102 1,892 Total assets $ 242,116 $ 212,100 Liabilities and stockholders' deficit Current liabilities: Accounts payable $ 12,120 $ 9,155 Accrued expenses and other current liabilities 49,306 44,850 Lease liabilities 4,905 5,349 Current portion of deferred revenue 182,273 164,882 Total current liabilities 248,604 224,236 Lease liabilities, noncurrent 15,271 12,866 Deferred revenue, noncurrent 3,609 2,732 Other liabilities, noncurrent 12,425 13,105 Long-term debt 108,607 111,002 Total liabilities 388,516 363,941 Commitments and contingencies Stockholders' deficit: Common stock 35 36 Additional paid-in capital 1,183,921 1,218,604 Accumulated other comprehensive (loss) income (322 ) 24 Accumulated deficit (1,330,034 ) (1,370,505 ) Total stockholders' deficit (146,400 ) (151,841 ) Total liabilities and stockholders' deficit $ 242,116 $ 212,100 Domo, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended Six Months Ended July 31, July 31, 2022 2023 2022 2023 Cash flows from operating activities Net loss $ (29,139 ) $ (16,068 ) $ (62,027 ) $ (40,471 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 1,213 1,611 2,820 3,102 Non-cash lease expense 1,177 1,023 2,375 2,172 Amortization of contract acquisition costs 4,266 4,388 8,578 8,956 Stock-based compensation 20,393 15,060 45,657 31,532 Other, net 972 1,054 1,892 2,571 Changes in operating assets and liabilities: Accounts receivable, net (2,514 ) 4,704 15,001 26,772 Contract acquisition costs (4,079 ) (3,832 ) (7,282 ) (6,905 ) Prepaid expenses and other assets 6,584 933 781 (464 ) Accounts payable 4,822 (3,454 ) 12,907 (1,964 ) Operating lease liabilities (1,637 ) (1,220 ) (2,139 ) (2,817 ) Accrued and other liabilities (1,213 ) 5,545 (15,399 ) (2,753 ) Deferred revenue (3,203 ) (9,109 ) (4,741 ) (18,268 ) Net cash (used in) provided by operating activities (2,358 ) 635 (1,577 ) 1,463 Cash flows from investing activities Purchases of property and equipment (1,479 ) (2,924 ) (3,416 ) (6,500 ) Purchases of intangible assets - (26 ) - (26 ) Net cash used in investing activities (1,479 ) (2,950 ) (3,416 ) (6,526 ) Cash flows from financing activities Proceeds from shares issued in connection with employee stock purchase plan - - 1,563 2,032 Proceeds from exercise of stock options 81 3 805 3 Net cash provided by financing activities 81 3 2,368 2,035 Effect of exchange rate changes on cash, cash equivalents, and restricted cash (345 ) 176 (1,042 ) 380 Net decrease in cash, cash equivalents, and restricted cash (4,101 ) (2,136 ) (3,667 ) (2,648 ) Cash, cash equivalents, and restricted cash at beginning of period 83,995 65,988 83,561 66,500 Cash, cash equivalents, and restricted cash at end of period $ 79,894 $ 63,852 $ 79,894 $ 63,852 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, 2022 2023 2022 2023 Reconciliation of Subscription Gross Margin on a GAAP Basis to Subscription Gross Margin on a Non-GAAP Basis: Revenue: Subscription $ 67,406 $ 71,211 $ 131,981 $ 142,301 Cost of revenue: Subscription 10,712 11,453 21,379 22,065 Subscription gross profit on a GAAP basis 56,694 59,758 110,602 120,236 Subscription gross margin on a GAAP basis 84 % 84 % 84 % 84 % Stock-based compensation 778 670 1,509 1,288 Subscription gross profit on a non-GAAP basis $ 57,472 $ 60,428 $ 112,111 $ 121,524 Subscription gross margin on a non-GAAP basis 85 % 85 % 85 % 85 % 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 $ 82,859 $ 71,185 $ 168,297 $ 151,783 Stock-based compensation (18,863 ) (13,744 ) (42,747 ) (28,957 ) Amortization of certain intangible assets (20 ) (20 ) (40 ) (40 ) Executive officer severance (1) (507 ) (225 ) (507 ) (1,996 ) Total operating expenses on a non-GAAP basis $ 63,469 $ 57,196 $ 125,003 $ 120,790 Reconciliation of Operating (Loss) Income on a GAAP Basis to Operating Loss on a Non-GAAP Basis: Operating loss on a GAAP basis $ (25,641 ) $ (10,603 ) $ (54,276 ) $ (30,312 ) Stock-based compensation 20,204 14,887 45,287 31,197 Amortization of certain intangible assets 20 20 40 40 Executive officer severance (1) 507 225 507 1,996 Operating (loss) income on a non-GAAP basis $ (4,910 ) $ 4,529 $ (8,442 ) $ 2,921 Reconciliation of Operating Margin on a GAAP Basis to Operating Margin on a Non-GAAP Basis: Operating margin on a GAAP basis (34 )% (13 )% (36 )% (19 )% Stock-based compensation 26 19 30 20 Executive officer severance (1) 1 - - 1 Operating margin on a non-GAAP basis (7 )% 6 % (6 )% 2 % Reconciliation of Net Loss on a GAAP Basis to Net Loss on a Non-GAAP Basis: Net loss on a GAAP basis $ (29,139 ) $ (16,068 ) $ (62,027 ) $ (40,471 ) Stock-based compensation 20,393 15,060 45,657 31,532 Amortization of certain intangible assets 20 20 40 40 Executive officer severance (1) 507 225 507 1,996 Net loss on a non-GAAP basis $ (8,219 ) $ (763 ) $ (15,823 ) $ (6,903 ) 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 $ (0.86 ) $ (0.45 ) $ (1.84 ) $ (1.14 ) Stock-based compensation 0.60 0.42 1.36 0.89 Executive officer severance (1) 0.01 0.01 0.02 0.06 Net loss per share on a non-GAAP basis $ (0.25 ) $ (0.02 ) $ (0.46 ) $ (0.19 ) Billings: Total revenue $ 75,531 $ 79,672 $ 149,995 $ 159,130 Add: Deferred revenue (end of period) 163,454 164,882 163,454 164,882 Deferred revenue, noncurrent (end of period) 2,560 2,732 2,560 2,732 Less: Deferred revenue (beginning of period) (167,091 ) (173,646 ) (168,335 ) (182,273 ) Deferred revenue, noncurrent (beginning of period) (2,126 ) (3,077 ) (2,420 ) (3,609 ) Decrease in deferred revenue (current and noncurrent) (3,203 ) (9,109 ) (4,741 ) (18,268 ) Billings $ 72,328 $ 70,563 $ 145,254 $ 140,862 Reconciliation of Net Cash (Used in) Provided by Operating Activities to Adjusted Free Cash Flow: Net cash (used in) provided by operating activities $ (2,358 ) $ 635 $ (1,577 ) $ 1,463 Proceeds from shares issued in connection with employee stock purchase plan - - 1,563 2,032 Purchases of property and equipment (1,479 ) (2,924 ) (3,416 ) (6,500 ) Adjusted free cash flow $ (3,837 ) $ (2,289 ) $ (3,430 ) $ (3,005 ) (1) During the current fiscal year, we revised our definition for non-GAAP statement of operations line items to adjust for executive severance expenses. We have revised the prior period amounts to conform to our current period presentation. View source version on businesswire.com: https://www.businesswire.com/news/home/20230821022484/en/Contacts Media – Cynthia Cowen PR@domo.com Investors – Peter Lowry IR@domo.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Domo Announces Second Quarter Fiscal 2024 Financial Results By: Domo, Inc. via Business Wire August 24, 2023 at 16:05 PM EDT Domo, Inc. (Nasdaq: DOMO) today announced results for its fiscal second quarter ended July 31, 2023. Fiscal Second Quarter Results Total revenue was $79.7 million, an increase of 5% year over year Subscription revenue was $71.2 million, an increase of 6% year over year Subscription revenue represented 89% of total revenue Billings were $70.6 million, a decrease of 2% year-over-year Remaining Performance Obligations (RPO) was $357.6 million as of July 31, 2023, an increase of 2% year over year RPO expected to be recognized as revenue in the next 12 months was $232.1 million as of July 31, 2023, an increase of 3% year over year Net cash provided by operating activities was $0.6 million GAAP subscription gross margin was 84%, consistent with Q2 FY23 Non-GAAP subscription gross margin was 85%, consistent with Q2 FY23 GAAP operating margin increased by 21 percentage points year over year Non-GAAP operating margin increased by 12 percentage points year over year GAAP net loss was $16.1 million, and GAAP net loss per share was $0.45, based on 35.9 million weighted-average shares outstanding Non-GAAP net loss was $0.8 million, and non-GAAP net loss per share was $0.02, based on 35.9 million weighted-average shares outstanding Cash, cash equivalents, and restricted cash were $63.9 million as of July 31, 2023 “Domo’s data experience platform helps companies of all sizes put data to work for everyone so they can multiply their impact on the business with real-time insights and action,” said Josh James, founder and CEO, Domo. James continued, “I’m excited about the momentum in consumption pricing; we believe this will drive improved relationships with customers and enable meaningful impact to our business model. I’m also thrilled with our advancements in AI and the new possibilities it will deliver for customers to innovate and grow. I feel confident we have the right priorities, roadmap and people to drive Domo’s long-term growth.” Recent Highlights We believe the following announcements and recognition demonstrate our commitment to product innovation and customer value: Domo was ranked as the number one vendor in the Dresner Advisory Services’ 2023 Self-Service Business Intelligence (BI) Market Study for the fifth consecutive year, placing ahead of 15 other vendors. In addition, Domo was named an overall leader and received its seventh consecutive perfect recommendation score in Dresner Advisory Services’ 2023 Wisdom of Crowds ® Business Intelligence (BI) Market Study and