10-Q 1 domo10q-20220430.htm 10-Q domo10q-20220430
00015059521/312023Q1falseP1Y1.001.00P3YP1YP3Y00015059522022-02-012022-04-300001505952us-gaap:CommonClassAMember2022-06-01xbrli:shares0001505952us-gaap:CommonClassBMember2022-06-0100015059522022-01-31iso4217:USD00015059522022-04-30iso4217:USDxbrli:shares0001505952us-gaap:CommonClassAMember2022-04-300001505952us-gaap:CommonClassAMember2022-01-310001505952us-gaap:CommonClassBMember2022-01-310001505952us-gaap:CommonClassBMember2022-04-300001505952domo10q:SubscriptionMember2021-02-012021-04-300001505952domo10q:SubscriptionMember2022-02-012022-04-300001505952domo10q:ProfessionalServicesandOtherMember2021-02-012021-04-300001505952domo10q:ProfessionalServicesandOtherMember2022-02-012022-04-3000015059522021-02-012021-04-300001505952us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-01-310001505952us-gaap:CommonStockMemberus-gaap:CommonClassBMember2021-01-310001505952us-gaap:AdditionalPaidInCapitalMember2021-01-310001505952us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-310001505952us-gaap:RetainedEarningsMember2021-01-3100015059522021-01-310001505952us-gaap:CommonStockMemberus-gaap:CommonClassBMember2021-02-012021-04-300001505952us-gaap:AdditionalPaidInCapitalMember2021-02-012021-04-300001505952us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-02-012021-04-300001505952us-gaap:RetainedEarningsMember2021-02-012021-04-300001505952us-gaap:CommonStockMemberus-gaap:CommonClassAMember2021-04-300001505952us-gaap:CommonStockMemberus-gaap:CommonClassBMember2021-04-300001505952us-gaap:AdditionalPaidInCapitalMember2021-04-300001505952us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-300001505952us-gaap:RetainedEarningsMember2021-04-3000015059522021-04-300001505952us-gaap:CommonStockMemberus-gaap:CommonClassAMember2022-01-310001505952us-gaap:CommonStockMemberus-gaap:CommonClassBMember2022-01-310001505952us-gaap:AdditionalPaidInCapitalMember2022-01-310001505952us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-310001505952us-gaap:RetainedEarningsMember2022-01-310001505952us-gaap:CommonStockMemberus-gaap:CommonClassBMember2022-02-012022-04-300001505952us-gaap:AdditionalPaidInCapitalMember2022-02-012022-04-300001505952us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-02-012022-04-300001505952us-gaap:RetainedEarningsMember2022-02-012022-04-300001505952us-gaap:CommonStockMemberus-gaap:CommonClassAMember2022-04-300001505952us-gaap:CommonStockMemberus-gaap:CommonClassBMember2022-04-300001505952us-gaap:AdditionalPaidInCapitalMember2022-04-300001505952us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-300001505952us-gaap:RetainedEarningsMember2022-04-30domo10q:segment0001505952srt:MinimumMemberdomo10q:ComputerEquipmentandSoftwareMember2022-02-012022-04-300001505952domo10q:ComputerEquipmentandSoftwareMembersrt:MaximumMember2022-02-012022-04-300001505952domo10q:FurnitureVehiclesandOfficeEquipmentMember2022-02-012022-04-300001505952srt:MinimumMember2022-04-300001505952srt:MaximumMember2022-04-300001505952us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2022-02-012022-04-300001505952domo10q:ForeignCurrencyCashConcentrationRiskMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:NonUsMember2021-02-012022-01-31xbrli:pure0001505952domo10q:ForeignCurrencyCashConcentrationRiskMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:NonUsMember2022-02-012022-04-300001505952us-gaap:CashMember2022-01-310001505952us-gaap:MoneyMarketFundsMember2022-01-310001505952us-gaap:CertificatesOfDepositMember2022-01-310001505952us-gaap:CashMember2022-04-300001505952us-gaap:MoneyMarketFundsMember2022-04-300001505952us-gaap:CertificatesOfDepositMember2022-04-300001505952us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2022-01-310001505952us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2022-01-310001505952us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2022-01-310001505952us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2022-01-310001505952us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2022-01-310001505952us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMember2022-01-310001505952us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2022-01-310001505952us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2022-01-310001505952us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-01-310001505952us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-01-310001505952us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-01-310001505952us-gaap:FairValueMeasurementsRecurringMember2022-01-310001505952us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2022-04-300001505952us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2022-04-300001505952us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2022-04-300001505952us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2022-04-300001505952us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2022-04-300001505952us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMember2022-04-300001505952us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2022-04-300001505952us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CertificatesOfDepositMember2022-04-300001505952us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-04-300001505952us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-04-300001505952us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-04-300001505952us-gaap:FairValueMeasurementsRecurringMember2022-04-300001505952us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2022-01-310001505952us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2022-04-300001505952domo10q:ComputerEquipmentandSoftwareMember2022-01-310001505952domo10q:ComputerEquipmentandSoftwareMember2022-04-300001505952us-gaap:LeaseholdImprovementsMember2022-01-310001505952us-gaap:LeaseholdImprovementsMember2022-04-300001505952domo10q:FurnitureVehiclesandOfficeEquipmentMember2022-01-310001505952domo10q:FurnitureVehiclesandOfficeEquipmentMember2022-04-300001505952domo10q:IntellectualPropertyExcludingPatentsMember2022-01-310001505952domo10q:IntellectualPropertyExcludingPatentsMember2022-04-300001505952us-gaap:PatentsMember2022-01-310001505952us-gaap:PatentsMember2022-04-300001505952us-gaap:PatentsMember2022-02-012022-04-300001505952domo10q:OfficeSpaceLeaseFromLandlordMember2020-11-300001505952domo10q:SubscriptionMember2022-04-3000015059522022-05-01domo10q:SubscriptionMember2022-04-300001505952domo10q:ProfessionalServicesandOtherMember2022-04-300001505952domo10q:ProfessionalServicesandOtherMember2022-05-012022-04-300001505952country:US2021-02-012021-04-300001505952country:US2022-02-012022-04-300001505952country:JP2021-02-012021-04-300001505952country:JP2022-02-012022-04-300001505952us-gaap:NonUsMember2021-02-012021-04-300001505952us-gaap:NonUsMember2022-02-012022-04-300001505952country:USus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2021-02-012021-04-300001505952country:USus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2022-02-012022-04-300001505952us-gaap:GeographicConcentrationRiskMembercountry:JPus-gaap:SalesRevenueNetMember2021-02-012021-04-300001505952us-gaap:GeographicConcentrationRiskMembercountry:JPus-gaap:SalesRevenueNetMember2022-02-012022-04-300001505952us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMemberus-gaap:NonUsMember2021-02-012021-04-300001505952us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMemberus-gaap:NonUsMember2022-02-012022-04-300001505952domo10q:AmendedCreditFacilityMemberus-gaap:LineOfCreditMember2022-04-300001505952domo10q:AmendedCreditFacilityMemberus-gaap:SecuredDebtMemberus-gaap:LineOfCreditMember2020-08-310001505952domo10q:AmendedCreditFacilityMemberdomo10q:TermLoanMember2022-04-300001505952domo10q:AmendedCreditFacilityMemberdomo10q:TermLoanMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-02-012022-04-300001505952us-gaap:PrimeRateMemberdomo10q:AmendedCreditFacilityMemberdomo10q:TermLoanMemberus-gaap:SecuredDebtMember2022-02-012022-04-300001505952domo10q:AmendedCreditFacilityMemberdomo10q:TermLoanMemberus-gaap:SecuredDebtMember2022-04-300001505952domo10q:AmendedCreditFacilityMemberdomo10q:TermLoanMemberus-gaap:SecuredDebtMember2021-02-012021-04-300001505952domo10q:AmendedCreditFacilityMemberdomo10q:TermLoanMemberus-gaap:SecuredDebtMember2022-02-012022-04-300001505952domo10q:DebtCovenantPeriodSevenMemberdomo10q:AmendedCreditFacilityMemberus-gaap:SecuredDebtMemberus-gaap:LineOfCreditMember2022-04-300001505952domo10q:AmendedCreditFacilityMemberus-gaap:SecuredDebtMemberus-gaap:LineOfCreditMemberdomo10q:DebtCovenantPeriodEightMember2022-04-300001505952domo10q:DebtCovenantPeriodNineMemberdomo10q:AmendedCreditFacilityMemberus-gaap:SecuredDebtMemberus-gaap:LineOfCreditMember2022-04-300001505952domo10q:AmendedCreditFacilityMemberus-gaap:SecuredDebtMemberus-gaap:LineOfCreditMember2022-04-300001505952domo10q:AmendedCreditFacilityMemberus-gaap:SecuredDebtMemberus-gaap:LineOfCreditMember2022-02-012022-04-300001505952domo10q:ClassBCommonStockWarrantsMember2019-01-310001505952us-gaap:CommonStockMemberus-gaap:CommonClassBMember2020-09-012020-09-300001505952domo10q:ClassBCommonStockWarrantsMemberdomo10q:AmendedCreditFacilityMember2020-08-310001505952domo10q:ClassBCommonStockWarrantsMember2020-08-310001505952us-gaap:CommonClassBMember2021-05-012021-05-31domo10q:classdomo10q:vote0001505952domo10q:ClassBCommonStockWarrantsMember2022-04-300001505952domo10q:A2018EquityIncentivePlan2018PlanMember2011-04-300001505952domo10q:A2018EquityIncentivePlan2018PlanMember2011-04-012011-04-300001505952domo10q:A2018EquityIncentivePlan2018PlanMemberus-gaap:CommonClassBMember2022-02-012022-04-300001505952domo10q:A2018EquityIncentivePlan2018PlanMemberus-gaap:CommonClassBMember2022-04-300001505952us-gaap:CostOfSalesMemberdomo10q:SubscriptionMemberdomo10q:A2011EquityIncentivePlanthePlanMember2021-02-012021-04-300001505952us-gaap:CostOfSalesMemberdomo10q:SubscriptionMemberdomo10q:A2011EquityIncentivePlanthePlanMember2022-02-012022-04-300001505952domo10q:ProfessionalServicesandOtherMemberus-gaap:CostOfSalesMemberdomo10q:A2011EquityIncentivePlanthePlanMember2021-02-012021-04-300001505952domo10q:ProfessionalServicesandOtherMemberus-gaap:CostOfSalesMemberdomo10q:A2011EquityIncentivePlanthePlanMember2022-02-012022-04-300001505952us-gaap:SellingAndMarketingExpenseMemberdomo10q:A2011EquityIncentivePlanthePlanMember2021-02-012021-04-300001505952us-gaap:SellingAndMarketingExpenseMemberdomo10q:A2011EquityIncentivePlanthePlanMember2022-02-012022-04-300001505952domo10q:A2011EquityIncentivePlanthePlanMemberus-gaap:ResearchAndDevelopmentExpenseMember2021-02-012021-04-300001505952domo10q:A2011EquityIncentivePlanthePlanMemberus-gaap:ResearchAndDevelopmentExpenseMember2022-02-012022-04-300001505952us-gaap:GeneralAndAdministrativeExpenseMemberdomo10q:A2011EquityIncentivePlanthePlanMember2021-02-012021-04-300001505952us-gaap:GeneralAndAdministrativeExpenseMemberdomo10q:A2011EquityIncentivePlanthePlanMember2022-02-012022-04-300001505952us-gaap:InterestExpenseMemberdomo10q:A2011EquityIncentivePlanthePlanMember2021-02-012021-04-300001505952us-gaap:InterestExpenseMemberdomo10q:A2011EquityIncentivePlanthePlanMember2022-02-012022-04-300001505952domo10q:A2011EquityIncentivePlanthePlanMember2021-02-012021-04-300001505952domo10q:A2011EquityIncentivePlanthePlanMember2022-02-012022-04-300001505952us-gaap:EmployeeStockOptionMember2022-02-012022-04-300001505952us-gaap:EmployeeStockOptionMember2021-02-012021-04-300001505952us-gaap:EmployeeStockOptionMember2022-04-300001505952srt:MinimumMemberus-gaap:RestrictedStockUnitsRSUMember2022-02-012022-04-300001505952srt:MaximumMemberus-gaap:RestrictedStockUnitsRSUMember2022-02-012022-04-300001505952us-gaap:PerformanceSharesMember2022-02-012022-04-30domo10q:day0001505952us-gaap:PerformanceSharesMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2022-02-012022-04-300001505952us-gaap:PerformanceSharesMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2022-02-012022-04-300001505952us-gaap:PerformanceSharesMemberus-gaap:ShareBasedCompensationAwardTrancheThreeMember2022-02-012022-04-300001505952us-gaap:RestrictedStockUnitsRSUMember2022-01-310001505952us-gaap:RestrictedStockUnitsRSUMember2022-02-012022-04-300001505952us-gaap:RestrictedStockUnitsRSUMember2022-04-300001505952domo10q:RestrictedStockUnitsBonusMember2022-03-012022-03-310001505952us-gaap:RestrictedStockUnitsRSUMember2022-04-012022-04-300001505952domo10q:EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMemberus-gaap:CommonClassBMember2018-06-300001505952domo10q:EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2018-06-012018-06-300001505952domo10q:EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMemberus-gaap:CommonClassBMember2022-02-012022-04-300001505952domo10q:EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMemberus-gaap:CommonClassBMember2022-04-300001505952domo10q:EmployeeStockPurchasePlanMember2022-02-012022-04-300001505952domo10q:EmployeeStockPurchasePlanMember2022-04-300001505952domo10q:EmployeeStockPurchasePlanMember2020-09-012020-09-300001505952domo10q:EmployeeStockPurchasePlanMember2020-09-300001505952domo10q:EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2022-04-300001505952domo10q:EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2022-02-012022-04-300001505952us-gaap:CommonClassAMember2021-02-012021-04-300001505952us-gaap:CommonClassBMember2021-02-012021-04-300001505952us-gaap:CommonClassAMember2022-02-012022-04-300001505952us-gaap:CommonClassBMember2022-02-012022-04-300001505952us-gaap:EmployeeStockOptionMember2021-02-012021-04-300001505952us-gaap:EmployeeStockOptionMember2022-02-012022-04-300001505952us-gaap:RestrictedStockUnitsRSUMember2021-02-012021-04-300001505952us-gaap:RestrictedStockUnitsRSUMember2022-02-012022-04-300001505952us-gaap:EquityUnitPurchaseAgreementsMember2021-02-012021-04-300001505952us-gaap:EquityUnitPurchaseAgreementsMember2022-02-012022-04-300001505952domo10q:CommonStockWarrantMember2021-02-012021-04-300001505952domo10q:CommonStockWarrantMember2022-02-012022-04-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________
Form 10-Q
__________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For transition period from to .
Commission File Number 001-38553.

