Company: DOMO
Filing Date: 2025-04-04
Form Type: 10-K
Source: 0001505952-25-000045
Chunk: 121

Company: DOMO, INC.
Filing Date: 2025-04-04
Form: 10-K
Item: Item 7
Chunk 121
---
million net decrease from existing customers. Our customer count decreased 2% from January 31, 2024 to January 31, 2025. For the purpose of this comparison, new customers are defined as those added since the end of the prior year. Revenue from existing customers is presented net of churn. The decrease in professional services and other revenue was primarily due to a lower volume of billable hours delivered during the year ended January 31, 2025. For fiscal 2026 we expect that total revenue will be approximately flat compared to fiscal 2025.

Cost of Revenue, Gross Profit and Gross Margin

 Year Ended January 31, 20242025$ Change% Change (in thousands)Cost of revenue:Subscription$46,045 $53,585 $7,540 16 %Professional services and other29,425 27,408 (2,017)(7)Total cost of revenue$75,470 $80,993 $5,523 7 Gross profit$243,519 $236,051 $(7,468)(3)Gross margin:Subscription84 %81 %Professional services and other12 12 Total gross margin76 74 

The increase in cost of subscription revenue was primarily due to a $4.6 million increase in our third-party web hosting services. Amortization related to capitalized software development costs increased by $2.2 million and employee-related costs increased by $1.3 million. Costs related to fees paid to third parties for use of their technology and services decreased by $0.6 million.

The decrease in cost of professional services and other revenue is primarily due to a $1.4 million decrease in outsourced services and a $0.7 million decrease in employee-related costs.

Subscription gross margin decreased 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.

72

Services gross margin remained flat. We expect the gross margin for professional services and other 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.

Operating Expenses

 Year Ended January 31, 20242025$ Change% Change (in thousands)Operating expenses:Sales and marketing$163,902 $151,505 $(12,397)(