its Customer Experience and Vendor Credibility Models. Domo announced its placement in the Q2 2023 Constellation Research ShortList™ for Multicloud Analytics and Business Intelligence Platforms (BI) for the eighth consecutive year. Domo was also named to Constellation's first-ever Q2 2023 Embedded Analytics ShortList. For the fourth consecutive year, Domo was named to the 2023 Parity.Org Best Companies for Women to Advance™, which spotlights companies that are committed to supporting women and creating opportunities for them to advance their careers. Business Outlook Based on information available as of August 24, 2023, Domo is providing the following guidance for its third fiscal quarter and full year fiscal 2024: Q3 Fiscal 2024 Revenue is expected to be in the range of $78.5 million to $79.5 million Non-GAAP net loss per share, basic and diluted, is expected to be between $0.10 and $0.14 based on 36.3 million weighted-average shares outstanding, basic and diluted Full Year Fiscal 2024 Revenue is expected to be in the range of $316.0 million to $320.0 million, representing year-over-year growth of 2-4% Non-GAAP net loss per share, basic and diluted, is expected to be between $0.39 and $0.47 based on 36.1 million weighted-average shares outstanding, basic and diluted We have not reconciled guidance for non-GAAP metrics to their most directly comparable GAAP measures because certain 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 2024 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/UamMeXVB. 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 7, 2023. About Domo Domo puts data to work for everyone so they can multiply their impact on the business. Our cloud-native data experience platform goes beyond traditional business intelligence and analytics, making data visible and actionable with user-friendly dashboards and apps. Underpinned by AI, data science and a secure data foundation that connects with existing cloud and legacy systems, Domo helps companies optimize critical business processes at scale and in record time to spark the bold curiosity that powers exponential business results. 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, filings with the U.S. Securities and Exchange Commission (SEC), 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 free cash flow. In computing these measures, we exclude the effects of certain items including stock-based compensation expense, amortization of certain intangible assets, severance of executive officers who report to the Chief Executive Officer, and proceeds from shares issued in connection with the 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. During the current fiscal year, we revised our definition for non-GAAP statement of operations line items to adjust for executive severance expenses. We have revised the prior period amounts to conform to our current period presentation. 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 press 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 of our Chief Executive Officer, statements regarding our future, expectations for RPO in the next 12 months, our financial outlook for our third fiscal quarter and full fiscal year 2024, 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 SEC, including, without limitation, the Annual Report on Form 10-K filed with the SEC on March 27, 2023 and the Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2023 expected to be filed with the SEC on or about September 11, 2023. 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 is a registered trademark 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, 2022 2023 2022 2023 Revenue: Subscription $ 67,406 $ 71,211 $ 131,981 $ 142,301 Professional services and other 8,125 8,461 18,014 16,829 Total revenue 75,531 79,672 149,995 159,130 Cost of revenue: Subscription (1) 10,712 11,453 21,379 22,065 Professional services and other (1) 7,601 7,637 14,595 15,594 Total cost of revenue 18,313 19,090 35,974 37,659 Gross profit 57,218 60,582 114,021 121,471 Operating expenses: Sales and marketing (1), (3) 44,700 41,040 90,287 84,202 Research and development (1) 25,334 20,767 48,525 44,202 General and administrative (1), (2), (3) 12,825 9,378 29,485 23,379 Total operating expenses 82,859 71,185 168,297 151,783 Loss from operations (25,641 ) (10,603 ) (54,276 ) (30,312 ) Other expense, net (1) (3,286 ) (5,124 ) (7,351 ) (9,619 ) Loss before income taxes (28,927 ) (15,727 ) (61,627 ) (39,931 ) Provision for income taxes 212 341 400 540 Net loss $ (29,139 ) $ (16,068 ) $ (62,027 ) $ (40,471 ) Net loss per share (basic and diluted) $ (0.86 ) $ (0.45 ) $ (1.84 ) $ (1.14 ) Weighted-average number of shares (basic and diluted) 33,973 35,884 33,640 35,558 (1) Includes stock-based compensation expenses, as follows: Cost of revenue: Subscription $ 778 $ 670 $ 1,509 $ 1,288 Professional services and other 563 473 1,031 952 Sales and marketing 7,873 6,166 15,948 12,896 Research and development 6,283 4,618 13,287 9,593 General and administrative 4,707 2,960 13,512 6,468 Other expense, net 189 173 370 335 Total stock-based compensation expenses $ 20,393 $ 15,060 $ 45,657 $ 31,532 (2) Includes amortization of certain intangible assets, as follows: General and administrative $ 20 $ 20 $ 40 $ 40 (3) Includes executive officer severance, as follows: Sales and marketing $ 507 $ - $ 507 $ 443 General and administrative - 225 - 1,553 Total executive officer severance $ 507 $ 225 $ 507 $ 1,996 Domo, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) January 31, July 31, 2023 2023 Assets Current assets: Cash, cash equivalents, and restricted cash $ 66,500 $ 63,852 Accounts receivable, net 78,958 52,186 Contract acquisition costs 15,908 15,867 Prepaid expenses and other current assets 7,447 8,053 Total current assets 168,813 139,958 Property and equipment, net 21,375 23,998 Right-of-use assets 15,255 13,804 Contract acquisition costs, noncurrent 22,299 20,190 Intangible assets, net 2,794 2,780 Goodwill 9,478 9,478 Other assets 2,102 1,892 Total assets $ 242,116 $ 212,100 Liabilities and stockholders' deficit Current liabilities: Accounts payable $ 12,120 $ 9,155 Accrued expenses and other current liabilities 49,306 44,850 Lease liabilities 4,905 5,349 Current portion of deferred revenue 182,273 164,882 Total current liabilities 248,604 224,236 Lease liabilities, noncurrent 15,271 12,866 Deferred revenue, noncurrent 3,609 2,732 Other liabilities, noncurrent 12,425 13,105 Long-term debt 108,607 111,002 Total liabilities 388,516 363,941 Commitments and contingencies Stockholders' deficit: Common stock 35 36 Additional paid-in capital 1,183,921 1,218,604 Accumulated other comprehensive (loss) income (322 ) 24 Accumulated deficit (1,330,034 ) (1,370,505 ) Total stockholders' deficit (146,400 ) (151,841 ) Total liabilities and stockholders' deficit $ 242,116 $ 212,100 Domo, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended Six Months Ended July 31, July 31, 2022 2023 2022 2023 Cash flows from operating activities Net loss $ (29,139 ) $ (16,068 ) $ (62,027 ) $ (40,471 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 1,213 1,611 2,820 3,102 Non-cash lease expense 1,177 1,023 2,375 2,172 Amortization of contract acquisition costs 4,266 4,388 8,578 8,956 Stock-based compensation 20,393 15,060 45,657 31,532 Other, net 972 1,054 1,892 2,571 Changes in operating assets and liabilities: Accounts receivable, net (2,514 ) 4,704 15,001 26,772 Contract acquisition costs (4,079 ) (3,832 ) (7,282 ) (6,905 ) Prepaid expenses and other assets 6,584 933 781 (464 ) Accounts payable 4,822 (3,454 ) 12,907 (1,964 ) Operating lease liabilities (1,637 ) (1,220 ) (2,139 ) (2,817 ) Accrued and other liabilities (1,213 ) 5,545 (15,399 ) (2,753 ) Deferred revenue (3,203 ) (9,109 ) (4,741 ) (18,268 ) Net cash (used in) provided by operating activities (2,358 ) 635 (1,577 ) 1,463 Cash flows from investing activities Purchases of property and equipment (1,479 ) (2,924 ) (3,416 ) (6,500 ) Purchases of intangible assets - (26 ) - (26 ) Net cash used in investing activities (1,479 ) (2,950 ) (3,416 ) (6,526 ) Cash flows from financing activities Proceeds from shares issued in connection with employee stock purchase plan - - 1,563 2,032 Proceeds from exercise of stock options 81 3 805 3 Net cash provided by financing activities 81 3 2,368 2,035 Effect of exchange rate changes on cash, cash equivalents, and restricted cash (345 ) 176 (1,042 ) 380 Net decrease in cash, cash equivalents, and restricted cash (4,101 ) (2,136 ) (3,667 ) (2,648 ) Cash, cash equivalents, and restricted cash at beginning of period 83,995 65,988 83,561 66,500 Cash, cash equivalents, and restricted cash at end of period $ 79,894 $ 63,852 $ 79,894 $ 63,852 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, 2022 2023 2022 2023 Reconciliation of Subscription Gross Margin on a GAAP Basis to Subscription Gross Margin on a Non-GAAP Basis: Revenue: Subscription $ 67,406 $ 71,211 $ 131,981 $ 142,301 Cost of revenue: Subscription 10,712 11,453 21,379 22,065 Subscription gross profit on a GAAP basis 56,694 59,758 