DOMO, INC.
(Exact Name of Registrant as Specified in its Charter)
__________________________
Delaware
(State or Other Jurisdiction of Incorporation or Organization)
27-3687433
(I.R.S. Employer Identification Number)
772 East Utah Valley Drive
American Fork, UT 84003
(Address of principal executive office, including zip code)

(801) 899-1000
(Registrant's telephone number, including area code)
__________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading symbol(s)Name of each exchange on which registered
Class B Common Stock, par value $0.001 per shareDOMOThe Nasdaq Global Market
__________________________
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ý No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes  No
As of June 1, 2022, there were approximately 3,263,659 shares of the registrant's Class A common stock and 30,464,587 shares of the registrant's Class B common stock outstanding.



TABLE OF CONTENTS
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
Condensed Consolidated Balance Sheets
Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Comprehensive Loss
Condensed Consolidated Statements of Stockholders' Deficit
Condensed Consolidated Statements of Cash Flows
Notes to Condensed Consolidated Financial Statements
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures about Market Risk
Item 4. Controls and Procedures
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 6. Exhibits
Signatures
SUMMARY RISK FACTORS
Our business is subject to numerous risks and uncertainties, as described further in the section of this report captioned “Risk Factors,” which may cause us not to realize the full benefits of our strengths or may cause us to be unable to successfully execute all or part of our strategy. Some of the most significant challenges and risks include the following:

the ongoing pandemic of coronavirus around the world could impact our business and operating results in volatile and unpredictable ways;
economic uncertainties or downturns could materially adversely affect our business;
we have a history of losses and may never achieve profitability;
we have a limited operating history, which makes it difficult to evaluate our prospects and future operating results;
our ability to raise capital in the future may be limited, and if we fail to raise capital when needed in the future, we could be prevented from growing or could be forced to delay or eliminate product development efforts or other operations;
if we are unable to attract new customers in a manner that is cost-effective, our revenue growth could be slower than we expect;
if customers do not renew their contracts with us or reduce their committed subscription amount, our revenue will decline and our operating results and financial condition may be adversely affected;
if customers do not expand their use of our platform or adopt additional use cases, our growth prospects, operating results and financial condition may be adversely affected;
we face intense competition, and we may not be able to compete effectively, which could reduce demand for our platform and adversely affect our business, growth, revenue and market share;
third parties could make it difficult or prevent us from accessing their systems;
if we fail to manage our growth effectively, our business and operating results will be adversely affected;
we have recently experienced management turnover, which creates uncertainties and could harm our business;
we are subject to laws, regulation and other legal obligations related to privacy, data protection and information security, and any actual or perceived failure to comply with such obligations could impair our efforts to maintain and expand our customer base, causing our growth to be limited and harming our business;
if our network or computer systems are breached or unauthorized access to customer data or other sensitive data is otherwise obtained, our platform may be perceived as insecure and we may lose existing customers or fail to attract new customers, our reputation may be damaged and we may incur significant liabilities;
third-party claims that we are infringing or otherwise violating the intellectual property rights of others, whether successful or not, could subject us to costly and time-consuming litigation or require us to obtain expensive licenses;
our ability to protect and enforce our intellectual property rights; and
the dual class structure of our common stock has the effect of concentrating voting control with Joshua G. James, our founder and former chief executive officer.



PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
Domo, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share amounts)
(unaudited)
 As of January 31,As of April 30,
 20222022
Assets
Current assets:
Cash and cash equivalents$83,561 $83,995 
Accounts receivable, net of allowances of $3,793 and $2,054 as of January 31, 2022 and April 30, 2022, respectively
64,149 46,634 
Contract acquisition costs, net15,417 15,065 
Prepaid expenses and other current assets9,975 15,487 
Total current assets173,102 161,181 
Property and equipment, net17,584 18,241 
Right-of-use assets16,392 16,006 
Contract acquisition costs, noncurrent, net23,177 22,047 
Intangible assets, net2,875 2,855 
Goodwill9,478 9,478 
Other assets1,981 2,064 
Total assets$244,589 $231,872 
Liabilities and stockholders' deficit
Current liabilities:
Accounts payable$4,770 $12,764 
Accrued expenses and other current liabilities59,976 45,033 
Lease liabilities 3,439 4,102 
Deferred revenue168,335 167,091 
Total current liabilities236,520 228,990 
Lease liabilities, noncurrent16,757 16,464 
Deferred revenue, noncurrent2,420 2,126 
Other liabilities, noncurrent10,882 11,157 
Long-term debt103,988 105,089 
Total liabilities370,567 363,826 
Commitments and contingencies (Note 12)
Stockholders' deficit:
Preferred stock, $0.001 par value per share; 10,000 shares authorized as of January 31, 2022 and April 30, 2022; no shares issued and outstanding as of January 31, 2022 and April 30, 2022
  
Class A common stock, $0.001 par value per share; 3,264 shares authorized as of January 31, 2022 and April 30, 2022; 3,264 shares issued and outstanding as of January 31, 2022 and April 30, 2022
3 3 
Class B common stock, $0.001 par value per share; 500,000 shares authorized as of January 31, 2022 and April 30, 2022; 29,730 and 30,460 shares issued and outstanding as of January 31, 2022 and April 30, 2022, respectively
30 30 
Additional paid-in capital1,098,084 1,125,699 
Accumulated other comprehensive income (loss)388 (315)
Accumulated deficit(1,224,483)(1,257,371)
Total stockholders' deficit(125,978)(131,954)
Total liabilities and stockholders' deficit$244,589 $231,872 
See accompanying notes to condensed consolidated financial statements.
1


Domo, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
 Three Months Ended April 30,
 20212022
Revenue: 
Subscription$52,112 $64,575 
Professional services and other7,950 9,889 
Total revenue60,062 74,464 
Cost of revenue:
Subscription9,057 10,667 
Professional services and other6,101 6,994 
Total cost of revenue15,158 17,661 
Gross profit44,904 56,803 
Operating expenses:
Sales and marketing33,454 45,587 
Research and development16,186 23,191 
General and administrative10,218 16,660 
Total operating expenses59,858 85,438 
Loss from operations(14,954)(28,635)
Other expense, net(3,262)(4,065)
Loss before income taxes(18,216)(32,700)
(Benefit from) provision for income taxes(112)188 
Net loss$(18,104)$(32,888)
Net loss per share, basic and diluted$(0.58)$(0.99)
Weighted-average number of shares used in
computing net loss per share, basic and diluted
31,004 33,295 
See accompanying notes to condensed consolidated financial statements.
2


Domo, Inc.
Condensed Consolidated Statements of Comprehensive Loss
(in thousands)
(unaudited)
 Three Months Ended April 30,
 20212022
Net loss$(18,104)$(32,888)
Foreign currency translation adjustments(4)(703)
Comprehensive loss$(18,108)$(33,591)
See accompanying notes to condensed consolidated financial statements.
3


Domo, Inc.
Condensed Consolidated Statements of Stockholders' Deficit
(in thousands, except share amounts)
(unaudited)
Three Months Ended April 30, 2021
Class A Common StockClass B Common StockAdditional
Paid-in Capital
Accumulated
Other
Comprehensive
Income
Accumulated
Deficit
Total
Stockholders'
Deficit
SharesAmountSharesAmount
Balance as of January 31, 20213,263,659 $3 27,271,435 $27 $1,038,006 $877 $(1,122,372)$(83,459)
Vesting of restricted stock units— — 703,571 1 — — — 1 
Shares repurchased for tax withholdings on vesting of restricted stock— — (94,435)— (6,244)— — (6,244)
Issuance of common stock under employee stock purchase plan— — 505,020 — 4,133 — — 4,133 
Exercise of stock options— — 31,188 — 654 — — 654 
Stock-based compensation expense— — — — 10,074 — — 10,074 
Other comprehensive loss— — — — — (4)— (4)
Net loss— — — — — — (18,104)(18,104)
Balance as of April 30, 20213,263,659 $3 28,416,779 $28 $1,046,623 $873 $(1,140,476)$(92,949)
Three Months Ended April 30, 2022
Class A Common StockClass B Common StockAdditional
Paid-in Capital
Accumulated
Other
Comprehensive
Income (Loss)
Accumulated
Deficit
Total
Stockholders'
Deficit
SharesAmountSharesAmount
Balance as of January 31, 20223,263,659 $3 29,729,822 $30 $1,098,084 $388 $(1,224,483)$(125,978)
Vesting of restricted stock units— — 527,423 — — — —  
Issuance of common stock under employee stock purchase plan— — 164,959 — 1,563 — — 1,563 
Exercise of stock options— — 37,727 — 724 — — 724 
Stock-based compensation expense— — — — 25,328 — — 25,328 
Other comprehensive loss— — — — — (703)— (703)
Net loss— — — — — — (32,888)(32,888)
Balance as of April 30, 20223,263,659 $3 30,459,931 $30 $1,125,699 $(315)$(1,257,371)$(131,954)
See accompanying notes to condensed consolidated financial statements.
4


Domo, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended April 30,
20212022
Cash flows from operating activities
Net loss$(18,104)$(32,888)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization1,028 1,607 
Non-cash lease expense943 1,198 
Amortization of contract acquisition costs3,903 4,312 
Stock-based compensation expense10,062 25,264 
Other, net865 920 
Change in operating assets and liabilities:
Accounts receivable, net15,271 17,515 
Contract acquisition costs(3,612)(3,203)
Prepaid expenses and other2,511 (5,803)
Accounts payable3,383 8,085 
Operating lease liabilities(1,080)(502)
Accrued expenses and other liabilities(16,079)(14,186)
Deferred revenue(1,819)(1,538)
Net cash (used in) provided by operating activities(2,728)781 
Cash flows from investing activities
Purchases of property and equipment(1,778)(1,937)
Net cash used in investing activities(1,778)(1,937)
Cash flows from financing activities
Proceeds from shares issued in connection with employee stock purchase plan4,133 1,563 
Shares repurchased for tax withholdings on vesting of restricted stock(6,244) 
Proceeds from exercise of stock options654 724 
Net cash (used in) provided by financing activities(1,457)2,287 
Effect of exchange rate changes on cash and cash equivalents(5)(697)
Net (decrease) increase in cash and cash equivalents(5,968)434 
Cash and cash equivalents at beginning of period90,794 83,561 
Cash and cash equivalents at end of period$84,826 $83,995 
Supplemental disclosures of cash flow information
Cash paid for income taxes, net of refunds$251 $(44)
Cash paid for interest$1,933 $1,872 
Non-cash investing and financing activities
Operating lease right-of-use assets obtained for lease liabilities$ $903 
Property and equipment acquired through tenant improvement allowance$ $64 
Stock-based compensation capitalized as internal-use software$251 $381 
See accompanying notes to condensed consolidated financial statements.
5



Domo, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)

1. Overview and Basis of Presentation
Description of Business and Basis of Presentation
Domo, Inc. (the Company) provides a cloud-based platform that digitally connects everyone from the CEO to the frontline employee with all the data, systems and people in an organization, giving them access to real-time data and insights and allowing them to manage their business from their smartphones. The Company is incorporated in Delaware. The Company's headquarters is located in American Fork, Utah and the Company has subsidiaries in the United Kingdom, Australia, Japan, Hong Kong, Singapore, New Zealand, Canada, and India.
The accompanying unaudited condensed consolidated financial statements, which include the accounts of the Company and its wholly owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). All intercompany balances and transactions have been eliminated in consolidation. The Company’s fiscal year ends on January 31.
Unaudited Condensed Consolidated Financial Statements
The accompanying condensed consolidated balance sheet as of April 30, 2022, and the condensed consolidated statements of operations, comprehensive loss, stockholders' deficit, and cash flows for the three months ended April 30, 2021 and 2022 are unaudited. The unaudited condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and, in the opinion of management, reflect all adjustments necessary to state fairly the Company's financial position as of April 30, 2022 and its results of operations and cash flows for the three months ended April 30, 2021 and 2022. The financial data and the other financial information disclosed in the notes to these condensed consolidated financial statements related to the three-month periods are also unaudited. The results of operations for the three months ended April 30, 2022 are not necessarily indicative of the results to be expected for the fiscal year ending January 31, 2023 or for any other future year or interim period.
The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended January 31, 2022, included in the Company's Annual Report on Form 10-K.
Use of Estimates
The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could differ from those estimates. The Company’s estimates and judgments include the determination of standalone selling prices for the Company’s services, which are used to determine revenue recognition for arrangements with multiple performance obligations; the amortization period for deferred contract acquisition costs; valuation of the Company’s stock-based compensation and related service period; useful lives of fixed assets; capitalization and estimated useful life of internal-use software; the incremental borrowing rate used to calculate the present value of capitalized leases; valuation estimates used when evaluating impairment of long-lived and intangible assets including goodwill; and the allowance for doubtful accounts.
Foreign Currency
The functional currencies of the Company’s foreign subsidiaries are the respective local currencies. The cumulative effect of translation adjustments arising from the use of differing exchange rates from period to period is included in accumulated other comprehensive income within the condensed consolidated balance sheets. Changes in the cumulative foreign translation adjustment are reported in the condensed consolidated statements of stockholders’ equity (deficit) and the condensed consolidated statements of comprehensive loss. Transactions denominated in currencies other than the functional currency are remeasured at the end of the period and when the related receivable or payable is settled, which may result in transaction gains or losses. Foreign currency transaction gains and losses are included in other expense, net in the condensed
6


