DOMO, INC.

Previous wording

•the effect of general economic and market conditions on our business;

Current wording

•the effect of general economic and market conditions, including changes in regulations and customs, tariffs and trade barriers, on our business and on our customers;

Previous wording

We primarily offer our platform as a consumption-based service, which includes consumption-based agreements and enterprise-wide agreements (ELAs) with unlimited users and a data cap. Customers with consumption-based agreements have an annual purchase commitment based on an estimated volume of usage, utilizing a tiered pricing structure, which is paid upfront. We believe a consumption-based service offering helps increase customer adoption and allows us to better land, expand, and retain customers over the long term, and thereby have a positive impact on sales and marketing productivity. We also believe this offering has potential to remove many of the barriers of adoption and better align our pricing to the value delivered to our customers. Historically, we have offered our platform to our customers as a subscription-based service. Subscription fees are based upon the chosen Domo package which includes tier-based platform capabilities or usage. As of the end of our most recent fiscal quarter, over 70% of our annual recurring revenue (ARR) was utilizing the platform as a consumption-based service, and we expect this percentage to increase in future periods.

Current wording

We primarily offer our platform as a consumption-based service, which includes consumption-based agreements and enterprise-wide agreements (ELAs) with unlimited users and a data cap. Customers with consumption-based agreements have an annual purchase commitment based on an estimated volume of usage, utilizing a tiered pricing structure, which is paid upfront. We believe a consumption-based service offering helps increase customer adoption and allows us to better land, expand, and retain customers over the long term, and thereby have a positive impact on sales and marketing productivity. We also believe this offering has potential to remove many of the barriers of adoption and better align our pricing to the value delivered to our customers. Historically, we have offered our platform to our customers as a subscription-based service. Subscription fees are based upon the chosen Domo package which includes tier-based platform capabilities or usage. As of the end of our most recent fiscal quarter, 76% of our annual recurring revenue (ARR) was utilizing the platform as a consumption-based service, and we expect this percentage to increase in future periods.

Previous wording

As of April 30, 2025, 70% of our customers were under multi-year contracts on a dollar-weighted basis, compared to 69% of customers as of January 31, 2025. The high percentage revenue from multi-year contracts, among both new and existing customers, has enhanced the predictability of our subscription revenue, which includes both subscription-based and consumption-based agreements. We typically invoice our customers annually in advance for subscriptions to our platform.

Current wording

As of July 31, 2025, 72% of our customers were under multi-year contracts on a dollar-weighted basis, compared to 69% of customers as of January 31, 2025. The high percentage revenue from multi-year contracts, among both new and existing customers, has enhanced the predictability of our subscription revenue, which includes both subscription-based and consumption-based agreements. We typically invoice our customers annually in advance for subscriptions to our platform.

Previous wording

Remaining performance obligations (RPO) represents the remaining amount of revenue we expect to recognize from existing non-cancelable contracts, whether billed or unbilled. As of April 30, 2024 and 2025, total RPO was $346.3 million and $427.5 million, respectively. The amount of RPO expected to be recognized as revenue in the next twelve months was $230.5 million and $241.0 million as of April 30, 2024 and 2025, respectively.

Current wording

Remaining performance obligations (RPO) represents the remaining amount of revenue we expect to recognize from existing non-cancelable contracts, whether billed or unbilled. As of July 31, 2024 and 2025, total RPO was $358.9 million and $430.9 million, respectively. The amount of RPO expected to be recognized as revenue in the next twelve months was $225.4 million and $236.4 million as of July 31, 2024 and 2025, respectively.

Previous wording

We had total revenue of $80.1 million for both the three months ended April 30, 2024 and 2025, or relatively flat year-over-year. For the three months ended April 30, 2024 and 2025, no single customer accounted for more than 10% of our total revenue, nor did any single organization when accounting for multiple subsidiaries or divisions which may have been invoiced separately. Revenue from customers with billing addresses in the United States comprised 80% of our total revenue for each of the three month periods ended April 30, 2024 and 2025.

