Profitability and Financial Performance - Domo reported a record-high Q4 operating margin of over 10%, contributing to the highest full-year operating margin in company history at over 6% [1][5] - The company achieved record quarterly billings of $111.2 million, up 8% year over year, and full-year billings totaled $318.7 million, up 3% from the prior year [3][6] - Non-GAAP net income for Q4 was $1.2 million, with a non-GAAP diluted EPS of $0.03, marking the third consecutive positive quarter [7][5] Customer Retention and Revenue Dynamics - Gross retention improved to over 88%, the strongest level in three years, while net retention for ARR was over 96%, improving for the sixth consecutive quarter [2][6] - Domo ended fiscal 2026 with 84% of annual recurring revenue on consumption pricing, which has driven significant retention improvements [8][6] - The company noted that revenue is recognized evenly over the contract period, making it a lagging indicator compared to billings [9] AI Positioning and Product Development - Domo is positioning itself as an AI-first data platform, emphasizing products like Agent Catalyst and App Catalyst to enhance customer workflows [4][12] - The company highlighted the increasing customer interest in AI, with AI discussions occurring in nearly 70% of customer calls [12] - Examples of AI-driven workflows include vendor onboarding automation and invoice processing, showcasing the practical applications of Domo's technology [13] Partner Ecosystem and Sales Dynamics - Domo's partner ecosystem has strengthened, with joint engagements leading to faster delivery of solutions [14] - The sales cycle dynamics have improved, with some deals closing earlier than expected, contributing to the billings outperformance [15] - The company experienced significant activity in partner marketplace funds, leading to longer contract renewals and upsells [15] Future Outlook - Management expects GAAP revenue to remain relatively flat, with modest improvement in non-GAAP EPS and positive adjusted free cash flow in the upcoming fiscal year [16]

Financial Data and Key Metrics Changes - The company achieved record quarterly billings of $111.2 million, representing an 8% year-over-year growth, the strongest in three years, and exceeding billing guidance for the quarter [4][23] - Full fiscal year billings reached $318.7 million, marking a 3% increase over the prior year, the first full year of billings growth since fiscal 2023 [23] - Gross retention rate improved to over 88%, the highest level in 12 quarters, reflecting strong customer relationships and progress in moving to a consumption pricing model [23][24] - Operating margin for the quarter was a record high of 10%, contributing to the highest full-year operating margin in company history at over 6% [25] - Adjusted free cash flow for the full year was near breakeven, an improvement of over $12 million from the prior year, representing the best full-year cash flow result [25] Business Line Data and Key Metrics Changes - The cohort of customers on consumption contracts achieved a net revenue retention of 111% in Q4, highlighting the value derived from the consumption model [6][24] - The company ended fiscal 2026 with 84% of annual recurring revenue on consumption pricing, a significant achievement [24] Market Data and Key Metrics Changes - Current subscription RPO grew 1% year-over-year to $227 million, while total subscription RPO grew 8% to $437.9 million, underscoring the strength of customer relationships [25][26] - Total revenue was above the high end of guidance at $79.6 million, with a gross margin of 78.2%, an improvement of over two percentage points year-over-year [26] Company Strategy and Development Direction - The company is focused on leveraging its innovative cloud data platform to benefit from the rapid adoption of AI, positioning itself as a strategic data and AI platform for modern business challenges [7][10] - The introduction of App Catalyst, an AI-powered app builder, aims to enhance customer engagement and drive deeper adoption of the platform [9] - The company is committed to operational efficiency while investing in key growth areas such as AI innovation and ecosystem partnerships [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing adoption of the consumption model and the potential for improved retention rates as more customers engage with the platform [34][36] - The company expects GAAP revenue to remain relatively flat, with modest improvement in non-GAAP EPS and positive adjusted free cash flow for the upcoming fiscal year [28] Other Important Information - Domo received significant recognition from industry analysts, including multiple awards for technology innovation and being recognized as a leader in AI analytics [21] - The company is actively engaging with customers to explore AI-driven solutions, which are increasingly becoming a core part of their operations [10][31] Q&A Session Summary Question: Competitive Environment and Win Rates - Management noted that customers are increasingly focused on implementing AI solutions, which highlights the platform's capabilities and has improved relationships with ecosystem partners [30][32] Question: Future Retention Rates - Management is encouraged by the net retention rate among consumption customers and expects continued improvement as they deepen customer engagement [33][36] Question: Sales Cycle Dynamics - The sales cycles have been mixed, with some deals taking longer due to the complexity of global data strategies, while others are closing more quickly as relationships with ecosystem partners strengthen [47][50] Question: Customer Spending Mechanisms - The company has seen significant usage of partner marketplace funds to purchase Domo services, leading to longer contract renewals and upsells [54][58] Question: Consumption Customer Usage - Management indicated that net revenue retention for consumption customers is a strong indicator of increased usage, with ongoing efforts to enhance customer engagement and explore the platform [61][68]

