Financial Data and Key Metrics Changes - In Q2, the company exceeded guidance on billings, revenue, and delivered its first positive non-GAAP EPS while generating positive free cash flow [23][24] - Total revenue was $79.7 million, and billings were $70.3 million, marking a significant performance improvement [23][24] - Non-GAAP net income was $0.9 million, with non-GAAP diluted earnings per share at $0.02 based on 43.6 million diluted weighted average shares outstanding [29][30] - Subscription gross margin rose to 81.9%, and operating margin reached 7.7%, the highest in company history [26][28] Business Line Data and Key Metrics Changes - New ACV growth accelerated to nearly 20%, the highest in 3.5 years, with sales force productivity growth increasing from 19% to 67% year-over-year [6][26] - Subscription RPO growth accelerated from 3% to 19% year-over-year, with current subscription RPO growing 4% to $220.2 million and total subscription RPO growing 19% to $409.8 million [26][27] Market Data and Key Metrics Changes - International momentum was strong, particularly in Japan, where new ACV nearly doubled year-over-year, and TCV hit all-time highs [15][16] - Japan's NRR reached close to 130%, indicating robust customer retention and growth in that market [15] Company Strategy and Development Direction - The company is focused on sustainable profitable growth, emphasizing a partner-centric go-to-market strategy and a shift to a consumption-based model [4][5] - The strategy includes deepening partnerships with cloud data warehouse (CDW) partners and enhancing AI capabilities [10][11] - The company aims to maintain a disciplined financial execution while investing in AI innovation and partner enablement [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation and momentum, highlighting the strong demand for advanced AI solutions [9][10] - The company expects to see continued improvement in gross retention rates and new ACV growth, particularly from consumption contracts [41][90] - Management anticipates that the impact of recent strategic initiatives will accelerate in the coming quarters [9][40] Other Important Information - The company was recognized as a leader in several industry reports and awards, reflecting its commitment to innovation and talent advancement [21][22] - The company plans to continue investing in partnerships and AI innovations to drive future growth [22][29] Q&A Session Summary Question: How has the Snowflake Conference impacted the business? - The Snowflake event generated thousands of leads and significantly increased new ACV, with expectations for continued growth in Q3 [34][36] Question: Can you elaborate on the 108% NRR and customer migration to the consumption model? - The 108% NRR is for customers who originally purchased on a consumption basis, and management expects retention rates to improve as more customers transition to this model [41][44] Question: What insights can you provide on international markets and verticals? - Japan has shown exceptional performance, with strong retention and growth across various industries, while other regions in Asia Pacific and EMEA are also performing well [63][64] Question: How does the consumption model affect customer engagement and use cases? - The consumption model allows for broader user access and encourages experimentation with different use cases, leading to increased adoption and retention [70][72] Question: What is the outlook for future growth and profitability? - Future growth is expected to be driven by improved retention rates, new ACV growth, and strong demand for AI-driven solutions [90][91]

Financial Data and Key Metrics Changes - In Q4, the company exceeded guidance for billings, revenue, non-GAAP EPS, and adjusted free cash flow, with total revenue reaching $78.8 million, of which subscription revenue accounted for 91% [29] - Q4 billings were $102.6 million, and subscription RPO grew to $403.6 million, up 14% year over year, marking the best subscription RPO growth in over two years [30] - Adjusted free cash flow was $6 million in Q4, the highest in the company's history, with cash balance increasing from $40.9 million in Q3 to $45.3 million in Q4 [32][42] Business Line Data and Key Metrics Changes - Subscription RPO beyond twelve months grew 38% year over year, indicating a significant improvement in long-term contracts [30] - Gross retention was 85% in Q4, maintaining this level for three consecutive quarters, with expectations for at least a two percentage point improvement in FY '26 [31] Market Data and Key Metrics Changes - The consumption model has seen significant adoption, with consumption customers achieving gross retention of over 90% and net retention of over 100% [31] - The company has transitioned from 5% of ARR on the consumption model two years ago to over 65% by the end of FY '25, with expectations to approach 90% by the end of FY '26 [10] Company Strategy and Development Direction - The primary growth initiatives for FY '25 included building out the partner network, adding AI innovations, and shifting customers to consumption pricing [11] - The company is focusing on enhancing partnerships with cloud-based data warehouses (CDWs) and system integrators (SIs) to drive growth and improve customer satisfaction [12][16] Management's Comments on Operating Environment and Future Outlook - Management noted that the current macroeconomic environment has led to more organized and well-thought-out purchasing decisions from customers, with no significant recent changes observed [37][38] - The company is optimistic about future growth, expecting to generate positive cash flow in both Q1 and FY '26, while also aiming for improved growth and profitability [35][36] Other Important Information - Domo's AI capabilities have been recognized with several industry awards, highlighting the platform's strength in data analytics and visualization [20][25] - The company is hosting its annual user conference, Domopalooza, on March 21, which will feature new product announcements and customer success stories [26] Q&A Session Summary Question: Can you comment on the macro environment and its effect on customer willingness to purchase? - Management indicated that purchasing decisions are well-organized and backed by metrics, with no recent significant changes in customer behavior [37][38] Question: Can you explain the dynamic between renewals and consumption, and the impact on cash and debt? - The CFO explained that the shift in renewal timing due to consumption conversions resulted in a $5 million shift out of Q1 into other quarters, and expressed satisfaction with the cash flow results and balance sheet [40][42] Question: How are partnerships with Snowflake and Databricks tracking? - Management reported significant progress in partnerships, with ecosystem leads converting at a much higher rate compared to independently generated leads, indicating a positive trend for future growth [49][50] Question: Are there plans for additional tweaks to the go-to-market strategy? - The company plans to continue focusing on the ecosystem and hiring individuals with experience in CDWs, emphasizing customer satisfaction and ROI [58][60] Question: Has recent M&A activity in the data cloud space increased discussions about potential acquisitions? - Management acknowledged openness to M&A opportunities, emphasizing the importance of relationships with multiple CDWs and the value Domo provides as an independent provider [78][81]