DOMO - Earnings call transcript Q2 2019

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Operator

Good day, ladies and gentlemen. And welcome to the Domo Q2 Fiscal Year 2019 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions].

conference recorded. this reminder, a is being As I today's call like to host for introduce your Ms. would now Julie Kehoe, Vice President of Communications. Ms. Kehoe, you may begin.

Julie Kehoe

welcome Thank and everyone. you

On our have CEO; the we our call and Founder Josh and CFO. James, Felt, Bruce today,

operations Our with applications, press this and IR the posted other Form market XX-Q to close SEC forward-looking and will is and our call results being file commission, is regarding that and be was documents we customer that simultaneously including press financial materially www.domo.com/ir made on actual on information in statements cause the filed where assumptions may with to assumptions. statements filed such on the issued those registration and this statement release differ S-X release These at risks, the are from of uncertainties after risks, the factors website and demand, statements. Please call our forth may results, webcast. Form to uncertainties our refer exchange matters. Statements include subject risk the securities on for and was set that and

for amortization stock-based in or liability. substitute guidance GAAP intangible and during today's These our excludes which considered believe of will non-GAAP including not should year and other data, compensation, useful a basis. discuss measures call, non-GAAP be on non-GAAP we from and isolation will addition measures otherwise financial These as Domo's of measures, results as measures, quarter supplemental reversal for stated, Unless operations of we are the results. the performance. non-GAAP third we assets in addition, discussing In be than revenue, XXXX to of a contingent full

Josh. a press on Eastern measures, and where additional find these September of regarding replay XXXX. With earnings that, will also until the Josh? GAAP comparable can midnight it of Time You let available me results be our call on Investor in to website our webcast page this hand including reconciliations Relations release non-GAAP over with XX, disclosures

Josh James

Julie. Thank you,

we I share given Burt I passing like Before give a Reynolds. missed would if his to today, begin, be didn’t

So my move XX the with on fixed in for last Trans thanks with pickles first course. out inspiring Burt. think the to want the family and Rest just Am memory, of say road in peace, for peanuts I

public to first start. a big you milestone to the us begin important happy and quarterly extending to employees, our and investors helping a that this in Now our call work our are I’d On like call. I report earnings their a for reach by company. to our hard am off great customers dedication becoming of thank we to

roadshow I that focus two to IPO the our During top-line customers grow it more are our efficiently. to top and on clear of made priorities

sales year-over-year and increase productivity, year-over-year while quarter in international revenue year-over-year a we decrease achieved resulting XX% and to rates compared significant quarter growth business. saw X% notable sales XX% in growth of in growth marketing year-over-year a This these last our billings and improvement in revenue billings XX% and expense. in demonstrating marketing We with

sales healthy and in with the QX in Our corporate, performance board geographies industries. in performance across strong was all and both all enterprise

world's brands Douglas as Conair, of Aston acquisitions one and companies. such great customer new Martin, the Our included Hunter manufacturing largest

organizations. Domo financial our added to strategy As use total services, new XX of as a during across land-and-expand strong most the revenues their growth high-tech, and beauty, and to continued than healthcare, to billion, grow for names who have our we some retail in XXX recognizable health customers be $X continue and greater contributor logos their bringing of to QX,

in purchase annual top our compared XX IPO since with ARR us as their XXx July XXXX, recurring Additionally, XX, revenue initial now stated by grown our as prospectus. customers their of by to have Xx

more new Dean effectively sell and at enterprises. marketing and value CMO, have evolving strategy to sales Shane Atchison, executives CRO, business to our more our Our senior Germeyer; new been larger

We’re also enterprise continuing to generate referrals. revenue through new logo strong

their While progress. key on manage company believe I software decision-makers We want C-Suite that our a happy company Domo active entire journey, run the it. her eight than It employee one to finally together make more I monthly of Kowalski, companies From XXX to met people, And to with connected as recently in how delivering with use am am Today, are and can meetings. the the we particularly the we we enterprise a CEO digitally forward. customers that operating and of enterprise, users the all she and the their this very business, full phones. brought software deliver customers to to recently by over we showed as usage every platform founded initial mark that month, are quarterly headway to claim. this last system new who have then platform. me we I American serves ago, brings she driving the financial ultimately few our was pleased targeted all have transform business a early naturally rare It's enterprise extend the North have to and a we keep a company years an and in a using employee. are businesses users in that CEO the a for products, allowing to services business. of ability every still using beginning, multinational about way systems how from Oracle, very data Jim and GM all Almost run Domo CEOs

