DOMO - Earnings call transcript Q2 2021

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Operator

Welcome to Domo’s Second Quarter Fiscal Year 2021 Earnings Conference Call. At this time, all participant lines are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] And with that, I will hand the call over to Peter Lowry, Domo’s Vice President, Investor Relations.

Peter Lowry

Good afternoon and welcome.

we our James, our CFO; Officer. today, CEO; Founder Chief call Felt, Bruce and the have our Josh and Communications On Julie Kehoe, will statement Safe call. Julie with onto then the Harbor off lead and our Julie?

Julie Kehoe

Pete. Thanks,

securities financial new forward-looking Our about business and COVID-XX for webcast. and the assumptions. posted statements to our our Statements plans including projections, this market for laws, website, variety subject expectations are made and press of close a this our and under call section the include Investor is expectations financial of release on our the our in issued impact market statements statements was uncertainties condition. is our of on business go-to-market business Relations strategy, our sales where These the federal related and initiatives, risks, of to after also call being

release, with annual our we statements. For those in particular, a recently in Form results to documents refer most discussion documents press important identify to most of and our please these the XX-K and SEC, uncertainties, other XX-Q. on materially may factors Form and on our recently and file differ risks today’s from filed contain report risk information forward-looking actual These our that quarterly filed report cause contained

we should useful GAAP refer to press stated, during These non-GAAP addition, otherwise the from Josh? basis. With a financial measures that, supplemental me Josh. as a in substitute of of operations release it tables to be are our directly GAAP not hand let be in measures, and results. today’s revenue, on or for -- comparable to considered addition earnings most as in their not measures over reconciliation Domo’s measure. non-GAAP results believe for unless of In call Other our isolation non-GAAP to Please we is we financial will discussing non-GAAP measures and which a performance. than our discuss will

Josh James

Thank Hello, Thanks joining everyone. the for call. Julie. you,

and our flow efficient backdrop. our execution balance against sheet. at plan, to given made this cash more we work, we is was focused time, and Let our Since I’m growth, have QX, make growing world by continues this making our to ones they great cash new me posted cash same since to have I breakeven billings QX In and our business off growth, are and at and our of healthy the our say consistently on start flow. and has saying XX% our agility care In to is QX, show discussion. pleased you continue point, been particularly our growth safe very very you business, for thriving. to XX% imperative remain challenging incredibly what our to and breakeven have the achieving again proud how hope very and the we that be with growth I’m with while where customers. and a than great IPO, adapted environment. current all the your results to relentlessly loved the of at strong as total XX% expected time of progress IPO, proud committed cash we this team Domo front, on driving once now time excited revenue I better subscription revenue surviving we again flow continue on and in

a There’s across about market trends. their QX customers. is partners Two, their data current One, a on is new and variety companies of been based I’m for and more environment few exciting workforce and So aren’t is can transformation well-positioned on on are on helping in partners future-of-work, the how And initiatives focus Companies All going attention to planned. geographies, businesses, more initiatives talk means sustainable digital recognition. projects. often touch digital efficient future-of-work pandemic. how and forced Prior Domo into only Board these had demonstrates significant transforming quickly fashion. re-imagine to what legacy to I’ll the they and to timeline agile Three, items. the Domo technologies position transformation that being extremely re-imagined with call being many that which processes are adapt companies including and companies empower current just how is for more a the industries and do I’ll is more and business the how related a in today, much operate value business Domo forced across accelerating and being and some highlights, COVID, the digital new most critical current that industry exciting recent organizations. for business started to the they how for and distributed than how

an be anywhere Domo we of data to device. solve modern If running any challenges leverage better you to all different founded on of a recall, of organization’s the through kind a of company business

ecosystems and great utilization product. grow We pandemic the are improve always highlighting value externally. a had different The is a internal data platforms, our kind building data intelligent we’ve important of in some particularly that company strings, and data of most of

solve. initiatives challenges complex, Our platform to companies solve is data just is built tools strategic not digital transformation that to Data challenge holding traditional back. are were the designed the

data most usable, end, some into to their help largest it and value consuming value where companies make is their complex companies data connecting isn’t this of breaking transformation. of for more On transform dark even solve their because of enterprise of That the to so the being time world’s barriers help to XX% business, data digital it one difficult. partners used regardless the back common data value yet down more we customers. silos for more that We and lives, for is

