Domo(DOMO)2024-03-08 00:07Financial Data and Key Metrics - Q4 billings reached $105 4 million, a 1% YoY increase, exceeding guidance [129] - Total revenue for Q4 was $80 2 million, also a 1% YoY increase, with subscription revenue growing 2% YoY and representing 90% of total revenue [129] - Non-GAAP operating margin improved to 4%, up 0 6 percentage points YoY [130] - Net loss for Q4 was $1 9 million, compared to $0 8 million a year ago, with a net loss per share of $0 05 [130] - Free cash flow for Q4 was $2 9 million, with cash flow from operations reaching a record $5 4 million [116] - Current RPO stood at $243 4 million, consistent with last year, while total RPO grew 1% to $380 1 million [115] - Gross retention was 82%, and net retention was 91% in Q4 [115] Business Line Data and Key Metrics - Consumption model customers doubled over the last two quarters, with half of them pacing to use more credits than originally contracted [60][92] - Freemium users actively connecting data and exploring the platform more than doubled in four months [64] - Consumption deals accounted for over 90% of the dollar value of new logo deals in Q4 [92] - Subscription gross margin was 83 9%, down 1 8 percentage points YoY due to costs associated with new product features [83] Market Data and Key Metrics - The company is working with major hyperscalers and has budding relationships with most large players in the ecosystem [69] - Domo is now available in the Microsoft Azure Marketplace, allowing customers to purchase using Azure consumption commitments [101] - The company is focusing on four types of partners: technology, app, data, and system integrators, with ecosystem opportunities driving growth [97][99] Company Strategy and Industry Competition - The company is prioritizing product-led growth (PLG) through consumption models, freemium offerings, and improved product discoverability [58][59] - Investments in AI and ecosystem partnerships are key strategic initiatives, with AI-driven data solutions being a focus for democratizing intelligence [87][89] - The company is uniquely positioned in the market as an independent player with a modular, composable full-stack solution, aligning well with hyperscalers [19][69] - Domo is leveraging its independence and modularity to differentiate itself in the AI and data governance space, particularly with private LLMs and AI model flexibility [29][105] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the long-term impact of consumption, freemium, and ecosystem initiatives, with potential benefits expected in the back half of the year [131] - The company is committed to being free cash flow positive for fiscal 2025 and plans to invest prudently in growth initiatives while maintaining operating margin positivity [117][85] - Macro headwinds have impacted rep productivity and pipeline conversion, but stabilization is expected, with AI and consumption investments driving future success [15][17] Other Important Information - The company extended its debt maturity to April 2026 and is exploring refinancing options on more favorable terms [82] - Domopalooza, the annual user conference, will be held in person for the first time in five years, with significant announcements expected around AI and product developments [127][133] Q&A Session Summary Question: What are the investments planned for the beginning of the year? - Investments include building out the ecosystem, go-to-market strategies, and hiring engineers focused on AI [123][124][136] Question: Where does Domo have the best product-market fit today? - Domo has strong product-market fit in industries like healthcare, manufacturing, and retail, where its platform integrates data and provides actionable insights [126][74][76] Question: How should we think about cash flow at the end of fiscal 2025? - The company is committed to being free cash flow positive for fiscal 2025 and will take necessary actions to achieve this goal [33][117]