DOMO, INC. - FORM 8-K - EX-99.1 - May 27, 2021

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Domo Announces First Quarter Fiscal 2022 Financial Results

Silicon Slopes, Utah - May 27, 2021 - Domo, Inc. (Nasdaq: DOMO) today announced results for its fiscal first quarter ended April 30, 2021.

Fiscal First Quarter Results
•Total revenue was $60.1 million, an increase of 24% year over year
•Subscription revenue was $52.1 million, an increase of 23% year over year
•Subscription revenue represented 87% of total revenue
•Billings were $58.2 million or 25% year-over-year growth
•Remaining performance obligations (RPO) was $284.3 million as of April 30, 2021, an increase of 24% year over year
•RPO expected to be recognized as revenue in the next twelve months was $180.8 million as of April 30, 2021, an increase of 22% year over year
•Net cash used in operating activities was $2.7 million, while adjusted net cash provided by operating activities was $1.4 million
•GAAP subscription gross margin was 83%, an improvement of 4 percentage points from Q1 FY21
•Non-GAAP subscription gross margin was 83%, an improvement of 4 percentage points from Q1 FY21
•GAAP operating margin improved by 20 percentage points year over year
•Non-GAAP operating margin improved by 24 percentage points year over year
•GAAP net loss was $18.1 million, and GAAP net loss per share was $0.58, based on 31.0 million weighted-average shares outstanding
•Non-GAAP net loss was $8.0 million, and non-GAAP net loss per share was $0.26, based on 31.0 million weighted-average shares outstanding
•Cash and cash equivalents were $84.8 million as of April 30, 2021

"With a record Q1 across many metrics including new business and retention, our performance this quarter puts us in a great position to execute well for the remainder of FY22," said Josh James, founder and CEO, Domo. "On average we’ve been growing our billings 25%. I think it’s wonderful we achieved that growth profile the last four quarters, and I’m excited to see what we can deliver in the future."

Recent Highlights
We believe the following recognition and research demonstrate our commitment to product innovation, go-to-market initiatives and customer success:
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•Domo released a recently commissioned Total Economic Impact™ (TEI) study conducted by Forrester Consulting which found that organizations leveraging Domo’s modern BI platform achieved an overall ROI of 345 percent over three years and recouped their investment in less than six months.

•Domo won both the Webby Award and the Webby People’s Voice Award for its COVID-19 tracker in the Apps and Software: Data Management category.

•Domo and CHOICE Humanitarian were selected as finalists in Fast Company's 2021 World Changing Ideas Awards in the Developing-World Technology category. Domo's COVID-19 tracker was also selected as an honorable mention in the category of Pandemic Response.

•Domo was ranked as the #1 vendor in Dresner Advisory Services' 2021 Cloud Computing and Business Intelligence Market Study for the fifth consecutive year.

•Domo achieved Amazon Web Services (AWS) Machine Learning Competency status in the new Applied Artificial Intelligence (Applied AI) category. Domo also announced a new native integration for Amazon Redshift and access to 1,000s of data products with AWS Data Exchange in Domo.

•Domo was rated an Exemplary Vendor in Ventana Research's 2021 Analytics and Data Value Index, Mobile Analytics and Data Value Index, Embedded Analytics and Data Value Index, and Collaborative Analytics and Data Value Index.

•Domo announced its fourth consecutive inclusion to the Women Tech Council’s (WTC) 2021 Shatter List, an annual recognition of companies that develop and successfully implement measures that help to break the glass ceiling for women in technology.

Business Outlook
Based on information available as of May 27, 2021, Domo is providing the following guidance for its second fiscal quarter and full year fiscal 2022:
Q2 Fiscal 2022
•Revenue is expected to be in the range of $60.0 million to $61.0 million
•Non-GAAP net loss per share is expected to be between $0.35 and $0.39 based on 31.8 million weighted-average shares outstanding
Full Year Fiscal 2022
•Revenue is expected to be in the range of $246.0 million to $252.0 million
•Non-GAAP net loss per share is expected to be between $1.33 and $1.41 based on 31.9 million weighted-average shares outstanding
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We have not reconciled guidance for non-GAAP metrics to their most directly comparable GAAP measures because such items that impact these measures are not within our control or cannot be reasonably predicted.

