Company: DOMO
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0001628280-25-029801
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Company: DOMO, INC.
Filing Date: 2025-06-06
Form: 10-Q
Item: Item 1A
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Item 1A. Risk Factors

You should carefully consider the following risk factors, in addition to the other information contained in this report, including the section of this report captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our financial statements and related notes. If any of the events described in the following risk factors or the risks described elsewhere in this report occurs, our business, operating results and financial condition could be seriously harmed. This report also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in the forward-looking statements as a result of factors that are described below and elsewhere in this report.

Risks Related to Our Financial Position and Capital Needs

We have a history of losses, and we may not be able to generate sufficient revenue to achieve or maintain profitability in the future.

We incurred net losses of $26.0 million and $18.1 million for the three months ended April 30, 2024 and 2025, respectively, and had an accumulated deficit of $1,505.6 million at April 30, 2025. We may not be able to generate sufficient revenue to achieve or sustain profitability. We expect to continue to incur losses for the foreseeable future and we expect costs to increase in future periods as we expend substantial financial and other resources on, among other things:

•sales and marketing, including any expansion of our direct sales organization, which will require time before these investments generate sales results;

•technology and data center infrastructure, enhancements to cloud architecture, improved disaster recovery protection, and increasing cybersecurity, compliance and operations expenses;

•data center costs as customers increase the amount of data that is available to our platform and usage on our platform;

•other software development, including enhancements and modifications related to our platform;

•international expansion in an effort to increase our customer base and sales;

•general and administration, including significantly increasing expenses in accounting and legal related to the increase in the sophistication and resources required for public company compliance and other work arising from the growth and maturity of the company;

•competing with other companies, custom development efforts and open source initiatives that are currently in, or may in the future enter, the markets in which we compete;

•maintaining high customer satisfaction and ensuring quality and timely releases of platform enhancements and applications;

•developing our indirect sales channels and strategic partner network;

•maintaining the quality of our cloud and data center infrastructure to minimize latency when using our platform;

•increasing market awareness of our platform and enhancing