Domo Inc (NASDAQ: DOMO) stock fell over 13.8% on 7th June, 2019 (As of 1:24 pm GMT-4; Source: Google finance). DOMO in the first quarter of FY 20 has reported the adjusted loss per share of $1.08. For the second quarter, analysts expects the losses of a dollar a share on revenue of $42.3 million. Domo expects second-quarter adjusted losses to be in the range of 98 cents to $1.02 a share on sales expected to be in the range of $41 million to $42 million. DOMO expect Q2 billings of about $42 million and expects the Q2 operating expenses to decline as expenses related to new sales hires are more than offset by the Q1 cost of the annual user conference.
As of April 30th, DOMO had cash, cash equivalents and short-term investments of $154 million. The adjusted cash used in operations was $22.2 million, which is an improvement of $5.5 million over the prior quarter and a 40% reduction compared to Q1 of the prior year.
During the first quarter, the company had a new warehouse enterprise customer include pharmaceutical giant, GlaxoSmithKline, the global Japanese consumer products manufacturer Bandai Spirits, and an international oil and gas business. The company now have 458 enterprise customers, a year-over-year increase of 19%. Enterprise revenue grew 33% year-over-year, an acceleration from Q4.
The company had reported the adjusted revenue growth of 35.9 percent to $40.8 million in the first quarter of FY 20, beating the analysts’ estimates for revenue of $40.7 million. Subscription revenue grew 29% and represented 84% of total revenue. Year-over-year subscription revenue growth was due to new customers and we now have over 1,800 customers. International revenue represented 26% of total revenue, up from 23% in Q4. The subscription gross margin was 77%, up 270 basis points from 74.3% in Q4 and up over 74 percentage points from 69.8% in Q1 of last year. Including the services business, the total gross margin was 69.1%, a 60 basis point improvement compared to 68.5% in the fourth quarter of last year and a 520 basis point improvement compared to 63.9% gross margin in the first quarter of last year.
For the full year, Domo expects adjusted losses to be in the range of $3.79 to $3.87 a share on sales expected to be in the range of $173 million to $174 million.