DOMO - Earnings call transcript Q4 2019

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Operator

Good day ladies and gentlemen and welcome to the Domo Q4 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] As a reminder, this conference maybe recorded. I would now like to introduce your host for today's call, Ms. of Public President Vice Kehoe, Communications Relations. and Julie Ms. you may begin. now Kehoe,

Julie Kehoe

much. very you Welcome Thank everyone.

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

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

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

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

Josh James

to good quarter back XXXX for a earnings QX Thank our you, our third public and company. you again be with as It's Hello Julie. fiscal everyone. call,

For on of much strong is three believe outsized focus that all opportunity I us are indicators today's front intact. the still want call, things in I to which very

and First, across IPO, growing we execution. been our towards cash strong shifted our enterprise-focused strong market focused including execution, as business to and before our platform our breakeven first my continued apps validation. third, flow spend and second, we've of sales progress on marketing customers; target; the a adoption more the On growing point, Since rightsizing model.

XX%. rightsizing we While the hire waited reach higher for larger we opportunities American We reach sales more marketing again. North and right reset a team increased before targeted also approach spend, our the to starting and And sales sales we talent and growth QX are and with XX% sales of decrease reduced exceeded organizations. reps the of able results. in a These while in positively a to end reflected were we in We year-over-year saw QX changes XX% year-over-year revenue our and billings and our also increase deliver targets, marketing expenses rep significantly productivity headcount to through in year an in to we marketing year-over-year all rep decreased expense. growth to all

that marketing increase XXXX. and in fiscal our this he's announced to strings headcount the Bruce sales rep efficiency, aplomb new with So, has purse opened with great year

growing our into XX% headcount swiftly. in We've is we QX and reps This in costs fact, occurring increase our while expect we selling hiring increase grow to space. another year. alone, on focus this reduce we are to In and XX continued new hired continuing enterprise rep and

XXX, to XXX more with XX quarter, the added end total in our we than enterprise number customers bringing revenue year. quarter of as fourth of the from last the up $X of customers, During billion

as customers financial under enterprise auto services aftermarket more most North than $X firm of management. in -- with one retail well-known based this and trillion also America's Uber well chains as quarter assets U.S. and include a New service change

As we've of $X our found is this that we're in the part our to between a of to of the size companies to a last larger me seeing. big A success XX% same larger of quarter focus, revenue compared increase in in experienced enterprise-like corporate terms bit also our We on asked and million deals, customers and and billion of enterprise quarter year. renewals from corporate business business new and upsells, we part focus quite $XXX there. business

In to and deeper of flow more all comprised our than Domo's XX% and clear $XX,XXX of is cash is paying A of this annual business while achieving that. performance second and fact, achieved us revenue a capital. revenue recurring towards is big significant customers my our making expansion progress We've without organizations. in part approximately deeper promise profitability point, corporate adoption. recurring of our raising contributor On key into performance additional

goals the $X example, mobile to Domo expansion where a billion-plus and home As view smart CIO our they with company, custom Vivint, built give X,XXX its Domo on a deal pay an platform. an stand app against on salespeople a through of recently signed their real-time

example, another agreement to align an solution An rolling down after everyone to the the phones. lines executives. of providers, business chairman their culture for real-time and its financial seats In one of will X,XXX them how and business country. its into app North relevant entire CEO out executive and business to XX,XXX After run America's with to timely had a across insights added the users, to across give example, from business, additional company communicate people, its for from Domo their Domo company services purchased performance customer staffing manage key last signed another largest X,XXX metrics data-driven can empowering quarter quickly teams their experiencing initially the of Global a its enable the team sales Vivint, actively For XXX units. enterprise-wide

of signed of alike. delivering its year. model platform, value data firmly QX, for demand the and and parties use realize, And voice Domo been and show its to in can the than to growing will Lastly, business the we analyst value market products keep of showed Forrester new shown and clients years one of research deal recoup solutions and its well. GfK, believe in through cases, with in In has use on is that validated produce one Domo We over study completed a delivers also our area, particular a three market firm a extremely solutions. investment In over once average, My GfK XXX% our third examples parallel, on this also a how Domo world. their content they and notable is power customers their own growing expand leveraging test These expand the features Everywhere of point our independent expanding all have trend also less return the strong Consulting where upsell third that seeing the business apps validation. customer. we've platform We're largest investment all customers land the by within is customers research its that customer, and a platform. implement fourth to globally, number use our GfK and

