Press Release: Domo Announces Second Quarter Fiscal 2022 Financial Results

Domo Announces Second Quarter Fiscal 2022 Financial Results

SILICON SLOPES, Utah--(BUSINESS WIRE)--August 26, 2021--

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."

Recent Highlights

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(R) 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.

Business Outlook

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.

About Domo

Domo (Nasdaq: DOMO) is the Business Cloud, transforming the way business is managed by delivering Modern BI for All(TM) . 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.

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 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

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August 26, 2021 16:05 ET (20:05 GMT)

Press Release: Domo Announces Second Quarter -2-

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 Six Months Ended July 31, July 31, -------------------- ---------------------- 2020 2021 2020 2021 ------- ------- ------- -------
Revenue: Subscription $ 44,347 $ 54,666 $ 86,783 $106,778 Professional services and other 6,784 8,159 12,909 16,109 ------- ------- ------- ------- Total revenue 51,131 62,825 99,692 122,887
Cost of revenue: Subscription (1) 8,811 10,019 17,916 19,076 Professional services and other (1) 4,838 6,299 9,842 12,400 ------- ------- ------- ------- Total cost of revenue 13,649 16,318 27,758 31,476 ------- ------- ------- -------
Gross profit 37,482 46,507 71,934 91,411
Operating expenses: Sales and marketing (1) 27,384 33,378 56,480 66,832 Research and development (1) 15,917 19,341 33,370 35,527 General and administrative (1), (2) 9,557 12,384 19,426 22,602 ------- ------- ------- ------- Total operating expenses 52,858 65,103 109,276 124,961 ------- ------- ------- -------
Loss from operations (15,376) (18,596) (37,342) (33,550) Other expense, net (1) (2,417) (3,505) (5,141) (6,767) ------- ------- ------- -------
Loss before provision for income taxes (17,793) (22,101) (42,483) (40,317)
Provision for income taxes 110 139 315 27 ------- ------- ------- -------
Net loss $(17,903) $(22,240) $(42,798) $(40,344) ======= ======= ======= =======
Net loss per share (basic and diluted) $ (0.62) $ (0.70) $ (1.49) $ (1.28)
Weighted-average number of shares (basic and diluted) 29,001 31,883 28,728 31,451
(1) Includes stock-based compensation expenses, as follows:
Cost of revenue: Subscription $ 147 $ 549 $ 373 $ 968 Professional services and other 118 271 221 605
Sales and marketing 2,543 4,747 4,369 8,474
Research and development 2,002 2,751 3,879 5,240
General and administrative 2,323 4,137 4,720 7,053
Other expense, net 48 171 95 348 ------- ------- ------- ------- Total stock-based compensation expenses $ 7,181 $ 12,626 $ 13,657 $ 22,688 ======= ======= ======= =======
(2) Includes amortization of certain intangible assets, as follows:
General and administrative $ 20 $ 20 $ 40 $ 40 Domo, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) January 31, July 31, 2021 2021 ---------- ----------
Assets
Current assets: Cash and cash equivalents $ 90,794 $ 86,373 Accounts receivable, net 48,272 31,149 Contract acquisition costs 13,894 13,733 Prepaid expenses and other current assets 12,216 8,035 ---------- ---------- Total current assets 165,176 139,290
Property and equipment, net 14,745 16,569
Right-of-use assets 3,663 18,935
Contract acquisition costs, noncurrent 18,605 18,207
Intangible assets, net 3,356 3,049
Goodwill 9,478 9,478
Other assets 1,415 1,268 ---------- ---------- Total assets $ 216,438 $ 206,796 ========== ==========
Liabilities and stockholders' deficit
Current liabilities: Accounts payable $ 1,085 $ 7,379 Accrued expenses and other current liabilities 51,950 40,169 Lease liabilities 3,808 3,858 Current portion of deferred revenue 129,079 126,381 ---------- ---------- Total current liabilities 185,922 177,787
Lease liabilities, noncurrent 1,556 17,383
Deferred revenue, noncurrent 3,173 1,233
Other liabilities, noncurrent 9,637 10,189
Long-term debt 99,609 101,742 ---------- ---------- Total liabilities 299,897 308,334
Commitments and contingencies
Stockholders' deficit: Common stock 30 32 Additional paid-in capital 1,038,006 1,060,419 Accumulated other comprehensive income 877 727 Accumulated deficit (1,122,372) (1,162,716) ---------- ---------- Total stockholders' deficit (83,459) (101,538) ---------- ---------- Total liabilities and stockholders' deficit $ 216,438 $ 206,796 ========== ========== Domo, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended Six Months Ended July 31, July 31, -------------------- ---------------------- 2020 2021 2020 2021 ------- ------- ------- -------
Cash flows from operating activities Net loss $(17,903) $(22,240) $(42,798) $(40,344) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 1,071 1,228 2,364 2,256 Non-cash lease expense 1,002 1,373 1,953 2,316 Amortization of contract acquisition costs 3,512 3,932 6,920 7,835 Stock-based compensation 7,181 12,626 13,657 22,688 Other, net 943 921 1,822 1,786 Changes in operating assets and liabilities: Accounts receivable, net (5,289) 1,852 13,034 17,123 Contract acquisition costs (3,966) (3,753) (5,892) (7,365) Prepaid expenses and other assets 3,352 1,774 3,565 4,285 Accounts payable (639) 2,930 (594) 6,313 Operating lease liabilities (663) (631) (1,568) (1,711) Accrued and other liabilities 10,098 4,976 (4,653) (11,103) Deferred revenue (3,490) (2,819) (5,514) (4,638) ------- ------- ------- ------- Net cash (used in) provided by operating activities (4,791) 2,169 (17,704) (559)
Cash flows from investing activities Purchases of property and equipment (1,791) (1,640) (3,154) (3,418) Purchases of securities available for sale - - (11,149) - Proceeds from maturities of securities available for sale 7,700 - 24,300 - Purchases of intangible assets (1) - (105) - ------- ------- ------- ------- Net cash provided by (used in) investing activities 5,908 (1,640) 9,892 (3,418)
Cash flows from financing activities Proceeds from shares issued in connection with employee stock purchase plan (10) - 3,649 4,133 Shares repurchased for tax withholdings on vesting of restricted stock (485) (1,334) (523) (7,578) Proceeds from exercise of stock