the BI more through well-informed make in hands departments business self-service, level sales business line such as of operations. of and every to users decisions at into front-end, Domo agile, well-governed, the marketing, finance, Now delivery analytics, empowers every and

to anyone, that they’ve truly our anywhere seen. based data cloud organizations design Our never us speed driven to create first mobile tell customers a accessible data live at makes

significantly that this already extended on days, positive in we’ve on of data crisis. advanced and Center value new using and launched analytics, new data, can of scale In large in Now back any a The ability contract call be a extending quickly Everywhere, of quarter, this stacks low be state the and in code, a win based workflows. the to -- are over that that a the June, platform and of just to of to at same underpinnings data intelligent workflows in cannot. modernizing of They’re truly are us intelligence move what COVID manage environment, data all is in future-of-work for with source we’re years, the to expanded we value in applications. cloud continues constantly deals very series automate deployed we no and with is part the this These leverage help as the Domo fact, an fast the technology Domo response easy matter is which at reinforce feedback new and business code extended our helping our business new their initiate to and collection speed, of governance, processes The partners, Through Solution, a to built new positions us quarter, automating around helps able applications the the following making to State unbelievable with environment. the customers, contract use well revenue changing us external customers rapidly because Iowa two security mobile artificial creating Crisis It’s and a interface. and automated other platform’s built applications to leveraging these and governments applications customers at Command by stakeholders decisions analytics competitive and in work and collaborating of developed working scale we even applications our environments. many our with streams, embedded deals well. internal ability win Last time, get pace differentiator speed at to external agility for the definitely environment. and and

we of now headed and wins the is opportunistic that recent Domo across and industries significant skating market bending geographies. of always that about variety we’ve quarter. the into they These where a highlight to had been So talk exciting because they’re this some just now deals we’re are deals not has

which offering unique variety a This ago organization, global internal a of use analytic won with They for we our requirements, been vendors. few using quarter ability to CTO, Publish, a use Domo. But on Domo cloud the architecture. existing the Everywhere. several capabilities, this and most our Like throughout of scale organization. large called is selected customer company’s technologies, situation for significant outside initially a our the was traditional superior our This for based chose Domo our recommendation governance of and BI was a for that to the to better self-service their recent in and analytics manufacturer our on based distributing extended meet solution our fairly a of CIO tools the with had expansion Domo traditional Domo BI expansion organizations, Domo This normal is ability interoperability case. data years compared part have

well. significant seeing as We’re also international wins

volumes its QX, makers business in without we help decision had conglomerates speed re-architecting organization Global the XXX chosen was scale. to seven-figure we that Fortune get upsell or Domo understand of critical replacing based per this early out and a existing quarter, our that won data time early systems a them, For on year sensitive outperformance business so metrics. in retail could of in massive

in that data, won before deal worth new organizations, suspects selection and of notable support of again, customer scale, perform in were to we technologies built won none key to well the like our most was at cloud partners. use, entrenched ability consulting but just ability this governance time has scale our was beat apps multiple major at in but had noting It’s usual them large there the one not contracts to all of factors data out with One also from and like Domo. record provide competitors accessing the our business. provide at scale. this data We our And

with Germany, new And expansion a new in annual Australia. based ex-integrator multiyear six-figure international pharmaceutical deal industries. Domo six-figure won deal environment, we with signed global based customers annual company leading for services operator based would among new distressed rail business deal what a with in the Now annual also a six-figure in an be considered in demonstrating logo the the significant renewal need and any we in quarter an Japan for

Domo’s with with it six-figure operator an modern, Domo easier closed makes to the cloud customer annual bringing platform. we chain to logo scalable to migrate system and reopen example, their external internal new use data For BI to when markets. as sense well determine different is their metrics, deal in more to a legacy together the facilities help fitness as

Now of the we result logo signed model. that six-figure strategy stores their pricing pandemic had optimize Domo their and closed all new a to online also their with a a for leveraging business as deal manufacturer is

recently in expansion We real-time out this a to as their the improve marketing closed to deal how figure try world. an marketing campaigns to time also they with cruise analytics operator new line

to public seven-figure we gives large related see partner seeing to several our that close additional grants. an markets. to In open funding a also space partners in has to facing to in the this We’re of the for new doors data and potential instance, QX annual talking power taxpayers pandemic progress relationship opportunities Federal relationship almost contract deals. U.S. in great explore to love partners believe website early the leveraged the We very with we ability these and to expand