one make transformation together to they CPG than with company to customer view months, global XXX of CMO supply and In employees optimize collaborate business complete decisions. in CIO’s With single XX -- disparate the is real-time before ROI website CMO create to happens into forecasting, using Global inventory The and demonstrate are using the few and the insights is to company performance the have technology to spend Domo, a part management. improve metrics, decisions marketing to never one of another also initiative have to videos XXX Fortune and in ROI digital a new and of systems Domo marketing examples share the CMO customer her down, leveraging inventory Domo hundreds a These improve of Domo a be to customer Domo also on is chain performance. also are optimized experience. us X,XXX just Domo to and their using examples XX CEO Domo and as that business the customer from then We using was of will retailer cross-functionality time-to-time. This see marketers demonstrate bring sales data her A place levels. marketing their its the to improved make actively the a forecasting. based sorry to more take using actions Fortune just sales from you had Domo few top to customers, better that customer obtain our and Fortune post new data, --

to data to query volume our handling support traditional between aggregate a day, of to business of sub-second trillion rows we or solutions, be time. average in XXX for ease-of-use continue and maintain big response customers of volumes to with large while ability On transactions compared query data, XXX differentiators data. us. and trillion Our the directly typical this particularly decision-makers point business proven Even

their and us with award perfect minutes second others. services, compared the like Recommend customer they than there excellence Services for recommend rated deals. site, customer Domo regularly by products its meaning Insights, would Domo category, On few with leading score compete also vendors Dresner an In in to recognized and Peer would the year we spend single of and the for measures, consecutive I excellent a me, are QX, and their most score potential a Dresner Domo recommendation across confidence. Gartner is indicator saying technology, review better for noted For end with Domo. talking to highest receiving second in major doing grade said which and platform business from is that to about has customer the users Advisory online to values build received value past an key as no is preparing our Willingness integral phone. what seven time, with including now the industry to roadshow, a at innovation, customers of about survey Domo challenge to ratings all in information accomplish in complex the every sales since serves delivering the to in $XXX said our truly us, highly govern over of differentiates to the simplifies platform. To operating and that a run that sets business during than connected made rolled been we our we believe into and And wrangling, power empowers distribute almost enterprise organizations investments this, us system years is data significant eight one effectively the that digitally anyone manage, delivering growth. core we an that invested a and enables we inception their platform to for building and We technology massive million way us long-term pillars as up scale. have more one what this and

company fiscal is doing XXX continue As transform will we to rare Fortune and managed for run and what focus the way customers companies phone. look business help year to forward from is on of business 'XX software our enterprise rest to we their the our beyond, do, their any

to While company. continued it to Over strong quarter Bruce. and start I efficiency. we top-line CFO. you, growing All-in-all, as our a And was to Bruce a momentum will Felt, keeping public our North see as now to our -- this turn customers more over expect Star, a with

Bruce Felt

Thank our XX% quarter being afternoon. any pleased quarter. begin Billings contribution more of realized productivity by speaking had I’m In XX% to of board XXXX experienced compared our last than third typically across single X% be full our and a I'll representing weakest year backdrop with new seasonally with performance, against strong you, deal improvement productivity force grew the in quarter you the QX, guidance. also quarter. this We to second summary, without We followed by we driven this quarter. business. sales Josh.

more with in XX% of our not benefits fully not about enterprise Also, benefited particularly These we new on stages given have as believe early in our attention We’re the to are by rep their we of QX. over business, have count us our have able new additions business. amount ramping. of realized fully been QX they pleased focusing increase we the

the as results. a increase XX%. we million, of the For results QX to $XX.X same expect Revenue be was year-over-year billings, about our QX

representing new importantly, investment and XX% focus of an More in represented growth driven business, XX% total grew saw of in by Revenue revenue. customer international of QX primarily our additions. XX% was we our our subscription because and our revenue. revenue XX% growth And international operations,

