Company: DOMO
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0001628280-25-029801
Chunk: 30

Company: DOMO, INC.
Filing Date: 2025-06-06
Form: 10-Q
Item: Item 1A
Chunk 30
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 to continue to expand our international operations as part of our growth strategy. Expanding our international operations will subject us to a variety of risks and challenges, including: 

•the need to make significant investments in people, solutions and infrastructure, typically well in advance of revenue generation;

•the need to localize and adapt our application for specific countries, including translation into foreign languages and associated expenses;

•potential changes in public or customer sentiment regarding cloud-based services or the ability of non-local enterprises to provide adequate data protection, particularly in the European Union (the E.U.);

•technical or latency issues in delivering our platform;

•dependence on certain third parties, including resellers with whom we do not have extensive experience;

•the lack of reference customers and other marketing assets in regional markets that are new or developing for us, as well as other adaptations in our market generation efforts that we may be slow to identify and implement;

•unexpected changes in regulatory requirements or taxes;

•actual or anticipated changes in international trade policies, including those resulting from tariffs, trade barriers and other trade regulations, as well as the actual or anticipated effect of such policies on us and our customers;

•differing labor regulations, especially in the E.U., where labor laws are generally more advantageous to employees as compared to the United States, including deemed hourly wage and overtime regulations in these locations;

•challenges inherent in efficiently managing an increased number of employees over large geographic distances, including the need to implement appropriate systems, policies, benefits and compliance programs;

•difficulties in maintaining our company culture with a dispersed and distant workforce;

•difficulties in managing a business in new markets with diverse cultures, languages, customs, legal systems, alternative dispute systems and regulatory systems;

•currency exchange rate fluctuations and the resulting effect on our revenue and expenses, and the cost and risk of entering into hedging transactions if we choose to do so in the future;

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•limitations on our ability to reinvest earnings from operations in one country to fund the capital needs of our operations in other countries;

•limited or insufficient intellectual property protection, or the risk that our products may conflict with, infringe or otherwise violate foreign intellectual property;

•political instability, terrorist activities or military conflicts (including Russia’s invasion of Ukraine and hostilities between Israel and Hamas);

•requirements to comply with foreign privacy, cybersecurity, and data protection laws and regulations and the risks and costs of noncompliance;

•likelihood of potential or actual violations of domestic and international anticorruption laws, such as the U.S.