Domo, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
1. Overview and Basis of Presentation (Continued)
consolidated statements of operations. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are translated at the average exchange rate during the period, and equity balances are translated using historical exchange rates.
Segment Information
The Company operates as one operating segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources.
2. Summary of Significant Accounting Policies
Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, money market funds and highly liquid investments purchased with an original maturity date of 90 days or less from the date of purchase. The fair value of cash equivalents approximated their carrying value as of January 31, 2022 and April 30, 2022.
Accounts Receivable
Accounts receivable are recorded at the invoiced amount (net of allowance), do not require collateral, and do not bear interest. The Company’s payment terms generally provide that customers pay within 30 days of the invoice date. 
The Company maintains an allowance for doubtful accounts and expected credit losses for amounts the Company does not expect to collect. In establishing the required allowance, management considers historical losses, current market conditions, customers’ financial condition and credit quality, the age of the receivables, and current payment patterns. Account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.
Contract Acquisition Costs
Contract acquisition costs, net are stated at cost net of accumulated amortization and primarily consist of deferred sales commissions, which are considered incremental and recoverable costs of obtaining a contract with a customer. Contract acquisition costs for initial contracts are deferred and then amortized on a straight-line basis over the period of benefit, which the Company has determined to be approximately four years. The period of benefit is determined by taking into consideration contractual terms, expected customer life, changes in the Company's technology and other factors. Contract acquisition costs for renewal contracts are not commensurate with contract acquisition costs for initial contracts and are recorded as expense when incurred if the period of benefit is one year or less. If the period of benefit is greater than one year, costs are deferred and then amortized on a straight-line basis over the period of benefit, which the Company has determined to be two years. Contract acquisition costs related to professional services and other performance obligations with a period of benefit of one year or less are recorded as expense when incurred. Amortization of contract acquisition costs is included in sales and marketing expenses in the accompanying condensed consolidated statements of operations.
Amortization expense related to contract acquisition costs was $3.9 million and $4.3 million for the three months ended April 30, 2021 and 2022, respectively. There was no impairment charge in relation to contract acquisition costs for the periods presented.
Property and Equipment, Net
Property and equipment, net, are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets or over the related lease terms (if shorter). Repairs and maintenance costs are expensed as incurred.
7


Domo, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
2. Summary of Significant Accounting Policies (Continued)
The estimated useful lives of property and equipment are as follows:
Computer equipment and software
2-3 years
Furniture, vehicles and office equipment
3 years
Leasehold improvementsShorter of remaining lease term or estimated useful life
Leases
At the inception of a contract, the Company determines whether the contract is or contains a lease. Leases with a term greater than one year are recognized on the balance sheet as right-of-use (ROU) assets and lease liabilities. The Company has elected the short-term leases practical expedient which allows any leases with a term of 12 months or less to be considered short-term and thus not have an ROU asset or lease liability recognized on the balance sheet.
ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As these leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate incurred to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The operating lease ROU asset also includes any lease payments made in advance of lease expense and excludes lease incentives and initial direct costs incurred. Certain lease terms include options to terminate or extend the lease for periods of one to three years. The Company does not include these optional periods in its minimum lease terms or in the determination of the ROU assets and lease liabilities associated with these leases unless the options are reasonably certain to be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. ROU assets are subject to evaluation for impairment or disposal on a basis consistent with other long-lived assets.
The Company has lease agreements with lease and non-lease components which the Company has elected to account for as a single lease component. On the lease commencement date, the Company establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are depreciated over the lease term to operating expense.
Income from subleases is recorded in other expense, net in the accompanying condensed consolidated statements of operations.
Capitalized Internal-Use Software Costs
The Company capitalizes certain costs related to development of its platform incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Maintenance and training costs are also expensed as incurred. Capitalized costs are included in property and equipment.
Capitalized internal-use software is amortized generally as subscription cost of revenue, with a smaller portion related to operations amortized as research and development within operating expenses. All capitalized internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.
Goodwill and Intangible Assets
Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill and indefinite-lived intangible assets are not amortized, but rather tested for impairment at least annually on November 1 or more often if and when circumstances indicate that the carrying value may not be recoverable. Finite-lived intangible assets are amortized over their useful lives.
8


Domo, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
2. Summary of Significant Accounting Policies (Continued)
Goodwill is tested for impairment based on reporting units. The Company periodically reevaluates the business and has determined that it continues to operate in one segment, which is also considered the sole reporting unit. Therefore, goodwill is tested for impairment at the consolidated level.
The Company reviews its long-lived assets, including property and equipment, finite-lived intangible assets, and ROU assets for impairment whenever an event or change in facts and circumstances indicates that their carrying amounts may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount to the estimated undiscounted future cash flows expected to be generated. If the carrying amount exceeds the undiscounted cash flows, the assets are determined to be impaired and an impairment charge is recognized as the amount by which the carrying amount exceeds fair value.
There was no goodwill acquired and no impairment charges for goodwill or long-lived assets recorded during the periods presented.
Revenue Recognition
The Company derives revenue primarily from subscriptions to its cloud-based platform and professional services. Revenue is recognized when control of these services is transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those services, net of sales taxes.
For sales through channel partners, the Company considers the channel partner to be the end customer for the purposes of revenue recognition as the Company's contractual relationships with channel partners do not depend on the sale of the Company's services to their customers and payment from the channel partner is not contingent on receiving payment from their customers. The Company's contractual relationships with channel partners do not allow returns, rebates, or price concessions.
The price of subscriptions is generally fixed at contract inception and therefore, the Company's contracts do not contain a significant amount of variable consideration.
Revenue recognition is determined through the following steps:
Identification of the contract, or contracts, with a customer
Identification of the performance obligations in the contract
Determination of the transaction price
Allocation of the transaction price to the performance obligations in the contract
Recognition of revenue when, or as, performance obligations are satisfied
Subscription Revenue
Subscription revenue primarily consists of fees paid by customers to access the Company’s cloud-based platform, including support services. The majority of the Company's subscription agreements have multi-year contractual terms and a smaller percentage have annual contractual terms. Revenue is recognized ratably over the related contractual term beginning on the date that the platform is made available to a customer. Access to the platform represents a series of distinct services as the Company continually provides access to and fulfills its obligation to the end customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. The Company recognizes revenue ratably because the customer receives and consumes the benefits of the platform throughout the contract period. The Company's contracts are generally non-cancelable.
Professional Services and Other Revenue
Professional services revenue consists of implementation services sold with new subscriptions as well as professional services sold separately. Other revenue includes training and education. Professional services arrangements are billed in
9


