32% Year-Over-Year Growth in Total Revenue

35% Year-Over-Year Growth in Total Billings

SILICON SLOPES, Utah, Sept. 06, 2018 (GLOBE NEWSWIRE) -- Domo, Inc. (Nasdaq:DOMO), provider of the leading cloud-based operating system for business, today announced results for the fiscal 2019 second quarter ended July 31, 2018.

Fiscal Second Quarter Results

-- Total revenue was $34.3 million, an increase of 32% year over year -- Subscription revenue represented 82% of total revenue -- Billings were $35.7 million or 35% year-over-year growth, compared to 22% year-over-year growth for Q1 FY19 -- GAAP subscription gross margin was 71% compared to 64% in Q2 FY18 -- Non-GAAP subscription gross margin was 71% compared to 64% in Q2 FY18 -- GAAP operating margin improved by 41 percentage points year over year -- Non-GAAP operating margin improved by 62 percentage points year over year -- GAAP operating expenses increased 11% year over year -- Non-GAAP operating expenses decreased 3% year over year -- GAAP net loss was $46.4 million, and GAAP net loss per share was $4.41, based on 10.51 million weighted-average shares outstanding -- Non-GAAP net loss was $36.2 million, and non-GAAP net loss per share was $3.44, based on 10.51 million weighted-average shares outstanding -- Cash and cash equivalents were $238.8 million

Comments“I’d like to thank our employees, customers and investors for helping us achieve the recent milestone of becoming a public company. While we’re early in our journey of fulfilling our vision and realizing our full value, we’re off to a great start. We’re delivering on our top two priorities of focusing on customers and growing the top line, which we’ve grown by more than 30%, and we’re doing so more efficiently,” said Josh James, Domo founder and CEO. “Because Domo can digitally connect any organization and empower each of its employees, we believe our market potential is every working person with a mobile device. The IPO has given us the capital needed to successfully execute our business plan. We are well positioned for future growth.”

“As our unique capabilities are more widely recognized and used throughout our customer base, we believe our growth will accelerate. We are particularly proud that more than 400 CEOs, including Fortune 500 CEOs, are using Domo to manage their business, with more than half doing so from their mobile device,” added James.

“Q2 was a strong quarter for us,” said Bruce Felt, CFO. “We improved execution across all functions of the organization. We are pleased with the productivity gains from sales and marketing. We believe, as we displayed this quarter, there is leverage throughout the entire organization to efficiently drive growth.”

Recent HighlightsWe believe the following points and accolades are leading indicators of what’s to come in our business through our commitment to product innovation and customer success:

-- Domo won an Industry Excellence Award from Dresner Advisory Services for the second year in a row for excellence based on customer ratings across all categories of measurement: product/technology, sales and service, value and confidence. -- Domo received a perfect “recommendation” score from customers and was positioned as an Overall Leader in Dresner’s Wisdom of Crowds® flagship research. Domo also had the best score of all companies evaluated for product integration with third-party technologies, ease of installation and ease of upgrade/migration. -- Domo received honors, including several Communicator Awards and a silver Omni award, that spotlight its commitment to customer success through excellence in online training. -- Domo was ranked in the top 20% of all companies on Inc.’s 2018 list of America’s fastest-growing private companies for its three-year growth rate through FY18. This is the seventh time that a company that Josh James founded has appeared on this annual Inc. list. -- Domo also made Constellation Research’s ShortList of recommended solutions for both Marketing Analytics and Cloud-based Business Intelligence and Analytics Platforms.

Business OutlookBased on information available as of September 6, 2018, Domo is providing the following guidance for Q3 and full year fiscal 2019:

Q3 Fiscal 2019

-- Revenue is expected to be in the range of $34.8 million to $35.2 million -- Non-GAAP net loss per share is expected to be between $1.37 to $1.39 based on 26.35 million weighted-average shares outstanding

Full Year Fiscal 2019

-- Revenue is expected to be in the range of $136.7 million to $137.1 million -- Non-GAAP net loss per share is expected to be between $9.50 to $9.55 based on 16.35 million weighted-average shares outstanding

We have not reconciled guidance for non-GAAP metrics to their most directly comparable GAAP measures because such items that impact these measures are not within our control or cannot be reasonably predicted.

Earnings Call DetailsDomo plans to host a conference call today to review its fiscal 2019 second quarter financial results and to discuss its financial outlook. The call is scheduled to begin at 3:00 p.m. MT/ 5:00 p.m. ET. A live webcast of the event will be available on the Domo Investor Relations website at www.domo.com/IR. A live dial-in is available domestically at (877) 491-5762 and internationally at (763) 416-6939, with conference ID#8292546. A replay will be available via webcast or at (855) 859-2056 or (404) 537-3406 until midnight (ET) September 20, 2018.