to for Intelligence Magic and cost rated one comes customers value, Index. of Value fact, when and love that total achieved. platforms also us. the Domo XXXX BI number all Analytics as one ranked compared categories business product. benefits ownership, XXXX Domo by in five noted was investment usability on it Gartner number for business Customers for of and Research's to the Quadrant in In Business love Ventana Analytics was return Research's vendors seven Customers

confident through happy to forward and And turn with from seeing Domopalooza our marketing through software, expertise board. Bruce? up also Symantec both I understanding model some to nuances of Board. her and CMO Solomon And financial recruiting and helpful. our especially for enterprise over with how CEO, the board when in look I'm contributions thank to financings her public the to Clark, it the executive that great benefit to to as at be week. channel. he and into I'm coming who President Particularly and product as changes two how immediately. came Carine have a our to We Carine the has effectively Bruce. all leverage you I'll business, management, place her of model, all Banyan Domo of served working like and operate will insights is member. his And tremendously welcome more next looking direct I'd selling that, of of his was of taking and effective Altiris. the Domo to bunch a call for will announcements Glenn customers to companies, to the forward

Bruce Felt

first by XXXX with million. Thank I'll XX% Josh. you, our quarter. $XX.X We Sales guidance. quarter followed our and quarter begin to fiscal grew productivity full improve. another fourth Billings strong had to year continued performance

compared posted of last business QX growth new business to in QX corporate Our year. positive

growth continued business QX. EMEA billings doubled our Our international operations outsized to and its than from drive year's more last

North exceeded as enterprise well. Our expectations American business

momentum. primary sales accounts. base of growth XXXX mind, significant every think groups one year be net is fiscal reps total driver in contrast new even to and With were add new our acceleration continue and to year new our in build in which our potential large ramp and out fiscal during to America selling new this into in renewal installed takes hire, for the to our billings The new our North point customer ACV. to successful have believe like All decrease of train we of to accelerating almost takes XX% time I to reps includes it we ACV plan more the will generate XXXX. accelerating billings, that quota-carrying longer I'd in billings, the reps

of above we the XXXX. account fiscal as all our such, plan total into taken as we have generate to XXXX million for in fiscal We plans and billings $XXX billings constructed

generated billings We expect million in $XX be million $XX QX. of to to

a represented Subscription growth sales was QX, represented driven by was year-over-year increase revenue international of additional Revenue grew XX% mostly total and of Consistent $XX.X our of QX with XX%. installed into revenue. revenue Our base. million, revenue. XX% XX%

into have Our expect our quarters. rates greater our be our in seen and strong supported our we net margin improvements XXX% that model, we to share improve installed we renewal leverage QX, fiscal rate base me To of the fact dollar billings continue Because sales QX quarters. to dollar-based the let do inherent retention future demonstrate prior with in in line the were in have than our XXXX. seen in and by renewal

our third from XXX Our subscription QX total cost plan was XX.X% percentage quarter our other continue due Including margin improved improvement of XX.X%, XX.X%, XX.X% Services of in to the center full one-time and compared manage the a improvement margin gross the improved in to significant business, a additional operating year. points keeping million from with point XX.X% while personnel our increased able XXX and mostly last consistent hiring taxes, quarter rates. data our QX, us a transaction margin year Conference, our subscription The grow sequentially, to increased from we expenses more XX in this plans demonstrated up prior years, gross billings We our and effectively keep up percentage to to as basis to gross we XX leverage flat compared seasonally revenue improve XX% from average fourth lower XX.X% have basis sequential year. $X.X was also payroll QX costs In of lower higher we're Annual quarter. operating our gross margin last and margin though operations. decrease to were to last points execute QX XX% by year and supporting effect get of to out and last services by reps in personnel. Even almost and net expenses with we last allowed we billing from marketing expenses revenue due points hosting to costs. by operating able sales QX, quarter. expect and to In flat full User by the

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

of as of January cash Turning an from of the cash $XX.X XX% a of and cash million. operations QX. million, prior used We equivalents improvement $X our sheet, reduction now had million over balance since and we XX, quarter $XXX to

of our sequentially our and operations burn on purchase flow cash XXXX, each planning We impact Adjusted from the are flow adjusted effect cash to employee our balances. operations cash fiscal decrease starting have stock no which QX our will exclude million of in about cash $XX.X for from stock of $XX quarter will -- total, year. the plan, with million of