me about -- let industry our recent of now some So wins recognition. talk

confidence innovation, for reflect This to on Dresner value product year. was sales in our recently success culture. the high service. corporate our ratings Advisory Most and customer customer based consecutive Services’ team overall in Domo Industry that and and was product Our leader Excellence fourth delivered continues accolades receive consistently and an to Awards quality, the recognition named XXXX commitment

our diverse, Domo Best for Research recognized welcoming Constellation a XXXX the us building and BI and XXXX Shortlist for named And being And List. inclusive commitment we are Women of us entire to a seeing Parity Additionally, Parity.org also pledge to Advance across Parity.org Analytics help racial good results. on became its for member founding more It increase Companies diversity feels workplace. recognized Solutions. our new that to to report to a gender, diversity we’re than we organization. with

talent. have XX commitment open positions XX% of north filled we’ve aspects and business been underrepresented progress diverse had As companywide to has made a improving of we’ve our our in much tremendous made In qualified candidates. networks of by of to been our all to strides expand of Xst, efficient which possible all minority operations and by slate more go-to-market become the motion. July create more across of improve women qualified our closing, This to

We had. what quarter operation cash have and million we $XX very sales two better years is becoming leadership than burn than ago for ever to flow cash rigor a sales our brought to We have close breakeven. more

audiences We sales that of good are traction technical place IT including and running working, BI. with are the

in leveraging ability We for story an and puts to tell Data transformation needing replace that data position agent, CIOs not to have Chief investments. officers their while them a and existing a of

year. us than now XX with a customers a enterprise large dollars referenceable wonderful have paying million We more

in bright customers increased prove accelerated their value It and our and that middle focus, both innovation We have very our very, doing And a of our prove of we’re our proposition. value pandemic. a that this the future. has -- and

We and on have employees this who to standardizing execution customer -- great our who in our in most how us helping of I’d and like reiterate to customers us, operate continue and proud customers’ our am I loving excel environment. new effectively are

so, And I’ll over turn to the now Bruce. that, it Bruce? with

Bruce Felt

need for and real-time QX. the We budget momentum to portion is allocated processes, execution. third based, solution beyond I’ll It followed believe details a the and data and performance macro fiscal you, to review the for as function this continue BI We strong by IT specifically, analytics. business past increasing. pandemic. on also and year cloud by driving and and Thank easy-to-use four see XXXX look need And is this we had steady the is quarters we from back Josh. modernizing The a benefiting the driven the and need Analytics of environment our we digitizing guidance. quarter are will providing a behind mobile believe trend, full offer now modern encouraging

of enterprise driven of billings of number renewal consistent year-over-year increase QX rate by base. over and Our XX% with the the execution $XX.X industries business, expansion of State a Iowa, across and a particularly our million, customer wins strong across was in

Our than renewal over rate was better was quarter. It a few percentage well last XX%. points

Our net retention rates XXX%. remained above

end customers our on contracts have the the QX. We multiyear XX% of at of

to QX revenue, on accelerating in the revenue obligations $XX.X reflecting grew our recurring specifically Our remaining of same was revenue year-over-year XX% revenue new XX%. and XX% revenue Subscription growth retention from focus RPO consistent represented XX% the our and increase year. QX. performance the million, or compared XX% total quarter quarter growing grew revenue represented of last a year-over-year XX% total improving with in International first quarter, rate. of

ago a in was we is because one XX% the up above percentage long-term first time, This was of years year. margin milestone gross subscription last X for drivers for it many Our goal profitability. is from more points XX% the than that a key set very of QX and important believe

we operations. as to points subscription our though last find XX%. even optimistic are by time, data QX, revenue decreased by operating in leverage we margin In drive year, increased from expenses our XX% continue over center We even higher can

us fact, points to of margin per increased allowed revenue, year. from costs of excess operating same In QX by net improve grown last The head quarter while last XX revenue managing our XX% has in effect our percentage of year. subscription over the

average recurring and and a managing revenue disciplined consistent companies, state. was plan. on a share our our track to QX million like shares decrease in because on net cash materialized, toward have as diluted. has flow COVID, outstanding, achieving $X.XX. significant our year, positive decrease is many this we new our was IPO, Our to in progress XX Since of our prepared Earlier net topline make loss loss $XX.X while other much faith pretty we per costs, QX we’re But about show, building basic that been and This results original a of based for our million not weighted fact, and business.