About DomoDomo’s mission is to be the operating system for business, digitally connecting all your people, your data and your systems, empowering them to collaborate better, make better decisions and be more efficient, right from their phones. Domo works with many of the world’s leading and most progressive brands across multiple industries including retail, media and entertainment, manufacturing, finance and more. For more information about Domo (Nasdaq: DOMO), visit www.domo.com. You can also follow Domo on Twitter, Facebook and LinkedIn.

Use of Non-GAAP Financial MeasuresTo supplement our condensed consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), we reference in this press release and the accompanying tables the following non-GAAP financial measures: billings, non-GAAP subscription gross margin, non-GAAP operating expenses, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss and non-GAAP net loss per share. In computing these measures, we exclude the effects of stock-based compensation expense, amortization of intangible assets and the reversal of continent tax-related accruals. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our ongoing core business operating results. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and planning, forecasting, and analyzing future periods.

For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned "Reconciliation of Non-GAAP Financial Measures" included at the end of this release.

Forward-Looking StatementsThis release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our future growth, our financial outlook for Q3 fiscal quarter and full fiscal year 2019. Forward-looking statements are subject to risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings with the U.S. Securities and Exchange Commission, including, without limitation, the Prospectus related to our initial public offering filed with the SEC on June 29, 2018 and the Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2018 expected to be filed with the SEC on or about September 14, 2018. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update this information unless required by law.

Domo is a registered trademark of Domo, Inc.

Domo, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) Three Months Ended Six Months Ended July 31, July 31, ------------------------ ------------------------ 2017 2018 2017 2018 - ------- - - ------- - - ------- - - ------- - Revenue: Subscription $ 21,052 $ 28,166 $ 40,155 $ 54,829 Professional services and other 4,851 6,101 9,994 11,383 - ------- - - ------- - - ------- - - ------- - Total revenue 25,903 34,267 50,149 66,212 Cost of revenue: Subscription (1) 7,570 8,265 14,506 16,321 Professional services and other (1) 3,083 4,253 5,885 7,763 Total cost of revenue 10,653 12,518 20,391 24,084 - ------- - - ------- - - ------- - - ------- - Gross profit 15,250 21,749 29,758 42,128 Operating expenses: Sales and marketing (1) 31,413 34,002 66,930 73,658 Research and development (1) 20,191 20,919 39,894 39,983 General and administrative (1), (2), (3) 7,288 10,207 14,533 14,851 - ------- - - ------- - Total operating expenses 58,892 65,128 121,357 128,492 - ------- - - ------- - - ------- - - ------- - Loss from operations (43,642 ) (43,379 ) (91,599 ) (86,364 ) Other income (expense), net (1) 243 (2,898 ) 325 (4,817 ) - ------- - - ------- - - ------- - - ------- - Loss before provision for income taxes (43,399 ) (46,277 ) (91,274 ) (91,181 ) Provision for income taxes 94 107 197 710 - ------- - - ------- - - ------- - - ------- - Net loss $ (43,493 ) $ (46,384 ) $ (91,471 ) $ (91,891 ) - ------- - - ------- - - ------- - - ------- - Net loss per share (basic and diluted) $ (27.27 ) $ (4.41 ) $ (58.22 ) $ (14.94 ) Weighted-average number of shares (basic and diluted) 1,595 10,509 1,571 6,151 -------------------------------------------------------- (1) Includes stock-based compensation expenses, as follows: Cost of revenue: Subscription $ 12 $ 55 $ 23 $ 70 Professional services and other 11 70 21 78 Sales and marketing 462 3,744 1,052 4,049 Research and development 595 2,993 1,117 3,476 General and administrative 1,276 3,330 2,547 4,595 Other income (expense), net 9 (26 ) 17 (9 ) - ------- - - ------- - - ------- - Total stock-based compensation expenses $ 2,365 $ 10,166 $ 4,777 $ 12,259 - ------- - - ------- - - ------- - - ------- - (2) Includes amortization of intangible assets, as follows: General and administrative $ 20 $ 20 $ 40 $ 40 (3) Includes reversal of contingent tax-related accrual, as follows: General and administrative $ — $ — $ — $ (3,513 )