Earnings Call Details
Domo plans to host a conference call today to review its fiscal 2022 first 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/9892449. 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 #9892449 following the completion of the conference call until 11:59 p.m. (ET) June 10, 2021.

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.

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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 second fiscal quarter and full fiscal year 2022, and results for future periods. Forward-looking statements are subject to risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings with the U.S. Securities and Exchange Commission, including, without limitation, the Annual Report on Form 10-K filed with the SEC on April 1, 2021 and the Quarterly
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Report on Form 10-Q for the fiscal quarter ended April 30, 2021 expected to be filed with the SEC on or about June 9, 2021, as well as risks to our business related to the COVID-19 outbreak.  All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update this information unless required by law.
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Domo, Domo Business Cloud and Domo is the Business Cloud are registered trademarks of Domo, Inc.
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Domo, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended
April 30,
20202021
Revenue:
Subscription$42,436 $52,112 
Professional services and other6,125 7,950 
Total revenue48,561 60,062 
Cost of revenue:
Subscription (1)9,105 9,057 
Professional services and other (1)5,004 6,101 
Total cost of revenue14,109 15,158 
Gross profit34,452 44,904 
Operating expenses:
Sales and marketing (1)29,096 33,454 
Research and development (1)17,453 16,186 
General and administrative (1), (2)9,869 10,218 
Total operating expenses56,418 59,858 
Loss from operations(21,966)(14,954)
Other expense, net (1)(2,724)(3,262)
Loss before provision for income taxes(24,690)(18,216)
Provision for income taxes205 (112)
Net loss$(24,895)$(18,104)
Net loss per share (basic and diluted)$(0.88)$(0.58)
Weighted-average number of shares (basic and diluted)28,450 31,004 
(1) Includes stock-based compensation expenses, as follows:
Cost of revenue:
Subscription$226 $419 
Professional services and other103 334 
Sales and marketing1,826 3,727 
Research and development1,877 2,489 
General and administrative2,397 2,916 
Other expense, net47 177 
  Total stock-based compensation expenses$6,476 $10,062 
(2) Includes amortization of certain intangible assets, as follows:
General and administrative$20 $20 



Domo, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
January 31,April 30,
20212021
Assets
Current assets:
Cash and cash equivalents$90,794 $84,826 
Accounts receivable, net48,272 33,001 
Contract acquisition costs13,894 13,799 
Prepaid expenses and other current assets12,216 9,778 
Total current assets165,176 141,404 
Property and equipment, net14,745 15,837 
Right-of-use assets3,663 2,735 
Contract acquisition costs, noncurrent18,605 18,393 
Intangible assets, net3,356 3,202 
Goodwill9,478 9,478 
Other assets1,415 1,327 
Total assets$216,438 $192,376 
Liabilities and stockholders' deficit
Current liabilities:
Accounts payable$1,085 $4,461 
Accrued expenses and other current liabilities51,950 35,564 
Lease liabilities3,808 3,356 
Current portion of deferred revenue129,079 128,510 
Total current liabilities185,922 171,891 
Lease liabilities, noncurrent1,556 944 
Deferred revenue, noncurrent3,173 1,923 
Other liabilities, noncurrent9,637 9,917 
Long-term debt99,609 100,650 
Total liabilities299,897 285,325 
Commitments and contingencies
Stockholders' deficit:
Common stock30 31 
Additional paid-in capital1,038,006 1,046,623 
Accumulated other comprehensive income877 873 
Accumulated deficit(1,122,372)(1,140,476)
Total stockholders' deficit(83,459)(92,949)
Total liabilities and stockholders' deficit$216,438 $192,376 