Current wording

We had total revenue of $78.4 million and $79.7 million for the three months ended July 31, 2024 and 2025, respectively. For the six months ended July 31, 2024 and 2025, we had total revenue of $158.5 million and $159.8 million, respectively. For the six months ended July 31, 2024 and 2025, no single customer accounted for more than 10% of our total revenue, nor did any single organization when accounting for multiple subsidiaries or divisions which may have been invoiced separately. Revenue from customers with billing addresses in the United States comprised 80% and 80% or our total revenue for the three months ended July 31, 2024 and 2025, respectively.

Previous wording

We have incurred significant net losses since our inception, including net losses of $26.0 million and $18.1 million for the three months ended April 30, 2024 and 2025, respectively, and had an accumulated deficit of $1,505.6 million at April 30, 2025. We expect to incur losses for the foreseeable future and may not be able to achieve or sustain profitability.

Current wording

We have incurred significant net losses since our inception, including net losses of $19.5 million and $22.9 million for the three months ended July 31, 2024 and 2025, respectively, and had an accumulated deficit of $1,528.5 million at July 31, 2025. We expect to incur losses for the foreseeable future and may not be able to achieve or sustain profitability.

Previous wording

Prevailing macroeconomic conditions have impacted, and may continue to impact, our business and those of our customers in a manner that we may not be able to quantify or isolate from other drivers of our performance. Ongoing concerns about the health of the U.S. and global economies may cause certain of our current and potential customers to reduce or delay technology spending or seek payment or other concessions from us. These conditions, along with the ongoing uncertainty in the SaaS sector, may materially and negatively impact our operating results, financial condition and prospects.

Current wording

Prevailing macroeconomic conditions have elongated the software sales cycle, increased deal scrutiny and made renewal discussions more challenging. These conditions may continue to impact our business and those of our customers in a manner that we may not be able to quantify or isolate from other drivers of our performance, and may negatively impact our revenue growth in the near term. Ongoing concerns about the health of the U.S. and global economies may cause certain of our current and potential customers to reduce or delay technology spending or seek payment or other concessions from us. These conditions, along with the ongoing uncertainty in the SaaS sector, may materially and negatively impact our operating results, financial condition and prospects. In response to these dynamics, we have taken and intend to continue to take steps to better align our sales team and focus on controlling costs, which we expect will result in improved margins, sustained positive cash flow and efficient growth in the long term.

Previous wording

As of April 30, 2025, we had over 2,500 customers. For the three months ended April 30, 2024 and 2025, our enterprise customers accounted for 47% and 45% of our revenue, respectively. To drive growth among both our enterprise and corporate customers, we intend to further develop our partner ecosystem by establishing agreements with more software resellers, systems integrators and other partners to provide broader customer and geographic coverage. We believe we are underpenetrated in the overall market and have significant opportunity to expand our customer base over time.

Current wording

As of July 31, 2025, we had over 2,500 customers. Enterprise customers accounted for 46% and 44% of our revenue for both the three and six months ended July 31, 2024 and 2025, respectively. To drive growth among both our enterprise and corporate customers, we intend to further develop our partner ecosystem by establishing agreements with more software resellers, systems integrators and other partners to provide broader customer and geographic coverage. We believe we are underpenetrated in the overall market and have significant opportunity to expand our customer base over time.

Previous wording

Sales and marketing expense as a percentage of total revenue was 53% for the three months ended April 30, 2024 compared to 50% for the three months ended April 30, 2025.

Current wording

Sales and marketing expense as a percentage of total revenue was 47% for the three months ended July 31, 2024 compared to 44% for the three months ended July 31, 2025.

Previous wording

Research and development expense as a percentage of total revenue was 28% for the three months ended April 30, 2024 compared to 25% for the three months ended April 30, 2025.

Current wording

Research and development expense as a percentage of total revenue was 28% for the three months ended July 31, 2024 compared to 24% for the three months ended July 31, 2025.

Previous wording

The following table sets forth our billings for the three months ended April 30, 2024 and 2025:

Current wording

The following table sets forth our billings for the three and six months ended July 31, 2024 and 2025:

Previous wording

Income taxes consists primarily of income taxes related to foreign and state jurisdictions in which we conduct business. Because of the uncertainty of the realization of the deferred tax assets, we have a full valuation allowance for domestic net deferred tax assets, including net operating loss carryforwards and tax credits related primarily to research and development.