Domo, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
2. Summary of Significant Accounting Policies (Continued)
advance, and revenue from these arrangements is recognized as the services are provided, generally based on hours incurred. Training and education revenue is also recognized as the services are provided.
Contracts with Multiple Performance Obligations
Most of the Company's contracts with new customers contain multiple performance obligations, generally consisting of subscriptions and professional services. For these contracts, individual performance obligations are accounted for separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices are determined based on historical standalone selling prices, taking into consideration overall pricing objectives, market conditions and other factors, including contract value, customer demographics, platform tier, and the number and types of users within the contract.
Deferred Revenue
The Company's contracts are typically billed annually in advance. Deferred revenue includes amounts collected or billed in excess of revenue recognized. Deferred revenue is recognized as revenue as the related performance obligations are satisfied. Deferred revenue that will be recognized during the succeeding twelve-month period is recorded as a current liability and the remaining portion is recorded as a noncurrent liability.
Cost of Revenue
Cost of subscription revenue consists primarily of third-party hosting services and data center capacity; employee-related costs directly associated with cloud infrastructure and customer support personnel, including salaries, benefits, bonuses and stock-based compensation; amortization expense associated with capitalized software development costs; depreciation expense associated with computer equipment and software; certain fees paid to various third parties for the use of their technology and services; and allocated overhead. Allocated overhead includes items such as information technology infrastructure, rent, and employee benefit costs.
Cost of professional services and other revenue consists primarily of employee-related costs associated with these services, including stock-based compensation; third-party consultant fees; and allocated overhead.
Advertising Costs
Advertising costs are expensed as incurred. Advertising expense was $2.8 million and $3.9 million for the three months ended April 30, 2021 and 2022, respectively.
Research and Development
Research and development expenses consist primarily of employee-related costs for the design and development of the Company's platform, contractor costs to supplement staff levels, third-party web services, consulting services, and allocated overhead. Research and development expenses, other than software development costs qualifying for capitalization, are expensed as incurred.
Stock-Based Compensation
The Company has granted stock-based awards, consisting of stock options and restricted stock units, to its employees, certain consultants and certain members of its board of directors. The Company records stock-based compensation based on the grant date fair value of the awards, which include stock options and restricted stock units, and recognizes the fair value of those awards as expense using the straight-line method over the requisite service period of the award.
For restricted stock units that contain market conditions, the Company recognizes stock-based compensation based on the estimated grant date fair value of market condition awards using a Monte Carlo simulation, and the awards are expensed over the service period using an accelerated attribution method.
Stock-based compensation expense related to purchase rights issued under the 2018 Employee Stock Purchase Plan (ESPP) is based on the Black-Scholes option-pricing model fair value of the estimated number of awards as of the beginning
10


Domo, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
2. Summary of Significant Accounting Policies (Continued)
of the offering period. Stock-based compensation expense is recognized using the straight-line method over the offering period.
Income Taxes
The Company accounts for income taxes in accordance with the liability method of accounting for income taxes. Under this method, the Company recognizes a liability or asset for the deferred income tax consequences of all temporary differences between the tax basis of assets and liabilities and their reported amounts in the condensed consolidated financial statements that will result in taxable or deductible amounts in future years when the reported amounts of the assets and liabilities are recovered or settled. These deferred income tax assets or liabilities are measured using the enacted tax rates that will be in effect when the differences are expected to affect taxable income.
Valuation allowances are provided when it is more-likely-than-not that some or all of the deferred income tax assets may not be realized. In assessing the need for a valuation allowance, the Company has considered its historical levels of income, expectations of future taxable income and ongoing tax planning strategies. Because of the uncertainty of the realization of its deferred tax assets, the Company has a full valuation allowance for domestic net deferred tax assets, including net operating loss carryforwards, and tax credits related primarily to research and development. Realization of its deferred tax assets is dependent primarily upon future U.S. taxable income.
Tax positions are recognized in the condensed consolidated financial statements when it is more-likely-than-not the position will be sustained upon examination by the tax authorities. The Company’s policy for recording interest and penalties related to income taxes, including uncertain tax positions, is to record such items as a component of the provision for income taxes.
Concentrations of Credit Risk and Significant Customers
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents and accounts receivable. Cash denominated in currencies other than the United States dollar represented 20% and 19% of total cash and cash equivalents as of January 31, 2022 and April 30, 2022, respectively.
The Company maintains its cash accounts with financial institutions where, at times, deposits exceed federal insured limits. The Company may invest its excess cash in money market funds, certificates of deposit, or in short-term investments consisting of highly-rated debt securities.
No single customer accounted for more than 10% of revenue for the three months ended April 30, 2021 and 2022 or more than 10% of accounts receivable as of January 31, 2022 and April 30, 2022.
The Company is primarily dependent upon third parties in order to meet the uptime and performance requirements of its customers. Any disruption of or interference with the Company's use of these third parties would impact operations.
Net Loss per Share
The Company computes net loss per share using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting rights. Accordingly, the Class A common stock and Class B common stock share equally in the Company’s net losses.
Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period increased by common shares that could be issued upon conversion or exercise of other outstanding securities to the extent those additional common shares would be dilutive. The dilutive effect of potentially dilutive securities is reflected in diluted net loss per share by application of the treasury stock method. During periods when the Company is in a net loss position, basic net loss per share is the same as diluted net loss per share as the effects of potentially dilutive securities are anti-dilutive.
11


Domo, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
2. Summary of Significant Accounting Policies (Continued)
Recent Accounting Pronouncements
There have been no recent accounting pronouncements issued which are expected to have a material effect on the Company’s financial statements. Management continues to monitor and review recently issued accounting guidance upon issuance.
3. Cash and Cash Equivalents
The amortized cost and estimated fair value of the Company’s cash and cash equivalents as of January 31, 2022 and April 30, 2022 were as follows (in thousands):
January 31, 2022
Amortized CostUnrealized GainUnrealized LossEstimated Fair Value
Cash$42,500 $— $— $42,500 
Cash equivalents:
Money market funds25,878 — — 25,878 
Certificates of deposit15,183 — — 15,183 
Total cash and cash equivalents$83,561 $— $— $83,561 
April 30, 2022
Amortized CostUnrealized GainUnrealized LossEstimated Fair Value
Cash$42,923 $— $— $42,923 
Cash equivalents:
Money market funds25,880 — — 25,880 
Certificates of deposit15,192 — — 15,192 
Total cash and cash equivalents$83,995 $— $— $83,995 
4. Fair Value Measurements
Assets Measured at Fair Value on a Recurring Basis
Financial instruments recorded at fair value in the financial statements are categorized as follows:
Level 1: Observable inputs that reflect quoted prices for identical assets or liabilities in active markets.
Level 2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3: Unobservable inputs reflecting management's assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.
The following table summarizes the assets measured at fair value on a recurring basis as of January 31, 2022 and April 30, 2022 by level within the fair value hierarchy (in thousands):
12


Domo, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
4. Fair Value Measurements (Continued)
January 31, 2022
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$25,878 $ $ $25,878 
Certificates of deposit 15,183  15,183 
Total cash equivalents$25,878 $15,183 $ $41,061 
April 30, 2022
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$25,880 $ $ $25,880 
Certificates of deposit 15,192  15,192 
Total cash equivalents$25,880 $15,192 $ $41,072 
During the three months ended April 30, 2022, the Company had no transfers between levels of the fair value hierarchy of its assets and liabilities measured at fair value.
Fair Value of Other Financial Instruments
The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, accounts payable, accrued liabilities, and other liabilities approximate fair value due to their short-term maturities and are excluded from the fair value tables above.
5. Property and Equipment
Property and equipment, net consisted of the following (in thousands):
As of January 31,As of April 30,
20222022
Capitalized internal-use software development costs
$37,088$39,007
Computer equipment and software
4,4264,784
Leasehold improvements
2,1291,675
Furniture, vehicles and office equipment
764772
44,40746,238
Less accumulated depreciation and amortization
(26,823)(27,997)
$17,584$18,241
Depreciation and amortization expense related to property and equipment was $0.9 million and $1.6 million for the three months ended April 30, 2021 and 2022, respectively.
The Company capitalized $1.7 million and $1.9 million in software development costs during the three months ended April 30, 2021 and 2022, respectively. Amortization of capitalized software development costs was $0.7 million and $1.4 million for the three months ended April 30, 2021 and 2022, respectively.
13


Domo, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
6. Intangible Assets
Intangible assets consisted of the following (in thousands):
As of January 31,As of April 30,
20222022
Intellectual property excluding patents
$2,458$2,458
Patents
950950
3,4083,408
Less accumulated amortization
(533)(553)
$2,875$2,855
Amortization expense related to intangible assets was $154,000 and $20,000 for the three months ended April 30, 2021 and 2022, respectively. Intellectual property excluding patents is considered an indefinite-lived asset due to the fact that it is renewable in perpetuity. The patents were acquired and are being amortized over a weighted-average remaining useful life of approximately 5.0 years.
7. Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
As of January 31,As of April 30,
20222022
Accrued expenses
$13,436 $13,478 
Accrued payroll and benefits
11,494 11,472 
Accrued tenant improvements
 6,859 
Accrued payroll taxes
7,798 4,609 
Accrued commissions
8,119 3,827 
Accrued bonus
13,064 3,326 
Sales and other taxes payable
518 508 
Employee stock purchase plan liability
3,840  
Other accrued liabilities
1,707 954 
$59,976$45,033
8. Leases
The Company leases office space under non-cancelable operating leases with various expiration dates through 2027. These leases require monthly lease payments that may be subject to annual increases throughout the lease term.
Components of lease expense are summarized as follows (in thousands):
Three Months Ended April 30,
20212022
Operating lease expense$1,003 $1,711 
Short-term lease expense357 382 
Total lease expense$1,360$2,093
Lease term and discount rate information are summarized as follows:
14


Domo, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
8. Leases (Continued)
As of April 30, 2022
Weighted average remaining lease term (years)4.5
Weighted average discount rate10.0%
Maturities of lease liabilities as of April 30, 2022 are as follows (in thousands):

