New Position: DOMO

March 27, 2019

Added 200 shares of DOMO today at $44.58 for a total position size of $8,920. This company just came public this year and is only around a $1 Billion market cap. So it’s very small and the share price will be volatile. Investors need to be ready for big swings up or down.

I’m very encouraged by the new products the company recently released, the fact that their deal sizes continue to get larger, and Josh James, Domo’s Founder and CEO seems to be focused on the long-term.

Additionally, using Domo saves customers money. According to this Forrester report, Domo customers realize a “294% ROI over three years. That’s nearly three dollars earned for each dollar spent. “

I’ll provide a more thorough review in my end of month portfolio update, but here’s some info to get you started.

Highlights:

Fiscal Fourth Quarter Results

  • Total revenue was $39.4 million, an increase of 31% year over year

  • Subscription revenue represented 81% of total revenue

  • Billings were $57.2 million or 26% year-over-year growth

  • Subscription gross margin was 74%, an improvement of 10 percentage points from Q4 fiscal 2018

  • GAAP operating margin improved by 65 percentage points year over year

  • Non-GAAP operating margin improved by 69 percentage points year over year

  • GAAP operating expenses decreased 7% year over year

  • Non-GAAP operating expenses decreased 11% year over year

  • GAAP net loss was $29.9 million, and GAAP net loss per share was $1.13, based on 26.5 million weighted-average shares outstanding

  • Non-GAAP net loss was $25.0 million, and non-GAAP net loss per share was $0.94, based on 26.5 million weighted-average shares outstanding

  • Cash and cash equivalents were $177.0 million as of January 31, 2019

Full Year Fiscal 2019 Results

  • Total revenue was $142.5 million, an increase of 31% year over year

  • Subscription revenue represented 82% of total revenue

  • Billings were $165.4 million or 28% year-over-year growth

  • Subscription gross margin was 72% compared to 63% in fiscal 2018

  • GAAP operating margin improved by 61 percentage points year over year

  • Non-GAAP operating margin improved by 65 percentage points year over year

  • GAAP operating expenses decreased 1% year over year

  • Non-GAAP operating expenses decreased 5% year over year

  • GAAP net loss was $154.3 million, and GAAP net loss per share was $9.43, based on 16.4 million weighted-average shares outstanding

  • Non-GAAP net loss was $135.9 million, and non-GAAP net loss per share was $8.31, based on 16.4 million weighted-average shares outstanding

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