Domo, Inc. (NASDAQ:DOMO) today announced results for its fiscal fourth quarter and year ended January 31, 2022.

Fiscal Fourth Quarter Results

Total revenue was $70.0 million, an increase of 23% year over year
Subscription revenue was $59.6 million, an increase of 19% year over year
Subscription revenue represented 85% of total revenue
Billings were $108.0 million or 30% year-over-year growth
Remaining Performance Obligations (RPO) was $339.0 million as of January 31, 2022, an increase of 20% year over year
RPO expected to be recognized as revenue in the next twelve months was $221.7 million as of January 31, 2022, an increase of 24% year over year
Net cash provided by operating activities was $0.9 million
GAAP subscription gross margin was 81%, consistent with Q4 FY21
Non-GAAP subscription gross margin was 83%, an improvement of 1 percentage point from Q4 FY21
GAAP operating margin declined by 13 percentage points year over year
Non-GAAP operating margin declined by 2 percentage points year over year
GAAP net loss was $33.3 million, and GAAP net loss per share was $1.01, based on 32.8 million weighted-average shares outstanding
Non-GAAP net loss was $13.6 million, and non-GAAP net loss per share was $0.41, based on 32.8 million weighted-average shares outstanding
Cash and cash equivalents were $83.6 million as of January 31, 2022

Full Year Fiscal 2022 Results

Total revenue was $258.0 million, an increase of 23% year over year
Subscription revenue was $223.0 million, an increase of 21% year over year
Subscription revenue represented 86% of total revenue
Billings were $296.5 million or 27% year-over-year growth
Net cash provided by operating activities was $0.4 million
GAAP subscription gross margin was 82%, an improvement of 2 percentage points from FY21
Non-GAAP subscription gross margin was 83%, an improvement of 2 percentage points from FY21
GAAP operating margin improved 1% year over year
Non-GAAP operating margin improved by 8 percentage points year over year
GAAP net loss was $102.1 million, and GAAP net loss per share was $3.19, based on 32.0 million weighted-average shares outstanding
Non-GAAP net loss was $41.5 million, and non-GAAP net loss per share was $1.30, based on 32.0 million weighted-average shares outstanding

"We see companies continuing to drive digital transformation across all areas of their organizations, and we believe the ability to rapidly build apps on top of our platform is one of the most exciting growth engines for us," said John Mellor, Domo CEO.

Mellor continued, "I am extremely grateful for the entire Domo team whose commitment to customer success and value drove our results during the quarter and it is why I have confidence in our ability to execute on the opportunity ahead of us."

Bruce Felt, Domo CFO, said, "We delivered another strong quarter, closing out the year with a 30% billings growth quarter and a 90%-plus gross retention rate. With increased ramped sales rep productivity, accelerating new logo growth and continued engagement and upsell performance in our customer base, we believe we are in a strong position to meet our growth objectives as we head into our fiscal 2023."

Recent Highlights

We believe the following recognition and research announcements demonstrate our commitment to product innovation, go-to-market initiatives and customer success:

Domo was named a winner of five Dresner Advisory Services 2021 Technology Innovation Awards, including recognition as a top vendor in Dresner's market studies in Cloud Computing and BI, Self-Service BI, Guided Analytics, Analytical Platforms and Embedded Business Intelligence. This marks Domo's fifth consecutive year as a multiple-category winner.
Domo was named to Nucleus Research's Hot Company to Watch in 2022 list.
Domo was named a Best Companies to Work For by Utah Business magazine for the 10th consecutive year.

Business Outlook

Based on information available as of March 1, 2022, Domo is providing the following guidance for its first fiscal quarter and full year fiscal 2023:

Q1 Fiscal 2023

Revenue is expected to be in the range of $73.5 million to $74.5 million
Non-GAAP net loss per share is expected to be between $0.38 and $0.42 based on 33.3 million weighted-average shares outstanding

Full Year Fiscal 2023

Revenue is expected to be in the range of $314.0 million to $319.0 million
Non-GAAP net loss per share is expected to be between $1.43 and $1.53 based on 34.2 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 fourth 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/zYvDlnjs. 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) March 15, 2022.