Current wording

Income taxes consist primarily of income taxes related to foreign and state jurisdictions in which we conduct business. Because of the uncertainty of the realization of the deferred tax assets, we have a full valuation allowance for domestic net deferred tax assets, including net operating loss carryforwards and tax credits related primarily to research and development.

Previous wording

(2)Includes amortization of certain intangible assets of $0.1 million for each of the three months ended April 30, 2024 and 2025.

Current wording

(2)Includes amortization of certain intangible assets of $0.1 million and $0.2 million for the three months ended July 31, 2024 and 2025, respectively, and $0.3 million and $0.3 million for the six months ended July 31, 2024 and 2025, respectively.

Previous wording

The increase in cost of subscription revenue was primarily due to a $1.2 million increase in our third-party web hosting services.

Current wording

The increase in subscription cost of revenue was primarily due to a $0.9 million increase in our third-party web hosting services.

Previous wording

The decrease in cost of professional services and other revenue was primarily due to a $1.1 million decrease in outsourced services.

Current wording

The decrease in professional services and other cost of revenue was primarily due to a $0.9 million decrease in outsourced services.

Previous wording

Subscription gross margin declined primarily due to a decline in revenue growth and increased costs related to third-party web hosting services as a result of increased customer data usage. We expect subscription gross margin to stabilize in the near term and increase in the long term.

Current wording

Subscription gross margin remained flat primarily due to an increase in revenue and increased costs related to third-party web hosting services as a result of increased customer data usage. As we continue to shift more of our customer base to consumption-based pricing, we expect subscription gross margin to remain relatively stable in the near term and increase in the long term.

Previous wording

Services gross margin increased primarily due to a lower cost of revenue, mostly related to a reduction in outsourced services costs during the three months ended April 30, 2025 when compared to the three months ended April 30, 2024. We expect the gross margin for professional services to fluctuate from period to period due to changes in the proportion of services provided by third-party consultants, seasonality, and timing of projects with higher margins.

Current wording

Services gross margin improved primarily due to a higher amount of revenue recognized from the delivery of custom apps. We expect the gross margin for professional services to fluctuate from period to period due to changes in the proportion of services provided by third-party consultants, seasonality, and timing of projects with differing margins.

Previous wording

Sales and marketing expenses decreased primarily due to a $3.1 million decrease in employee-related costs. This was partially offset by a $0.8 million increase in marketing expense, primarily driven by our annual user conference. Sales and marketing expense as a percentage of revenue decreased from 53% in the three months ended April 30, 2024 to 50% in the three months ended April 30, 2025. Due to our annual user conference and other seasonal expenses, sales and marketing expense is typically higher in the first fiscal quarter than in other quarters for each fiscal year. We expect sales and marketing expense as a percentage of revenue to decrease in the long term.

Current wording

Sales and marketing expenses decreased primarily due to a $2.2 million decrease in employee-related costs, driven by lower headcount. Commissions expense decreased by $0.9 million. These decreases were partially offset by a $0.8 million increase in marketing expense and a $0.6 million increase in travel expense. Our sales and marketing expense as a percentage of revenue decreased from 47% to 44%. We expect sales and marketing expense as a percentage of revenue to increase in the near term and decrease in the long term.

Previous wording

Research and development expenses decreased primarily due to a $1.9 million decrease in employee-related costs and a $0.8 million increase in capitalized software costs. Research and development expense as a percentage of revenue decreased from 28% in the three months ended April 30, 2024 to 25% in the three months ended April 30, 2025. We expect research and development expense as a percentage of revenue to decrease slightly in the near term and remain consistent in the long term.

Current wording

Research and development expenses decreased primarily due to a $2.4 million decrease in employee-related costs, driven by lower headcount, and a $0.5 million increase in capitalized software, which decreases expense. Our research and development costs decreased as a percentage of revenue from 28% to 24%. We expect research and development expense as a percentage of revenue to decrease in the long term.

