Domo (DOMO) FY Conference Transcript

Domo (DOMO) FY Conference Summary Company Overview - Domo is a data platform company that has undergone significant transformation over the past two years, shifting from a focus on being a cloud data warehouse (CDW) to partnering with existing CDWs in the market [2][5][6]. Key Points Industry and Market Position - Domo operates within the data analytics and business intelligence sector, focusing on providing a comprehensive data stack solution [2][3]. - The company has recognized the importance of aligning with CDWs, which has become a central strategy for growth and customer acquisition [19][20]. Transformation and Business Model Shift - Domo has transitioned from a seat-based revenue model to a consumption-based model, which now accounts for approximately 75% of its revenue, with expectations to reach 90% by the end of the year [7][8][26]. - This shift has allowed for greater flexibility for customers, enabling unlimited users and access to advanced capabilities without additional costs [30][31]. Financial Performance and Projections - Domo aims to exit the current year with 5% billings growth and a 5% operating margin, and to achieve 10% growth and margin by the end of the next year [9][10]. - The company has seen improvements in retention rates, with gross retention over 90% and net retention exceeding 100% for consumption customers [34]. Customer Engagement and Use Cases - Domo has expanded its customer base, particularly in the enterprise sector, leveraging relationships with CDWs to penetrate deeper into organizations [25][12]. - The company is witnessing increased use of AI and agentic solutions, with customers creating numerous AI agents to automate processes and enhance efficiency [55][56][66]. Competitive Landscape - Domo has positioned itself as a complementary solution to major CDWs like Snowflake and Databricks, moving away from a competitive stance to a collaborative one [76][78]. - The company has successfully won deals from customers dissatisfied with other solutions, such as Microsoft Fabric, showcasing its ability to deliver effective solutions quickly [80][82]. Future Outlook - Domo is optimistic about its growth trajectory, particularly with the ongoing partnerships with CDWs and the increasing demand for AI-driven solutions [91][92]. - The company is focused on maximizing shareholder value and is open to strategic options, including potential acquisition discussions, but emphasizes the importance of achieving fair valuation [84][88]. Additional Insights - Domo's ability to integrate with various CDWs and provide a seamless experience for customers is seen as a significant competitive advantage [19][20]. - The company is actively engaging in AI boot camps to educate customers on leveraging AI capabilities, which has accelerated the sales cycle and led to successful deal closures [65][66]. This summary encapsulates the key insights and developments discussed during the Domo FY Conference, highlighting the company's strategic shifts, financial outlook, and market positioning within the data analytics industry.