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August 26, 2021 16:05 ET (20:05 GMT)

Press Release: Domo Announces Second Quarter -3-

options 2,048 2,509 2,059 3,163 ------- ------- ------- ------- Net cash provided by (used in) financing activities 1,553 1,175 5,185 (282) Effect of exchange rate changes on cash and cash equivalents 242 (157) 239 (162) ------- ------- ------- ------- Net increase (decrease) in cash and cash equivalents 2,912 1,547 (2,388) (4,421) Cash and cash equivalents at beginning of period 75,543 84,826 80,843 90,794 ------- ------- ------- ------- Cash and cash equivalents at end of period $ 78,455 $ 86,373 $ 78,455 $ 86,373 ======= ======= ======= ======= Domo, Inc. Reconciliation of Non-GAAP Financial Measures (in thousands, except per share data) (unaudited) Three Months Ended Six Months Ended July 31, July 31, ---------------------------- ---------------------------- 2020 2021 2020 2021 -------- -------- -------- --------
Reconciliation of Subscription Gross Margin on a GAAP Basis to Subscription Gross Margin on a Non-GAAP Basis:
Revenue: Subscription $ 44,347 $ 54,666 $ 86,783 $ 106,778
Cost of revenue: Subscription 8,811 10,019 17,916 19,076 -------- -------- -------- --------
Subscription gross profit on a GAAP basis 35,536 44,647 68,867 87,702
Subscription gross margin on a GAAP basis 80% 82% 79% 82% Stock-based compensation 147 549 373 968 -------- -------- -------- --------
Subscription gross profit on a non-GAAP basis $ 35,683 $ 45,196 $ 69,240 $ 88,670 ======== ======== ======== ========
Subscription gross margin on a non-GAAP basis 80% 83% 80% 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 $ 52,858 $ 65,103 $ 109,276 $ 124,961 Stock-based compensation (6,868) (11,635) (12,968) (20,767) Amortization of certain intangible assets (20) (20) (40) (40) -------- -------- -------- --------
Total operating expenses on a non-GAAP basis $ 45,970 $ 53,448 $ 96,268 $ 104,154 ======== ======== ======== ========
Reconciliation of Operating Loss on a GAAP Basis to Operating Loss on a Non-GAAP Basis:
Operating loss on a GAAP basis $ (15,376) $ (18,596) $ (37,342) $ (33,550) Stock-based compensation 7,133 12,455 13,562 22,340 Amortization of certain intangible assets 20 20 40 40 -------- -------- -------- --------
Operating loss on a non-GAAP basis $ (8,223) $ (6,121) $ (23,740) $ (11,170) ======== ======== ======== ========
Reconciliation of Operating Margin on a GAAP Basis to Operating Margin on a Non-GAAP Basis:
Operating margin on a GAAP basis (30)% (30)% (37)% (27)% Stock-based compensation 14 20 13 18 -------- -------- -------- --------
Operating margin on a non-GAAP basis (16)% (10)% (24)% (9)% ======== ======== ======== ========
Reconciliation of Net Loss on a GAAP Basis to Net Loss on a Non-GAAP Basis:
Net loss on a GAAP basis $ (17,903) $ (22,240) $ (42,798) $ (40,344) Stock-based compensation 7,181 12,626 13,657 22,688 Amortization of certain intangible assets 20 20 40 40 -------- -------- -------- --------
Net loss on a non-GAAP basis $ (10,702) $ (9,594) $ (29,101) $ (17,616) ======== ======== ======== ========