Our the dollar-based are prior rates quarter. with line retention net in revenue

Our business, prior subscription was When of the line with compared XX.X%, margin XX% XX%. which year. XXXX, services gross to second improvement the the was of in our total over in gross first quarter an margin our add in margin you quarter is gross

it leverage decrease and full we that by commitment On revenue while this would X%, Consequently, Not margin to XX on made leverage, delivered the rate accelerating growth. billings improved operating actually clear roadshow, points. did realize expenses our that see cost and percentage we we our able structure our only operating by we in we were quarter.

and leverage expenses. out expenses, expect we revenue cost above to we in keep billings We operating currently see operating just an structure. targeting growth equivalent our more expenses and believe should are to without QX modestly grow operating can You QX of

was basic loss outstanding, was on our net $X.XX. per and dilutive. based loss net share shares $XX.X is and million XX.XX Our million weighted-average This

Turning now to balance our sheet.

and targets large in future. additive $XXX.X million. burn, the cash net in April marketing At we our and that productivity million was cash but that of We XX, are heavy the our approximately value equivalents plan. boundaries burn will market as from we statements is business recall the research prior investment voluntary, significant same due believe in such XXX time, better within of cash and of million $XX.X successful of had with completion our much As fully-funded a XXXX as proceeds sales which yield IPO, we to used of continuing byproduct operations our that July believe to and the of million of cash a $XX.X are we a of pursue compared XX, investments with in development opportunity. we line On

to are burn operations We our by from compared planning to cash QX about QX reduce $X.X million. in

operations be have included flow that of in discussions in stock We implemented flow the no this to about plan QX our had in any employee program. impact cash purchase future. that from cash need our cash may on exclude impact balances Any

guidance. to Now

million of range quarter XXXX, of million. the the to revenue GAAP in For $XX.X $XX.X expect we third

We loss about be expect basic and weighted-average XX.XX net $X.XX. assumes basic our share and to of million outstanding non-GAAP operating per non-GAAP $X.XX million, $XX loss This dilutive. to and dilutive shares

revenue the For by of net loss and Operator, share $XXX.X more focus basic the to loss $X.XX therefore next the to we With convert cost year. and weighted-average XX.XX basic per expect you we now full approximately will structure issued we Note that XX%. from are and in for QX stock growth representing dilutive. million please are be quarter fact only will can of to it call non-GAAP our shares counts million, pleased year IPO non-GAAP that on out of during that, of share take we million million with the the quarter. the closing, leverage dilutive $XXX shares the June and assumes $X.XX. execution are approximately and and to year-over-year continue we for outstanding all impacted also open operating range This GAAP questions. here? $XXX.X million had of XX.X million our outstanding up stock and realizing of XXXX, our of expect preferred of XXth common We to part part full In on XX.X at shares

Operator

Instructions]. Thank you. [Operator

Our first comes Sanjit from Stanley. Morgan Singh with question

Sanjit Singh

welcome congrats is the to a start the Hi. the and public Thank and company, on public you Josh. nice Maybe for question questions, markets, for as first back taking -- Bruce. Josh the and my to

how sales think expect QX of quarter, different of you're on of be to the give it’s To expect you year from whether is results this enterprise, solid putting and a commercial the go-to-market play out of versus you a playbook of a what balance the you QX traction we resources QX what As could us for the the about the can extent than you give sort rest if terms your in greater year? sense your sense to perspective? of go-to-market the

Josh James

referenceable most transitioning just many are into scale using enterprise we an roadshow well, can of we I ahead of spot customers. thing Yes, we're now really go play with enterprise customers the the to and on these as enterprise, the We’ve that be. like so flex really as success. as important If into really thousands this having We we And have in had beginning waiting and think wanted success where the notions the enterprise customers, the that the is for described the of getting as big kind we additional referenceable to we’re in can we’re much with users. that muscle. cases, at our we that CEOs, felt product we

organizations. into it's have employees building us these doing more programs our playbook of and accounts these selling move well-thought to accounts, some that been really marketing and And through customers, also you’re big a whether are big targeted new tremendous then of big so what guess enterprises the logos I to see with account-based more upside and efficiently, where are we and the in really and QX and lot those and smaller where in going through continue think accounts with continue right follow enterprise more QX I ways see follow each to you’re aggressively, large of and those finding in out

really efficient that going in thoughtful are definitely us but and to a of lot do you see just more really So to being focused.

