Domo Announces Second Quarter Fiscal 2022 Financial Results
Silicon Slopes, Utah – Domo, Inc. (Nasdaq: DOMO) today announced results for its fiscal second quarter ended July 31, 2021.
Fiscal Second Quarter Results
- Total revenue was $62.8 million, an increase of 23% year over year
- Subscription revenue was $54.7 million, an increase of 23% year over year
- Subscription revenue represented 87% of total revenue
- Billings were $60.0 million or 26% year-over-year growth
- Remaining performance obligations (RPO) was $286.8 million as of July 31, 2021, an increase of 24% year over year
- RPO expected to be recognized as revenue in the next twelve months was $183.1 million as of July 31, 2021, an increase of 23% year over year
- Net cash provided by operating activities was $2.2 million
- GAAP subscription gross margin was 82%, an improvement of 2 percentage points from Q2 FY21
- Non-GAAP subscription gross margin was 83%, an improvement of 2 percentage points from Q2 FY21
- GAAP operating margin remained flat year over year
- Non-GAAP operating margin improved by 6 percentage points year over year
- GAAP net loss was $22.2 million, and GAAP net loss per share was $0.70, based on 31.9 million weighted-average shares outstanding
- Non-GAAP net loss was $9.6 million, and non-GAAP net loss per share was $0.30, based on 31.9 million weighted-average shares outstanding
- Cash and cash equivalents were $86.4 million as of July 31, 2021
“We have seen the demand for modern BI continue as companies look to unlock and democratize data for every person and every action that moves their business forward,” said Josh James, founder and CEO, Domo. “As the first cloud-native, modern BI platform, Domo was built to help companies put data to work in new ways with the speed and scale that most organizations haven’t seen to date. I am confident in Domo’s ability to execute on this mission for the remainder of FY22.”
We believe the following recognition and research demonstrate our commitment to product innovation, go-to-market initiatives and customer success:
- Domo was named a Leader in The Forrester WaveTM: Augmented Business Intelligence (BI) Platforms, Q3 2021.
- Domo was named an Overall Leader in the Dresner Advisory Services 2021 Wisdom of Crowds® BI Market Study, and received for the fifth consecutive year, a perfect recommendation score from customers. Domo was also named an Overall Leader in Dresner Advisory Services’ 2021 Industry Excellence Awards and was recognized as best in class in integration with third-party technologies and in ease of installation.
- Domo announced a new integration with Snowflake’s Snowpark to make it easier for developers, data engineers and data scientists to build and extend custom data-driven solutions across the enterprise.
- Domo launched our new Domo Everywhere offering that allows organizations to quickly build and deliver powerful differentiated data experiences for their customers and partners via low and no code software capabilities.
- Domo was named to Parity.org’s Best Companies for Women to Advance List for the second consecutive year.
Based on information available as of August 26, 2021, Domo is providing the following guidance for its third fiscal quarter and full year fiscal 2022:
Q3 Fiscal 2022
- Revenue is expected to be in the range of $63.5 million to $64.5 million
- Non-GAAP net loss per share is expected to be between $0.33 and $0.37 based on 32.4 million weighted-average shares outstanding
Full Year Fiscal 2022
- Revenue is expected to be in the range of $252.0 million to $256.0 million
- Non-GAAP net loss per share is expected to be between $1.31 and $1.39 based on 32.0 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 2022 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 http://www.directeventreg.com/registration/event/3315929. 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 #3315929 following the completion of the conference call until 11:59 p.m. (ET) September 9, 2021.
Domo (Nasdaq: DOMO) is the Business Cloud, transforming the way business is managed by delivering Modern BI for AllTM. With Domo, 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, visit www.domo.com. You can also follow Domo on Twitter, Facebook and LinkedIn.
Domo Disclosure Channels to Disseminate Information
Domo investors and others should note that we announce material information to the public about our company, products and services, and other issues through a variety of means, including Domo’s website, press releases, SEC filings, blogs and social media, in order to achieve broad, non-exclusionary distribution of information to the public. We intend to use the Domo Facebook page, the Domo LinkedIn page, the Domo blog, the @Domotalk Twitter account and the @JoshJames Twitter account as a means of disclosing information about the Company and its services and for complying with the disclosure obligations under Regulation FD. The information we post through these social media channels may be deemed material. Accordingly, we encourage investors and others to monitor these social media channels in addition to following our press releases, SEC filings and public conference calls and webcasts. The social media channels that we intend to use as a means of disclosing the information described here may be updated from time to time as listed on our investor relations webpage.
Use of Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), we reference in this press release and the accompanying tables the following non-GAAP financial measures: billings, non-GAAP subscription gross margin, non-GAAP operating expenses, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share, 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.
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 third 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 Report on Form 10-Q for the fiscal quarter ended July 31, 2021 expected to be filed with the SEC on or about September 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.