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 $ (0.62) $ (0.70) $ (1.49) $ (1.28) Stock-based compensation 0.25 0.40 0.48 0.72 -------- -------- -------- --------
Net loss per share on a non-GAAP basis $ (0.37) $ (0.30) $ (1.01) $ (0.56) ======== ======== ======== ========
Billings:
Total revenue $ 51,131 $ 62,825 $ 99,692 $ 122,887
Add: Deferred revenue (end of period) 101,982 126,381 101,982 126,381 Deferred revenue, noncurrent (end of period) 2,248 1,233 2,248 1,233 Less: Deferred revenue (beginning of period) (104,804) (128,510) (105,290) (129,079) Deferred revenue, noncurrent (beginning of period) (2,916) (1,923) (4,454) (3,173) -------- -------- -------- -------- Decrease in deferred revenue (current and noncurrent) (3,490) (2,819) (5,514) (4,638) -------- -------- -------- --------
Billings $ 47,641 $ 60,006 $ 94,178 $ 118,249 ======== ======== ======== ========
Reconciliation of Net Cash Used in Operating Activities to Adjusted Net Cash (Used in) Provided by Operating Activities:
Net cash (used in) provided by operating activities $ (4,791) $ 2,169 $ (17,704) $ (559) Proceeds from shares issued in connection with employee stock purchase plan (10) - 3,649 4,133 -------- -------- -------- --------
Adjusted net cash (used in) provided by operating activities $ (4,801) $ 2,169 $ (14,055) $ 3,574 ======== ======== ======== ========
Reconciliation of Net Cash Used in Operating Activities to Free Cash Flow:
Net cash (used in) provided by operating activities $ (4,791) $ 2,169 $ (17,704) $ (559) Proceeds from shares issued in connection with employee stock purchase plan (10) - 3,649 4,133 Purchases of property and equipment (1,791) (1,640) (3,154) (3,418) -------- -------- -------- --------
Free cash flow $ (6,592) $ 529 $ (17,209) $ 156 ======== ======== ======== ========

View source version on businesswire.com: https://www.businesswire.com/news/home/20210826005734/en/

CONTACT: Media --

Julie Kehoe

PR@domo.com

Investors --

Peter Lowry

IR@domo.com

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August 26, 2021 16:05 ET (20:05 GMT)

*DJ Domo 2Q Loss/Shr 70c >DOMO

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August 26, 2021 16:09 ET (20:09 GMT)

*DJ Domo 2Q Loss $22.2M >DOMO

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August 26, 2021 16:09 ET (20:09 GMT)

*DJ Domo 2Q Rev $62.8M >DOMO

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August 26, 2021 16:09 ET (20:09 GMT)

*DJ Domo Sees FY22 Rev $252M-$256M >DOMO

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August 26, 2021 16:12 ET (20:12 GMT)

*DJ Domo Sees FY22 Adj Loss/Shr $1.31-Adj Loss/Shr $1.39 >DOMO

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August 26, 2021 16:12 ET (20:12 GMT)

*DJ Domo Sees 3Q Rev $63.5M-$64.5M >DOMO

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August 26, 2021 16:12 ET (20:12 GMT)

*DJ Domo Sees 3Q Adj Loss/Shr 33c-Adj Loss/Shr 37c >DOMO

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August 26, 2021 16:12 ET (20:12 GMT)

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