It’s about a 2% position for me. I plan to add as I see them execute. I want them to confirm my thesis before I add more because I like the story (learning from NTNX).
What does Domo actually do?
It’s basically a company dashboard in your pocket (or accessible anywhere). So the idea is that CEOs, CIOs, CMOs, etc can always have an update on how their company is performing by creating really easy to understand dashboards from their important data.
Initially this kept me from investing because I wasn’t sure what the scalability of their product was if only a few high-level people used it at companies. But after listening to their investors day, I think they are expanding the use case to sales teams, ops teams, etc.
They actually cited taking customers from Tableau during their investor day. I’m interested to see if that trend persists.
Here’s a series of short YouTube videos that will give a great idea of their biz & products. Also has some videos from their recent Domopalooza Conference
https://www.youtube.com/channel/UCLhtrgF6h4PP44nVRfSIovA
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.
What I don’t like is that their revenue growth rate is not too impressive for a sub $2B company. Also, their Sales and Marketing expense is something like 90% of revenue which I don’t like either.
However, the Founder and CEO has commented that Sales should accelerate and Marketing expenses should slow down. That’s the two metrics I’m most interested in right now.
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. “
Here’s a link to their investor day where their team provided these updates: http://ir.domo.com/events/event-details/domopalooza-2019-fin…
Glassdoor Ratings:
Company 4.7 stars: very high
Approve of CEO: 93%: very high
Highlights from their Q4 2019 Earnings Report.
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