Summary
Domo reported total revenue of $80.1 million for its fiscal 2025 first quarter, up 0.8% from the prior-year quarter. Gross profit was $59.39 million, down 2.5%. Gross margin was 74.1%, down 2.5 percentage points. The company posted an operating loss of $21.45 million, and operating margin was -26.8%, down 2.0 percentage points. Net loss was $26.0 million, and diluted EPS was -$0.69, flat year over year. On a non-GAAP basis, net loss was $12.3 million and non-GAAP net loss per share was $0.33. Billings were $65.5 million, down 7% year over year. Subscription revenue increased 1% year over year. Non-GAAP operating margin decreased by 7 percentage points year over year. No single customer accounted for more than 10% of total revenue.
Cash generation improved. Operating cash flow was $1.9 million, up 129.6% from the prior-year quarter. Capital expenditures were $2.53 million, down 29.4%. Adjusted free cash flow was $0.5 million, compared with negative $0.7 million in the prior-year quarter. Deferred revenue was $173.38 million, down 1.9% from the prior-year quarter. The company had $100 million drawn on its credit facility, with an interest rate of approximately 11.1% as of April 30, 2024. The facility matures on April 1, 2026, and includes a $15.0 million monthly minimum liquidity covenant. Domo said it was in compliance with the covenant terms on January 31, 2024 and April 30, 2024.
Operational metrics showed pressure. Domo had over 2,600 customers as of April 30, 2024. Enterprise customers accounted for 47% of revenue, down from 49% in the prior-year quarter. The trailing twelve month gross retention rate was 84%, down from 88%. The decline was due in part to macroeconomic conditions, challenging renewals from customers with COVID-19 use cases, and one large non-renewal during the quarter. About 30% of subscription revenue came from consumption-based agreements. Multi-year contracts represented 64% of customers on a dollar-weighted basis, down from 66% as of January 31, 2024. Revenue from customers with billing addresses in the United States comprised 80% of total revenue, up from 79%. Management expects revenue to decrease in the near term because of the decline in gross retention. It also expects enterprise revenue to continue to decline in the near term. Subscription gross margin is expected to decrease in the near term, then increase and stabilize over the long term. Sales and marketing expense was 53% of revenue, down from 54%. Research and development expense was 28% of revenue, down from 29%. General and administrative expense was 20% of revenue, up from 19%. The company said it expects to continue to take steps to better align its sales team and control costs, which it expects will result in improved margins, sustained positive cash flow, and efficient growth in the long term.
For the second quarter of fiscal 2025, Domo guided revenue to $76.0 million to $77.0 million. It expects non-GAAP net loss per share of $0.26 to $0.30, based on 38.4 million weighted-average shares outstanding. The guidance is for the next quarter, not the full fiscal year. The company did not reconcile the non-GAAP guidance to GAAP. CEO Josh James said the company is hyper-focused on returning to growth and sees early signals from partner collaborations, consumption momentum, and multi-use case customers. Domo won five Dresner Advisory Services 2023 Technology Innovation Awards. It was ranked the number one vendor in the Dresner Advisory Services 2024 Cloud Computing and Business Intelligence Market Study for the eighth consecutive year, and number one in the 2024 Self-Service Business Intelligence Market Study for the sixth consecutive year. It was also named to the Women Tech Council Shatter List for the seventh consecutive year.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $80.1M | $80.2M | -0.1% | $79.5M | +0.8% |
| Gross profit | $59.4M | $61.1M | -2.9% | $60.9M | -2.5% |
| Gross margin | 74.1% | 76.3% | -2.1 pp | 76.6% | -2.5 pp |
| Research & development | $22.7M | $21.1M | +7.6% | $23.4M | -3.1% |
| Sales & marketing | $42.2M | $39.4M | +7.1% | $43.2M | -2.2% |
| General & administrative | $15.9M | $13.9M | +14.1% | $14.0M | +13.6% |
| Total operating expenses | $80.8M | $74.5M | +8.5% | $80.6M | +0.3% |
| Operating income (loss) | -$21.4M | -$13.3M | -60.7% | -$19.7M | -8.8% |
| Operating margin | -26.8% | -16.6% | -10.1 pp | -24.8% | -2.0 pp |
| Net income (loss) | -$26.0M | -$18.7M | -39.2% | -$24.4M | -6.6% |
| Net margin | -32.5% | -23.3% | -9.2 pp | -30.7% | -1.8 pp |
| Diluted EPS | -$0.69 | -$0.52 | -$0.17 | -$0.69 | ±$0.00 |
Risks
MD&A states the macroeconomic environment has elongated the software sales cycle, increased deal scrutiny and made renewal discussions more challenging, with a disproportionate impact on enterprise customers and declining enterprise revenue. Management expects revenue to decrease in the near term as a result.
