domo10q-20250430

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

__________________________

Form 10-Q

__________________________


(Mark One)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 2025
OR
☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For transition period from to .

Commission File Number 001-38553.

DOMO, INC.

(Exact Name of Registrant as Specified in its Charter)

__________________________


Delaware (State or Other Jurisdiction of Incorporation or Organization)						27-3687433 (I.R.S. Employer Identification No.)

802 East 1050 South

American Fork, UT 84003

(Address of principal executive offices, including zip code)

(801) 899-1000

(Registrant's telephone number, including area code)

__________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Class B Common Stock, par value $0.001 per share

DOMO

The Nasdaq Global Market

__________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒

As of June 4, 2025, there were approximately 3,263,659 shares of the registrant's Class A common stock and 36,971,409 shares of the registrant's Class B common stock outstanding

TABLE OF CONTENTS


			Page
PART I. FINANCIAL INFORMATION			1
Item 1. Financial Statements (unaudited)			1
Condensed Consolidated Balance Sheets			1
Condensed Consolidated Statements of Operations			2
Condensed Consolidated Statements of Comprehensive Loss			3
Condensed Consolidated Statements of Stockholders' Deficit			4
Condensed Consolidated Statements of Cash Flows			5
Notes to Condensed Consolidated Financial Statements			6
















Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			24











Item 3. Quantitative and Qualitative Disclosures about Market Risk			36
Item 4. Controls and Procedures			37
PART II. OTHER INFORMATION			38
Item 1. Legal Proceedings			38
Item 1A. Risk Factors			38
Item 6. Other Information			71
Item 6. Exhibits			72
Signatures			73

SUMMARY RISK FACTORS

Our business is subject to numerous risks and uncertainties, as described further in the section of this report captioned “Risk Factors,” which may cause us not to realize the full benefits of our strengths or may cause us to be unable to successfully execute all or part of our strategy. Some of the most significant challenges and risks include the following:

•we have a history of losses, and we may not be able to generate sufficient revenue to achieve or maintain profitability in the future;

•we have been growing and expect to continue to invest in our growth for the foreseeable future, and if we fail to manage this growth effectively, our business and operating results will be adversely affected;

•our ability to raise capital in the future may be limited, and if we fail to raise capital when needed in the future, we could be prevented from growing or could be forced to delay or eliminate product development efforts or other operations;

•adverse events or perceptions affecting the financial services industry could adversely affect our operating results, financial condition and prospects;

•if we are unable to attract new customers in a manner that is cost-effective, our revenue growth could be slower than we expect and our business may be harmed;

•if customers do not renew their contracts with us or reduce their use of our platform, our revenue will decline and our operating results and financial condition may be adversely affected;

•if customers do not expand their use of our platform or adopt additional use cases, our growth prospects, operating results and financial condition may be adversely affected;

•we face intense competition, and we may not be able to compete effectively, which could reduce demand for our platform and adversely affect our business, growth, revenue and market share;

•if our or our customers’ access to data becomes limited, our business, results of operations and financial condition may be adversely affected;

•if we fail to effectively align, develop and expand our sales and marketing capabilities with our new pricing structure and increase sales efficiency, our ability to increase our customer base and increase acceptance of our platform could be harmed;

•we have experienced changes to our management and board, which creates uncertainties and could harm our business;

•we are subject to governmental laws, regulation and other legal obligations, particularly those related to privacy, data protection and cybersecurity, and any actual or perceived failure to comply with such obligations could impair our efforts to maintain and expand our customer base, causing our growth to be limited and harming our business;

•if our network, application, or computer systems are breached or unauthorized access to customer data or other sensitive data is otherwise obtained or if we experience any other type of security incident, our platform may be perceived as insecure and we may lose existing customers or fail to attract new customers, operations may be disrupted if systems or data become unavailable, our reputation may be damaged and we may incur significant remediation costs or liabilities, including regulatory fines for violation of compliance requirements;

•third-party claims that we are infringing or otherwise violating the intellectual property rights of others, whether successful or not, could subject us to costly and time-consuming litigation or require us to obtain expensive licenses, and our business could be harmed;

•the success of our business depends in part on our ability to protect and enforce our intellectual property rights;

•the dual class structure of our common stock has the effect of concentrating voting control with Joshua G. James, our founder and chief executive officer, which will limit your ability to influence the outcome of important transactions, including a change in control; and

•economic uncertainties or downturns could materially adversely affect our business.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)

Domo, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except per share amounts)

(unaudited)


