Summary
Domo closed the first quarter of fiscal 2022, ended April 30, 2021, with total revenue of $60.06 million, up 23.7% from $48.56 million a year earlier. Subscription revenue reached $52.1 million, up 23% year over year, and accounted for 87% of total revenue. Professional services and other revenue also grew, on a higher volume of billable hours and a higher average revenue rate per hour. Billings were $58.2 million, growth of 25% year over year, a rate management says it has averaged over the last four quarters and calls a record for new business and retention. No single customer accounted for more than 10% of total revenue. Revenue from customers with billing addresses in the United States was 77% of the total, against 76% a year earlier.
Gross profit was $44.9 million, up 30.3%, and gross margin rose to 74.8% from 70.9%. Operating margin improved to negative 24.9% from negative 45.2%, and the operating loss narrowed to $14.95 million from $21.97 million. The net loss narrowed to $18.1 million, or $0.58 per diluted share, from $24.9 million. On a non-GAAP basis, the net loss was $8.0 million, or $0.26 per share, and non-GAAP operating margin improved 24 percentage points. Stock-based compensation of $10.1 million sits outside those non-GAAP figures. Sales and marketing expense fell to 56% of total revenue from 60%, and research and development fell to 27% from 36%. Management credits the margin work to scale and to continued optimization of third-party hosting services.
Backlog looks solid. Remaining performance obligations were $284.3 million as of April 30, 2021, up 24% year over year, and the portion expected to be recognized as revenue in the next twelve months was $180.8 million, up 22%. Deferred revenue was $130.4 million, up 21.1%. Gross retention for the twelve months ended April 30, 2021 was 89%. Customer count rose 11% year over year, the company ended the quarter with more than 2,000 customers, and 61% of customers were under multi-year contracts on a dollar-weighted basis, against 60% at January 31, 2021. Enterprise customers supplied 54% of revenue and their revenue grew 24%. Domo also pointed to a Forrester Consulting study finding an overall ROI of 345 percent over three years.
Cash is the softer part of the story. Cash and cash equivalents were $84.8 million at April 30, 2021. Net cash used in operating activities improved to $2.73 million, versus $12.91 million used in the prior-year quarter, and adjusted net cash provided by operating activities was $1.4 million after adding back employee stock purchase plan proceeds. Free cash flow, a different measure that also subtracts purchases of property and equipment, was negative $373,000. Capital expenditures were $1.78 million, up 30.4%.
Guidance for the second quarter of fiscal 2022 covers a revenue range and a non-GAAP net loss per share of $0.35 to $0.39 on 31.8 million weighted-average shares. For the full fiscal year 2022, management guided to a revenue range and a non-GAAP net loss per share of $1.33 to $1.41 on 31.9 million shares. The company did not reconcile the non-GAAP outlook to GAAP, saying certain items are outside its control or cannot be reasonably predicted.
The risks are familiar. Domo carries an accumulated deficit of $1,140.5 million and expects losses for the foreseeable future. The $100 million credit facility is fully drawn, and its covenants require at least $10.0 million of unrestricted cash plus a debt-to-annualized-recurring-revenue ratio of 0.600 at April 30, 2021 that steps down to 0.500 by January 31, 2023. The $4.5 million of annual recurring revenue signed with government entities responding to the pandemic in the prior-year quarter renewed only in full or in part, and those contracts may be at higher risk of not renewing once the crisis passes. Retention among customers in travel, hospitality and retail could be lower in fiscal 2022. Management also warns that revenue growth rates may decline as the business matures and that hiring more sales representatives may hurt productivity near term.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2022 | Q4 FY2021 | QoQ | Q1 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $60.1M | $56.8M | +5.7% | $48.6M | +23.7% |
| Gross profit | $44.9M | $42.3M | +6.1% | $34.5M | +30.3% |
| Gross margin | 74.8% | 74.5% | +0.3 pp | 71.0% | +3.8 pp |
| Research & development | $16.2M | $16.6M | -2.5% | $17.5M | -7.3% |
| Sales & marketing | $33.5M | $31.2M | +7.1% | $29.1M | +15.0% |
| General & administrative | $10.2M | $11.4M | -10.0% | $9.9M | +3.5% |
| Total operating expenses | $59.9M | $59.2M | +1.1% | $56.4M | +6.1% |
| Operating income (loss) | -$15.0M | -$16.9M | +11.3% | -$22.0M | +31.9% |
| Operating margin | -24.9% | -29.7% | +4.8 pp | -45.2% | +20.3 pp |
| Net income (loss) | -$18.1M | -$19.6M | +7.7% | -$24.9M | +27.3% |
| Net margin | -30.1% | -34.5% | +4.4 pp | -51.3% | +21.1 pp |
Risks
A majority of the company's annual recurring revenue is up for renewal during the fiscal year ending January 31, 2022, so a decline in renewal rates would pressure revenue. Gross retention rate was 89% for the twelve months ended April 30, 2021.
COVID-19 remains an uncertain driver: the company serves industries such as travel and hospitality, sports and leisure, and retail that have been severely impacted, and it entered contracts totaling $4.5 million of annual recurring revenue with government entities for pandemic response that may be at higher risk of not renewing once the pandemic subsides.
The company had an accumulated deficit of $1,140.5 million at April 30, 2021 and all $100 million of its credit facility had been drawn with no amounts available to draw, while the facility is secured by substantially all assets and carries restrictive covenants.
Enterprise sales cycles range from roughly six months to multiple years and quarterly sales are weighted toward the last few weeks and days of the quarter, increasing the likelihood that large deals slip past the forecasted close and hurting billings and new customer metrics.
The market is intensely competitive with larger rivals such as Microsoft, Oracle, SAP and IBM that may bundle analytics at significant discounts. Consolidation is cited, including salesforce.com's acquisition of Tableau and Alphabet's acquisition of Looker.
The company's Mr. Roboto uses machine learning, predictive analytics and other artificial intelligence, and flawed algorithms, insufficient or biased datasets, or inappropriate data practices could undermine outputs and expose the company to competitive, legal and reputational harm.
Securities class-action complaints are pending against the company and certain current and former directors and officers asserting federal securities law violations and seeking unspecified damages, which are expensive to defend and divert management attention.
Growth depends on recruiting, training and retaining a sufficient direct sales force, and the company plans to hire more sales representatives in fiscal 2022, which it expects may adversely impact near-term productivity.
The dual class structure gives founder and CEO Joshua G. James roughly 82% of voting power, and he has pledged all of Cocolalla, LLC's shares to secure a loan that can require repayment if the Class B stock falls below specified levels, potentially forcing sales of pledged shares.
The company ceased to be an emerging growth company on January 31, 2021, so it lost reduced disclosure exemptions and now must bear increased legal, accounting and compliance costs, including independent auditor attestation of internal control over financial reporting under Section 404.
SaaS KPIs
All quarters →Total Customers
Billings
Remaining Performance Obligations (RPO)
Non-GAAP Subscription Gross Margin
Current Remaining Performance Obligations (cRPO)
Free Cash Flow
Summary, forecast, risks and KPIs are extracted from Huckleberry.ai, Inc.'s SEC filings for Q1 FY2022 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.