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Domo Inc. (DOMO+1.83%) has submitted its Form 10-Q filing for the quarterly period ended October 31, 2024.
The filing reports total revenue of $79.8 million for the quarter, which remained flat compared to the same period in the previous year. Subscription revenue was $71.1 million, showing no significant change, while professional services and other revenue increased slightly to $8.7 million.
Cost of revenue increased by 6% to $20.0 million, primarily due to higher third-party hosting services and increased amortization costs. Despite these increases, the gross margin remained relatively stable at 75%.
Operating expenses decreased by 2% to $70.9 million. Sales and marketing expenses were reduced by 8% to $37.2 million, while research and development expenses increased by 8% to $21.3 million. General and administrative expenses rose slightly to $12.4 million.
The company reported a net loss of $18.8 million for the quarter, compared to a net loss of $16.4 million in the same period last year. The increase in net loss was partly due to a $1.9 million loss on extinguishment of debt.
Domo's cash and cash equivalents stood at $40.9 million as of October 31, 2024. The company also highlighted its $123.0 million credit facility, all of which had been drawn by the end of the quarter.
The filing outlines several risks, including the company's history of losses, competition, and reliance on third-party data centers. It also discusses the impact of macroeconomic conditions on the business, such as inflation and geopolitical events.
Domo continues to focus on expanding its customer base and enhancing its platform, with a significant portion of its revenue derived from subscription-based agreements. The company is also transitioning to a consumption-based pricing model, which now accounts for more than half of its annual recurring revenue.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Domo Inc. quarterly 10-Q report dated December 10, 2024. To report an error, please email earnings@qz.com.