Domo (DOMO) FY Conference Summary Company Overview - Domo is a data platform company that has undergone significant transformation over the past two years, shifting from a focus on being a cloud data warehouse (CDW) to partnering with existing CDWs in the market [2][5][6]. Key Points Industry and Market Position - Domo operates within the data analytics and business intelligence sector, focusing on providing a comprehensive data stack solution [2][3]. - The company has recognized the importance of aligning with CDWs, which has become a central strategy for growth and customer acquisition [19][20]. Transformation and Business Model Shift - Domo has transitioned from a seat-based revenue model to a consumption-based model, which now accounts for approximately 75% of its revenue, with expectations to reach 90% by the end of the year [7][8][26]. - This shift has allowed for greater flexibility for customers, enabling unlimited users and access to advanced capabilities without additional costs [30][31]. Financial Performance and Projections - Domo aims to exit the current year with 5% billings growth and a 5% operating margin, and to achieve 10% growth and margin by the end of the next year [9][10]. - The company has seen improvements in retention rates, with gross retention over 90% and net retention exceeding 100% for consumption customers [34]. Customer Engagement and Use Cases - Domo has expanded its customer base, particularly in the enterprise sector, leveraging relationships with CDWs to penetrate deeper into organizations [25][12]. - The company is witnessing increased use of AI and agentic solutions, with customers creating numerous AI agents to automate processes and enhance efficiency [55][56][66]. Competitive Landscape - Domo has positioned itself as a complementary solution to major CDWs like Snowflake and Databricks, moving away from a competitive stance to a collaborative one [76][78]. - The company has successfully won deals from customers dissatisfied with other solutions, such as Microsoft Fabric, showcasing its ability to deliver effective solutions quickly [80][82]. Future Outlook - Domo is optimistic about its growth trajectory, particularly with the ongoing partnerships with CDWs and the increasing demand for AI-driven solutions [91][92]. - The company is focused on maximizing shareholder value and is open to strategic options, including potential acquisition discussions, but emphasizes the importance of achieving fair valuation [84][88]. Additional Insights - Domo's ability to integrate with various CDWs and provide a seamless experience for customers is seen as a significant competitive advantage [19][20]. - The company is actively engaging in AI boot camps to educate customers on leveraging AI capabilities, which has accelerated the sales cycle and led to successful deal closures [65][66]. This summary encapsulates the key insights and developments discussed during the Domo FY Conference, highlighting the company's strategic shifts, financial outlook, and market positioning within the data analytics industry.

Financial Data and Key Metrics Changes - The company exceeded guidance on billings, revenue, and EPS for Q1, showing solid performance across all metrics [4] - Subscription RPO increased by 24% year over year, up from 14% in the previous quarter, with current RPO up 5% [4][8] - Net retention improved for the third consecutive quarter, and ARR increased sequentially for the first time in a while [5] - Rep productivity rose by 60% year over year, indicating enhanced sales force efficiency [5] Business Line Data and Key Metrics Changes - The company reported a strong performance in subscription revenue, with core metrics such as net retention and ARR trending positively [14] - The focus on multi-year contracts has contributed to the growth in RPO, reflecting stronger customer relationships [9][10] Market Data and Key Metrics Changes - The pipeline from the ecosystem increased by over 200% in Q1 compared to Q4, indicating robust demand and lead flow [20][21] - The company is seeing a steady state in sales cycles, with some adaptation to increased scrutiny from CFOs [7] Company Strategy and Development Direction - The company is shifting its go-to-market approach to work seamlessly with partners like Snowflake and Databricks, enhancing its competitive positioning [19][20] - The strategy includes building strong relationships and educating partners on the benefits of the company's platform [26][27] - The consumption pricing model is being adopted by over 70% of the customer base, with expectations to approach 90% by year-end [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the pipeline and the core business, leading to guidance for Q4 of this year and next year [21][22] - The company is optimistic about the impact of AI and agentic workflows on customer engagement and retention [60][61] Other Important Information - The company does not have significant federal exposure, mitigating risks from public sector revenue concerns [86] - The recent acquisition of Informatica by Salesforce is seen as a competitive opportunity for the company [82][84] Q&A Session Summary Question: What is the outlook for the consumption pricing model? - The company expects to approach 90% of ARR on consumption by the end of the year, reflecting strong adoption trends [43][44] Question: How is the partnership with Snowflake progressing? - The partnership is yielding positive results, with increased lead flow and joint selling opportunities [20][34] Question: What are the implications of the Informatica acquisition? - The acquisition is expected to create competitive opportunities, as the company anticipates seeing less of Informatica in deals [82][84] Question: How is the company managing costs while pursuing growth? - The company is focusing on optimizing resources and leveraging AI to enhance productivity without increasing costs [72][73]