topline and ‘XX an year discipline improvement $XX.X a XX% $X.X ‘XX, recurring of compared million in cost operations strong and our of fiscal to our in QX of QX and particularly result growth, cash million have from our revenue, fiscal to in of we reduction over a use net reduced $X.X million As quarter. QX last last

We the same the maturity debt as April extend also XXXX agreement. under October our XXXX our recently existing with from substantially of existing Blackrock to terms

coupled outperformance not reduced of progress over the we’re quarters over additional $XXX our million degrees provides why now last freedom. debt made have few of expansion demonstrates track believe flow we risk flow ARR cash our significant has financial significantly cash Our on and profile, with the only positive. term The but to of become we

sheet. to balance our now Turning

of of As equivalents million. and investments we XX, cash had July cash, short-term approximately $XX

discuss what let’s Now QX the full and we expect in year.

QX, billing $XX.X For modeling about million. we are of

terms. If QX by outperformance you had year, transaction driven large with we of enterprise recall, standard in billings last billing

We in for repeat the this QX. will have our assumed model itself not

Specifically, we year, billing non-annual more time, number for the close. relative of closed large deals do we the the deals to at last are the we we terms same last not assuming modeling year and because advanced economic same are environment, of

revenue experience off point the That of QX. XX% start that are revenue assumptions, at to and GAAP time, of those good or a by growth both to of ARR expect this in is in we QX. least against observation annual year-over-year even However, year-over-year expectation at growth subscription recurring we supported contracted in

costs. up and downside reducing case from on outlook increase the half about $XXX the us last allows based use $XXX we up million our for our to year year that in an billings the for $XXX million outlook quarter of of to COVID-XX outperformance Our million first from initial

we’re increase levels. QX to expense expenses from on planning on operating modestly expenses, Our our -- QX

We year cash adjusted million. expect of operation used full $X.X QX operations in approximately of and adjusted expects net approximately in $XX net used cash million

guidance, quarter to we expect GAAP the $XX.X $XX.X revenue be to third year million. million to range for formal ‘XX, of in Now the of fiscal

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

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

basic loss execution underlying weighted outstanding, non-GAAP per net to we’re $X.XX. in the expect XX.X business of pleased of our million head closing, assumes basic the with about half We we we’re call in diluted QX shares With Operator? diluted. and and year. $X.XX average trends In share, optimistic up we’ll question. as This the and the the for into second open that,

Operator

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

is open. line now Your

Sanjit Singh

Thank congrats Maybe of and I’ll really set you team strong you, QX a start on the questions with taking for results. Bruce… the to

Josh James

Thank you.

Sanjit Singh

the …on phenomenal performance across Board. was it -- yeah, the just

congrats. our So

both comp up difficult you this just, for can new we’re trajectory, On and of you your the off into going you’ve thinking against good same guidance sounds sounds like about business second year, consistent a the guidance, time, is been of that a a performance It But most new using half are framework how like it QX assumptions, for to business Bruce, balance in QX. this the within start. next at pretty quarter. embedded

you through and for sort that be So framework us, helpful? of that’d just update your walk framework

Bruce Felt

every large right hard maybe the timing and that of those our we company, guidance, do deals time to the When in out A we same very then that of QX hand. out we’ve And in of have the it we time of prior and just the the of review, pipeline I’d software last we did the information everything pointed take as pacing deals. large pipeline. year. time at enterprise But difficult. providing item is at volume getting is all time lot apply again, year. happened was year the and the big forecasts, last compare Sure. And was found have mentioned, how to the At we it

level the So same in success least won’t providing have we’re just of we terms guidance. assuming of at

first to see very if fact sit on close. might so hope, we is quarter trending QX, of get But are Our strong the we was you of as as some just in we’re imagine, month. we optimistic, the a the to can those that month nevertheless, here, however, really deals well

day, that deals we about the at on quarter So we’re end mind we’re very and course, very of to how sit of guide cautious it, reasonably happens deal But the number, that. what think, the happy and want not hope large large here it’s just just the being, the to don’t we telling but you about, and we I yeah, end so and get close, don’t as the we’re being we thinking we to quite open about today. of at

So that’s the thinking behind guidance.