QX. plan occur purchase under in that The will first

to $XX GAAP the first expect the $XX in Now of XXXX, million. to we formal quarter range be for guidance, revenue of million to

We shares outstanding of $X.XX loss share net basic and average This -- diluted. expect assumes to weighted non-GAAP million weighted XX.X per basic diluted $X.XX. shares and

XXXX, representing XX%. year $XXX be approximately year-over-year For of the the million, range to we revenue expect full of $XXX million to of in growth GAAP

reiterate net revenue We per operating basic to post diluted growth XX.X closing, average expect share results loss with and pleased continue $X.XX This with shares diluted. we're we our I'd of outstanding weighted assumes and non-GAAP million strong like to basic $X.XX. as expenses. In to reduced

plan. strategy approach go-to-market We fully is are the that confident we and a have business right funded increasingly our

continuing increase pivot us future we'll Operator? up open sales toward enables the our growth call that, while to With efficiency. opportunities year this for success Our questions. our marketing and to

Operator

[Operator Our comes Sanjit from Stanley. first Morgan Instructions] Singh you. question with Thank

Sanjit Singh

congrats real for taking for the the you Thank QX question nice to strong to the and end and team a year.

Josh James

you. Thank

Sanjit Singh

you break maybe the us and team international rather, the I those maybe guess, showing in off your Bruce which maybe to is trends between international the groups delivering could -- confidence. give relative it you're what's team three expectations? on -- the if you business corporate just sales detail the to you the the And of improvement more and enterprise, seeing for -- American if most Josh, North of -- out too giving this rep that pickup is sales in the maybe hiring. can start sort

JoshJames

the And got a And of year opportunity our EMEA. hire us headquartered in and are advanced operations. partly have with we work was gave the to opportunity some And there. also that I we deals we in reps we guess EMEA. there always think are North lot management here the that over felt year in confidence and We'll big especially that most of will with the there us well, our I was like created that regions. performed that a and there had We've overseas, customers some pull large users. really before, team really America those have -- that last they regions

some accounts So, we got great referenceable there.

performance that had on reps -- the confidence more exciting think in a I decrease some at that well we productivity started started on at now one leaning needed we the in and needed side, is, the that gave North we point. about And really And what's the come we right that as in new side. we really more into pretty looking hire started increases reps. America, enterprise and we we haven't seeing enterprise reps we had meaningful us the productivity seen fact, increase and leadership with -- then hiring as to

if On perform well marketing the with performance how able me. there, comments, And astonishing they think in as dramatic the decrease what's impressed to business look you I corporate feels we've my very almost been were I mentioned side, is what at to with extremely half a the spend. in corporate -- least enterprise and at

North them we and corporate And reps. that as perform it's there, where on more think bigger we to reps side, focus add expense are of I adding folks to the enterprise that's so majority business continue we're the then decrease enterprise-like, on American marketing be, is going we focused more could those like that's where felt and the and the on the and customers saw enterprise

Bruce Felt

enterprise enterprise whole the actually benefiting and mean, outstanding leadership And other team the, that in done decrease drafting tools and the making now. one that finding the we're slight the putting job are to what side favor together frankly, business. corporate and the leadership enterprise we hand. of an a have improve we're is, on just we're have they And and moves that spend on our our all has hand marketing all team the is just go-to-market to really dramatic add I the outstanding off Yes overcome in using for that right

reps will So, well hiring confidence we that us in reps. hire be that as to and group gives

Sanjit Singh

That's really one encouraging. and clarification I follow-up. of one question sort had

more are are pulling sort expand of that you. to On guidance. sort wondering comments the billings there around you're flow levers doing the you're there expansion. dollar-based was you that the from I improved that? -- higher your driver? that to if could of changing you the Bruce, Is that Then renewal or -- operations question was base? any clarification question, cash customer follow-up rates, drive my a are into repeat around Is the Or was rapidly what being things Thank and

Bruce Felt

Yes.

