Summary
Domo closed fiscal 2021 with a stronger fourth quarter. Revenue was $56.8 million, up 23.1% from the prior-year quarter. Full-year revenue reached $210.2 million, up 21.2%. Gross profit was $42.3 million in the quarter, up 33.5%, and gross margin was 74.5%, up 5.8 percentage points year over year. For the full year, gross profit was $153.4 million, up 30.6%, and gross margin was 73.0%, up 5.3 percentage points. Deferred revenue stood at $132.3 million at January 31, 2021, up 20.5% from the prior-year quarter. Billings were $82.8 million in the quarter, up 28%, and $232.7 million for the full year, up 23%. Those figures suggest demand held up even as the company worked through a pandemic-disrupted selling environment.
Profitability improved sharply. The fourth-quarter operating loss narrowed to $16.9 million, and operating margin was negative 29.7%, up 29.2 percentage points year over year. Net loss narrowed to $19.6 million for the quarter. On a full-year basis, operating loss narrowed to $73.1 million and operating margin was negative 34.8%, up 31.7 percentage points. Full-year net loss narrowed to $84.6 million, and diluted EPS loss was $2.89, which narrowed from the prior-year loss. Cash generation also turned. Operating cash flow was $3.5 million in the quarter, up from a use of cash in the prior-year quarter, while full-year operating cash flow was negative $15.9 million, an improvement from the prior year. Capital expenditures were $1.45 million in the quarter, down 9.9%, and $5.71 million for the full year, down 11.8%. Free cash flow was $2.1 million in the quarter. Non-GAAP net loss was $9.8 million, or $0.32 per share, showing that stock-based compensation remains a large gap between GAAP and adjusted results.
Operational metrics point to a maturing base. Domo ended the year with over 2,000 customers, up 10% from January 31, 2020 to January 31, 2021. Gross retention rate was 88% for the twelve months ended January 31, 2021. Subscription net revenue retention rate was 106% in the fourth quarter of fiscal 2021. The company had 62% of customers under multi-year contracts as of January 31, 2021, compared with 55% a year earlier. Enterprise customers accounted for 51% of fiscal 2021 revenue, and the company is leaning harder into larger accounts while trying to make sales and marketing more efficient. Management plans to hire more sales representatives in fiscal 2022, which it said may weigh on productivity in the near term.
Guidance points to continued growth but no near-term GAAP profitability. For the first quarter of fiscal 2022, Domo guided revenue to $56.5 million to $57.5 million and non-GAAP net loss per share to $0.43 to $0.47, based on 31.1 million weighted-average shares. For the full fiscal year 2022, it guided revenue to $240.0 million to $245.0 million and non-GAAP net loss per share to $1.53 to $1.63, based on 32.2 million weighted-average shares. The company did not reconcile the non-GAAP guidance to GAAP.
Risks remain. COVID-19 continues to cloud the outlook. Domo said retention in industries hurt by the pandemic may be lower in fiscal 2022. It entered contracts totaling $4.6 million of annual recurring revenue with government entities for pandemic response, and $3.1 million of those contracts had renewed as of the filing. Once the pandemic subsides, those contracts may be at higher risk of not renewing if usage does not expand. The company also warned that revenue growth may decline because of maturation, competition, slowing demand, or lower renewal and upsell rates. It expects losses for the foreseeable future. Management is also increasing sales headcount, which may hurt near-term productivity, and the credit facility carries covenants tied to debt and cash flow. The quarter was a clear step forward, but the company still has to prove that growth can stay durable while losses shrink.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2021 | Q3 FY2021 | QoQ | Q4 FY2020 | YoY |
|---|---|---|---|---|---|
| Revenue | $56.8M | $53.6M | +6.0% | $46.2M | +23.1% |
| Gross profit | $42.3M | $39.2M | +8.1% | $31.7M | +33.5% |
| Gross margin | 74.5% | 73.0% | +1.5 pp | 68.7% | +5.8 pp |
| Research & development | $16.6M | $16.5M | +0.6% | $17.5M | -5.1% |
| Sales & marketing | $31.2M | $29.6M | +5.5% | $32.3M | -3.4% |
| General & administrative | $11.4M | $11.9M | -4.8% | $9.1M | +25.3% |
| Total operating expenses | $59.2M | $58.0M | +2.0% | $58.9M | +0.5% |
| Operating income (loss) | -$16.9M | -$18.9M | +10.6% | -$27.2M | +37.9% |
| Operating margin | -29.7% | -35.2% | +5.5 pp | -58.9% | +29.2 pp |
| Net income (loss) | -$19.6M | -$22.2M | +11.7% | -$29.9M | +34.3% |
| Net margin | -34.5% | -41.4% | +6.9 pp | -64.7% | +30.2 pp |
Risks
The ongoing COVID-19 pandemic has caused substantially all sales and professional services to be conducted remotely, led some customers to request concessions such as lengthened payment terms or reduced contract length, and severely impacted customers in travel and hospitality, sports and leisure, and retail. MD&A states the effect may not be fully reflected in operating results until future periods, and $4.6 million of annual recurring revenue from government COVID-19 response contracts may be at higher risk of not renewing after the pandemic.