110,602 120,236 Subscription gross margin on a GAAP basis 84 % 84 % 84 % 84 % Stock-based compensation 778 670 1,509 1,288 Subscription gross profit on a non-GAAP basis $ 57,472 $ 60,428 $ 112,111 $ 121,524 Subscription gross margin on a non-GAAP basis 85 % 85 % 85 % 85 % 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 $ 82,859 $ 71,185 $ 168,297 $ 151,783 Stock-based compensation (18,863 ) (13,744 ) (42,747 ) (28,957 ) Amortization of certain intangible assets (20 ) (20 ) (40 ) (40 ) Executive officer severance (1) (507 ) (225 ) (507 ) (1,996 ) Total operating expenses on a non-GAAP basis $ 63,469 $ 57,196 $ 125,003 $ 120,790 Reconciliation of Operating (Loss) Income on a GAAP Basis to Operating Loss on a Non-GAAP Basis: Operating loss on a GAAP basis $ (25,641 ) $ (10,603 ) $ (54,276 ) $ (30,312 ) Stock-based compensation 20,204 14,887 45,287 31,197 Amortization of certain intangible assets 20 20 40 40 Executive officer severance (1) 507 225 507 1,996 Operating (loss) income on a non-GAAP basis $ (4,910 ) $ 4,529 $ (8,442 ) $ 2,921 Reconciliation of Operating Margin on a GAAP Basis to Operating Margin on a Non-GAAP Basis: Operating margin on a GAAP basis (34 )% (13 )% (36 )% (19 )% Stock-based compensation 26 19 30 20 Executive officer severance (1) 1 - - 1 Operating margin on a non-GAAP basis (7 )% 6 % (6 )% 2 % Reconciliation of Net Loss on a GAAP Basis to Net Loss on a Non-GAAP Basis: Net loss on a GAAP basis $ (29,139 ) $ (16,068 ) $ (62,027 ) $ (40,471 ) Stock-based compensation 20,393 15,060 45,657 31,532 Amortization of certain intangible assets 20 20 40 40 Executive officer severance (1) 507 225 507 1,996 Net loss on a non-GAAP basis $ (8,219 ) $ (763 ) $ (15,823 ) $ (6,903 ) 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 $ (0.86 ) $ (0.45 ) $ (1.84 ) $ (1.14 ) Stock-based compensation 0.60 0.42 1.36 0.89 Executive officer severance (1) 0.01 0.01 0.02 0.06 Net loss per share on a non-GAAP basis $ (0.25 ) $ (0.02 ) $ (0.46 ) $ (0.19 ) Billings: Total revenue $ 75,531 $ 79,672 $ 149,995 $ 159,130 Add: Deferred revenue (end of period) 163,454 164,882 163,454 164,882 Deferred revenue, noncurrent (end of period) 2,560 2,732 2,560 2,732 Less: Deferred revenue (beginning of period) (167,091 ) (173,646 ) (168,335 ) (182,273 ) Deferred revenue, noncurrent (beginning of period) (2,126 ) (3,077 ) (2,420 ) (3,609 ) Decrease in deferred revenue (current and noncurrent) (3,203 ) (9,109 ) (4,741 ) (18,268 ) Billings $ 72,328 $ 70,563 $ 145,254 $ 140,862 Reconciliation of Net Cash (Used in) Provided by Operating Activities to Adjusted Free Cash Flow: Net cash (used in) provided by operating activities $ (2,358 ) $ 635 $ (1,577 ) $ 1,463 Proceeds from shares issued in connection with employee stock purchase plan - - 1,563 2,032 Purchases of property and equipment (1,479 ) (2,924 ) (3,416 ) (6,500 ) Adjusted free cash flow $ (3,837 ) $ (2,289 ) $ (3,430 ) $ (3,005 ) (1) During the current fiscal year, we revised our definition for non-GAAP statement of operations line items to adjust for executive severance expenses. We have revised the prior period amounts to conform to our current period presentation. View source version on businesswire.com: https://www.businesswire.com/news/home/20230821022484/en/Contacts Media – Cynthia Cowen PR@domo.com Investors – Peter Lowry IR@domo.com
Domo, Inc. (Nasdaq: DOMO) today announced results for its fiscal second quarter ended July 31, 2023. Fiscal Second Quarter Results Total revenue was $79.7 million, an increase of 5% year over year Subscription revenue was $71.2 million, an increase of 6% year over year Subscription revenue represented 89% of total revenue Billings were $70.6 million, a decrease of 2% year-over-year Remaining Performance Obligations (RPO) was $357.6 million as of July 31, 2023, an increase of 2% year over year RPO expected to be recognized as revenue in the next 12 months was $232.1 million as of July 31, 2023, an increase of 3% year over year Net cash provided by operating activities was $0.6 million GAAP subscription gross margin was 84%, consistent with Q2 FY23 Non-GAAP subscription gross margin was 85%, consistent with Q2 FY23 GAAP operating margin increased by 21 percentage points year over year Non-GAAP operating margin increased by 12 percentage points year over year GAAP net loss was $16.1 million, and GAAP net loss per share was $0.45, based on 35.9 million weighted-average shares outstanding Non-GAAP net loss was $0.8 million, and non-GAAP net loss per share was $0.02, based on 35.9 million weighted-average