Financial Data and Key Metrics Changes - The company achieved record quarterly billings of $111.2 million, representing an 8% year-over-year growth, the strongest in three years, and exceeding billing guidance for the quarter [4][23] - Full fiscal year billings reached $318.7 million, marking a 3% increase over the prior year, the first full year of billings growth since fiscal 2023 [23] - Gross retention rate improved to over 88%, the highest level in 12 quarters, reflecting strong customer relationships and progress in moving to a consumption pricing model [23][24] - Operating margin for the quarter was a record high of 10%, contributing to the highest full-year operating margin in company history at over 6% [25] - Adjusted free cash flow for the full year was near breakeven, an improvement of over $12 million from the prior year, representing the best full-year cash flow result [25] Business Line Data and Key Metrics Changes - The cohort of customers on consumption contracts achieved a net revenue retention of 111% in Q4, highlighting the value derived from the consumption model [6][24] - The company ended fiscal 2026 with 84% of annual recurring revenue on consumption pricing, a significant milestone [24] Market Data and Key Metrics Changes - Current subscription RPO grew 1% year-over-year to $227 million, while total subscription RPO grew 8% to $437.9 million, underscoring the strength of customer relationships [25][26] - Total revenue was above the high end of guidance at $79.6 million, with a gross margin of 78.2%, an improvement of over two percentage points year-over-year [26] Company Strategy and Development Direction - The company is focused on leveraging its innovative cloud data platform to benefit from the rapid adoption of AI, positioning itself as a strategic data and AI platform rather than just a BI tool [7][10] - The introduction of App Catalyst, an AI-powered app builder, is expected to drive increased consumption and deeper adoption of the platform [9] - The company aims to optimize spending while continuing to invest in key growth areas such as AI innovation and ecosystem partnerships [28] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are increasingly interested in implementing AI solutions that are governed and secure, which highlights the company's platform capabilities [31] - The company expects GAAP revenue to remain relatively flat, with modest improvement in non-GAAP EPS and positive adjusted free cash flow for the upcoming fiscal year [28] Other Important Information - The company received significant recognition from industry analysts, including multiple awards for technology innovation and being recognized as a leader in AI analytics [21] - The upcoming Domopalooza user conference is highlighted as an opportunity for customers and partners to connect and explore innovations [21] Q&A Session Summary Question: Competitive Environment and Win Rates - Management noted that customers are increasingly discussing AI and agentic opportunities, which has positively impacted win rates against competitors [30][31] Question: Future Gross Retention and NRR - Management expressed optimism about the net retention rate for consumption customers, expecting upward trends as adoption increases [33][36] Question: Sales Cycle Dynamics - Management acknowledged that while some deals are taking longer due to involvement with C-suite executives, there are also quicker deals emerging, particularly with existing customers [47][50] Question: Use of Partner Marketplace Funds - Management confirmed that Q4 saw significant usage of partner marketplace funds to purchase Domo, leading to longer contract renewals and upsells [54][58] Question: Consumption Customer Usage - Management indicated that net revenue retention for consumption customers is a strong indicator of increased usage, with expectations for continued growth in this area [67][68]

Core Viewpoint - Domo is exploring strategic alternatives to enhance shareholder value while reaffirming its Fiscal Year 2026 guidance [1] Group 1: Strategic Alternatives - Domo's Board of Directors has initiated a formal process to evaluate strategic alternatives, which may include strategic investments, sales, or business combinations [1] - The company has engaged Jefferies LLC as its financial advisor and Goodwin Procter LLP as its legal advisor for this evaluation process [1] Group 2: Fiscal Year 2026 Guidance - Domo reaffirms its guidance for Fiscal Year 2026, expecting a non-GAAP net loss per share between $0.07 and $0.11 based on 41.0 million weighted-average shares outstanding [1] - Revenue for Fiscal Year 2026 is projected to be between $317.5 million and $318.5 million [1] Group 3: Product Developments - Domo has made significant progress in enhancing its product platform and expanding AI capabilities, indicating a focus on growth strategy [1] - The company launched Domo MMM, an AI-powered marketing measurement service, to help organizations assess the effectiveness of their marketing investments [2] - Domo introduced App Catalyst, a feature that enables organizations to create custom applications using natural language prompts while ensuring governance and security [2]