Domo (DOMO - Free Report) reported third-quarter fiscal 2021 non-GAAP loss of 40 cents per share that beat the Zacks Consensus Estimate by 9.1% and was narrower than the year-ago quarter’s loss of 85 cents.
Revenues of $53.6 million increased 19.8% year over year, primarily driven by customer addition. The figure also beat the consensus mark by 5%.
Domo’s revenues for fiscal third quarter benefited from higher subscription revenues, much similar to its Zacks Internet-Software industry peers like Anaplan , Cloudera and Zuora (ZUO - Free Report) .
Notably, Anaplan’s, Cloudera’s and Zuora’s subscription revenues accounted for 91.4%, 90.6% and 77.7% of their respective third-quarter fiscal 2021 revenues. While Anaplan’s subscription revenues jumped 31.4% year over year, Cloudera’s and Zuora’s grew 18% and 15% respectively.
Domo’s subscription revenues contributed 87.4% of revenues and totaled $46.9 million, up 24% year over year. However, this Zacks Rank #3 (Hold) company’s professional services revenues declined 2.7% to $6.7 million, representing 12.6% of revenues. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quarter Details
International revenues represented 24% of total revenues, unchanged sequentially.
Billings increased 25.3% year over year to $55.7 million. The solid growth was driven by strong new customer count growth, upsells and expansions, and high retention rates.
Moreover, 59% of Domo’s customers were on the multi-year contracts at the end of the reported quarter. Remaining performance obligations grew 21% year over year to $248.8 million.
In the quarter under review, gross profit rose 29.3% year over year to $39.2 million. Gross margin expanded 530 basis points (bps) to 73%.
Notably, non-GAAP subscription gross margin was 70.7% in the reported quarter, up 600 bps.
GAAP sales & marketing expenses decreased by 0.6% year over year to $29.6 million. GAAP research & development expenses also declined 6.1% to $16.5 million. However, GAAP general & administrative expenses increased 24.4% to $9.6 million.
Total non-GAAP operating expenses decreased 6.2% year over year to $48.6 million, reflecting benefits of solid cost management.
Non-GAAP operating loss of $8.7 million was narrower than the year-ago quarter’s loss of $21.2 million.
Balance Sheet & Cash Flow
As of Oct 31, 2020, Domo had cash, cash equivalents and short-term investments of $83.8 million compared with $83 million as of Jul 31, 2020.
Moreover, adjusted net cash flow from operations was $1.4 million against net cash used in operations of $4.8 million in the previous quarter and $19.5 million in the year-ago quarter.
Guidance
For fourth-quarter fiscal 2021, revenues are anticipated between $53.3 million and $54.3 million. Non-GAAP net loss per share is expected between 42 cents and 46 cents.
Billings are expected to total $72 million.
Domo expects expenses to increase modestly on a sequential basis. Adjusted net cash flow from operations is expected to be approximately $1.5 million.
For fiscal 2021, revenues are now anticipated between $206.6 million and $207.6 million (up from the previous guidance of $202.5-$206.5 million). Non-GAAP net loss per share is expected between $1.83 and $1.87.
Billings are expected to be $222 million, up from the previous guidance of $208 million.
Adjusted cash used in operations is expected be around $11 million.
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Domo (DOMO - Free Report) reported third-quarter fiscal 2021 non-GAAP loss of 40 cents per share that beat the Zacks Consensus Estimate by 9.1% and was narrower than the year-ago quarter’s loss of 85 cents.
Revenues of $53.6 million increased 19.8% year over year, primarily driven by customer addition. The figure also beat the consensus mark by 5%.
Domo’s revenues for fiscal third quarter benefited from higher subscription revenues, much similar to its Zacks Internet-Software industry peers like Anaplan , Cloudera and Zuora (ZUO - Free Report) .
Notably, Anaplan’s, Cloudera’s and Zuora’s subscription revenues accounted for 91.4%, 90.6% and 77.7% of their respective third-quarter fiscal 2021 revenues. While Anaplan’s subscription revenues jumped 31.4% year over year, Cloudera’s and Zuora’s grew 18% and 15% respectively.
Domo’s subscription revenues contributed 87.4% of revenues and totaled $46.9 million, up 24% year over year. However, this Zacks Rank #3 (Hold) company’s professional services revenues declined 2.7% to $6.7 million, representing 12.6% of revenues. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quarter Details
International revenues represented 24% of total revenues, unchanged sequentially.
Billings increased 25.3% year over year to $55.7 million. The solid growth was driven by strong new customer count growth, upsells and expansions, and high retention rates.
Moreover, 59% of Domo’s customers were on the multi-year contracts at the end of the reported quarter. Remaining performance obligations grew 21% year over year to $248.8 million.
In the quarter under review, gross profit rose 29.3% year over year to $39.2 million. Gross margin expanded 530 basis points (bps) to 73%.
Notably, non-GAAP subscription gross margin was 70.7% in the reported quarter, up 600 bps.
GAAP sales & marketing expenses decreased by 0.6% year over year to $29.6 million. GAAP research & development expenses also declined 6.1% to $16.5 million. However, GAAP general & administrative expenses increased 24.4% to $9.6 million.
Total non-GAAP operating expenses decreased 6.2% year over year to $48.6 million, reflecting benefits of solid cost management.
Non-GAAP operating loss of $8.7 million was narrower than the year-ago quarter’s loss of $21.2 million.
Balance Sheet & Cash Flow
As of Oct 31, 2020, Domo had cash, cash equivalents and short-term investments of $83.8 million compared with $83 million as of Jul 31, 2020.
Moreover, adjusted net cash flow from operations was $1.4 million against net cash used in operations of $4.8 million in the previous quarter and $19.5 million in the year-ago quarter.
Guidance
For fourth-quarter fiscal 2021, revenues are anticipated between $53.3 million and $54.3 million. Non-GAAP net loss per share is expected between 42 cents and 46 cents.
Billings are expected to total $72 million.
Domo expects expenses to increase modestly on a sequential basis. Adjusted net cash flow from operations is expected to be approximately $1.5 million.
For fiscal 2021, revenues are now anticipated between $206.6 million and $207.6 million (up from the previous guidance of $202.5-$206.5 million). Non-GAAP net loss per share is expected between $1.83 and $1.87.
Billings are expected to be $222 million, up from the previous guidance of $208 million.
Adjusted cash used in operations is expected be around $11 million.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favoritestock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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