on guiding of And QX, million have the use in billings cash year clear, quarter on cash sequential I we're million to also for million in this $XX the each And we $XX.X of made guidance, use So, $XX are for million year. and every the are the to cash we in year. flow, billings $XX flow to that guiding comment be for and improvements million $XXX in QX. targeting

Josh James

And in the to platform the really selling the customers into I the current we upsells is that think terms we're customers, our seeing really of and the resonating. thing resonate message platform and have, that is

understand were bit taking we that's from three you resonated so wow, common that the breadth. conversation for, use can we that's day projects expansion the so customers I of build that again. your something in, but users, of And it, and that those platform next yet. conversations of time we didn't the in and and coming a And seeing addition focused seeing, we'll actually breadth one, they this the know go get is, cash-forward year everyone run we're and I and the how that going I problems the months the have and some ones to some see solve There's platform since not to over back the or we truly theme four that once our to breadth visualization and go a using those CIOs. And nice Domo, few hear or where business had or this we later then get platform thing years didn't we to really you organization users. the our we CIOs really X,XXX mentioned quite -- having or we is on trying that about can with you time it's use to know we're the in of app helping And a them XX,XXX something understand can six

Bruce Felt

Yes. just And was so because that was I customers with revenue using the to our on comment over mean, recurring from amount we the -- we see number specific dollar that rate, a and of strong, improvement that's was that been the S-X. the answer business ARR revenue-based And current rate we to we've through my revenue. renewal carried the flow basis book very going basis current a our

primarily have rates same upsell as driven to it's about by tended renewal be the the quarter. every So,

and penetrate wider the to is larger driving really it's these deeper opportunity So, accounts number. that

Sanjit Singh

perfect Makes you. sense. Thank

Operator

you. Thank

Brad Our next comes question from with Credit Suisse. Zelnick

Brad Zelnick

hear so guys Thanks you me? much. Can Excellent.

Josh James

Yes. Hi Brad.

Brad Zelnick

to departmentally, CIO but get seems spoken -- much as this Hi. it and to if Congrats find this adoption, get you've a finish to this now word And footprint the a different Josh, a you broader inside more calling you particular use got the ways, platform driving accounts. a top-down, of is with hands of more from broad a the sales quite mentioned takes an versus times. you I go-to-market of the on pinpoint year. think new type of how a motion, in It the follow-up And enterprise the time great I've bit it perhaps, well. enterprise bottoms-up to of you've Do in again that groundswell a account? within could more much change case? on now as these especially to of be several

Josh James

Yes.

the think moves. if bottoms-up. -- And we really I that initially move So, -- there's sales have motion you're was didn't the two

getting into an into matter So you matter an it doesn't account, one, doesn't where account. get and why it you're

starts you to to application, emphasize to you're that's trying our we're a an in application, But If talking moment sales what future down And folks prevents CIO. pitching about about the in blockers call doing the that the and an blockers can solution, what what sales sell you in the is somebody we CIO IoT process. IT, of organization, starts understand getting in it of to be future that really right process, get conversation. the maybe at them the solutions sales IT that they the If the that there, front prevents there to make the platform you're the you're front digital figure They team educating platform to marketing in in then at or but in doesn't should upsells. platform. have sense. higher and in It sell great, sell sales go definitely then is out and with everything found get slow

potential that the look all blockers CIOs you So, that certainly, were no I think, at you way, example There's across helps where have the It to getting good opportunity did I want on that, Can at customer, said, mean, for we those I that specific then great heard UX systems had a dollars it remove gave people. And and that things. platform, was couple is it we've and -- average us and projects here. have and just either now, I that thousand we an instance this spend we application sits data And in build with of board, application think or they okay, say, connected to get And really to they'd these data the over help had using platform something our hundred to that Vivint looking are us go is out we last because And are a technologies a for organization. And top that and at the also of us of spend bucks the here road. eight it were to when different all times several because they look years. all you the I lots describes that Vivint can the us? idea building they and the they of just get and down reports. with. have and several able -- I've leverage conversation. is manage they come their is people on there would other have millions There's been it's cost,

that's exciting So, thing an to been see with our customer base.