Previous wording

General and administrative expenses decreased primarily due to a $4.7 million decrease in professional and legal fees. This was partially offset by a $1.5 million increase in employee-related costs and a $1.5 million increase related to the reversal of bad debt expense in the three months ended April 30, 2024. This reversal resulted in expense in the prior year period to be lower than normal. General and administrative expenses as a percentage of revenue decreased from 20% in the three months ended April 30, 2024 to 17% in the three months ended April 30 2025. We expect general and administrative expense as a percentage of revenue to decrease in the long term.

Current wording

General and administrative expenses decreased primarily due to a $2.4 million decrease in employee-related costs, driven by stock-based compensation. This was partially offset by a $0.4 million increase in contract labor. Our general and administrative expenses decreased as a percentage of revenue from 17% to 16%. We expect general and administrative expense as a percentage of revenue to decrease in the long term.

Previous wording

Other expense, net decreased primarily due to a revaluation of warrant liability, changes in foreign exchange rates, and higher balances of cash denominated in currencies other than the functional currency. We expect interest expense to increase modestly in the near term due to an increasing principal balance. We expect foreign currency gains and losses could become more pronounced due to current market volatility.

Current wording

Other expense, net increased primarily due to a revaluation of warrant liability, which resulted in a $10.3 million net change during the six months ended July 31, 2025. We expect interest expense to increase modestly in the near term due to an increasing principal balance. We expect foreign currency gains and losses could become more pronounced due to current market volatility.

Previous wording

Income taxes increased primarily due to an increase in income from our international subsidiaries and additional withholding taxes levied against us. In the long term, we expect income tax expense to increase in conjunction with higher taxable income from our international subsidiaries.

Current wording

Income taxes decreased due to return to provision adjustments during the three months ended July 31, 2025. In the long term, we expect income tax expense to increase in conjunction with higher taxable income from our international subsidiaries.

Previous wording

The decrease in subscription revenue was primarily due to a $4.3 million net decrease from existing customers, partially offset by a $3.6 million increase from new customers. Our customer count decreased 2% from April 30, 2024 to April 30, 2025. For the purpose of this comparison, new customers are defined as those added since the end of the prior year quarter.

Current wording

The increase in subscription revenue was primarily due to a $7.4 million increase from new customers, partially offset by a $6.3 million net decrease from existing customers. Our total customer count decreased from July 31, 2024 to July 31, 2025. For the purposes of this comparison, new customers are defined as those added since the end of the prior year quarter, and revenue from existing customers is presented net of churn. The increase in professional services and other revenue was primarily due to an increase in training revenue.

Previous wording

As of April 30, 2025, we had $47.2 million of cash and cash equivalents, which were held for working capital purposes. Our cash and cash equivalents consist primarily of cash, money market funds, and certificates of deposit. We have a $125.3 million credit facility, all of which had been drawn as of April 30, 2025.

Current wording

As of July 31, 2025, we had $47.1 million of cash and cash equivalents, which were held for working capital purposes. Our cash and cash equivalents consist primarily of cash and money market funds. We have a $125.3 million credit facility, all of which had been drawn as of July 31, 2025.

Previous wording

On September 6, 2024, we entered into a Controlled Equity Offering SM Sales Agreement (Sales Agreement) with Cantor Fitzgerald & Co. (Cantor). Pursuant to the Sales Agreement, we may sell, from time to time up to an aggregate of $150.0 million of our Class B common stock through an “at-the-market” offering defined in Rule 415 under the Securities Act. We will pay Cantor a commission equal to 3.0% of the gross proceeds from the sale of shares of our Class B common stock under the Sales Agreement. The $150.0 million of Class B common stock that may be offered, issued and sold under the Sales Agreement is included in the $300.0 million of securities that may be offered, issued and sold by us under our registration statement on Form S-3 that was effective on September 20, 2024. No shares have been sold pursuant to the Sales Agreement to date.