shares outstanding Cash, cash equivalents, and restricted cash were $63.9 million as of July 31, 2023 “Domo’s data experience platform helps companies of all sizes put data to work for everyone so they can multiply their impact on the business with real-time insights and action,” said Josh James, founder and CEO, Domo. James continued, “I’m excited about the momentum in consumption pricing; we believe this will drive improved relationships with customers and enable meaningful impact to our business model. I’m also thrilled with our advancements in AI and the new possibilities it will deliver for customers to innovate and grow. I feel confident we have the right priorities, roadmap and people to drive Domo’s long-term growth.” Recent Highlights We believe the following announcements and recognition demonstrate our commitment to product innovation and customer value: Domo was ranked as the number one vendor in the Dresner Advisory Services’ 2023 Self-Service Business Intelligence (BI) Market Study for the fifth consecutive year, placing ahead of 15 other vendors. In addition, Domo was named an overall leader and received its seventh consecutive perfect recommendation score in Dresner Advisory Services’ 2023 Wisdom of Crowds ® Business Intelligence (BI) Market Study and its Customer Experience and Vendor Credibility Models. Domo announced its placement in the Q2 2023 Constellation Research ShortList™ for Multicloud Analytics and Business Intelligence Platforms (BI) for the eighth consecutive year. Domo was also named to Constellation's first-ever Q2 2023 Embedded Analytics ShortList. For the fourth consecutive year, Domo was named to the 2023 Parity.Org Best Companies for Women to Advance™, which spotlights companies that are committed to supporting women and creating opportunities for them to advance their careers. Business Outlook Based on information available as of August 24, 2023, Domo is providing the following guidance for its third fiscal quarter and full year fiscal 2024: Q3 Fiscal 2024 Revenue is expected to be in the range of $78.5 million to $79.5 million Non-GAAP net loss per share, basic and diluted, is expected to be between $0.10 and $0.14 based on 36.3 million weighted-average shares outstanding, basic and diluted Full Year Fiscal 2024 Revenue is expected to be in the range of $316.0 million to $320.0 million, representing year-over-year growth of 2-4% Non-GAAP net loss per share, basic and diluted, is expected to be between $0.39 and $0.47 based on 36.1 million weighted-average shares outstanding, basic and diluted We have not reconciled guidance for non-GAAP metrics to their most directly comparable GAAP measures because certain 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 2024 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/UamMeXVB. 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 7, 2023. About Domo Domo puts data to work for everyone so they can multiply their impact on the business. Our cloud-native data experience platform goes beyond traditional business intelligence and analytics, making data visible and actionable with user-friendly dashboards and apps. Underpinned by AI, data science and a secure data foundation that connects with existing cloud and legacy systems, Domo helps companies optimize critical business processes at scale and in record time to spark the bold curiosity that powers exponential business results. 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, filings with the U.S. Securities and Exchange Commission (SEC), 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 free cash flow. In computing these measures, we exclude the effects of certain items including stock-based compensation expense, amortization of certain intangible assets, severance of executive officers who report to the Chief Executive Officer, and proceeds from shares issued in connection with the 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. During the current fiscal year, we revised our definition for non-GAAP statement of operations line items to adjust for executive severance expenses. We have revised the prior period amounts to conform to our current period presentation. 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 press 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 of our Chief Executive Officer, statements regarding our future, expectations for RPO in the next 12 months, our financial outlook for our third fiscal quarter and full fiscal year 2024, 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 SEC, including, without limitation, the Annual Report on Form 10-K filed with the SEC on March 27, 2023 and the Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2023 expected to be filed with the SEC on or about September 11, 2023. 