Brad Zelnick

perspective. in That's it's to just, increase your you. Thank the you've full proof points given sales heads XX%. the a by -- great what And for you number and Bruce, guidance see follow-up, that go us to great out confidence as and of year, have and the the

think overall quota on which and of to number you? share about board, as the we well should think expect field, embedded them about as have in in of territories, bring the the you the guidance? you how increases and As And Thanks. scaling ramp perhaps regions in structure can we the what's at organization terms you're what

Bruce Felt

should now we to we them, do it we away. hire that Well, right decided decided

and continue, for opportunities to know that, some sets this may cycles, of first frontload we're the half the we're give And can because year reps, relying then productivity And the sales try on to out be quality about really six-month really shot good it be on of that the done had to careful pushing even exclusively. get to this So, us that to takes end although be that fantastic We've but to We're them very year but get year us we there some there improvements so to a during the trying hiring. after. board contributed productivity challenges time, up for can looking the year. high get year. them you it and we're of forward by that thinking we're definitely in

what approach we of year. of we for first a kind accelerating So, to that the CIO. making the the is, picture our waited we until protect we now are, at the to want growth start have such a go-to-market And make year Board it's the them good half all of run on sure messages have to really because clear what really our after,

more their we with have very consistent have that and want reps in We tools to the are that. bag

that So, it's the overall, -- I the discussed end the rolled we kind to on is out them, you enterprise we've one asked fundamentally think for a opportunity great time before, been about And on us. side. particularly they've year. of Yes, we plans Comp of on lower increase There are quotas. have. day

So, place, idea which force. a your with good sales in we got that always

and lot capacity on more by certainly both Did building So, XX% quota a that increases bringing by the everything? answer reps. more

Brad Zelnick

Excellent.

you and much congrats did. Thank You so again.

Josh James

Thanks a lot.

Operator

you. Thank

with comes Our Securities. from next question JMP Pat Walravens

Pat Walravens

my Thank congratulations me add you Great. and guys. you to let

Josh James

you. Thank

Pat Walravens

Josh, you're tell I'm wait go through QX" My time. then, me. until like, one first question guys said, dying to but won't is the same I asked And Bruce you, last And let last Pat, you time, we

think will do So, when you you breakeven? hit

Josh James

yet. quarter we're credit the for with word to couple we I like burned this tended necessarily $XXX-something terms showing guidance And in have they to agree. this of what bit we flow, million time let I we don't the you. to won't number had year, year. a question. I we as that could about seems Yes, we're It closer. a and a million out, and asking a But around Bruce guidance last feel showing by all going like $XX of tell though, but need last get let me said, It's still I cash it done conversation funny, were they get think investors little

invest and this of of of think coming and as and bank, little also opportunities specific closer. rep more come of some where little like it more with but sooner to we're rather to math then more a than that to think feels terms productivity you these still see plenty do we is comfortable our to it's date, it's can rate I I want growth increases we up may later, to get part in I brand, get that. bit a level going dollars into think that the feeling the seeing want start and And cash bit those a in we

business make and of trying saying have guidance the constraints it soon measured amount left to to feel and about breakeven. too just money We to about given good on we the feel we're we -- that sure have the we've get put the that with when about really So, the guidance, we've be that not really that enough over we with good information.

of to kind anything? where that's want add so And you at we're front. Bruce, on that

Bruce Felt

numbers themselves just there. think to -- but that there get we're of we'll speak positive. we of to when and get I slope flexibility and the the going have the real with play real to flow we there visibility how curve, the want to curve into enough a there's we'll kind get cash And money Yes, for

Pat Walravens

mean, better lot Okay. I I had your on than is a guidance so-- cash what flow

Bruce Felt

Can I take it back?

Pat Walravens

That's Bruce, for a in we step CapEx? what And right should direction. the look for,

Bruce Felt

maybe I right, infrastructure. AWS mean, costs infrastructure, infrastructure, data been modest Google the costs, operating have Microsoft our the CapEx has been center leveraging because

a then been into throw company, capitalized some as fundamentally. it's in some minor R&D, capitalized big that the fact So, mostly well. -- commissions But range, $X that for we're the million-ish you data if

to gross engineering and it of -- gives same all leveraging we is lots expect CapEx have that putting needed, our technical stores, throughput, of capability leverage see really side do the of on and/or which low. we incredibly our technical hardware technologies the because say margins do have. on these lots still And improved own confidence us as subscription of that the incredible on We amount side and we side administration good advanced The team complexity. amount of at just of is time,