Current wording

Act. We will pay Cantor a commission equal to 3.0% of the gross proceeds from the sale of shares of our Class B common stock under the Sales Agreement. The $150.0 million of Class B common stock that may be offered, issued and sold under the Sales Agreement is included in the $300.0 million of securities that may be offered, issued and sold by us under our registration statement on Form S-3 that was effective on September 20, 2024. No shares have been sold pursuant to the Sales Agreement to date.

Previous wording

Net cash provided by operating activities during the three months ended April 30, 2024 consisted of cash collected from customers of $87.8 million exceeding the cash outflows of $85.9 million. Significant components of cash outflows included $49.6 million for personnel costs and $16.6 million for marketing programs and events, third-party costs to provide our platform and outsourced professional services.

Current wording

Net cash used in operating activities during the six months ended July 31, 2024 consisted of cash outflows of $160.6 million exceeding the $156.3 million collected from customers. Significant components of cash outflows included $89.9 million for personnel costs and $32.5 million for marketing programs and events, third-party costs to provide our platform and outsourced professional services.

Previous wording

Net cash provided by operating activities during the three months ended April 30, 2025 consisted of cash collected from customers of $93.2 million exceeding the cash outflows of $89.2 million. Significant components of cash outflows included $47.9 million for personnel costs and $22.0 million for marketing programs and events, third-party costs to provide our platform, outsourced professional services, and other operating expenditures.

Current wording

Net cash provided by operating activities during the six months ended July 31, 2025 consisted of cash collected from customers of $161.8 million exceeding $154.5 million of cash outflows. Significant components of cash outflows included $85.0 million for personnel costs and $38.1 million for marketing programs and events, third-party costs to provide our platform and outsourced professional services, outsourced professional services, and other operating expenditures.

Previous wording

Cash used in investing activities during the three months ended April 30, 2024 consisted primarily of $1.6 million of capitalized development costs related to internal-use software and $0.9 million of purchased property and equipment.

Current wording

Net cash used in investing activities during the six months ended July 31, 2024 consisted primarily of $3.5 million of capitalized development costs related to internal-use software and $1.2 million of purchased property and equipment.

Previous wording

Cash used in investing activities during the three months ended April 30, 2025 consisted primarily of $2.5 million of capitalized development costs related to internal-use software and $0.4 million of purchased property and equipment.

Current wording

Net cash used in investing activities during the six months ended July 31, 2025 consisted primarily of $4.9 million of capitalized development costs related to internal-use software and $0.4 million of purchased property and equipment.

Previous wording

Our financing activities consisted primarily of proceeds received from our employee stock purchase plan and payments made on short-term payable financing.

Current wording

Our financing activities consisted primarily of proceeds received from our employee stock purchase plan, net chance in short-term payable financing, and to a lesser extent, stock option exercises and outflows used to repurchase shares for tax withholdings on vesting of restricted stock.

Previous wording

Net cash provided by financing activities for the three months ended April 30, 2024 consisted of $1.1 million of proceeds from shares issued in connection with our employee stock purchase plan.

Current wording

Net cash provided by financing activities for the six months ended July 31, 2024 consisted primarily of $2.8 million of proceeds from short-term payable financing, $1.1 million of proceeds from shares issued in connection with our employee stock purchase plan, offset by $0.2 million used to repurchase shares for tax withholdings on vesting of restricted stock.

Previous wording

Net cash used in financing activities for the three months ended April 30, 2025 consisted primarily of $3.7 million of payments on short-term payable financing, $0.5 million used to repurchase shares for tax withholdings on vesting of restricted stock, $0.2 million for debt issuance costs, $0.2 million of payments of deferred offering costs for a registration statement, partially offset by $3.3 million of proceeds from short-term payable financing and $0.7 million of proceeds from shares issued in connection with our employee stock purchase plan.

Current wording

Net cash used in financing activities for the six months ended July 31, 2025 consisted primarily of $7.0 million of payments on short-term payable financing, $1.6 million used to repurchase shares for tax withholdings on vesting of restricted stock, $0.2 million in debt-issuance costs, and $0.2 million in deferred costs for registration statement. These were partially offset by $7.0 million of proceeds from short-term payable financing and $0.7 million of proceeds from shares issued in connection with our employee stock purchase plan, offset by .