Year Ending January 31:
2023(1)
$2,622
20245,909
20255,111
20265,207
20275,348
Thereafter1,797
Total lease payments25,994
Less imputed interest(5,428)
Present value of lease liabilities$20,566
(1)Net of $2.7 million of tenant improvements which are expected to be utilized in fiscal 2023
Cash paid for operating leases was $1.2 million and $0.8 million for the three months ended April 30, 2021 and 2022, respectively, and was included in net cash used in operating activities in the condensed consolidated statements of cash flows.
In November 2020, the Company entered into an agreement to lease office space from its current landlord. The lease term commenced on May 1, 2021 and is for a period of approximately six years, with rent payments over the term of the lease totaling approximately $23.8 million. At the lease commencement date, the Company classified the lease as an operating lease and recorded a lease liability of $13.6 million with a corresponding right-of-use asset.
9. Deferred Revenue and Performance Obligations
Deferred Revenue
Significant changes in the Company's deferred revenue balance for the three months ended April 30, 2022 were as follows (in thousands):
Balance as of January 31, 2022$170,755 
Revenue recognized that was included in the deferred revenue balance at the beginning of the period(66,874)
Increase due to billings excluding amounts recognized as revenue during the period65,336 
Balance as of April 30, 2022$169,217 
Transaction Price Allocated to Remaining Performance Obligations
Transaction price allocated to remaining performance obligations represents the remaining amount of revenue the Company expects to recognize from existing non-cancelable contracts, whether billed or unbilled. As of April 30, 2022, approximately $328.5 million of revenue was expected to be recognized from remaining performance obligations for subscription contracts. The Company expects to recognize approximately $205.7 million of this amount during the twelve months following April 30, 2022, with the balance recognized thereafter. As of April 30, 2022, approximately $23.0 million of revenue was expected to be recognized from remaining performance obligations for professional services and other contracts, $19.3 million of which is expected to be recognized during the twelve months following April 30, 2022, and the balance recognized thereafter.
15


Domo, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
10. Geographic Information
Revenue by geographic area is determined by the billing address of the customer. The following table sets forth revenue by geographic area (in thousands):
 Three Months Ended April 30,
 20212022
United States$45,971 $58,568 
Japan6,257 6,434 
Other7,834 9,462 
Total$60,062 $74,464 
Percentage of revenue by geographic area:
United States77 %79 %
Japan10 %9 %
Other13 %12 %
Other than the United States and Japan, no other individual country exceeded 10% of total revenue for the three months ended April 30, 2021 and 2022. As of April 30, 2022, substantially all of the Company’s property and equipment was located in the United States.
11. Credit Facility
The Company has a credit facility that permits up to $100.0 million in term loan borrowings, all of which had been drawn as of April 30, 2022. The credit facility is secured by substantially all of the Company's assets.
In August 2020, the Company entered into an amendment to the credit facility which extended the maturity date for the outstanding loan from October 1, 2022 to April 1, 2025. Per the amendment, the Company is required to comply with a financial covenant requiring the Company to maintain a minimum balance of unrestricted cash and cash equivalents equal to $10.0 million until the Company’s six-month adjusted cash flow is greater than zero. The amendment also revised the maximum debt ratio financial covenant and included an amendment fee of $5.0 million, which accrues interest at a rate of 9.5% per year. The amendment fee, along with its accrued interest, is to be paid at the earlier of the payment date, maturity date, or the date the loan becomes payable.
The credit facility requires interest-only payments until the maturity date. A portion of the interest that accrues on the outstanding principal of each term loan is payable in cash on a monthly basis, which portion accrues at a floating rate equal to the greater of (1) 7% and (2) three-month LIBOR plus 5.5% per year. In the event that LIBOR is unavailable, interest will accrue at a floating rate equal to the greater of (1) 7% and (2) the U.S. prime rate plus 2.75% per year. This interest rate was approximately 7% as of April 30, 2022. In addition, a portion of the interest that accrues on the outstanding principal of each term loan is capitalized and added to the principal amount of the outstanding term loan on a monthly basis, which portion accrues at a fixed rate equal to 2.5% per year. During the three months ended April 30, 2021 and 2022, $0.7 million and $0.7 million of interest was capitalized, respectively.
The credit facility requires a closing fee of $7.0 million to be paid on the earliest of (1) the date the term loan is prepaid, (2) the term loan maturity date, which is April 1, 2025, and (3) the date the term loan becomes due and payable. Due to the long-term nature of the closing fee, and the amendment fee described above, these fees were recorded at present value as an increase to other liabilities, noncurrent and an increase to debt issuance costs. These liabilities will be accreted to their full value over the term of the loan, with such accretion recorded as interest expense in other expense, net in the condensed consolidated statements of operations. Debt issuance costs are presented as an offset to the outstanding principal balance of the term loans on the condensed consolidated balance sheets and are being amortized as interest expense in other expense, net in the condensed consolidated statements of operations over the term of the loan using the effective interest rate method.
16


Domo, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
11. Credit Facility (Continued)

The balances in long-term debt consisted of the following (in thousands):
As of January 31,As of April 30,
20222022
Principal$110,599 $111,276 
Less: unamortized debt issuance costs(6,611)(6,187)
Net carrying amount$103,988 $105,089 
The $100.0 million credit facility contains customary conditions to borrowing, events of default and covenants, including covenants that restrict the Company's ability to dispose of assets, make material changes to the nature, control or location of the business, merge with or acquire other entities, incur indebtedness or encumbrances, make distributions to holders of the Company's capital stock, make certain investments or enter into transactions with affiliates. In addition, the Company is required to comply with a financial covenant based on the ratio of outstanding indebtedness to annualized recurring revenue. Under the facility, the maximum ratio is 0.550 on January 31, 2022 and April 30, 2022; 0.525 on July 31, 2022 and October 31, 2022; and 0.500 on January 31, 2023 through the maturity date. The credit facility defines annualized recurring revenue as four times the Company's aggregate revenue for the immediately preceding quarter (net of recurring discounts and discounts for periods greater than one year) less the annual contract value of any customer contracts pursuant to which the Company was advised during such quarter would not be renewed at the end of the current term plus the annual contract value of existing customer contract increases during such quarter. This covenant is measured quarterly on a three-month trailing basis. Upon the occurrence of an event of default, such as non-compliance with covenants, any outstanding principal, interest and fees become due immediately. The Company was in compliance with the covenant terms of the credit facility at January 31, 2022 and April 30, 2022.
The Company incurred interest expense of $3.2 million and $3.4 million for the three months ended April 30, 2021 and 2022, respectively.
Stock Warrants
In connection with the credit facility described above, the Company issued warrants which are exercisable for an aggregate of 125,000 shares of Class B common stock at an exercise price of $17.8736 per share. These warrants were net exercised in September 2020, resulting in the issuance of 68,508 shares of Class B common stock.
Upon execution of the August 2020 amendment, the Company issued an additional 100,000 fully vested warrants to purchase Class B common stock with an exercise price of $0.01. These warrants were exercised in May 2021, resulting in the issuance of 100,000 shares of Class B common stock.
Warrants issued in connection with the credit facility were recorded as an increase to additional paid-in capital with a corresponding increase to debt issuance costs.
See Note 13 "Stockholders' Deficit" for further details regarding stock warrants.
12. Commitments and Contingencies
Litigation
Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.
In November 2019, a securities class action complaint was filed by a purported stockholder of the Company against the Company, certain of the Company's current and former officers and directors, and the underwriters of the Company's June 2018 initial public offering alleging violations of securities laws and seeking unspecified damages. The Company believes this lawsuit is without merit and intends to defend the case vigorously. The Company believes a loss related to this matter is reasonably possible, but is unable to estimate a range of loss, if any, that could result were there to be an adverse final
17


Domo, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
12. Commitments and Contingencies (Continued)
decision in this case. As of the date of this report, the Company does not believe it is probable that this case will result in an unfavorable outcome; however, if an unfavorable outcome were to occur in these cases, it is possible that the impact could be material to the Company's results of operations in the period(s) in which any such outcome becomes probable and estimable.
The Company is involved in other legal proceedings from time to time arising in the normal course of business. Management believes that the outcome of these proceedings will not have a material impact on the Company's financial condition, results of operations, or liquidity.
Warranties and Indemnification
The Company’s subscription services are generally warranted to perform materially in accordance with the terms of the applicable customer service order under normal use and circumstances. Additionally, the Company’s arrangements generally include provisions for indemnifying customers against liabilities if its subscription services infringe a third party’s intellectual property rights. Furthermore, the Company may also incur liabilities if it breaches the security or confidentiality obligations in its arrangements. To date, the Company has not incurred significant costs and has not accrued a liability in the accompanying condensed consolidated financial statements as a result of these obligations.
The Company has entered into service-level agreements with some of its customers defining levels of uptime reliability and performance and permitting those customers to receive credits for prepaid amounts related to unused subscription services if the Company fails to meet certain of the defined service levels. In very limited instances, the Company allows customers to early terminate their agreements if the Company repeatedly or significantly fails to meet those levels. If the Company repeatedly or significantly fails to meet contracted upon service levels, a contract may require a refund of prepaid unused subscription fees. To date, the Company has not experienced any significant failures to meet defined levels of uptime reliability and performance as set forth in its agreements and, as a result, the Company has not accrued any liabilities related to these agreements in the condensed consolidated financial statements.
Other Purchase Commitments
The Company has also entered into certain non-cancelable contractual commitments related to cloud infrastructure services in the ordinary course of business. There have been no material changes in these commitments as disclosed in the Annual Report on Form 10-K.
13. Stockholders' Deficit
Preferred Stock
The Company's Board of Directors has the authority, without further action by the Company's stockholders, to issue up to 10,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, and privileges thereof, including voting rights. As of January 31, 2022 and April 30, 2022, no shares of preferred stock were issued and outstanding.
Common Stock
The Company has two classes of common stock, Class A and Class B. Each share of Class A common stock is entitled to 40 votes per share and is convertible at any time into one share of Class B common stock. Each share of Class A common stock will convert automatically into one share of Class B common stock upon any transfer, whether or not for value. Each share of Class B common stock is entitled to one vote per share. Holders of Class A common stock and Class B common stock vote together as a single class on all matters (including the election of directors) submitted to a vote of stockholders, unless otherwise required by law or the Company's certificate of incorporation. Subject to preferences that may be applicable to any then-outstanding preferred stock, holders of Class A common stock and Class B common stock are entitled to receive dividends, if any, as may be declared by the Company's board of directors.
At January 31, 2022 and April 30, 2022, there were 3,263,659 shares of Class A common stock authorized. At January 31, 2022 and April 30, 2022, there were 3,263,659 shares of Class A common stock issued and outstanding.
18