Trailing twelve month gross retention rate declined to 84% as of April 30, 2024 from 88% as of April 30, 2023, driven partly by a large non-renewal during the quarter and challenging renewals of COVID-19 use cases. The company notes a majority of its annual recurring revenue is up for renewal during the fiscal year ending January 31, 2025.
The $100 million credit facility is fully drawn as of April 30, 2024, is secured by substantially all assets including intellectual property, and carries restrictive covenants plus minimum annualized recurring revenue, trailing 12-month EBITDA and $15.0 million monthly minimum liquidity requirements. A material adverse effect or covenant breach could let BlackRock accelerate repayment.
The company had an accumulated deficit of $1,431.6 million at April 30, 2024 and net losses widened to $26.0 million for the three months ended April 30, 2024 from $24.4 million in the prior-year period. As of April 30, 2024 it held $61.2 million of cash, cash equivalents and restricted cash, with no amounts available to draw under the credit facility.
Domo is shifting to consumption-based pricing, with approximately 30% of subscription revenue on consumption-based agreements in the current quarter and an expectation that this percentage will increase. The filing cites limited experience setting optimal consumption pricing and the risk that customers use less data than contemplated, lowering net retention.
Risk factors expand on artificial intelligence, noting Domo's data science suite uses machine learning and predictive analytics and that AI algorithms may be flawed or produce outputs that appear correct but are factually inaccurate. It flags evolving and potentially inconsistent AI laws such as the proposed E.U. Artificial Intelligence Act and additional investment needed for proprietary datasets and safeguards.
Enterprise sales cycles run approximately six months to multiple years and quarterly sales are weighted toward the last weeks and days of the quarter, which increases the likelihood that sizable transactions slip into a later period and harms forecasting accuracy for billings and new customer acquisition.
The filing discloses significant management and board turnover, including the CEO re-appointment and new CFO and engineering leadership, alongside recent board changes. It notes loss of institutional knowledge and that the concentration of contract negotiations late in the quarter may require additional spend on sales, legal and finance personnel.
The company's dual class structure concentrates voting control with founder and CEO Joshua G. James, who beneficially controlled approximately 80% of the voting power as of April 30, 2024, and who has pledged his Class A and Class B shares to secure a loan. A pledge default could trigger sales of pledged shares and adversely affect the stock price.
Risk factors emphasize intense and increasing competition from large software companies such as Microsoft, Oracle, SAP and IBM, analytics vendors like Tableau and Qlik, and cloud providers including Salesforce, many of which may bundle analytics products at significant discounts or for free, pressuring pricing and gross margins.
The filing highlights evolving tax rules for remotely provided software services and international tax reform under the OECD Pillar One and Pillar Two proposals, including a global minimum tax of at least 15% for multinationals, which could increase the company's tax rate and operating costs.
SaaS KPIs
All quarters →Total Customers
Billings
Remaining Performance Obligations (RPO)
Adjusted Free Cash Flow
Subscription gross margin on a non-GAAP basis
Summary, forecast, risks and KPIs are extracted from Huckleberry.ai, Inc.'s SEC filings for Q1 FY2025 (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.