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 is a registered trademark 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, 2022 2023 2022 2023 Revenue: Subscription $ 67,406 $ 71,211 $ 131,981 $ 142,301 Professional services and other 8,125 8,461 18,014 16,829 Total revenue 75,531 79,672 149,995 159,130 Cost of revenue: Subscription (1) 10,712 11,453 21,379 22,065 Professional services and other (1) 7,601 7,637 14,595 15,594 Total cost of revenue 18,313 19,090 35,974 37,659 Gross profit 57,218 60,582 114,021 121,471 Operating expenses: Sales and marketing (1), (3) 44,700 41,040 90,287 84,202 Research and development (1) 25,334 20,767 48,525 44,202 General and administrative (1), (2), (3) 12,825 9,378 29,485 23,379 Total operating expenses 82,859 71,185 168,297 151,783 Loss from operations (25,641 ) (10,603 ) (54,276 ) (30,312 ) Other expense, net (1) (3,286 ) (5,124 ) (7,351 ) (9,619 ) Loss before income taxes (28,927 ) (15,727 ) (61,627 ) (39,931 ) Provision for income taxes 212 341 400 540 Net loss $ (29,139 ) $ (16,068 ) $ (62,027 ) $ (40,471 ) Net loss per share (basic and diluted) $ (0.86 ) $ (0.45 ) $ (1.84 ) $ (1.14 ) Weighted-average number of shares (basic and diluted) 33,973 35,884 33,640 35,558 (1) Includes stock-based compensation expenses, as follows: Cost of revenue: Subscription $ 778 $ 670 $ 1,509 $ 1,288 Professional services and other 563 473 1,031 952 Sales and marketing 7,873 6,166 15,948 12,896 Research and development 6,283 4,618 13,287 9,593 General and administrative 4,707 2,960 13,512 6,468 Other expense, net 189 173 370 335 Total stock-based compensation expenses $ 20,393 $ 15,060 $ 45,657 $ 31,532 (2) Includes amortization of certain intangible assets, as follows: General and administrative $ 20 $ 20 $ 40 $ 40 (3) Includes executive officer severance, as follows: Sales and marketing $ 507 $ - $ 507 $ 443 General and administrative - 225 - 1,553 Total executive officer severance $ 507 $ 225 $ 507 $ 1,996 Domo, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) January 31, July 31, 2023 2023 Assets Current assets: Cash, cash equivalents, and restricted cash $ 66,500 $ 63,852 Accounts receivable, net 78,958 52,186 Contract acquisition costs 15,908 15,867 Prepaid expenses and other current assets 7,447 8,053 Total current assets 168,813 139,958 Property and equipment, net 21,375 23,998 Right-of-use assets 15,255 13,804 Contract acquisition costs, noncurrent 22,299 20,190 Intangible assets, net 2,794 2,780 Goodwill 9,478 9,478 Other assets 2,102 1,892 Total assets $ 242,116 $ 212,100 Liabilities and stockholders' deficit Current liabilities: Accounts payable $ 12,120 $ 9,155 Accrued expenses and other current liabilities 49,306 44,850 Lease liabilities 4,905 5,349 Current portion of deferred revenue 182,273 164,882 Total current liabilities 248,604 224,236 Lease liabilities, noncurrent 15,271 12,866 Deferred revenue, noncurrent 3,609 2,732 Other liabilities, noncurrent 12,425 13,105 Long-term debt 108,607 111,002 Total liabilities 388,516 363,941 Commitments and contingencies Stockholders' deficit: Common stock 35 36 Additional paid-in capital 1,183,921 1,218,604 Accumulated other comprehensive (loss) income (322 ) 24 Accumulated deficit (1,330,034 ) (1,370,505 ) Total stockholders' deficit (146,400 ) (151,841 ) Total liabilities and stockholders' deficit $ 242,116 $ 212,100 Domo, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended Six Months Ended July 31, July 31, 2022 2023 2022 2023 Cash flows from operating activities Net loss $ (29,139 ) $ (16,068 ) $ (62,027 ) $ (40,471 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 1,213 1,611 2,820 3,102 Non-cash lease expense 1,177 1,023 2,375 2,172 Amortization of contract acquisition costs 4,266 4,388 8,578 8,956 Stock-based compensation 20,393 15,060 45,657 31,532 Other, net 972 1,054 1,892 2,571 Changes in operating assets and liabilities: Accounts receivable, net (2,514 ) 4,704 15,001 26,772 Contract acquisition costs (4,079 ) (3,832 ) (7,282 ) (6,905 ) Prepaid expenses and other assets 6,584 933 781 (464 ) Accounts payable 4,822 (3,454 ) 12,907 (1,964 ) Operating lease liabilities (1,637 ) (1,220 ) (2,139 ) (2,817 ) Accrued and other liabilities (1,213 ) 5,545 (15,399 ) (2,753 ) Deferred revenue (3,203 ) (9,109 ) (4,741 ) (18,268 ) Net cash (used in) provided by operating activities (2,358 ) 635 (1,577 ) 1,463 Cash flows from investing activities Purchases of property and equipment (1,479 ) (2,924 ) (3,416 ) (6,500 ) Purchases of intangible assets - (26 ) - (26 ) Net cash used in investing activities (1,479 ) (2,950 ) (3,416 ) (6,526 ) Cash flows from financing activities Proceeds from shares issued in connection with employee stock purchase plan - - 1,563 2,032 Proceeds from exercise of stock options 81 3 805 3 Net cash provided by financing activities 81 3 2,368 2,035 Effect of exchange rate changes on cash, cash equivalents, and restricted cash (345 ) 176 (1,042 ) 380 Net decrease in cash, cash equivalents, and restricted cash (4,101 ) (2,136 ) (3,667 ) (2,648 ) Cash, cash equivalents, and restricted cash at beginning of period 83,995 65,988 83,561 66,500 Cash, cash equivalents, and restricted cash at end of period $ 79,894 $ 63,852 $ 79,894 $ 63,852 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, 2022 2023 2022 2023 Reconciliation of Subscription Gross Margin on a GAAP Basis to Subscription Gross Margin on a Non-GAAP Basis: Revenue: Subscription $ 67,406 $ 71,211 $ 131,981 $ 142,301 Cost of revenue: Subscription 10,712 11,453 21,379 22,065 Subscription gross profit on a GAAP basis 56,694 59,758 110,602 120,236 Subscription gross margin on a GAAP basis 84 % 84 % 84 % 84 % Stock-based compensation 778 670 1,509 1,288 Subscription gross profit on a non-GAAP basis $ 57,472 $ 60,428 $ 112,111 $ 121,524 Subscription gross margin on a non-GAAP basis 85 % 85 % 85 % 85 % 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 $ 82,859 $ 71,185 $ 168,297 $ 151,783 Stock-based compensation (18,863 ) (13,744 ) (42,747 ) (28,957 ) Amortization of certain intangible assets (20 ) (20 ) (40 ) (40 ) Executive officer severance (1) (507 ) (225 ) (507 ) (1,996 ) Total operating expenses on a non-GAAP basis $ 63,469 $ 57,196 $ 125,003 $ 120,790 Reconciliation of Operating (Loss) Income on a GAAP Basis to Operating Loss on a Non-GAAP Basis: Operating loss on a GAAP basis $ (25,641 ) $ (10,603 ) $ (54,276 ) $ (30,312 ) Stock-based compensation 20,204 14,887 45,287 31,197 Amortization of certain intangible assets 20 20 40 40 Executive officer severance (1) 507 225 507 1,996 Operating (loss) income on a non-GAAP basis $ (4,910 ) $ 4,529 $ (8,442 ) $ 2,921 Reconciliation of Operating Margin on a GAAP Basis to Operating Margin on a Non-GAAP Basis: Operating margin on a GAAP basis (34 )% (13 )% (36 )% (19 )% Stock-based compensation 26 19 30 20 Executive officer severance (1) 1 - - 1 Operating margin on a non-GAAP basis (7 )% 6 % (6 )% 2 % Reconciliation of Net Loss on a GAAP Basis to Net Loss on a Non-GAAP Basis: Net loss on a GAAP basis $ (29,139 ) $ (16,068 ) $ (62,027 ) $ (40,471 ) Stock-based compensation 20,393 15,060 45,657 31,532 Amortization of certain intangible assets 20 20 40 40 Executive officer severance (1) 507 225 507 1,996 Net loss on a non-GAAP basis $ (8,219 ) $ (763 ) $ (15,823 ) $ (6,903 ) 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 $ (0.86 ) $ (0.45 ) $ (1.84 ) $ (1.14 ) Stock-based compensation 0.60 0.42 1.36 0.89 Executive officer severance (1) 0.01 0.01 0.02 0.06 Net loss per share on a non-GAAP basis $ (0.25 ) $ (0.02 ) $ (0.46 ) $ (0.19 ) Billings: Total revenue $ 75,531 $ 79,672 $ 149,995 $ 159,130 Add: Deferred revenue (end of period) 163,454 164,882 163,454 164,882 Deferred revenue, noncurrent (end of period) 2,560 2,732 2,560 2,732 Less: Deferred revenue (beginning of period) (167,091 ) (173,646 ) (168,335 ) (182,273 ) Deferred revenue, noncurrent (beginning of period) (2,126 ) (3,077 ) (2,420 ) (3,609 ) Decrease in deferred revenue (current and noncurrent) (3,203 ) (9,109 ) (4,741 ) (18,268 ) Billings $ 72,328 $ 70,563 $ 145,254 $ 140,862 Reconciliation of Net Cash (Used in) Provided by Operating Activities to Adjusted Free Cash Flow: Net cash (used in) provided by operating activities $ (2,358 ) $ 635 $ (1,577 ) $ 1,463 Proceeds from shares issued in connection with employee stock purchase plan - - 1,563 2,032 Purchases of property and equipment (1,479 ) (2,924 ) (3,416 ) (6,500 ) Adjusted free cash flow $ (3,837 ) $ (2,289 ) $ (3,430 ) $ (3,005 ) (1) During the current fiscal year, we revised our definition for non-GAAP statement of operations line items to adjust for executive severance expenses. We have revised the prior period amounts to conform to our current period presentation. View source version on businesswire.com: https://www.businesswire.com/news/home/20230821022484/en/