Domo(US:DOMO)2022-03-02 03:49Financial Data and Key Metrics Changes - Domo achieved 30% billings growth in Q4, the highest growth in the last 14 quarters [24][28] - Total revenue for Q4 was $70 million, representing a year-over-year increase of 23%, exceeding the guidance of 18% [29][32] - The net loss for Q4 was $13.6 million, compared to $9.8 million a year ago, with a net loss per share of $0.41 [32][36] Business Line Data and Key Metrics Changes - Subscription revenue growth is expected to be around 25% for FY '23, driven by sustained billings growth [31][36] - Construction revenue grew 19% year-over-year, accounting for 85% of total revenue [30] - International revenue represented 22% of total revenue, down from 24% in the previous quarter due to strong performance in North America [30] Market Data and Key Metrics Changes - Domo's current RPO (Remaining Performance Obligations) of $222 million grew 24% year-over-year, indicating strong future revenue potential [28] - The company reported a gross retention rate of over 90% and a net retention rate of about 105% on a revenue basis [28] Company Strategy and Development Direction - Domo is focusing on digital transformation as a key driver for growth, leveraging data to improve decision-making across organizations [12][14] - The company plans to enhance its go-to-market strategy by verticalizing its sales force to better align with industry-specific needs [44] - Domo aims to continue expanding its customer base while increasing engagement with existing customers through upselling [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the company's strong position in the market and the potential for continued growth [10][12] - The transition in leadership is seen as an opportunity to leverage the management team's strengths to drive future success [39] - The company is committed to maintaining a positive operating cash flow while investing in growth initiatives [34][47] Other Important Information - Domo was named to Glassdoor's Best Companies to Work For list and recognized by Utah Business as a best company to work for for the tenth consecutive year [23] - The company announced leadership changes, promoting Catherine Wong to COO and hiring Mohammed Aaser as Chief Data Officer [20][21] Q&A Session Summary Question: Transition of leadership and its impact - Management acknowledged the transition as an exciting opportunity, emphasizing the strength of the current team and their vision for the future [39] Question: Proof of concept conversion trends - Management noted that high conversion rates from proof of concepts to closed deals have been a trend, particularly with larger enterprise customers [41] Question: Go-to-market strategy adjustments - Management discussed the importance of balancing transactional and large deal activities, with a focus on verticalizing the sales force to better address industry-specific needs [44] Question: Bottom line expectations for FY '23 - Management indicated that the expected lower EPS is primarily due to increased operating expenses related to growth investments, while maintaining a positive outlook on revenue growth [46][47] Question: Product roadmap and R&D investments - Management highlighted the focus on developing data-driven applications that enhance user engagement and drive business outcomes [50][51]