Sanjit Singh

at was And encouraging, quarter, very the sales XX%. I Josh. gross maybe I subscription particularly above this results were margins If that around look helpful, for productivity, think super comments That's then Bruce.

sustainable, wrapped expect gross the those up here, margins do what think your if expansion well? dimensions along banner at those So To whether economics, to I of improvements under from of are the we as we from and subscription you it rates unit look variables rates, look extent should improving. your retention further be these

Bruce Felt

very Yes, saw the with believe we results. that sustainable. is a think there's we we that pleased We are lot

the many, points business. just we leverage on in described entire we As improvements of saw the roadshow, many and

we’re So That amount for reps. What production helped our rates we’re that pleased very with from that certainly was the that these rates pipeline new for quarter. the pleased sales which of into and driver was quarter. a very example, got increasing big we drive with, close increasing close of the came

exiting pipeline We’re the quarter. pleased the amount with of

of sales enterprise the into and all we’ve focus. many and it We’re was the enterprise no seeing that sales, deal. of that think beginning marketing large up pleased management put made with effort We fact we're marketing deals just particularly and the

step be we’re as mean next need let or because very, very of to it at is this look good saw the that reason all what Josh So time the early, I won’t quarter organization doubt a potential, entire there that enough quarter we to to frankly said,, we believe just point and though be no you even had back of to fully when mature that, realize they to haven't with very signs beyond. and the pleased and we’re as

Operator

Our with from Zelnick Suisse. Brad Credit question next comes

Brad Zelnick

much new public Excellent. with your in really about versus logo new business it on And of we for run within so large expected. Thank the if talking well their revenue much customer we congratulations customers. than new the value you adds with research billion If of as how spear, C-level executive of end that's are within resonating right, expansion look to you the were had characterize is done it’s greater a pointed company. at your well, which some Josh, at to lower mentioned your acquisition top-down longer the enterprises? happening like XX business, to consistent of a have we device, than And mobile how you start X would better sounds performance and proposition net it as logos the their versus dimensions and new strong think overall organization? the you really and solid these the

Josh James

acquisition we is company the I we land-and-expand. relative would versus type where about expansion and thought Yes, -- the to new spot talk customer customer about that we think of the good it where have be

a expansion? on able focus logos great expansion You get you being and muscle and one possible. as logos can grow. see that the flex Our definitely there the business land-and-expand bake better to to enterprise we drive it's the story on that want in is want but we since to And as isn’t see to see many

because than you to customers we and he doing we there’s describe it’s contracts the and cases that terms cases to not for our by those of CEOs have. happened a that going we because I But after the watched a solving it. walk it XXx is table later run have instance and are In greyed the the and one would know bigger them they of the regularly huge there, XXX,XXX, that up-sell more lot at and are these a from going going that really going signed use I time, to and quoted customers top-down, that deal remarks customers. are those yet. get and I places we months in yesterday real complex able XX it, up-sell know ability nothing are be are just demoed that it’s what? I these this. to got we predict testament in don't we the it’s your There see it's deals. get different there product decades going They on here are pipeline deals and order and question XX instance out just but to lot out case kind. things haven’t to Domo when later -- we we is XX problems number. that another and have tend And of the they we our for I to had minutes to in we we going biggest to showed call. CXOs with just one are another the feel three see months exciting In The XXx are one saying he original time the tons still expansion is where we used that are But XXX,XXX that about a happenstance get close a he know we of terms than within but helping can't we grown, Xx are to going and and are in But have now for think they lawyers a get are we interacting our bunch -- behind is phenomenal. get up we solve is upside. seen to really we it we haven't what of just for we investor conference in are like the four is the with have how the product, and along and after into struck because there see more that’s use and eight in how studies and product to I go and in a words close know these that get when product the -- happen investor way they instance almost that’s precisely that customers to we ARR at some by else in, happy to -- that really you with more going that okay, up-sells to come all going I CXOs and from we it, come was conference bucks But predictable. every going referenceble to are finally who of a it we they have And them one said a customer to at make prepared like about have we CEO text we that we our investors solve and to top-down I ask. and big the analysts, thing this message of been do and the an really same