MD&A says a majority of annual recurring revenue is up for renewal during the fiscal year ending January 31, 2022, and it anticipates retention for customers in industries particularly impacted by COVID-19 may be lower than other customers. Gross retention rate was 88% for the twelve months ended January 31, 2021.
Domo had an accumulated deficit of $1,122.4 million at January 31, 2021, and net loss narrowed to $84.6 million for FY2021 from $125.7 million for FY2020 and $154.3 million for FY2019. Operating cash flow was negative $15.9 million for FY2021, up $64.35 million or 80.2% from negative $80.2 million for FY2020, but the company had $90.8 million of cash and cash equivalents and no amounts available under its fully drawn $100 million credit facility.
The credit facility is secured by substantially all assets, including intellectual property, and contains restrictive covenants and financial covenants, including a minimum unrestricted cash and cash equivalents balance of $10.0 million and a maximum debt ratio based on annualized recurring revenue. All $100 million was drawn as of January 31, 2021, and non-compliance could cause outstanding principal, interest, and fees to become due immediately.
Domo targets enterprise customers and faces sales cycles of approximately six months to multiple years, with quarterly sales activity weighted toward the last few weeks and days of the quarter. Enterprise customers accounted for 51% of revenue in FY2021, compared with 47% in FY2020 and 45% in FY2019, increasing the risk that sizable transactions extend beyond the forecasted quarter.
The market is intensely competitive with large software companies such as Microsoft, Oracle, SAP, and IBM, business analytics companies such as Tableau, Qlik, Looker, Sisense, and TIBCO, and SaaS providers such as Salesforce and Infor. Salesforce acquired Tableau and Alphabet acquired Looker, and competitors may bundle products at discounts or no charge, leading to price cuts, longer sales cycles, and loss of market share.
Revenue grew 21% in FY2021 compared to 22% in FY2020, and the company warns its revenue growth rate may decline due to maturation, slowing demand, increasing competition, a decrease in renewal rates, or a decline in upsells.
Domo's Mr. Roboto uses machine learning, predictive analytics, and other artificial intelligence technologies, and flawed algorithms, insufficient or biased datasets, or controversial data practices could undermine outputs and subject the company to legal liability or reputational harm. The platform also provides real-time write-back to IoT environments, which presents security, privacy, and execution risks.
The founder and CEO controls approximately 83% of the voting power through Class A common stock, and he has pledged all of those Class A shares to secure a loan. A default or sale of the pledged shares could cause the market price of Class B common stock to decline or be volatile.
As of January 31, 2021, Domo had federal and state net operating loss carryforwards of approximately $1,029.6 million and $1,224.4 million, respectively, which expire in various years beginning in 2028 for federal purposes. An ownership change under Section 382 could limit the company's ability to use these NOLs to offset future taxable income.
SaaS KPIs
All quarters →Total Customers
Remaining Performance Obligations (RPO)
Current Remaining Performance Obligations (cRPO)
Customers under multi-year contracts
Summary, forecast, risks and KPIs are extracted from Huckleberry.ai, Inc.'s SEC filings for Q4 FY2021 (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 2, 2026.