About Domo

Domo (NASDAQ:DOMO) is the Business Cloud, transforming the way business is managed by delivering Modern BI for All™. 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 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 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, the reversal of contingent tax-related accruals and proceeds from shares issued in connection with employee stock purchase plan.

As it relates to adjusted net cash used in or provided by operating activities and 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 these non-GAAP cash metrics are useful because they provide 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. Further, a portion of the bonus plan for executive management is based on adjusted net cash used in or provided by operating activities, demonstrating the value and importance of this metric to our operational decision-making.

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 first fiscal quarter and full fiscal year 2023, 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 Annual Report on Form 10-K for the fiscal quarter ended January 31, 2022 expected to be filed with the SEC on or about April 1, 2022, as well as risks to our business related to the COVID-19 pandemic. 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, Domo Business Cloud and Domo is the Business Cloud are registered trademarks of Domo, Inc.

Domo, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)

	Three Months Ended						Year Ended
	January 31,						January 31,
		2021			2022			2021			2022
Revenue:
Subscription	$	49,956		$	59,611		$	183,645		$	223,010
Professional services and other		6,887			10,382			26,535			34,951
Total revenue		56,843			69,993			210,180			257,961
Cost of revenue:
Subscription (1)		9,368			11,317			36,656			40,907
Professional services and other (1)		5,144			7,209			20,092			26,239
Total cost of revenue		14,512			18,526			56,748			67,146
Gross profit		42,331			51,467			153,432			190,815

Operating expenses:
Sales and marketing (1)		31,246			39,387			117,335			143,722
Research and development (1)		16,600			23,516			66,474			81,027
General and administrative (1), (2)		11,353			18,504			42,708			54,536
Total operating expenses		59,199			81,407			226,517			279,285
Loss from operations		(16,868	)		(29,940	)		(73,085	)		(88,470	)

Other expense, net (1)		(2,784	)		(3,864	)		(11,140	)		(14,102	)
Loss before income taxes		(19,652	)		(33,804	)		(84,225	)		(102,572	)
(Benefit from) provision for income taxes		(37	)		(550	)		409			(461	)
Net loss	$	(19,615	)	$	(33,254	)	$	(84,634	)	$	(102,111	)

Net loss per share (basic and diluted)	$	(0.65	)	$	(1.01	)	$	(2.89	)	$	(3.19	)
Weighted-average number of shares (basic and diluted)		30,230			32,802			29,308			32,021


(1) Includes stock-based compensation expenses, as follows:
Cost of revenue:
Subscription	$	463		$	1,051		$	1,213		$	2,819
Professional services and other		349			585			843			1,753
Sales and marketing		3,266			6,049			10,936			21,241
Research and development		2,500			5,250			9,095			15,853
General and administrative		3,046			6,559			11,218			18,155
Other expense, net		177			181			444			705
Total stock-based compensation expenses	$	9,801		$	19,675		$	33,749		$	60,526

(2) Includes amortization of certain intangible assets, as follows:
General and administrative	$	20		$	20		$	80		$	80

Domo, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)

	January 31,			January 31,
		2021			2022
Assets
Current assets:
Cash and cash equivalents	$	90,794		$	83,561
Accounts receivable, net		48,272			64,149
Contract acquisition costs		13,894			15,417
Prepaid expenses and other current assets		12,216			9,975
Total current assets		165,176			173,102

Property and equipment, net		14,745			17,584
Right-of-use assets		3,663			16,392
Contract acquisition costs, noncurrent		18,605			23,177
Intangible assets, net		3,356			2,875
Goodwill		9,478			9,478
Other assets		1,415			1,981
Total assets	$	216,438		$	244,589

