Company: DOMO
Filing Date: 2025-04-04
Form Type: 10-K
Source: 0001505952-25-000045
Chunk: 148

Company: DOMO, INC.
Filing Date: 2025-04-04
Form: 10-K
Item: Item 8
Chunk 148
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):Balance as of January 31, 2022$3,793 Additions 3,019 Write-offs(4,728)Balance as of January 31, 20232,084 Additions 7,977 Write-offs(6,350)Balance as of January 31, 20243,711 Additions 6,528 Write-offs(6,769)Balance as of January 31, 2025$3,470 Contract Acquisition CostsContract acquisition costs, net are stated at cost net of accumulated amortization and primarily consist of deferred sales commissions, which are considered incremental and recoverable costs of obtaining a contract with a customer. Contract acquisition costs for initial contracts are deferred and then amortized on a straight-line basis over the period of benefit, which the Company has determined to be approximately four years. The period of benefit is determined by taking into consideration contractual terms, expected customer life, changes in the Company's technology and other factors. Contract acquisition costs for renewal contracts are not commensurate with contract acquisition costs for initial contracts and are recorded as expense when incurred if the period of benefit is one year or less. If the period of benefit is greater than one year, costs are deferred and then amortized on a straight-line basis over the period of benefit, which the Company has determined to be two years. Contract acquisition costs related to professional services and other performance obligations with a period of benefit of one year or less are recorded as expense when incurred. Amortization of contract acquisition costs is included in sales and marketing expenses in the accompanying consolidated statements of operations. Amortization expense related to contract acquisition costs was $17.1 million, $17.8 million and $17.5 million for the years ended January 31, 2023, 2024 and 2025, respectively. There was no impairment charge in relation to contract acquisition costs for the periods presented.

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Domo, Inc.Notes to Consolidated Financial Statements (Continued)2. Summary of Significant Accounting Policies (Continued)

Property and Equipment, NetProperty and equipment, net, are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets or over the related lease terms (if shorter). Repairs and maintenance costs are expensed as incurred.The estimated useful lives of property and equipment are as follows:Computer equipment and software2-3 yearsFurniture, vehicles and office equipment3 yearsLeasehold improvementsShort