Domo, Inc., an American company with a cloud-based platform that connects CEOs to frontline workers through data analytics, announced increased revenue for Q1 2023, according to a recent SEC report. The company’s total revenue reached $79.5 million in 2023, up 6.7% from $74.5 million in 2022. Additionally, the report shows a reduction in net loss during the same period.
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Increased Revenue and Cost of Revenue
With the ticker DOMO, the company has seen a steady increase in revenue, with subscription revenue reaching $71.1 million, up 10.1% from $64.6 million the previous year. Furthermore, professional services and other revenue amounted to $8.4 million in Q1 2023, compared to $9.9 million in Q1 2022. In line with its revenue growth, DOMO’s total cost of revenue experienced a minor increase from $17.7 million in 2022 to $18.6 million in 2023. Meanwhile, gross profit grew by 7.2% from $56.8 million in 2022 to $60.9 million in 2023.
Decreased Net Loss and Net Loss per Share
DOMO, Inc. also reported a significant decrease in its net loss in Q1 2023, from $32.9 million in 2022 to $24.4 million in 2023. This represents a 25.7% reduction in net loss during the three-month period ended April 30, 2023, compared to the previous year. Furthermore, net loss per share, both basic and diluted, was $(0.69) in Q1 2023, lower than $(0.99) in Q1 2022.
Financial Position and Operating Expenses
The company’s cash, cash equivalents, and restricted cash totaled $65.9 million as of April 30, 2023, a slight decrease from $66.5 million at the end of January of the same year. DOMO also reported a slight decrease in total assets, from $242.1 million in January 2023 to $219.2 million in April 2023. On the other hand, its total liabilities increased from $388.5 million to $370.4 million during the same period.
Operating expenses saw a notable reduction in sales and marketing, which decreased from $45.6 million in Q1 2022 to $43.2 million in Q1 2023. On the other hand, research and development expenses remained relatively stable, increasing slightly from $23.2 million in 2022 to $23.4 million in 2023. General and administrative expenses saw a significant decrease from $16.7 million in 2022 to $14 million in 2023, reflecting the company’s efforts to manage costs.
Commitments, Contingencies, and Stockholders’ Deficit
DOMO’s commitment and contingencies were presented in the financial statement under Note 12. The company’s stockholders’ deficit increased from $146.4 million as of January 31, 2023, to $151.2 million as of April 30, 2023. This shows a slight deterioration in the company’s overall financial position, even as revenues continue to rise, and net losses decrease.
In conclusion, the recent SEC report presents a mixed picture for DOMO, Inc. in Q1 2023. While the company experienced positive growth in revenue and a significant decrease in net loss during the three-month period compared to the previous year, its total assets decreased slightly, its liabilities increased, and its stockholders’ deficit worsened. However, the reduced operating expenses show a commitment to efficient cost management, which may positively impact the company in future financial periods.
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