Domo, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
13. Stockholders' Deficit (Continued)
At January 31, 2022 and April 30, 2022, there were 500,000,000 shares of Class B common stock authorized. At January 31, 2022 and April 30, 2022, there were 29,729,822 and 30,459,931 shares of Class B common stock issued and outstanding, respectively.
Class B Common Stock Warrants
In connection with the credit facility and a line of credit signed in July 2016, the Company issued warrants to purchase shares of Class B common stock. As of April 30, 2022, there were 3,333 shares of Class B common stock subject to issuance under outstanding warrants, which are exercisable at $34.35 per share.
14. Equity Incentive Plans
In April 2011, the Company established the 2011 Equity Incentive Plan (2011 Plan), which was amended in September 2011 to provide for the issuance of stock options and other stock-based awards. In June 2018, the Company adopted the 2018 Equity Incentive Plan (2018 Plan). The 2018 Plan provides for the grant of incentive and nonstatutory stock options, restricted stock, RSUs, stock appreciation rights, performance units, and performance shares to employees, consultants, and members of the Company's board of directors.
The number of shares available for issuance under the 2018 Plan includes an annual increase on the first day of each fiscal year equal to the least of: (1) 3,500,000 shares; (2) 5% of the outstanding shares of Class A and Class B common stock as of the last day of the immediately preceding fiscal year; and (3) such other amount as the Company's board of directors may determine no later than the last day of the immediately preceding year. During the three months ended April 30, 2022, the number of shares available for grant under the 2018 Plan was increased by 1,649,674 shares. As of April 30, 2022, there were 3,769,522 shares available for grant under the 2018 Plan.
In connection with the IPO, the 2011 Plan was terminated. With the establishment of the 2018 Plan, the Company no longer grants equity-based awards under the 2011 Plan and any shares that expire, terminate, are forfeited or repurchased by the Company, or are withheld by the Company to cover tax withholding obligations, under the 2011 Plan, will become available for future grant under the 2018 Plan. The Company recognized stock-based compensation expense related to its equity incentive plans as follows (in thousands):
Three Months Ended April 30,
20212022
Cost of revenue:
Subscription
$419$731
Professional services and other
334468
Sales and marketing
3,7278,075
Research and development
2,4897,004
General and administrative
2,9168,805
Interest expense
177 181 
Total
$10,062 $25,264 
19


Domo, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
14. Equity Incentive Plans (Continued)
Stock Options
Stock options typically vest over a four-year period and have a term of ten years from the date of grant. There were no stock options granted during the three months ended April 30, 2021 and April 30, 2022.
The following table sets forth the outstanding common stock options and related activity for the three months ended April 30, 2022:
Shares
Subject to Outstanding Options
Weighted- Average Exercise
Price per Share
Weighted-Average Remaining Contractual Term (years)Aggregate Intrinsic Value (in thousands)
Outstanding as of January 31, 2022963,288$26.16 2.9$20,166 
Exercised(37,727)19.17 
Expired(476)43.30
Outstanding as of April 30, 2022925,085$26.44 2.6$14,178 
Vested and exercisable at April 30, 2022919,355$26.41 2.6$14,119 
The aggregate intrinsic value of options exercised was $1.3 million and $1.4 million for the three months ended April 30, 2021 and 2022, respectively. The intrinsic value represents the excess of the market closing price of the Company's common stock on the date of exercise over the exercise price of each option. The intrinsic value of options as of April 30, 2022 is based on the market closing price of the Company's Class B common stock on that date.
As of April 30, 2022, there was $0.1 million of unrecognized stock-based compensation expense related to outstanding stock options which is expected to be recognized over a weighted-average period of 0.5 years.
Restricted Stock Units
Restricted stock units (RSUs) granted under the Plan primarily vest and settle upon the satisfaction of a service-based condition. The service-based condition for these awards is generally satisfied over three or four years with a cliff vesting period of one or two years and quarterly vesting thereafter. RSUs include performance-based restricted stock units (PSUs), which are subject to a market condition and settle upon the satisfaction of a service-based condition. Disclosures related to RSU activity include the impact of PSUs.
During the three months ended April 30, 2022 the Company granted 71,667 PSUs with both a market and service-based condition. The PSUs are eligible to vest in three equal tranches on the one, two, and three year anniversaries of the grant date upon Company's Class B common stock achieving a 30-day volume-weighted average price for 30 consecutive trailing trading days of $60.00 per share, $70.00 per share, and $90.00 per share, respectively. The grant date fair values of the PSUs granted were $36.07 per share, $33.98 per share, and $30.26 per share, respectively, as determined by a Monte Carlo simulation model.
The following table sets forth the outstanding RSUs and related activity for the three months ended April 30, 2022:
Number of Shares Weighted- Average Grant Date Fair Value
Outstanding as of January 31, 20224,338,619$55.40 
Granted1,827,53543.26 
Vested(527,423)42.40 
Canceled(575,992)40.11 
Outstanding as of April 30, 20225,062,739$54.11 
As of April 30, 2022, there was $240.4 million of unrecognized stock-based compensation expense related to outstanding RSUs which is expected to be recognized over a weighted-average period of 3.2 years.
20


Domo, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
14. Equity Incentive Plans (Continued)
In March 2022, the Company paid out certain fiscal 2022 bonuses in the form of vested RSUs instead of cash, resulting in the issuance of approximately 90,000 shares of the Company's Class B common stock. The Company recognized $3.6 million of stock-based compensation related to these bonuses during the three months ended April 30, 2022.
In April 2022, the Company modified and accelerated the vesting of awards for certain employees, resulting in the issuance of approximately 56,000 shares of the Company's Class B common stock. The Company recognized $2.6 million of stock-based compensation related to these modifications during the three months ended April 30, 2022.
Employee Stock Purchase Plan
In June 2018, the Company's board of directors adopted the ESPP. The number of shares of Class B common stock available for issuance under the ESPP increases on the first day of each fiscal year equal to the least of: (1) 1,050,000 shares of Class B common stock, (2) 1.5% of the outstanding shares of Class A and Class B common stock of the Company on the last day of the immediately preceding fiscal year, and (3) such other amount as the administrator of the ESPP may determine on or before the last day of the immediately preceding year. During the three months ended April 30, 2022, the number of shares available under the ESPP was increased by 164,967 shares. As of April 30, 2022, there were 307 shares available under the ESPP.
The ESPP generally provides for consecutive overlapping 24-month offering periods comprising of four six-month purchase periods; provided, however, that the first purchase period in the first offering period will have a duration of approximately nine months. The offering periods are scheduled to start on the first trading day on or after April 1 and October 1 of each year. The ESPP is intended to qualify as a tax-qualified plan under Section 423 of the Internal Revenue Code and permits participants to elect to purchase shares of Class B common stock through payroll deductions of up to 15% of their eligible compensation. A participant may purchase a maximum of 2,000 shares during each purchase period.
In September 2020, the ESPP was amended for all offering periods beginning on or after September 18, 2020. The amended ESPP provides for consecutive overlapping 12-month offering periods comprising two six-month purchase periods. The offering periods are scheduled to start on the first trading day on or after April 1 and October 1 of each year. The amended ESPP is intended to qualify as a tax-qualified plan under Section 423 of the Internal Revenue Code and permits participants to elect to purchase shares of Class B common stock through payroll deductions of up to 25% of their eligible compensation. Under the amended ESPP, a participant may purchase a maximum of 300 shares during each purchase period.
Amounts deducted and accumulated by the participant will be used to purchase shares of Class B common stock at the end of each purchase period. The purchase price of the shares will be 85% of the lower of the fair market value of Class B common stock on the first trading day of each offering period or the fair market value of Class B common stock on the applicable exercise date. If the fair market value of a share of Class B common stock on the exercise date of an offering period is less than it was on the first trading day of that offering period, participants automatically will be withdrawn from that offering period following their purchase of shares on the exercise date and will be re-enrolled in a new offering period. Participants may end their participation at any time during an offering period and will be paid their accrued contributions that have not yet been used to purchase shares of Class B common stock. Participation ends automatically upon termination of employment.
As of April 30, 2022, a total of approximately 123,256 shares were issuable to employees based on estimated shares available and contribution elections made under the ESPP. Shares available were estimated assuming that the plan will be increased by an amount approximating 1.5% of shares outstanding as of January 31, 2023. As of April 30, 2022, total unrecognized stock-based compensation related to the ESPP was $2.4 million, which is expected to be recognized over a weighted-average period of 0.9 years.
15. Income Taxes
The Company calculated the year-to-date income tax provision by applying the estimated annual effective tax rate to the year-to-date pre-tax income for each applicable jurisdiction and adjusted for discrete tax items in the period. The Company had a tax benefit of $0.1 million for the three months ended April 30, 2021. The Company's tax expense was $0.2 million for
21