Domo, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended
April 30,
20202021
Cash flows from operating activities
Net loss $(24,895)$(18,104)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization1,293 1,028 
Non-cash lease expense951 943 
Amortization of contract acquisition costs3,408 3,903 
Stock-based compensation6,476 10,062 
Other, net879 865 
Changes in operating assets and liabilities:
Accounts receivable, net18,323 15,271 
Contract acquisition costs(1,926)(3,612)
Prepaid expenses and other assets213 2,511 
Accounts payable45 3,383 
Operating lease liabilities(905)(1,080)
Accrued and other liabilities(14,751)(16,079)
Deferred revenue(2,024)(1,819)
Net cash used in operating activities(12,913)(2,728)
Cash flows from investing activities
Purchases of property and equipment(1,363)(1,778)
Purchases of securities available for sale(11,149)— 
Proceeds from maturities of securities available for sale16,600 — 
Purchases of intangible assets(104)— 
  Net cash provided by (used in) investing activities3,984 (1,778)
Cash flows from financing activities
Proceeds from shares issued in connection with employee stock purchase plan3,659 4,133 
Shares repurchased for tax withholdings on vesting of restricted stock(38)(6,244)
Proceeds from exercise of stock options11 654 
Net cash provided by (used in) financing activities3,632 (1,457)
Effect of exchange rate changes on cash and cash equivalents(3)(5)
Net decrease in cash and cash equivalents(5,300)(5,968)
Cash and cash equivalents at beginning of period80,843 90,794 
Cash and cash equivalents at end of period$75,543 $84,826 



Domo, Inc.
Reconciliation of Non-GAAP Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended
April 30,
20202021
Reconciliation of Subscription Gross Margin on a GAAP Basis to Subscription Gross Margin on a Non-GAAP Basis:
Revenue:
Subscription$42,436 $52,112 
Cost of revenue:
Subscription9,105 9,057 
Subscription gross profit on a GAAP basis33,331 43,055 
Subscription gross margin on a GAAP basis79 %83 %
Stock-based compensation226 419 
Subscription gross profit on a non-GAAP basis$33,557 $43,474 
Subscription gross margin on a non-GAAP basis79 %83 %
Reconciliation of Total Operating Expenses on a GAAP Basis to Total Operating Expenses on a Non-GAAP Basis:
Total operating expenses on a GAAP basis$56,418 $59,858 
Stock-based compensation(6,100)(9,132)
Amortization of certain intangible assets(20)(20)
Total operating expenses on a non-GAAP basis$50,298 $50,706 
Reconciliation of Operating Loss on a GAAP Basis to Operating Loss on a Non-GAAP Basis:
Operating loss on a GAAP basis$(21,966)$(14,954)
Stock-based compensation6,429 9,885 
Amortization of certain intangible assets20 20 
Operating loss on a non-GAAP basis$(15,517)$(5,049)
Reconciliation of Operating Margin on a GAAP Basis to Operating Margin on a Non-GAAP Basis:
Operating margin on a GAAP basis(45)%(25)%
Stock-based compensation13 17 
Operating margin on a non-GAAP basis(32)%(8)%
Reconciliation of Net Loss on a GAAP Basis to Net Loss on a Non-GAAP Basis:
Net loss on a GAAP basis$(24,895)$(18,104)
Stock-based compensation6,476 10,062 
Amortization of certain intangible assets20 20 
Net loss on a non-GAAP basis$(18,399)$(8,022)
Reconciliation of Net Loss per Share on a GAAP Basis to Net Loss per Share on a Non-GAAP Basis:
Net loss per share on a GAAP basis$(0.88)$(0.58)
Stock-based compensation0.23 0.32 
Net loss per share on a non-GAAP basis$(0.65)$(0.26)


Domo, Inc.
Reconciliation of Non-GAAP Financial Measures (Continued)
(in thousands, except per share data)
(unaudited)
Three Months Ended
April 30,
20202021
Billings:
Total revenue$48,561 $60,062 
Add:
Deferred revenue (end of period)104,804 128,510 
Deferred revenue, noncurrent (end of period)2,916 1,923 
Less:
Deferred revenue (beginning of period)(105,290)(129,079)
Deferred revenue, noncurrent (beginning of period)(4,454)(3,173)
Decrease in deferred revenue (current and noncurrent)(2,024)(1,819)
Billings$46,537 $58,243 
Reconciliation of Net Cash Used in Operating Activities to Adjusted Net Cash (Used in) Provided by Operating Activities:
Net cash used in operating activities$(12,913)$(2,728)
Proceeds from shares issued in connection with employee stock purchase plan3,659 4,133 
Adjusted net cash (used in) provided by operating activities$(9,254)$1,405 
Reconciliation of Net Cash Used in Operating Activities to Free Cash Flow:
Net cash used in operating activities$(12,913)$(2,728)
Proceeds from shares issued in connection with employee stock purchase plan3,659 4,133 
Purchases of property and equipment(1,363)(1,778)
Free cash flow$(10,617)$(373)


DOMO, INC. Reports