The business intelligence software firm Domo Inc. announced a surprise leadership change today, naming John Mellor (pictured) as its new chief executive officer. Mellor, who had served as Domo’s chief strategy officer since 2019, will take over from outgoing CEO Josh James with immediate effect.
James founded Domo back in 2010 and helped the company grow to become a leader in the business intelligence space. The company’s software makes it possible to integrate data from multiple sources and transform it into live visualizations that can inform business decision makers.
James, who didn’t give a reason for stepping down, said Mellor is an excellent choice to lead the company. He was recruited three years ago precisely because of his leadership attributes and deep industry experience, he said.
“I am extremely optimistic about our future and the horsepower of the entire Domo team,” James said. “Digital transformation remains a massive opportunity and the outlook remains strong for years to come. We are well positioned to help customers improve millions of decisions and processes throughout their organizations with data. ”
Mellor said he originally joined Domo because of its incredible team, outstanding technology and engaged customer base.
“As CEO, I’m committed to continuing our growth and industry leadership through our ongoing innovation for customers, a disciplined go-to-market strategy, and building on a culture of high-performance and inclusivity,” the new CEO said. “I am extremely optimistic about our future and the horsepower of the entire Domo team. Digital transformation remains a massive opportunity and the outlook remains strong for years to come. We are well positioned to help customers improve millions of decisions and processes throughout their organizations with data. ”
News of the change came as Domo published its fourth quarter financial results, beating expectations on revenue but missing on earnings.
The company reported a loss before certain costs such as stock compensation of 41 cents per share on revenue of $ 69.9 million, up 23% from a year ago. The company’s net loss came to $ 19.6 million. Wall Street had been looking for a loss of 40 cents per share on sales of $ 67.1 million.
For fiscal 2022, Domo reported total revenue of $ 258 million, up 23% from a year ago.
“We see companies continuing to drive digital transformation across all areas of their organizations, and we believe the ability to rapidly build apps on top of our platform is one of the most exciting growth engines for us,” Mellor said in a statement.
Domo had a few more numbers to share, saying its subscription revenue came to $ 59.6 million, up 19% from a year ago. Billings at the end of the quarter were $ 108 million, up 30% from a year ago, while remaining performance obligations at the end of January were $ 339 million, up 20%. Billings and RPO are both key metrics that indicate a company’s future revenue performance.
Looking to the first quarter of the new fiscal year, Domo said it sees revenue of between $ 73.5 million and $ 74.5 million, ahead of Wall Street’s forecast of $ 70.04 million. It also forecast a loss of between 38 cents and 42 cents per share, versus Wall Street’s target of a 35 cents loss.
Despite the mixed results and guidance, investors apparently gave Mellor the benefit of the doubt, as Domo’s stock gained almost 8% in extended trading.