Domo, Inc.
Notes to Condensed Consolidated Financial Statements (Continued)
(unaudited)
15. Income Taxes (Continued)
the three months ended April 30, 2022. The respective income benefit and tax for these periods were primarily attributable to foreign taxes.
For the periods presented, the difference between the U.S. statutory rate and the Company's effective tax rate is primarily due to the full valuation allowance on its U.S. tax assets. The effective tax rate is also impacted by earnings realized in foreign jurisdictions.
16. Net Loss Per Share
The Company computes net loss per share using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting rights. Accordingly, the Class A common stock and Class B common stock share equally in the Company’s net losses.
The following table sets forth the calculation of basic and diluted net loss per share during the periods presented (in thousands, except per share amounts):
Three Months Ended April 30,
20212022
Class AClass BClass AClass B
Numerator:
Net loss$(1,906)$(16,198)$(3,224)$(29,664)
Denominator:
Weighted-average number of shares used in
computing net loss per share, basic and diluted
3,264 27,740 3,264 30,031 
Net loss per share, basic and diluted$(0.58)$(0.58)$(0.99)$(0.99)
Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods as the inclusion of all potential common shares outstanding would have been anti-dilutive. The weighted-average impact of potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive was as follows (in thousands):
Three Months Ended April 30,
20212022
Options to purchase common stock796 416 
Restricted stock units2,400 888 
Employee stock purchase program749 72 
Common stock warrants102 1 
4,047 1,377 

22


Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
This discussion contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements containing words such as “may,” “believe,” “could,” "will,” “seek,” “depends,” “anticipate,” “expect,” “intend,” “plan,” “project,” “projections,” “business outlook,” “estimate,” or similar expressions constitute forward-looking statements. You should read these statements carefully because they discuss future expectations, contain projections of future results of operations or financial condition or state other “forward-looking” information. These statements relate to our future plans, objectives, expectations, intentions and financial performance and the assumptions that underlie these statements. They include, but are not limited to, statements about:
our ability to attract new customers and retain and expand our relationships with existing customers;
our future financial performance, including our expectations regarding our revenue, cost of revenue, gross profit, operating expenses, key metrics, ability to generate cash flow and ability to achieve and maintain future profitability;
the anticipated trends, market opportunity, growth rates and challenges in our business and in the business intelligence software market;
the efficacy of our sales and marketing efforts;
our ability to compete successfully in competitive markets;
our ability to respond to and capitalize on rapid technological changes;
our expectations and management of future growth;
our ability to enter new markets and manage our expansion efforts, particularly internationally;
our ability to develop new product features;
our ability to attract and retain key employees and qualified technical and sales personnel;
our ability to effectively and efficiently protect our brand;
our ability to timely scale and adapt our infrastructure;
the effect of general economic and market conditions on our business;
the impact of the coronavirus pandemic, including on the global economy, our results of operations, enterprise software spending, and business continuity;
our ability to protect our customers' data and proprietary information;
our ability to maintain, protect, and enhance our intellectual property and not infringe upon others’ intellectual property; and
our ability to comply with all governmental laws, regulations and other legal obligations.
Our actual results may differ materially from those contained in or implied by any forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this report, including those factors discussed in Part II, Item 1A (Risk Factors).
In light of the significant uncertainties and risks inherent in these forward-looking statements, you should not regard these statements as a representation or warranty by us or anyone else that we will achieve our objectives or plans in any specified time frame, or at all, or as predictions of future events. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
23


Overview
We founded Domo in 2010 with the vision of digitally connecting everyone within the enterprise with real-time, rich, relevant data and then encouraging all employees to collaborate and act on that data. We realized that many organizations were unable to access the massive amounts of data that they were collecting in siloed cloud applications and on-premise databases. Furthermore, even for organizations that were capable of accessing their data, the process for doing so was time-consuming, costly, and often resulted in the data being out-of-date by the time it reached decision makers. The delivery format, including alert functionality, and devices were not adequate for the connected and real-time mobile workforce. Based on these observations, it was apparent that all organizations, regardless of size or industry, were failing to unlock the power of all of their people, data, and systems. To address these challenges, we provide a modern cloud-based business intelligence platform that digitally connects everyone at an organization — from the CEO to frontline employees — with all the people, data, and systems in an organization, giving them access to real-time data and insights and allowing them to manage their business from their smartphones.
We offer our platform to our customers as a subscription-based service. Subscription fees are based upon the chosen Domo package which includes tier-based platform capabilities as well as users. Business leaders, department heads and managers are the typical initial subscribers to our platform, deploying Domo to solve a business problem or to enable departmental access. Over time, as customers recognize the value of our platform, we increasingly engage with CIOs and other executives to facilitate broad enterprise adoption.
A majority of our customers subscribe to our services through multi-year contracts. As of April 30, 2022, 64% of our customers were under multi-year contracts on a dollar-weighted basis, compared to 62% of customers as of January 31, 2022. The high percentage revenue from multi-year contracts, among both new and existing customers, has enhanced the predictability of our subscription revenue. We typically invoice our customers annually in advance for subscriptions to our platform. A majority of our annual recurring revenue is up for renewal during the fiscal year ending January 31, 2023.
Remaining performance obligations (RPO) represents the remaining amount of revenue we expect to recognize from existing non-cancelable contracts, whether billed or unbilled. As of April 30, 2021 and 2022, total RPO was $284.3 million and $351.5 million, respectively, representing year-over-year growth of 24%. The amount of RPO expected to be recognized as revenue in the next twelve months was $180.8 million and $225.0 million as of April 30, 2021 and 2022, respectively, representing year-over-year growth of 24%.
We had total revenue of $60.1 million and $74.5 million for the three months ended April 30, 2021 and 2022, respectively, reflecting a year-over-year increase of 24%. For the three months ended April 30, 2021 and 2022, no single customer accounted for more than 10% of our total revenue, nor did any single organization when accounting for multiple subsidiaries or divisions which may have been invoiced separately. Revenue from customers with billing addresses in the United States comprised 77% and 79% or our total revenue for the three months ended April 30, 2021 and 2022, respectively.
Our revenue growth rate may decline in future periods due to a number of reasons, which may include the maturation of our business, increase in overall revenue over time, slowing demand for our platform, increasing competition, a decrease in the growth of the markets in which we compete, or if we fail, for any reason, to continue to capitalize on growth opportunities, a decrease in our renewal rates, or a decline in upsells.
We have incurred significant net losses since our inception, including net losses of $18.1 million and $32.9 million for the three months ended April 30, 2021 and 2022, respectively, and had an accumulated deficit of $1,257.4 million at April 30, 2022. We expect to incur losses for the foreseeable future and may not be able to achieve or sustain profitability.
COVID-19 Impact
A novel strain of coronavirus, COVID-19, emerged in China in December 2019 and began to spread globally, including to the United States. In March 2020, COVID-19 was characterized by the World Health Organization as a global pandemic. The full impact of the COVID-19 pandemic is inherently uncertain at the time of this report. The COVID-19 pandemic has resulted in travel restrictions and in some cases, prohibitions of non-essential activities, disruption and shutdown of businesses and greater uncertainty in global financial markets.
We cannot reasonably predict the extent to which the COVID-19 pandemic will impact our business or operating results, which is highly dependent on inherently uncertain future developments, including the duration and scope of the pandemic (including any potential future waves of the pandemic as well as new and emerging variants of COVID-19) as well as governmental, business and individual actions that have been and continue to be taken in response to the pandemic (including
24


the availability, adoption and effectiveness of COVID-19 vaccines). Because our platform is offered as a subscription-based service, the effect of the pandemic may not be fully reflected in our operating results until future periods, if at all.
Before the COVID-19 pandemic, a significant portion of field sales and professional services were conducted in person. Currently, as a result of the ongoing COVID-19 pandemic, a significant portion of our sales and professional services activities are being conducted remotely. These changes will likely extend into future qua