Company: DOMO
Filing Date: 2025-04-04
Form Type: 10-K
Source: 0001505952-25-000045
Chunk: 122

Company: DOMO, INC.
Filing Date: 2025-04-04
Form: 10-K
Item: Item 7
Chunk 122
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8)%Research and development85,049 87,899 2,850 3 General and administrative49,449 55,929 6,480 13 Total operating expenses$298,400 $295,333 $(3,067)(1)Percentage of revenue:Sales and marketing51 %48 %Research and development27 28 General and administrative15 17 

The decrease in sales and marketing expenses was primarily due to a $13.3 million decrease in employee-related costs. Sales and marketing expense as a percentage of total revenue decreased from 51% in the year ended January 31, 2024 to 48% in the year ended January 31, 2025. We expect sales and marketing expense as a percentage of revenue to decrease in the long term.

Research and development expenses increased primarily due to a $4.3 million increase in employee-related costs and a $0.7 million decrease in capitalized software, which increases expense. These increases were partially offset by a $1.9 million decrease in contract labor. Research and development expense as a percentage of revenue increased from 27% in the year ended January 31, 2024 to 28% in the year ended January 31, 2025. We expect research and development expense as a percentage of revenue to decrease in the long term.

General and administrative expenses increased primarily due to a $7.3 million increase in professional and legal fees. This was partially driven by a $2.4 million insurance reimbursement for legal fees that was realized during the year ended January 31, 2024 plus $1.5 million of costs related to the amendment to the credit facility that occurred during the year ended January 31, 2025. General and administrative expenses as a percent of revenue increased from 15% in the year ended January 31, 2024 to 17% in the year ended January 31, 2025. We expect general and administrative expense as a percentage of revenue to decrease in the near term and fluctuate from period to period in the long term.

Total Other Expense, Net

 Year Ended January 31, 20242025$ Change% Change (in thousands)Other expense, net:Loss on extinguishment of debt$— $(1,850)$(1,850)(100)%Other expense, net(19,431)(19,593)(162)(1)Total other expense, net$(19,431)$(21,443)