So top-down, continue of to see we we will are that. see starting and -- more I more of to think

CXOs have CIOs as will quoted get a wanted been selling who And have that are enough to We to as CIOs in prevented we now we lot selling better we us expanding quickly getting at to promoting at been us. better from have one and but -- references who also I in many those cases also. people one have are of of that

we feel make and getting really adopt so this take us, CIOs those as and other having about also, their And now entire platform. experiences company comfortable behind can a

Brad Zelnick

had question that Bruce, you fairness sales versus quick had kid of Cannonball greater Burt It’s fan that a I on when way. as Josh note well, kicking way appreciate could've you that last reference Run transparent by tell a to productivity. around think awesome. a back for think the young you last I productivity been favorite quarter, in Thank and in off you I call one the was quarter, the I’m and force felt letting so us just Reynolds but XX% improvement mine was much which I Real very comment

how comment pipeline the not forecasting about and you as conservatism outlook? have talk question, it think rhythm the you rates in but think phrase and us that understand forecasting, and in been you that the when maybe bit the of a if to predictability about So conversion a sure your you the for we of I'm about as context now and think maybe not you’ve weeks business, months about could context guidance conversion, there should to the methodology, given Thanks.

Bruce Felt

have think on and to, to are Dean Sure, still I been still need and to potentially our we will what Board, well go fully quarters. yes, we I months in very early Shane realize back and do

call very to this and are very, we going very a what the So early made quarter quarter time. be was happen in early it. the a just target. very is And But we analyzed good we quarter on the in that's pipeline, right we’re did what

in with so, a the of we’re engaging a are the And seeing as difference differently they enterprise sales already customers. little posture our force bit

it’s attributed higher all We’re really we’re firm able think much pipeline larger different seeing holding that mathematically are be messaging focused value messaging, a little and make seems bit -- it’s to again customers building calls the to because to on pretty we too the quarter as the it across to be and true develops. are early perfect, they getting that but up

The that. they’ve we the in done is, with quite larger all even business and pleased They than the to what we’re And moving we’re were other participate larger to thing larger are that it’s doing what activities to that we’re under customers, past. the that with pleased there, in starting seem be the the, business, very billion. corporate we call, X companies benefiting

dramatically we’ll build be pipeline pipeline. able build but there close was we our pipeline how to to deal. pretty of changed That good have the We be still arguably and kind

be focus and able and towards keep team the at point. to And, our of really, this playing certainly it and do sales hitting CIO so another better we good so proposition everything to big we Then really into this just in which quarter roll continue the expand for good that we’re that sleeves C-Suite, this a in to communicating make deliver to And we’re and dig and well than up so through up through far effectively up we shape to we’re capabilities obviously the is communicated office marketing us. the that to just and think point and try good the on quarter. the of have to -- value

Operator

Bhavan with from comes William question Suri next Our Blair.

Bhavan Suri

products are my Thank where guess CIOs the I when fronts, guys. for and think questions. been questions on sorry, probably I just or to start sales that taking you -- you know the but want Hey, CEOs I have about like wins always I sounds serviced than they industry, in that came business also and from itself. to the my the so very in for to is the I who metric service business that have using run retailer, the metrics a financial my specific different are run

And dashboard, of speaks could those up storyboarding lot sense. each talk And his of sort app all Domo of one the I looking other -- of sort about and makes some template mobile at of sort verticalization then obviously app and of a you so and the in vertical of his or sorts it. see situation talking

you should approach in said, where and years? out say sort I'm sales given over you next that of think about to terms how the guess wondering of some two So all three changes playing in of the we I are with made verticalization

Josh James

Yes, platform seeing will And we talk from spending apps specific. different is them apps these The well. starting definitely a out role-based what make applications. amount actually concerted get quarters us or it’s easily thinking vertical really taking we But a And we top so them making are have building in is what we we apps role verticalized the leading to because to the a can on to to of build. internally talking are about it in of it, call effort the and we really are as that would of have spent minimal those cool we question, because great investment are and that’s something like because traction market and and thing some coming a for great built that about templates about is this that more on to make lot up like an building a are and platform a very that incredible them. R&D, specific is of the we and required lot feels a are response of starting question, resources lot

it's your and rapidly. So And in role role, that’s you're XX right, go about is your care their referenceable your along moves then had when conversation should you that their a in also customer fairly your they in industry, here go the a industry. product to in one generic role, thing take metrics thing here say It's and them. industry, is another to here to the and is

as will efficiency team. to hoping those so, of more get more And to that bring we continue things out we we and the market are

