Company: DOMO
Filing Date: 2025-12-09
Form Type: 10-Q
Source: 0001628280-25-055921
Chunk: 3

Company: DOMO, INC.
Filing Date: 2025-12-09
Form: 10-Q
Item: Item 1A
Chunk 3
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 those of our common stock. Because our decision to issue securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of any such future offerings. As a result, stockholders bear the risk that future securities offerings reduce the market price of our Class B common stock and dilute their interest.

Future operating results and key metrics may fluctuate significantly due to a wide range of factors, which makes our future results difficult to predict. 

Our operating results and key metrics could vary significantly from quarter to quarter as a result of various factors, some of which are outside of our control, including: 

•the expansion of our customer base;

•the size, duration and terms of our contracts with both existing and new customers;

•the introduction of products and product enhancements by competitors, and changes in pricing for products offered by us or our competitors;

•customers delaying purchasing decisions in anticipation of new products or product enhancements by us or our competitors or otherwise;

•changes in customers’ budgets;

•seasonal variations in our sales, which have generally historically been highest in our fourth fiscal quarter and lowest in the first fiscal quarter;

•the timing of satisfying revenue recognition criteria, particularly with regard to large transactions;

•the amount and timing of payment for expenses, including infrastructure costs to deliver our platform, research and development, sales and marketing expenses, employee benefit and stock-based compensation expenses and costs related to Domopalooza, our annual user conference that occurs in our first fiscal quarter;

•costs related to the hiring, training and maintenance of our direct sales force;

•the timing and growth of our business, in particular through the hiring of new employees and international expansion; and

•general economic and political conditions, both domestically and internationally, including the impacts of pandemics or other catastrophic events, military conflicts (including the Russian invasion of Ukraine and hostilities in the Middle East), inflation, and adverse impacts to the financial services industry, as well as economic conditions specifically affecting industries in which our customers operate.

Any one of these or other factors discussed elsewhere in this report may result in fluctuations in our operating results, meaning that quarter-to-quarter comparisons may not necessarily be indicative of our future performance. 

Because we recognize revenue from subscriptions ratably over the terms of our subscription agreements, near-term changes in sales may not be reflected immediately in our operating results. 

We offer our platform primarily through agreements which typically vary in length between one and five years, and in many cases may be subject