Thursday, September 6, 2018

Domo Announces Fiscal 2019 Second Quarter Financial Results

32% Year-Over-Year Growth in Total Revenue

35% Year-Over-Year Growth in Total Billings

Silicon Slopes, Utah – September 6, 2018 – Domo, Inc. (Nasdaq: DOMO), provider of the leading cloud-based operating system for business, today announced results for the fiscal 2019 second quarter ended July 31, 2018.

Fiscal Second Quarter Results

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


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

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

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

Recent Highlights

We believe the following points and accolades are leading indicators of what’s to come in our business through our commitment to product innovation and customer success:

  • Domo won an Industry Excellence Award from Dresner Advisory Services for the second year in a row for excellence based on customer ratings across all categories of measurement: product/technology, sales and service, value and confidence.
  • Domo received a perfect “recommendation” score from customers and was positioned as an Overall Leader in Dresner’s Wisdom of Crowds® flagship research. Domo also had the best score of all companies evaluated for product integration with third-party technologies, ease of installation and ease of upgrade/migration.
  • Domo received honors, including several Communicator Awards and a silver Omni award, that spotlight its commitment to customer success through excellence in online training.
  • Domo was ranked in the top 20% of all companies on ’s 2018 list of America’s fastest-growing private companies for its three-year growth rate through FY18. This is the seventh time that a company that Josh James founded has appeared on this annual Inc. list.
  • Domo also made Constellation Research’s ShortList of recommended solutions for both Marketing Analytics and Cloud-based Business Intelligence and Analytics Platforms.

Business Outlook

Based on information available as of September 6, 2018, Domo is providing the following guidance for Q3 and full year fiscal 2019:

Q3 Fiscal 2019

  • Revenue is expected to be in the range of $34.8 million to $35.2 million
  • Non-GAAP net loss per share is expected to be between $1.37 to $1.39 based on 26.35 million weighted-average shares outstanding

Full Year Fiscal 2019

  • Revenue is expected to be in the range of $136.7 million to $137.1 million
  • Non-GAAP net loss per share is expected to be between $9.50 to $9.55 based on 16.35 million weighted-average shares outstanding

We have not reconciled guidance for non-GAAP metrics to their most directly comparable GAAP measures because such items that impact these measures are not within our control or cannot be reasonably predicted.

Earnings Call Details

Domo plans to host a conference call today to review its fiscal 2019 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 A live dial-in is available domestically at (877) 491-5762 and internationally at (763) 416-6939, with conference ID#8292546. A replay will be available via webcast or at (855) 859-2056 or (404) 537-3406 until midnight (ET) September 20, 2018.

About Domo

Domo’s mission is to be the operating system for business, digitally connecting all your people, your data and your systems, empowering them to collaborate better, make better decisions and be more efficient, right from their phones. Domo works with many of the world’s leading and most progressive brands across multiple industries including retail, media and entertainment, manufacturing, finance and more. For more information about Domo (Nasdaq: DOMO), visit You can also follow Domo on Twitter, Facebook and LinkedIn.

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 and non-GAAP net loss per share. In computing these measures, we exclude the effects of stock-based compensation expense, amortization of intangible assets and the reversal of continent tax-related accruals. 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, our financial outlook for Q3 fiscal quarter and full fiscal year 2019. 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 Prospectus related to our initial public offering filed with the SEC on June 29, 2018 and the Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2018 expected to be filed with the SEC on or about September 14, 2018.  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.