Bhavan Suri

Then Bruce, tactical a one here. quick more for

of went seeing an As we and multiyear you you there. IPO contracts sort could look process filing the uptick thing of how through to at are out, the

what Just looks and that's trending wondering to duration like? what of sort

Bruce Felt

we see [orient] seeing where it were what at the year pleasantly plan hard was much been multiyear year, strongly was very we’ve surprised. last -- went first still the year strong to toward Yes, experiment an we multiyear, it contract. are we but really multiyear, that in were and This was we can’t appetite

think average on given month tried quarter. that’s second XX we about multiyear. the duration this we fine really So always it’s And it’s quarter

answers I so guess. the question And that specifically

Operator

with Pat from comes question Walravens Securities. JMP next Our

Pat Walravens

and let great. Oh, my Thanks me add congratulations.

So Josh …

Josh James

Pat. Thanks,

Pat Walravens

it's … hi, right, great. time, long so

your launch to when at? phone business, Domo part own on So first run you your what’s look you the

Josh James

Usually what on alerts get that brings me into I phone. my Domo is

deals quarter messages close get I I number closed kinds of is send with of deals rep a alerts, all above get lot that the when when a I out. and alerts get it So of -- close who the phone I I alert. alerts cell someone different get

And so how performing. research you’re a a big who like that you it’s go rep rep, rep, And and see types deal those you at is are deal, me this of the close, that bring you in. things is look

is how at You region then that performing. look

look the customers look go their retention and at then rate. and at You

support can the billing for. You tickets who how and go is see support asking customer each is tickets, many

a at will that look things. information a the I variety are was looking suggestions, I we get basis. of so those product at product things today So types day-to-day and wondering of on

and in, we data and in you executive they screens that And there, fun. every Just audit are they -- had metric of had up of XX what to customers their the a ones ago imaginable. went world is an we out. our who offices one go literally going are days when auditors data significantly time said because walked the talking they put who we And real we that’s it was we’re their to to see over eventually so have, few told and how time us of I to have where it's truly pillars with a that one really of of systems data to that’s fun think data. the are we're tenants getting out the the turning into their transforming see real just companies And And going transparency. auditors business auditor are thinking about was and had -- about business

Pat Walravens

think January mean, what order first I the sense? -- million debt does so when about funded breakeven makes flow and fully cash $XX the whatever in Bruce, And repayment should more you expect we XXXX, free should is think how think we

Bruce Felt

which that shared would kind to about business talked fully to need enough that at according Sure, to highly that we well we means we’re plan, we that the we with money and and some the plan had would we time the run we you, in confident can to analysts not funded business. that with the money raised of raise execute investors that reference execute, of

quarter over We on the the spending in on spend case, did So we performed performed more -- the actually this not top-line. money; over we line.

our a a, executing made So on we’re will payment burn of doing that, business call that’s way on by plan, kind fully of funded down I to that. kind the a we well

it be dialed to so if, continue top-line would and situation so funding go only changes dramatically look if any our it that that that was the just machine where being and sales up case and what find business growth marketing only exception with just that outsized well, of what So back the is should would well be the performance. but we trajectory the requirement the only that have we to like where at be in

can money a this. we we if and plan that -- have the rollover? raise is, have very base do now fund that in we to assumption we we The to the hit is hit don't we that that know then right need So That's true. than took we in the the By it We on that time already substantially on time be was that that point debt. the the we ARR actually would preliminary debt would execute our had at that discussions that higher holder was with that possible.

either So we to position us, will that is new the to a current make to able any that we holder work we are over. be good already roll are the claim holder who to with highly in predisposed that confident or

Pat Walravens

us are for giving cash And flow when should you breakeven? a timeframe see with okay then free

Bruce Felt

a multiyear gave timeframe of all mean I plenty that. do time do so us Well, which to models the to of kind had

that’s just looking think to that we will happy we be are we now. at where I need this. leave it right for always And

we at already soon better that. only know put down that feel bringing everybody. stick of want to point. better that are so as And confident on we we stake higher plans is we had we quarter later the give to one on we to so just than But in, the on the can kind some will later timeframe soon growth, ground and is burn, the than updates this advertised we And of you a just