Domo, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) January 31, July 31, 2018 2018 - -------- - - -------- - Assets Current assets: Cash and cash equivalents $ 61,972 $ 238,802 Accounts receivable, net 35,484 27,266 Contract acquisition costs 9,661 6,982 Prepaid expenses and other current assets 6,144 8,662 - -------- - - -------- - Total current assets 113,261 281,712 Property and equipment, net 14,952 13,830 Contract acquisition costs, noncurrent 11,521 16,089 Intangible assets, net 3,026 2,986 Goodwill 9,478 9,478 Other assets 3,117 1,674 - -------- - Total assets $ 155,355 $ 325,769 - -------- - - -------- - Liabilities, convertible preferred stock and stockholders' (deficit) equity Current liabilities: Accounts payable $ 12,121 $ 8,409 Accrued expenses and other current liabilities 49,428 45,852 Current portion of deferred revenue 66,712 70,693 - -------- - - -------- - Total current liabilities 128,261 124,954 Deferred revenue, noncurrent 4,244 3,429 Other liabilities, noncurrent 5,324 5,785 Long-term debt 46,332 97,103 - -------- - Total liabilities 184,161 231,271 Commitments and contingencies Convertible preferred stock 693,158 — Stockholders' (deficit) equity: Common stock 2 26 Additional paid-in capital 35,301 943,722 Accumulated other comprehensive income 506 414 Accumulated deficit (757,773 ) (849,664 ) - -------- - Total stockholders' (deficit) equity (721,964 ) 94,498 - -------- - - -------- - Total liabilities and stockholders' (deficit) equity $ 155,355 $ 325,769 - -------- - - -------- -

Domo, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended Six Months Ended July 31, July 31, ------------------------ ------------------------ 2017 2018 2017 2018 - ------- - - ------- - - ------- - - ------- - Cash flows from operating activities Net loss $ (43,493 ) $ (46,384 ) $ (91,471 ) $ (91,891 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,971 2,257 3,813 4,522 Amortization of intangible assets 20 20 40 40 Amortization of contract acquisition costs 2,246 1,906 4,378 3,633 Stock-based compensation 2,365 10,166 4,777 12,259 Reversal of contingent tax-related accrual — — — (3,513 ) Capitalized interest — 644 — 993 Remeasurement of warrant liability — (40 ) — (56 ) Changes in operating assets and liabilities: Accounts receivable, net (1,663 ) 1,152 352 8,218 Contract acquisition costs (3,473 ) (3,859 ) (6,813 ) (5,782 ) Prepaid expenses and other assets 1,474 (2,995 ) 171 (2,393 ) Accounts payable 355 (5,716 ) 1,076 (1,288 ) Accrued and other liabilities (5,037 ) 5,356 (1,327 ) (891 ) Deferred revenue 561 1,397 3,978 3,166 - ------- - - ------- - - ------- - - ------- - Net cash used in operating activities (44,674 ) (36,096 ) (81,026 ) (72,983 ) Cash flows from investing activities Purchases of property and equipment (1,184 ) (1,588 ) (4,178 ) (3,205 ) Cash flows from financing activities Proceeds from initial public offering, net of underwriting — 206,627 — 206,627 discounts and commissions Payments of costs related to initial public offering — (2,102 ) — (3,413 ) Proceeds from issuance of convertible preferred stock, net (1,414 ) — 99,086 (87 ) of issuance costs Debt proceeds, net of issuance costs (50 ) (23 ) (50 ) 49,651 Proceeds from exercise of stock options 64 60 671 272 Repurchases of common stock — — (121 ) — Principal payments on capital lease obligations (9 ) — (18 ) (44 ) - ------- - - ------- - - ------- - - ------- - Net cash (used in) provided by financing activities (1,409 ) 204,562 99,568 253,006 Effect of exchange rate changes on cash and cash 33 (12 ) 59 12 equivalents - ------- - - ------- - - ------- - - ------- - Net (decrease) increase in cash and cash equivalents (47,234 ) 166,866 14,423 176,830 Cash and cash equivalents at beginning of period 130,641 71,936 68,984 61,972 - ------- - - ------- - Cash and cash equivalents at end of period $ 83,407 $ 238,802 $ 83,407 $ 238,802 - ------- - - ------- - - ------- - - ------- -

