Domo(US:DOMO)2020-06-05 03:02Financial Data and Key Metrics Changes - In Q1, the company reported a 23% increase in subscription revenue and a 19% year-over-year increase in total revenue, with billings of $46.5 million, a year-over-year increase of over 13% [7][49]. - Q1 revenue was $48.6 million, with subscription revenue representing 87% of total revenue, reflecting a focus on growing recurring revenue [52]. - The subscription gross margin improved to 79%, up from 77% in Q1 of the previous year [52]. - The net loss for the quarter was $18.4 million, with a net loss per share of $0.65 based on 28.5 million weighted average shares outstanding [55]. Business Line Data and Key Metrics Changes - The company successfully closed $4.5 million of recurring new business from the COVID-19 Crisis Command Center during the quarter [49]. - Renewal rates were above 85% in a seasonally slow quarter, indicating strong customer retention [51]. Market Data and Key Metrics Changes - International revenue represented 24% of total revenue in Q1, slightly down from 25% in Q4 [52]. - The company has a low percentage of business from very small companies, which has helped mitigate risks during the economic downturn [50]. Company Strategy and Development Direction - The company is focusing on leveraging its platform to support customers in navigating the challenges posed by COVID-19, including the introduction of a "Get Back to Work" solution [25][27]. - The management emphasized the importance of adapting to the evolving needs of government and commercial entities, positioning the company for growth in government contracts [24][62]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertain economic conditions, with plans to maintain a cautious approach to spending while focusing on cash flow positivity [56][63]. - The company expects to exit the year with a low quarterly cash burn rate, aiming for self-funding sustainability [63]. Other Important Information - The company announced a significant reduction in operating expenses by $5 million, with plans for an additional $30 million cut to prepare for potential economic downturns [36]. - The company received multiple third-party recognitions, including being named the number one vendor in the Cloud Computing and Business Intelligence Market Study for the fourth consecutive year [42]. Q&A Session Summary Question: Can you discuss the progression of business and demand trends throughout the quarter? - Management noted that the onset of COVID-19 initially caused panic, but the company quickly adapted to meet the needs of customers, leading to strong sales cycles for Crisis Command Centers [68][75]. Question: What is the opportunity for account expansion with the Command Center? - Management indicated that there is significant potential for account expansion as they address current needs and gather more data for future renewals [90][92]. Question: How are the sales plays performing in the current environment? - Management confirmed that sales plays are performing well, with salespeople effectively trained and executing strategies that are yielding positive results [111].