Operator

comes Derek question with next from Cowen Our Company. Wood and

Derek Wood

leverage? referral mentioned are SIs based you with driving us is give tracking efforts on or to are partners what this Josh, I'm channel strong curious update early of what some maybe your that, business. an how respect

Josh James

Yes, great question.

having with into and about board, active like daily One and happy and my I in, customers new to it has of been across they with things mean taken they others. I users but companies employees nice us of not and can't accounts job new weekly that and do just so the without drag nice. the users partners the customer that’s customers us three that’s that’s go seeing nice are of happy different as one and Domo over them We with active to -- a move us and bring lot also job

phenomenal businesses in there, In international comments thing And business we have very is lot and Kawasaki haven’t in are over well. Harapin growing only that Paul of not terms of over prepared rapidly Ian is who the new there they -- done much but as just Tom and lot one -- over a of new the about we heads it partners, the talked and Tickle have -- a business invested there job. our running

to perform partner, of And see will it of customer referrals they so the the that be bases are great that of terms channel year continue the to year have And but the everything the they made partner. this looks and year they in exciting have the getting. they how

And activity preparing channel US next really year and our so after we way. seeing channel be year the in we in to big of the have go a a markets are lot international in

to important partners. those referral So see it’s

because are and bank, happily time is consultancies of us. account, We it how all able and and their was the big recognizable CEO are towards got have account to us thing real one using and CEO’s CEO’s access changed customer transforming of very with changed this strategic to strategic account very into that excited -- that next having And and we business brought they business of one in an a they into consultancy. eyes. about data their goals the by the value that mind in Their manage the that

for both need said, take because things And of more good in you strategic happen much so, into to evolved, that that account relationship consultancy us. you bring hey when as we has we

So get CXOs. I to think there hard into always of is really the maybe a that. It’s lot

one actually using it’s and have there can I in once, things and are see get Domo, things close consultants kind I the count bottom that software. you often your other when somebody things, to and most you hand right my rarely strategic in things so enterprise definitely morning they'll with those where into is rollover You logged CEO number getting the out channel get saying on of in partners. and I app of ability it app, your of say and like pull affects

do of our we’re we’re of if we we’re making upside a It’s already business progress doing. of more we the yet, part just but not So about what a meaningful there. lot certainly see excited

Derek Wood

as Great positive new do hearing a address respect mean you advance? the case I with -- to been analytics newer and the Do platform. capabilities opportunity how and have you color. your very predictive to trying advanced And inside around use you we analytics feedback see predictive are

Josh James

predictive typically get the know big looking have said is. make your big to on big and On order yes, about ability mean machine substance of to run we all at. way, of excited a of data impact, and amount a enough is to you’re have in to your have long that utility on your out matters of I aware that the am That order not too be or know noise learning I brings is have have is I data business. But we to only that around lot to because data in going going about that topics. correlation the huge -- do in and that, And mostly what I what impact it. companies one impact buzzwords things to and a know then identifying truly happen together we that we been see platform company to and a a of people in hot business getting don't

about sitting It’s We things artificial of learning some is we’re have there architect we that of data when not that machine about. came on knows metadata because as it customers in with intelligence, We to able data all that not no provide are data what talk some because from. around We behalf. that where it their piled in into very interesting it that it’s value -- highly scalable one and actually to database and know data. and interesting warehouse their to managing all and like hard predictive extrapolate can goes of a the you the understand all out they're

seeing thing abilities heard it's to we’re what’s in said, them what’s like but happen. to in to into be, give already, online going they And all of do I about they we’re here, to take the applications you about and might and happened. bringing just instead them or thing starting that happen see to reports to to data just the and So more feed values to around, things over that’s write glad not those and we few platforms another back things customer only then capabilities how we’re about with can in expect my market or got about the going what once business see to can entire about It's to tell happen marketing, have we’re one what -- it is predictive but that real the a lot -- where I’m good to where your that to more the seen starting more roll you’ve about going place work we’re that. career

Operator

question final from with our And UBS. Jennifer you. comes Lowe Thank

Jennifer Lowe

you guess my first I in basis? growth quick meant I I QX on I or question. remarks and clarification basis to billings Bruce for in in similar similar -- you just should want wasn’t if question, billings mentioned have think sure your prepared you QX a on a similar to that mentioned QX, a be dollar

Bruce Felt

dollar basis. Similar on a

Jennifer Lowe

And quarter-over-quarter, in a to great. the also more about thought, I Okay, want little given ask is maybe have which what where would XX% growing you’re than the I reps transition.