Domo, Inc. Reconciliation of Non-GAAP Financial Measures (in thousands, except per share data) (unaudited) Three Months Ended Six Months Ended July 31, July 31, -------------------------- -------------------------- 2017 2018 2017 2018 - ------- -- - ------- -- - ------- -- - ------- -- Reconciliation of Subscription Gross Margin on a GAAP Basis to Subscription Gross Margin on a Non-GAAP Basis: Revenue: Subscription $ 21,052 $ 28,166 $ 40,155 $ 54,829 Cost of revenue: Subscription 7,570 8,265 14,506 16,321 - ------- -- - ------- -- - ------- -- - ------- -- Subscription gross profit on a GAAP basis 13,482 19,901 25,649 38,508 Subscription gross margin on a GAAP basis 64 % 71 % 64 % 70 % Stock-based compensation 12 55 23 70 Subscription gross profit on a non-GAAP basis $ 13,494 $ 19,956 $ 25,672 $ 38,578 - ------- -- - ------- -- - ------- -- - ------- -- Subscription gross margin on a non-GAAP basis 64 % 71 % 64 % 70 % Reconciliation of Total Operating Expenses on a GAAP Basis to Total Operating Expenses on a Non-GAAP Basis: Total operating expenses on a GAAP basis $ 58,892 $ 65,128 $ 121,357 $ 128,492 Stock-based compensation (2,333 ) (10,067 ) (4,716 ) (12,120 ) Amortization of intangible assets (20 ) (20 ) (40 ) (40 ) Reversal of contingent tax-related accrual — — — 3,513 Total operating expenses on a non-GAAP basis $ 56,539 $ 55,041 $ 116,601 $ 119,845 - ------- -- - ------- -- - ------- -- - ------- -- Reconciliation of Operating Loss on a GAAP Basis to Operating Loss on a Non-GAAP Basis: Operating loss on a GAAP basis $ (43,642 ) $ (43,379 ) $ (91,599 ) $ (86,364 ) Stock-based compensation 2,356 10,192 4,760 12,268 Amortization of intangible assets 20 20 40 40 Reversal of contingent tax-related accrual — — — (3,513 ) Operating loss on a non-GAAP basis $ (41,266 ) $ (33,167 ) $ (86,799 ) $ (77,569 ) - ------- -- - ------- -- - ------- -- - ------- -- Reconciliation of Operating Margin on a GAAP Basis to Operating Margin on a Non-GAAP Basis: Operating margin on a GAAP basis (168 )% (127 )% (183 )% (130 )% Stock-based compensation 9 30 10 18 Amortization of intangible assets — — — — Reversal of contingent tax-related accrual — — — (5 ) Operating margin on a non-GAAP basis (159 )% (97 )% (173 )% (117 )% - ------- -- - ------- -- - ------- -- - ------- -- Reconciliation of Net Loss on a GAAP Basis to Net Loss on a Non- GAAP Basis: Net loss on a GAAP basis $ (43,493 ) $ (46,384 ) $ (91,471 ) $ (91,891 ) Stock-based compensation 2,365 10,166 4,777 12,259 Amortization of intangible assets 20 20 40 40 Reversal of contingent tax-related accrual — — — (3,513 ) Net loss on a non-GAAP basis $ (41,108 ) $ (36,198 ) $ (86,654 ) $ (83,105 ) - ------- -- - ------- -- - ------- -- - ------- -- Reconciliation of Net Loss per Share on a GAAP Basis to Net Loss per Share on a Non-GAAP Basis: Net loss per share on a GAAP basis $ (27.27 ) $ (4.41 ) $ (58.22 ) $ (14.94 ) Stock-based compensation 1.49 0.97 3.04 1.99 Amortization of intangible assets 0.01 — 0.02 0.01 Reversal of contingent tax-related accrual — — — (0.57 ) Net loss per share on a non-GAAP basis $ (25.77 ) $ (3.44 ) $ (55.16 ) $ (13.51 ) - ------- -- - ------- -- - ------- -- - ------- -- Billings: Total revenue $ 25,903 $ 34,267 $ 50,149 $ 66,212 Add: Deferred revenue (end of period) 52,409 70,693 52,409 70,693 Deferred revenue, noncurrent (end of period) 1,505 3,429 1,505 3,429 Less: Deferred revenue (beginning of period) (51,876 ) (68,718 ) (48,719 ) (66,712 ) Deferred revenue, noncurrent (beginning of period) (1,477 ) (4,007 ) (1,217 ) (4,244 ) - ------- -- - ------- -- - ------- -- - ------- -- Increase in deferred revenue (current and 561 1,397 3,978 3,166 noncurrent) - ------- -- - ------- -- - ------- -- - ------- -- Billings $ 26,464 $ 35,664 $ 54,127 $ 69,378 - ------- -- - ------- -- - ------- -- - ------- --

Investors / Media ContactDomo, Inc.

Investors: IR@domo.com

Media: PR@domo.com