Core Insights - Domo, Inc. is a cloud-based platform focused on business intelligence and data visualization, competing with major players like Tableau and Microsoft Power BI, and showing resilience in the analytics market [1] Financial Performance - On December 4, 2025, Domo reported earnings per share of $0.01, exceeding the anticipated loss of $0.05 per share, indicating effective expense management and improved profitability [2][6] - The company's revenue for the period was approximately $79.4 million, surpassing the forecasted $79 million, reflecting strong sales performance [2][6] - In Q3 2026, Domo's total revenue was reported at $79.4 million, with subscription revenue contributing $71.9 million, highlighting the importance of subscription services in the revenue model [3] Future Revenue Indicators - Domo's Subscription Remaining Performance Obligations (RPO) reached $405.9 million as of October 31, 2025, marking a 15% increase year-over-year, indicating a strong future revenue pipeline [4][6] - The current subscription RPO was $214.1 million, reflecting a 3% year-over-year growth, suggesting steady demand for Domo's services [4] Valuation Metrics - Domo's price-to-sales ratio is 1.44, indicating that investors are willing to pay $1.44 for every dollar of sales [5] - The enterprise value to sales ratio stands at 1.73, reflecting the company's valuation relative to its sales [5] - However, the current ratio of 0.49 suggests potential liquidity challenges in meeting short-term obligations [5]

Financial Data and Key Metrics Changes - In Q1 2026, total revenue was $80.1 million, and billings were $63.9 million, exceeding guidance [25] - Subscription Remaining Performance Obligations (RPO) grew 24% year over year, with long-term subscription RPO up 61% year over year [6][27] - Gross retention improved to 86% from 85% in Q4 and 83% a year ago, while net retention was 94%, up more than four percentage points year over year [26] Business Line Data and Key Metrics Changes - Subscription Total Contract Value (TCV) increased by 69% year over year, indicating strong demand for long-term contracts [6] - Sales force productivity increased over 60% year over year, reflecting improved efficiency in sales operations [7][8] Market Data and Key Metrics Changes - Consumption customers now represent over 70% of Annual Recurring Revenue (ARR), with expectations to reach 90% by year-end [9] - The pipeline generated through ecosystem partners has increased significantly, with partner-sourced leads and deals up more than 200% from the previous quarter [18] Company Strategy and Development Direction - The company is focusing on driving adoption of AI across its platform, enhancing customer relationships, and developing its ecosystem of partners [12][14] - The transition to a consumption-based pricing model is expected to deliver higher usage, customer satisfaction, and retention [24] Management's Comments on Operating Environment and Future Outlook - Management noted that while the macro environment is challenging, customer interest in leveraging AI is driving positive activity [34] - The company expects to exit FY 2026 with 5% billings growth and a 5% operating margin, with plans to double these figures by FY 2027 [10][24] Other Important Information - The company achieved positive adjusted free cash flow of $1.3 million in Q1, a significant improvement from the previous year [27] - The non-GAAP subscription gross margin increased to 81.6%, with expectations to maintain this level in the near term [28] Q&A Session Summary Question: How is the macro environment affecting the business? - Management indicated that while the macro environment is not ideal, customer interest in AI solutions is driving positive activity [34] Question: Can you elaborate on the increase in sales productivity? - The increase in sales productivity is attributed to the consumption model and improved relationships with cloud data warehouse partners [39] Question: What is driving the strong growth in RPO? - The growth in RPO is driven by strong technology, the consumption model, and improved customer relationships leading to longer-term contracts [52] Question: How do you see gross margin trajectory over the medium term? - The company expects subscription gross margin to remain around 81.6% in the near term, with long-term goals for improvement [58] Question: How are enterprise and commercial spaces performing? - The enterprise segment remains a significant part of the business, with many leads coming from partnerships, indicating growth opportunities [61]