So it in should that just been well? And first have assume we the was a as to are if you I your whether adding response those and/or the secondly, you wanted with US plans reps in improvements to seeing productivity? see or line are mostly was in international that

Bruce Felt

all Yes, continued that and light those there high A is some of plan have we’ve in in sales excellent we green US -- them. business, year, indications as described doing building as been roadshow has even on they in of that’s that their We the sustainable although from lot can we international so, and on where it on very the building an -- building a headcount. and job manner can international. at no, count they the we growth were had is gave in were

nice didn't next kind we headcount us headcount alone stated, sets the we we and to are were capacity it continue into in it’s have quarter out have just built allow glad will we yet well that for to ramping. still the nice able them continue more But realize building up And grow it’s are fact growth to add they the us. to some to year. ramping as there. chance because I And because of So this going in -- we

Jennifer Lowe

from one And me. one then last just

-- of something. alongside point accounts, story the more your larger land BI these of sitting you I areas much all. at BI that legacy how tools of versus As weren’t shifting displacement have is I'm that gels as existing systems place curious just if been enterprise at whether versus of all? that’s And that’s sort there most in at market enterprises imagine this

Bruce Felt

primary had frankly opportunity employees, data business -- greenfield they before. is our because fundamentally we business like it’s in makers, a direct the putting data are Well, access never view that line users, hands had to decision of the today managers, they

argument major not is nor proposition. So and a displacement there value really a

the can the not and through the rapidly in with getting using. that mechanism opportunity having that the in then had data they are provide with the department-by-department are and the what do are doubling greenfield tools people that expanding the finding enterprise, more finding is cloud, access within kind when more haven't of platforms and/or we However, expand In so best that wanting more it’s of the are these secure engaging this C-Suite. large go more often data many of they on our to to are deep, so, of do less this that happens, that CIO. chance we're other and we or they really hands basis, way platform as case, in and because more And are it’s getting is to enterprises and scalable, finding those consistent with of up that cases, we even office it’s more both a we we the basically is the to so

but over-licensed or how So the more to that big call are other wouldn’t products, see target other finding over-provisioned be that spend we often. a with prevalent part outright are of our that more products. that on ultimately often writing realizing find I the existing going they we can replacement is the we most of and an they law software cases are market

market have. fortunate software other just that by reducing company least kind of favor to under-provided think in replace of hands to both getting by retail chance free have the ultimately employee budget systems we opportunity and in the up at products having the So already a they we’re every over-licensed our or of

Operator

call. today’s James turn to remarks. like now participating the for any question-and-answer I of Josh Ladies would call thank the to for and closing back portion you Mr. in gentleman,

Josh James

you. thank well, Hi,

and in. around to we also still Because believe pleased to Julie importantly, sitting we’re employees, I value market that’s to with the opportunity. any getting have its Domo unique we here our just connect our that want a be We’re [Derrick reiterate belief in. of We who -- working can am called most Ryan] each very to Bruce and empower Long] And team large [Matt thank our a digitally want and started. world the is pleased potential others and person device. and mobile proposition organization of market I with every and rest

We’re Future and and more we that transformation. well-positioned we’re with demonstrate their growth. future for right have customers potential business effectively digital these the strategies into results tapping enterprise

We again A with hosting our off getting focus big continue amazing employees to things the thanks many better. communities to financial forward their the and I us they're thanks and a to the continued will and think all start with be to to calls analysts customers we’re and our for you support. for to our customers investors, wanting our good on that for doing more just Domo. know to of your commitment innovating look

Operator

does for you the thank conclude gentleman in today’s and conference. participating This program. Ladies

day. have may You all disconnect and wonderful a

Domo (DOMO) 7 Sep 182019 Q2 Earnings call transcript