	As of January 31,		As of April 30,
	2025		2025
Assets
Current assets:
Cash and cash equivalents	$	45,264	$	47,180

Accounts receivable, net of allowances of $3,470 and $2,556 as of January 31, 2025 and April 30, 2025, respectively	71,544		43,918
Contract acquisition costs, net	15,780		15,722
Prepaid expenses and other current assets	9,089		10,283
Total current assets	141,677		117,103
Property and equipment, net	28,625		28,978
Right-of-use assets	10,158		9,192
Contract acquisition costs, noncurrent, net	19,553		20,150
Intangible assets, net	2,125		1,984
Goodwill	9,478		9,478
Other assets	2,724		2,795
Total assets	$	214,340	$	189,680
Liabilities and stockholders' deficit
Current liabilities:
Accounts payable	$	10,033	$	12,654
Accrued expenses and other current liabilities	60,909		49,783
Lease liabilities	5,731		6,000
Deferred revenue	178,276		162,935
Total current liabilities	254,949		231,372
Lease liabilities, noncurrent	7,695		6,197
Deferred revenue, noncurrent	2,828		1,961
Other liabilities, noncurrent	8,446		9,105
Long-term debt	117,668		119,747
Total liabilities	391,586		368,382
Commitments and contingencies (Note 12)
Stockholders' deficit:
Preferred stock, $0.001 par value per share; 10,000 shares authorized as of January 31, 2025 and April 30, 2025; no shares issued and outstanding as of January 31, 2025 and April 30, 2025	—		—
Class A common stock, $0.001 par value per share; 3,264 shares authorized as of January 31, 2025 and April 30, 2025; 3,264 shares issued and outstanding as of January 31, 2025 and April 30, 2025	3		3
Class B common stock, $0.001 par value per share; 500,000 shares authorized as of January 31, 2025 and April 30, 2025; 36,190 and 36,941 shares issued and outstanding as of January 31, 2025 and April 30, 2025, respectively	36		37
Additional paid-in capital	1,310,922		1,326,158
Accumulated other comprehensive loss	(669)		690
Accumulated deficit	(1,487,538)		(1,505,590)
Total stockholders' deficit	(177,246)		(178,702)
Total liabilities and stockholders' deficit	$	214,340	$	189,680

See accompanying notes to condensed consolidated financial statements.

Domo, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)


	Three Months Ended April 30,
	2024		2025
Revenue:
Subscription	$	72,110	$	71,389
Professional services and other	7,993		8,722
Total revenue	80,103		80,111
Cost of revenue:
Subscription	12,775		13,787
Professional services and other	7,939		6,881
Total cost of revenue	20,714		20,668
Gross profit	59,389		59,443
Operating expenses:
Sales and marketing	42,219		39,661
Research and development	22,719		19,961
General and administrative	15,901		14,167
Total operating expenses	80,839		73,789
Loss from operations	(21,450)		(14,346)
Other expense, net	(4,431)		(3,515)
Loss before income taxes	(25,881)		(17,861)
Provision for income taxes	126		191
Net loss	$	(26,007)	$	(18,052)
Net loss per share, basic and diluted	$	(0.69)	$	(0.45)
Weighted-average number of shares used in computing net loss per share, basic and diluted	37,482		39,735

See accompanying notes to condensed consolidated financial statements.

Domo, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(in thousands)

(unaudited)


	Three Months Ended April 30,
	2024		2025
Net loss	$	(26,007)	$	(18,052)
Foreign currency translation adjustments	(246)		1,359

Comprehensive loss	$	(26,253)	$	(16,693)

See accompanying notes to condensed consolidated financial statements.

Domo, Inc.

Condensed Consolidated Statements of Stockholders' Deficit

(in thousands, except share amounts)

(unaudited)


	Three Months Ended April 30, 2024
	Class A Common Stock			Class B Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders' Deficit
	Shares	Amount		Shares	Amount
Balance as of January 31, 2024	3,263,659	$	3	33,655,756	$	34	$	1,252,200	$	(180)	$	(1,405,603)	$	(153,546)
Vesting of restricted stock units	—	—		1,111,795	1		—		—		—		1

Issuance of common stock under employee stock purchase plan	—	—		143,206	—		1,121		—		—		1,121
Stock-based compensation expense	—	—		—	—		15,196		—		—		15,196
Other comprehensive loss	—	—		—	—		—		(246)		—		(246)
Net loss	—	—		—	—		—		—		(26,007)		(26,007)
Balance as of April 30, 2024	3,263,659	$	3	34,910,757

SEC Form 10-Q filed by Domo Inc.