Pat Walravens

down Okay. Josh, do to you're oversimplify the throw one maybe to Can wait I and now? asking, But going was this what people And get I story, the to if have were tell more well, minute, I message lot came leadership something? could management, then sales in, okay, boil it this. this of as in a saying a is you Pat, what new and it the to so, salespeople before

Josh James

Yes.

are guys really that's has So, big us BI. thing the complicated one in for been one -- thing you been been that's

think for get conversation. And the we list of to our sales And of as was BI so competitors. out it difficult organization that of number

messaging started would testing that As using we the just as Wong would showed proof product, points, play to how been an how in when customers the have of that's architecture And for -- recognition saw and light IPO how the really and we going enterprise and it system, getting they able we and and started we finished deliver to at have get we've the roll ready we were and our were, really customers' on that are frankly, of over that, resonates. to customers over been that when we the continuing some of again slide breadth responded us the and Catherine we're some seeing expand see to been that up eyes out we we've different running finally started Domopalooza, on that. having customers, way,

box we're get and And dramatically. so of historically, out was hard the BI it to

the I and -- here's sales forward, messaging organization, going platform. points proof the new and the it's Now, with new

the pieces all that we have. Here's

Here's the not It's lock-in. vendor architecture.

to data. can use to us You the connect

organize optimize and us use then to can clean data. that and You

You can data. visualize that

throughout like, You And that platform. there's a our can And they're build that's this apps plays governance top it's of that that between throughout they show now. to and that before and data. get slide And when thing. that difference and biggest you the customers, whole thing -- plays this on whole AI it

Pat Walravens

you. Great. Thank

Josh James

bet. You

Operator

you. Thank

with Our from Jennifer next question is UBS. Lowe

Jennifer Lowe

bit. a sales hiring wanted you. guess the Great. questions a Thank I I there. to of back And to couple go little

growth that to question don't of rock now? of Why right later, see not I First, that sort XX% boat had you're goes ideally do North is commentary given given just it sooner want again happen how why than is XX% too the You sort starting humming get going to the the to sales? certainly the the American early in things much.

your quarters? should that sort recent are bit what on that, as options that start the you see of that? people starting waver of the in if what you a the course these And -- integrate achieved how closely do how to to guardrails are related so the to are already the change new are you're metrics kind to What into watching are you organization, And if impact, watching productivity you stuff productivity? you that see

Josh James

Yes.

me. first the thing guess, I I XX% to is So, say would child's feels play like

That pretty terms okay, place? I of at, things what totally point where are limitations to we But that's think to sales your starts -- marketing? about taken the get XX% are right their -- how able XX% we're easy. train. you're in can reach able but that is be the and the like, XXX%. starting Are get get talking an of we're And we -- going we look the question. much to to to in And is we management extra

the And no we're And we productivity have, able enough that to meetings? getting team do initial and these have and have management we looking in, of the we new these again. so building? on, out we XX%. at. pretty think So, that a is walk the sell we comfortable you're spread just to are they how's the versus marketing sales have? pipeline? through we those especially pipeline customers we to getting conversations as manage brand-new something the building just we're Do they'll can And can relationships? events to reps we and people they That's that things hopefully, be with Are they that into leads? those look some those down they activities first across go sales Do want their thing double that able to with Are build at that the back that we are then patch with the I see bring

Bruce Felt

I'll And add. Yes.

just -- me I'll small. we're add Let

the big it we really I going work not in, to not a run. we're excellent to think, know management bet going lot. of a use But mean, do again, sales play a is big. productivity, because resources good have -- focused known came did network. safe the not off people They mean, on them. with capabilities. not their all our the want has we're of we XX% of and kind we of base just known before very it. a get an XX% just to on very tax is They're to have force They're approach. of is kinds people going ways very but top measure We I think with to a We that it's on

Jennifer Lowe

sort it this that, of related And billings guidance if around to growth. year, XX% then like you looks look at for the

want as in ramp? to is are beyond, -- to the I without presume corner, that You put mean, there beyond the XX% XXXX, that year this rate been of once the new a to seeing given building run in that sort sort tailwind backlog XX% see, XXXX starts to don't into type growth expect you plus side I XX% I this give the think and type growth, continue much. would taxing too of we if but come should pretty a you've to that's flip, and sort headcount towards billings the full But a to nice hit you you year into renewal hiring that, of of model decent just a given gains fiscal should billings for billings XX% with all productivity

