Domo(US:DOMO)2022-05-27 01:35Financial Data and Key Metrics Changes - The company reported a billings growth of 25% and total revenue growth of 24% for Q1 2023, with subscription revenue also growing by 24% [4][23][28] - The subscription gross margin reached a record of over 84%, up 1.2 percentage points year-over-year [29] - The net loss for the quarter was $7.6 million, slightly improved from $8 million a year ago, with a net loss per share of $0.23 [31] Business Line Data and Key Metrics Changes - The corporate business showed strong growth, consistently generating new logos and achieving a gross retention rate of over 90% [24][25] - Subscription revenue represented 87% of total revenue, marking a substantial acceleration from 19% growth in the previous quarter [28] - The current remaining performance obligation (RPO) grew 24% year-over-year to $225 million [27] Market Data and Key Metrics Changes - International revenue accounted for 21% of total revenue, maintaining a similar mix to the previous quarter [29] - The company expects to exit fiscal year 2023 with subscription revenue growth of about 25% [29] Company Strategy and Development Direction - The company is focusing on three strategic priorities: maintaining growth, increasing enterprise cadence, and emphasizing data apps [10][11] - Domo aims to leverage existing resources to help businesses reduce costs and improve efficiencies, particularly in uncertain economic times [5][9] - The company is transitioning from a per-user pricing model to a consumption-based pricing model to encourage broader adoption of its platform [43] Management's Comments on Operating Environment and Future Outlook - Management noted that despite concerns about a potential economic slowdown, customer demand remained strong in Q1 [8][9] - The company believes that the modernization of business practices will continue, as organizations seek to unlock data value [9] - Management expressed confidence in navigating potential economic downturns, citing a resilient revenue stream primarily from renewals and upselling [46][55] Other Important Information - Domo appointed Ian Tickle as President of Global Revenue and Field Operations, succeeding Wolf Maasberg [19] - The company received industry recognition, being named the 1 vendor in Self-Service BI for the fifth consecutive year [20] - In Q1, 36% of new hires were diverse candidates, reflecting the company's commitment to building an inclusive workplace [21] Q&A Session Summary Question: How does Domo fit into the enterprise landscape amid potential spending slowdowns? - Management highlighted Domo's unique position in addressing the last mile of data utilization, emphasizing the importance of agility and speed in current business environments [40][41] Question: How has Domo's pricing model evolved? - The company is shifting from a per-seat model to a consumption-based model to encourage wider adoption and usage across organizations [43] Question: What are the assumptions behind the full-year guidance? - Management maintained guidance due to optimism about sales hiring and resilience in revenue streams, while also considering macroeconomic concerns [45][46] Question: What strategies are being implemented to improve enterprise go-to-market efforts? - The company is focusing on verticalization of the sales team to address specific business pains in various industries [51][52] Question: How does Domo differentiate itself from competitors like Microsoft? - Domo's value proposition lies in addressing clear business pains and delivering quick results, which has proven effective in competitive situations against Power BI [59] Question: What is the current state of the balance sheet? - The company has $84 million in cash and $105 million in debt, with no immediate need for additional cash, indicating a strong balance sheet position [60]