Fri, Jun 6, 10:03 AM (15 days ago)
**Domo, Inc. (DOMO) - Q1 2025 Financial Performance Summary** **Overview:** Domo, Inc. (DOMO) reported relatively flat year-over-year (YoY) total revenue of $80.1 million for Q1 2025, with subscription revenue accounting for 90% of the total. The company continues to face challenges in the macroeconomic environment, which has elongated software sales cycles and increased deal scrutiny. **Financial Health:** - **Revenue:** Total revenue remained steady at $80.1 million, with subscription revenue at $71.3 million (down 1% YoY) and professional services revenue at $8.7 million (up 9% YoY). - **Gross Profit:** Gross profit was $59.4 million, with a gross margin of 74%. - **Operating Expenses:** Total operating expenses decreased by 9% YoY to $73.8 million. Sales and marketing expenses decreased by 6% to $39.7 million, research and development expenses decreased by 12% to $19.9 million, and general and administrative expenses decreased by 11% to $14.2 million. - **Net Loss:** Net loss improved by 30% YoY to $18.1 million. - **Cash Flow:** Net cash provided by operating activities increased by 108% YoY to $3.9 million. Cash used in investing activities was $2.9 million, and net cash used in financing activities was $0.6 million. **Performance Metrics:** - **Billings:** Total billings were $63.9 million, down 2% YoY. - **Remaining Performance Obligations (RPO):** Total RPO was $427.5 million, with $241.0 million expected to be recognized in the next twelve months. - **Customer Count:** Domo had over 2,500 customers as of April 30, 2025, with enterprise customers accounting for 45% of revenue. - **Gross Retention Rate:** The trailing twelve-month gross retention rate was 85%. **Trends and Uncertainties:** - **Macroeconomic Conditions:** Prevailing macroeconomic conditions have impacted software sales cycles and customer renewal discussions. - **Growth Strategy:** Domo is focusing on increasing sales efficiency, expanding its partner ecosystem, and leveraging its consumption-based pricing model to drive growth. - **Future Operations Impact:** Domo expects to continue investing in growth opportunities, product development, and sales and marketing activities. The company may raise additional capital through equity, equity-linked, and debt financing if needed. **Risk Factors:** - **Financial Position:** Domo has a history of losses and may not be able to generate sufficient revenue to achieve or maintain profitability. - **Growth Management:** Effective management of growth is crucial for Domo's success, and any failure could adversely affect its business and operating results. - **Capital Raising:** Domo's ability to raise additional capital may be limited, and failure to raise capital when needed could prevent growth or force delays in product development. - **Operating Results Fluctuations:** Domo's operating results may fluctuate significantly due to various factors, making future results difficult to predict. - **Customer Renewals:** If customers do not renew their contracts or reduce their use of the platform, Domo's revenue will decline, and its operating results and financial condition may be adversely affected. **Future Outlook:** Domo is committed to sustaining positive cash flow, improving margins, and efficiently growing its customer base. The company will continue to invest in its platform, sales and marketing efforts, and international expansion to drive long-term growth. However, the macroeconomic environment and competitive landscape pose significant challenges that Domo must navigate to achieve its strategic objectives.