Domo Announces Third Quarter Fiscal 2021 Financial Results
Subscription Revenue Increased 24%; Achieved Cash-Flow Milestone
Silicon Slopes, Utah – Domo, Inc. (Nasdaq: DOMO) today announced results for its fiscal third quarter ended October 31, 2020.
Fiscal Third Quarter Results
- Total revenue was $53.6 million, an increase of 20% year over year
- Subscription revenue was $46.9 million, an increase of 24% year over year
- Subscription revenue represented 87% of total revenue
- Billings were $55.7 million or 25% year-over-year growth
- Revenue allocated to remaining performance obligations (RPO) was $248.8 million as of October 31, 2020, an increase of 21% year over year
- RPO expected to be recognized as revenue in the next twelve months was $153.9 million as of October 31, 2020, an increase of 22% year over year
- Net cash used in operating activities was $1.7 million, while adjusted net cash provided by operating activities was $1.4 million
- GAAP subscription gross margin was 80%, an improvement of 4 percentage points from Q3 FY20
- Non-GAAP subscription gross margin was 81%, an improvement of 4 percentage points from Q3 FY20
- GAAP operating margin improved by 24 percentage points year over year
- Non-GAAP operating margin improved by 31 percentage points year over year
- GAAP net loss was $22.2 million, and GAAP net loss per share was $0.75, based on 29.5 million weighted-average shares outstanding
- Non-GAAP net loss was $11.9 million, and non-GAAP net loss per share was $0.40, based on 29.5 million weighted-average shares outstanding
- Cash and cash equivalents were $83.8 million as of October 31, 2020
“In Q3, we achieved strong growth and delivered on the commitment we made at our IPO to grow revenue while getting to cash-flow positive with the cash we had on hand,” said Josh James, founder and CEO. “This is a huge financial milestone for our company and a result of listening to our customers and building what they need, and having every employee put their hearts and souls into this mission. Our strong results and our improved financial position give us the confidence to invest in the significant growth opportunity in front of us. I want to extend a huge thank you to our customers, our employees and investors who have been part of this ongoing journey of building a world-class enterprise software business.”
We believe the following points and accolades demonstrate our commitment to product innovation, go-to-market initiatives and customer success:
- Domo was named Winner with its customer Unilever in Ventana Research’s Digital Leadership Awards for Analytics. This award was based on the use of Domo to support Unilever’s United for America, a national philanthropic program that provided more than $25 million in goods and services to communities in need.
- Domo was ranked an Overall Experience Leader and a Credibility Leader in Dresner Advisory Services’ 2020 SME Business Intelligence Market Study.
- Domo received industry recognitions in Gartner Research’s Digital Markets brands Capterra Top 20 – Statistical Analysis (August 2020) and GetApp Category Leader – Statistical Analysis (August 2020).
- Domo was been named a Best Company to Work For by Utah Business Magazine for the ninth consecutive year.
- Domo achieved SAP-certified integration with SAP HANA®. The SAP® Integration and Certification Center (SAP ICC) has certified that Domo integrates with SAP HANA using standard integration technologies.
Based on information available as of December 3, 2020, Domo is providing the following guidance for its fourth fiscal quarter and full year fiscal 2021:
Q4 Fiscal 2021
- Revenue is expected to be in the range of $53.3 million to $54.3 million
- Non-GAAP net loss per share is expected to be between $0.42 and $0.46 based on 30.1 million weighted-average shares outstanding
Full Year Fiscal 2021
- Revenue is expected to be in the range of $206.6 million to $207.6 million
- Non-GAAP net loss per share is expected to be between $1.83 and $1.87 based on 29.3 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 2021 third 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/4296169. 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 #4296169 following the completion of the conference call until 11:59p.m. (ET) December 17, 2020.
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.
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.
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 its fourth 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 10, 2020 and the Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2020 expected to be filed with the SEC on or about December 10, 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.
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Domo, Domo Business Cloud and Domo is the Business Cloud are registered trademarks of Domo, Inc.