DOMO stock exploded 24% in after-hours trading on December 5, 2019, after the company released its quarterly financial report.

DOMO stock in the 15-minute time frame surges higher in after-hours trading (brown shaded area) on December 5, 2019.

Domo, Inc. (Nasdaq: DOMO) today announced results for the fiscal 2020 third quarter ended October 31, 2019.

Fiscal Third Quarter Results

  • Total revenue was $44.8 million, an increase of 22% year over year
  • Subscription revenue was $37.8 million, an increase of 24% year over year
  • Subscription revenue represented 85% of total revenue
  • Billings were $44.4 million or 15% year-over-year growth
  • Net cash used in operating activities was $19.5 million, an improvement of 36% year over year
  • Adjusted net cash used in operating activities was $16.2 million, an improvement of 47% year over year
  • Subscription gross margin was 76%, an improvement of 3 percentage points from Q3 FY19
  • GAAP operating margin improved by 22 percentage points year over year
  • Non-GAAP operating margin improved by 21 percentage points year over year
  • GAAP operating expenses increased 6% year over year
  • Non-GAAP operating expenses increased 5% year over year
  • GAAP net loss was $29.1 million, and GAAP net loss per share was $1.05, based on 27.6 million weighted-average shares outstanding
  • Non-GAAP net loss was $23.6 million, and non-GAAP net loss per share was $0.85, based on 27.6 million weighted-average shares outstanding
  • Cash, cash equivalents and short-term investments were $115.9 million as of October 31, 2019

“I am very pleased with our 24% subscription revenue growth and our execution in Q3, closing several of the largest deals in company history. We provide a differentiated solution that helps customers quickly, easily and securely put data to work at scale,” said Josh James, Domo founder and CEO. “In Q3, we were once again able to make meaningful progress on reducing our cash burn, coming in well ahead of our guidance. Consistent with our previous statements, we remain committed to achieving cash flow positive status with the cash on our balance sheet and continue to be optimistic about the opportunity in front of us.”

Recent Highlights

Domo announced a partnership with Snowflake, which includes an API integration and co-selling initiative, to help customers more easily leverage the flexibility and scalability of the cloud. With this partnership, customers can leverage Domo’s iPaaS capabilities to manage their entire data ecosystem and easily bring additional sources of data from across their organization into Snowflake.

Domo announced a new application with Square to help merchants with multiple Square accounts to easily unlock insights and gain more value from that data.

Domo was named a Leader in two G2 Crowd reports, which were based on real user feedback. In the G2 Crowd BI platforms report, Domo was named the #1 vendor, receiving high scores for ease of use, quality support and ease of doing business. Domo also was a Leader in the Enterprise BI Platforms category. Domo achieved a user satisfaction rating of 90 and 94 percent in each respective report. This is the fourth consecutive year Domo has been ranked a G2 Crowd Leader.

Domo was ranked an Overall Credibility and Experience Leader in Dresner Advisory Services’ 2019 SME Business Intelligence Market Study.

Business Outlook

Based on information available as of December 5, 2019, Domo is providing the following guidance for Q4 and full year fiscal 2020:

Q4 Fiscal 2020

Revenue is expected to be in the range of $45.0 million to $46.0 million
Non-GAAP net loss per share is expected to be between $0.94 and $0.98 based on 28.1 million weighted-average shares outstanding.

Full Year Fiscal 2020

  • Revenue is expected to be in the range of $172.2 million to $173.2 million
  • Non-GAAP net loss per share is expected to be between $3.88 and $3.92 based on 27.5 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 2020 third 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. A live dial-in is available domestically at (877) 491-5762 and internationally at (763) 416-6939, with conference ID#3483388. A replay will be available via webcast or at (855) 859-2056 or (404) 537-3406 until midnight (ET) December 19, 2019.

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