Liabilities and stockholders' deficit
Current liabilities:
Accounts payable	$	1,085		$	4,770
Accrued expenses and other current liabilities		51,950			59,976
Lease liabilities		3,808			3,439
Current portion of deferred revenue		129,079			168,335
Total current liabilities		185,922			236,520

Lease liabilities, noncurrent		1,556			16,757
Deferred revenue, noncurrent		3,173			2,420
Other liabilities, noncurrent		9,637			10,882
Long-term debt		99,609			103,988
Total liabilities		299,897			370,567

Commitments and contingencies

Stockholders' deficit:
Common stock		30			33
Additional paid-in capital		1,038,006			1,098,084
Accumulated other comprehensive income		877			388
Accumulated deficit		(1,122,372	)		(1,224,483	)
Total stockholders' deficit		(83,459	)		(125,978	)
Total liabilities and stockholders' deficit	$	216,438		$	244,589

Domo, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

	Three Months Ended						Year Ended
	January 31,						January 31,
		2021			2022			2021			2022
Cash flows from operating activities
Net loss	$	(19,615	)	$	(33,254	)	$	(84,634	)	$	(102,111	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		1,275			1,574			4,765			5,363
Non-cash lease expense		972			1,299			3,969			4,839
Amortization of contract acquisition costs		3,799			4,056			14,376			15,835
Stock-based compensation		9,801			19,675			33,749			60,526
Other, net		884			955			4,340			3,618
Changes in operating assets and liabilities:
Accounts receivable, net		(10,484	)		(25,254	)		(305	)		(15,877	)
Contract acquisition costs		(6,836	)		(10,539	)		(16,775	)		(22,258	)
Prepaid expenses and other assets		(3,473	)		(3,404	)		566			1,545
Accounts payable		(3,738	)		(7,210	)		(1,341	)		3,755
Operating lease liabilities		(1,121	)		(685	)		(3,685	)		(3,065	)
Accrued and other liabilities		6,089			15,678			6,595			9,706
Deferred revenue		25,995			38,018			22,508			38,503
Net cash provided by (used in) operating activities		3,548			909			(15,872	)		379

Cash flows from investing activities
Purchases of property and equipment		(1,447	)		(1,552	)		(5,706	)		(6,517	)
Purchases of securities available for sale		-			-			(11,149	)		-
Proceeds from maturities of securities available for sale		-			-			29,200			-
Purchases of intangible assets		6			-			(105	)		-
Net cash (used in) provided by investing activities		(1,441	)		(1,552	)		12,240			(6,517	)

Cash flows from financing activities
Proceeds from shares issued in connection with employee stock purchase plan		-			-			6,748			4,133
Shares repurchased for tax withholdings on vesting of restricted stock		(1,028	)		(1,457	)		(1,745	)		(10,315	)
Proceeds from exercise of stock options		5,587			1,713			8,092			5,621
Net cash provided by (used in) financing activities		4,559			256			13,095			(561	)
Effect of exchange rate changes on cash and cash equivalents		315			(297	)		488			(534	)
Net increase (decrease) in cash and cash equivalents		6,981			(684	)		9,951			(7,233	)
Cash and cash equivalents at beginning of period		83,813			84,245			80,843			90,794
Cash and cash equivalents at end of period	$	90,794		$	83,561		$	90,794		$	83,561

Domo, Inc.
Reconciliation of Non-GAAP Financial Measures
(in thousands, except per share data)
(unaudited)

	Three Months Ended						Year Ended
	January 31,						January 31,
		2021			2022			2021			2022
Reconciliation of Subscription Gross Margin on a GAAP Basis to Subscription Gross Margin on a Non-GAAP Basis:
Revenue:
Subscription	$	49,956		$	59,611		$	183,645		$	223,010
Cost of revenue:
Subscription		9,368			11,317			36,656			40,907
Subscription gross profit on a GAAP basis		40,588			48,294			146,989			182,103
Subscription gross margin on a GAAP basis		81	%		81	%		80	%		82	%