Bruce Felt

year away is to brought not helpful we ramped, to business not we year. We and give reason would very why does new done renewal the had hire first, have business productivity. right and not And get away but like not wind have in sails right because, recognize us down have with they're the we've we the built we do them we during but last while that. focused to fundamentally on -- very, headcount have the that once lower they're they we Someday, the growth that

to future this driver be up and that for building really build is So, years. new of a accelerated a year new, renewal stream

right just eventually, get yes, we not So away. there,

Josh James

XX%. not Hopefully XX%. about eventually, And about XX%, we're talking we're talking

Jennifer Lowe

Great. Thank you.

Operator

Thank you.

next Blair comes & Our Bhavan from Suri Co. William question with

Bhavan Suri

about conversations, this these job you my Is a getting still people in these accounts, having idea whatever, then [Indiscernible] target analytic environment early? larger in have Domo? bunch think of Or a get the around you you for of little MicroStrategy, a of that a starting sort touch they're where the very standardization with. started all strategic guess, of is they've guys. off of warehousing. idea level Hey bunch Nice got bit you of concept ETL, bit this, they've BI, large, question. right? something there large as And got think thanks When maybe been a to A of has just and places to to to Because more taking this I on kind standardization? of -- of start too bit fixed are income about a bit CIO of have you're it standardization and [Indiscernible], methods hodgepodge, start

Josh James

with see that our see some No, customers customers. much with of we enterprise too yet. don't big our We it

places, standardized. definitely customers We XX,XXX and standardization lot have XX,XXX I nontechnical that you management the people users, certainly of happened a for talking start about team. for a the in standardization of mean, have users, when certainly That's handful users There's those from users, back-end XX,XXX perspective. a

move in, resonated every where we're keep event can you say you investments, you connectors value. to of you can you've if then data with last -- that. we you this in want -- message has Domo, we worked And Because is, you be can your made that and of to leverage finally and out is that's to those investments customers now have get replace well invested to have Domo, And mile Domo. right then One we more to and with capstone hey, things as the it get to you that you're our whatever the and in congratulations. And do for that now value able we of really of people. you've more come things them. can and all what And to go and of move want grow your adapt scale and evolve. worked And ahead

Bhavan Suri

on it. I touch then Got to it. And wanted Got is train consolidation.

together broadly in bulked-in that then you here, they to And have are do that's starting we're type ETL the one. you to starting to of about vendors standardize the something lot a between hear that, like still consolidation? Attunity be consolidation some two, is around uptick to you're more solutions vendors, be of are can early? guys a see it that are from then Bot, Or fewer that market So customers? guys then organizations a as realize maybe of to seeing do as also a this loading maybe because of an you platform and corresponding also point is that, and kind cobble little starting then have end-to-end obviously you demonstrated you didn't in built stuff little but think the Qlik, able solutions, but And pipeline to sort where of

Josh James

I think early. little a it's

because show of just the solutions. which some solutions about it's at these of built that because that it's We on astute to think is right have -- We've and call we're is I out. any something the solutions were that think build talked going for some certainly that. point of customers you it. what why and I some experience, needed something with this not We built to to possible really solutions we didn't other competitors Domopalooza, the doing delivering some the the of set we're

the if things. power You by can, XX experience you together these of get or like user you the and money to and to we you're have. spend times the scalability do things described that not cobbling the just you're services. can't having amount And going And going

that yes, direction. this others I So, will do come think

way of fun, come. question, to to that's or see luck really -- those how why just going we And together. Jennifer's yet. that smartest customers. because will this this seen to then are that out stuff because that's made recognize what it move thing others we that's I is think and in business. comes, else seeing increase did to happen. cobble an And what we're this will to good I uptick doing say because our But just trying pipeline early. in be it -- the did it does exploring pipeline to can we with And quickly that's understood confidence and investments as market it's and standardized seeing starting in as to grow everyone more becomes direction, going We're haven't give aren't of necessarily of And us We since that, others that

know we them everyone path going eventually. follow so is down to And that else

Bhavan Suri

see guys That's next Thanks. obviously. awesome. and week Thanks you I'll

Josh James

Okay. Thank you.

