8-K: Domo Inc. Announces Fiscal 2024 Fourth Quarter and Full Year Results

Domo, Inc. reported a 1% year-over-year increase in total revenue for the fourth quarter of fiscal year 2024, reaching $80.2 million.

Summary

• Domo's total revenue for the fourth quarter of fiscal year 2024 was $80.2 million, a 1% increase year-over-year.
• Subscription revenue for the quarter reached $71.9 million, a 2% increase year-over-year.
• Billings for the quarter were $105.4 million, also a 1% increase year-over-year.
• The company reported a GAAP net loss of $18.7 million, or $0.51 per share, for the quarter.
• Non-GAAP net loss for the quarter was $1.9 million, or $0.05 per share.
• For the full fiscal year 2024, total revenue was $319.0 million, a 3% increase year-over-year.
• Full year subscription revenue was $285.5 million, a 5% increase year-over-year.
• Full year billings decreased by 1% year-over-year to $321.1 million.
• The company's cash, cash equivalents, and restricted cash totaled $60.9 million as of January 31, 2024.
• Domo is providing guidance for Q1 fiscal 2025 with revenue expected to be between $79.0 million and $80.0 million and a non-GAAP net loss per share between $0.21 and $0.25.
• For the full fiscal year 2025, revenue is expected to be between $315.0 million and $323.0 million, with a non-GAAP net loss per share between $0.36 and $0.46.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. While the company is still operating at a loss, there are positive signs of growth in subscription revenue and improvements in operating margins. The industry recognition and focus on AI are also positive indicators.

Positives

• Subscription revenue showed consistent growth both for the quarter and the full year.
• The company's operating margin improved year-over-year, both on a GAAP and non-GAAP basis.
• Domo received multiple industry recognitions for its product innovation and customer value.
• Domo's AI solution was recognized as a finalist in the 2023 Cloud Awards.
• The company was recognized as a great place to work for the twelfth consecutive year.

Negatives

• The company reported a GAAP net loss of $18.7 million for the quarter and $75.6 million for the full year.
• Billings for the full year decreased by 1% year-over-year.
• Cash, cash equivalents, and restricted cash decreased to $60.9 million as of January 31, 2024.

Risks

• The company is still operating at a loss, both on a GAAP and non-GAAP basis.
• The company's future performance is subject to risks and uncertainties as detailed in their SEC filings.
• The company's billings decreased year-over-year for the full fiscal year 2024.

Future Outlook

Domo expects Q1 fiscal 2025 revenue to be between $79.0 million and $80.0 million, with a non-GAAP net loss per share between $0.21 and $0.25. For the full fiscal year 2025, revenue is expected to be between $315.0 million and $323.0 million, with a non-GAAP net loss per share between $0.36 and $0.46.

Management Comments

• The strategic investments were making this year will help customers capitalize on the new opportunities offered through artificial intelligence (AI) and data, making it easier and faster to scale Domos full suite of solutions across the entire organization, said Josh James, founder and CEO, Domo.
• We're confident in our focus areas to build on our momentum, and to position Domo for growth in the coming year.

Industry Context

The results reflect the ongoing demand for cloud-based data analytics and business intelligence solutions, with a focus on AI integration. Domo's recognition in various industry reports highlights its competitive position in the market.

Comparison to Industry Standards

• Domo's revenue growth of 1% in Q4 and 3% for the full year is modest compared to some high-growth SaaS companies, which often see double-digit growth rates.
• Companies like Snowflake and Datadog have demonstrated much higher growth rates in the same period, though they operate in slightly different segments of the data analytics market.
• Domo's focus on AI integration is in line with industry trends, as many companies are investing heavily in AI and machine learning capabilities.
• The company's operating margin improvements are a positive sign, but they still lag behind more established and profitable SaaS companies.

Stakeholder Impact

• Shareholders may be concerned about the continued losses, but encouraged by the revenue growth and margin improvements.
• Employees may be positively impacted by the company's recognition as a great place to work.
• Customers may benefit from the company's focus on product innovation and AI integration.
• Suppliers and creditors may be monitoring the company's financial performance and cash position.

Next Steps

• Domo plans to host a conference call to review its fiscal 2024 fourth quarter financial results and to discuss its financial outlook.
• The company will file its Annual Report on Form 10-K for the year ended January 31, 2024, on or about April 1, 2024.

Key Dates

Keywords

SaaS, Cloud, Business Intelligence, Analytics, AI, Data, Financial Results, Subscription Revenue, Billings, Operating Margin