Stock-based compensation		463			1,051			1,213			2,819
Subscription gross profit on a non-GAAP basis	$	41,051		$	49,345		$	148,202		$	184,922
Subscription gross margin on a non-GAAP basis		82	%		83	%		81	%		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	$	59,199		$	81,407		$	226,517		$	279,285
Stock-based compensation		(8,812	)		(17,858	)		(31,249	)		(55,249	)
Amortization of certain intangible assets		(20	)		(20	)		(80	)		(80	)
Total operating expenses on a non-GAAP basis	$	50,367		$	63,529		$	195,188		$	223,956

Reconciliation of Operating Loss on a GAAP Basis to Operating Loss on a Non-GAAP Basis:
Operating loss on a GAAP basis	$	(16,868	)	$	(29,940	)	$	(73,085	)	$	(88,470	)
Stock-based compensation		9,624			19,494			33,305			59,821
Amortization of certain intangible assets		20			20			80			80
Operating loss on a non-GAAP basis	$	(7,224	)	$	(10,426	)	$	(39,700	)	$	(28,569	)

Reconciliation of Operating Margin on a GAAP Basis to Operating Margin on a Non-GAAP Basis:
Operating margin on a GAAP basis		(30	)%		(43	)%		(35	)%		(34	)%
Stock-based compensation		17			28			16			23
Operating margin on a non-GAAP basis		(13	)%		(15	)%		(19	)%		(11	)%

Reconciliation of Net Loss on a GAAP Basis to Net Loss on a Non-GAAP Basis:
Net loss on a GAAP basis	$	(19,615	)	$	(33,254	)	$	(84,634	)	$	(102,111	)
Stock-based compensation		9,801			19,675			33,749			60,526
Amortization of certain intangible assets		20			20			80			80
Net loss on a non-GAAP basis	$	(9,794	)	$	(13,559	)	$	(50,805	)	$	(41,505	)

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	$	(0.65	)	$	(1.01	)	$	(2.89	)	$	(3.19	)
Stock-based compensation		0.33			0.60			1.16			1.89
Net loss per share on a non-GAAP basis	$	(0.32	)	$	(0.41	)	$	(1.73	)	$	(1.30	)

Billings:
Total revenue	$	56,843		$	69,993		$	210,180		$	257,961
Add:
Deferred revenue (end of period)		129,079			168,335			129,079			168,335
Deferred revenue, noncurrent (end of period)		3,173			2,420			3,173			2,420
Less:
Deferred revenue (beginning of period)		(103,075	)		(130,385	)		(105,290	)		(129,079	)
Deferred revenue, noncurrent (beginning of period)		(3,182	)		(2,352	)		(4,454	)		(3,173	)
Increase in deferred revenue (current and noncurrent)		25,995			38,018			22,508			38,503
Billings	$	82,838		$	108,011		$	232,688		$	296,464

Reconciliation of Net Cash Provided by (Used in) Operating Activities to Adjusted Net Cash Provided by (Used in) Operating Activities:
Net cash provided by (used in) operating activities	$	3,548		$	909		$	(15,872	)	$	379
Proceeds from shares issued in connection with employee stock purchase plan		-			-			6,748			4,133
Adjusted net cash provided by (used in) operating activities	$	3,548		$	909		$	(9,124	)	$	4,512

Reconciliation of Net Cash Provided by (Used in) Operating Activities to Adjusted Free Cash Flow:
Net cash provided by (used in) operating activities	$	3,548		$	909		$	(15,872	)	$	379
Proceeds from shares issued in connection with employee stock purchase plan		-			-			6,748			4,133
Purchases of property and equipment		(1,447	)		(1,552	)		(5,706	)		(6,517	)
Adjusted free cash flow	$	2,101		$	(643	)	$	(14,830	)	$	(2,005	)

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Domo Announces Fourth Quarter and Fiscal 2022 Financial Results