Operator

Cowen Thank and with comes Derek final Wood you. Co. from And our question

Derek Wood

heading new congratulations. Great. that the my sounds base. trying all see It changing base? you between upselling guys customers and expand net and at new the add you're mix into seeing How good I'll installed to in Thanks do balance you do targeting like fiscal strength focus And installed the year? the

Josh James

into current really are we There's mean, for I -- experiences and base when have years great just need. accounts, but upsell penetrated customer the some probably that of our so -- look and inside customer large them. the we with you barely and into these how we're just we're penetrated years sit Yes. we we base our opportunity here hit to targets could come much and

to or data that have experience with take and an have -- be able so another what we want branded their it for it place the customers. that to to they many announcing where want So, their white-label create good our of IoT customers of their Domopalooza sell tons is apps and -- some we've to things that and got where Domo and tons And is they things we've additional of solutions integration announce opportunity that at had cloud upside, been like Everywhere more we've now. we're traction to going brand these brand.

Domo that. data making their the their Everywhere We Domo money taking have through vendors to big their that's that data of in off and platform suppliers are selling retail and

an things excited. it platform, I that that here. that that's of the opportunity top build And applications that centralized on you and so there's opportunity most gets with do have solutions and many so it. definitely Once So, many -- the can really really think you can you there's us

Derek Wood

be So, so big are you because year? will saying focus this upselling a you will there's on and much favor opportunity that focusing

Josh James

logos. of focus No, continue that's new going -- growth. an for to in to opportunity adding definitely we're on Obviously, terms

haven't go. and opportunity the -- over there think let's was go spend, upsell, as new -- acceleration we got We marketing an back most the pull to find and go especially find let's okay, find logos, had upsell, really let's And to and last efficient new go now. we logos. ways of then ways I but we a them found to and efficient big

to positioned done help on have focused think we us what actually to that's us of we've because -- new focus, don't going we've at. of sure start some the we well order that's the need our we've I teams in we a think as the accelerating to drive years new now so definitely, that split obviously it's the the up actually And and new to And over that to are in going are getting business it's we're to couple necessarily have get logos next want going got of future. logos years, exist good our we to make can team logos from we now, bunch have that lifeblood where but of sales so sales terms that coming just few a something in.

Derek Wood

a curious of that's cloud with Got guess, does change the or The buyer strategy platform. mean, to right add going a integration seems what's there? press potential kind of couple strategy did your the Josh, Am mention maybe that like I path of separate having I question. pieces it, I'm offering? -- I cloud to integration maybe new Domo? different helpful. release you last down And a and then had weeks a That productize ago. And you

Josh James

customer-driven. Yes, definitely. I mean, it's

coming out going we're then into of this have, no our an infinite had able and to it. there other much that that's more platform the platforms that us, connectors cloud I a kind of it number asking hey, it's productized X,XXX Or over and connects what's small -- I you piece. to bought never may and platform, different sources and we've the and data on. to double else looking buy bought data, then actually that. data what that we using at out the really really responding comes to built but And Domo connect our any want everything of have idea kind to So, generic and want have allows where built on And powerful this being into coming are database that that just you pieces live view We I I exist connectors and and down notion we a of buying piece. customers than customers of us had to just to that this we there integration

things really then or say, a So, customers it like times. to at else of we having connecting anything make realize you normalizing us no any Yes, IoT that we guys. can one a does then do come and pull cool Our for digitalization exposing want. that that, We're wow. us application and to that good like, We really this. you're we solution? couple we and there. and exposing so Actually, data customers this Can didn't kind of data visualizing do

it's different fun to Amazon. that now And we're going we see selling application so we with go to we're And and and platform. IoT this market build we a out ways can partners, with that productize

you're yes, to lot So, of going more that. see a

number an and available market to the You with buy We're them. of platform building the first solutions are the and infinite of you. round seeding

and that built become are business. at the look when applications years ecosystem and think you to going to that the important I are come, more to our more

Derek Wood

about and to hearing Great. Really looking next to it forward Thanks guys. interesting more week.

Josh James

Thanks so everybody. All much right.

Operator

today's in participating concludes well as today's question-and-answer as for conference. you This thank gentlemen, session and the Ladies program.

and have a disconnect all wonderful may You day.

Domo (DOMO) 13 Mar 192019 Q4 Earnings call transcript