Sanjit Singh

And XX% your rates Bruce. I economics unit helpful, if net and then, rates above improving you’re today, Josh, where are about resilient, Super then XXX%. more certainly you, retention for think retention like

things the You’ve force. done on sales a of lot

efficiency then sales to on talking a sales on to those you see the expansion But XX% timing those with driving of expansion better -- up on to so level You’re XXX% about do tough looking about right I economy retentions rates getting are rate that. to as playbook, how you more net at retention gross playbook, get efficient. continued and to starts plus. a know improve rates the to the we’re up it’s thinking opportunity gross that and that the sort get metrics? the maybe What of

Josh James

Yeah.

think great question. I --

getting we’re close to can really new that’s the exact it’s enterprise I XX%, in a the XX%. be. word to XX%. And the think XX% be whole I to pretty XX%. and enterprise to closer above -- intimated spot we at think can’t that we healthy business and we’re think I we to remember but XX% whole it seen than feel not right XX% XX% But there, are I now, put to we’ve get like

other that, customers. bigger terms focus to we’re first bigger on net And our that’s seeing thing retention, that we’re the in and of make we’re can starting upsells. and do seeing -- sure So to that of the really those we is, retaining we’re goal what all that things

So to we’re and Chief Officers Information that the level. strategic ever, we talk these terms prepared can more can big we to Data expansions at than that talk really way the of, Officers way enterprise in the in getting and Chief

that’s something business forward. that’s our So think continue drive I be going to accelerate going to to and

Sanjit Singh

Thanks. it Josh. Appreciate

Operator

And from next Brad comes question with you. our Suisse. Zelnick Credit Thank

line Your is open. now

Brad Zelnick

Awesome. takes guys, the of come congrats. folks to Thank fantastic you because so Domo together. much, to a and are it congrats on you make call and to all results lot I happen magic These the but know whole really team, to make this the

Josh James

Yeah. more And refused. no Thank you. hearing

thanks So out. for shout the

Brad Zelnick

And that’s For start I a But the mirror. in little a question forgive that maybe sure. with. where rearview me for bit reflects

about You us and good XX two made the sales Josh, now the changes or got feeling comment, quarter you in XX you leadership and an of in from execution or that a confidence that disappointed remind the from have just the and months be have you a process perspective. ago shouldn’t months there? go-to-market Can the about why back come it that and we you’ve now right

Josh James

Yeah.

sure. magically I’ll things. about much Ian as him person one, be the jump well. think, as Number one like and a this He’s here on bring in Revenue Officer. our not got line. oh, We’ve couple have I’d That’s one everything of case. the person, in improves. For And as But, I to Chief

we biggest had much been doing bunch really never calling apparel working and beat called you this call scale see And We’ve has been can person leadership, just was world everyone retaining have and and sun team, bring what that they mobile other is helps for trying of there at referenceable business and we in they’ve a said in us the we at time had sorry, going retailers a one continued before much now, to been much we been been their everybody, on all person out thing and the one And execution, long of world show better in can one in But everything, kind largest critical. in been the environment, a never and of PLCs our a we is able data manage products, contracts platform them we every in strategy. our smartest -- when the the contracts was in their long world, You companies to environment, in out. customers to today, CEOs the or the have protracted, save in have the of there world. that ways the in and beginning, to our under a had them better now and have before we’ve well customers. was for had able that it ways retailers single are on to get you it largest, so that help and timing working in We’ve better we the customers COVID companies with platform. business call see the tech largest

really that one So going that’s thing have us. we for

take handling see to where along and Ian but over helping there really, gives Europe been before, and a chance hadn’t there feel long of helping the his the It into the So right, running that’s his in how like, be the way up contracts. many going business do -- been lived global well. we’re to to It and road having along and are that he’s question bumps the and does he certainly just and then going where it’s customers but what. a I expand how is handling he matter way, CRO he no them

doing and we when look at performance at not it like, when resumes then brainer. you at obvious this was pick what And sit might look here, performance, you no so be there resumes, but felt the and we do, look and a at look

have partnered really we’re have running that be he’s him since we’ve so with more And and been to even and team to John. been excited excited excited Ian

few take answer minutes So and a let your Ian question. I’ll

Ian Tickle

Great. Appreciate Hi, that. Brad. Thanks, Josh.

make more I things driving customer of we sure capable really built them help think on a been and we’ve our doing way do is that. decisions So value there’s the how a couple before making that continued focus drive we and that see they everything able to and around that platform that we’ve of and to can than haven’t business in really customers

been really it’s a things. of So couple

We’re just teams operational who said, cadence just really and a market the are of how plays bring. The and sales and about that I lead value resonating that the enables are all where and and understands focused go-to- forward. on. inside that moving we’re well, across comfortable -- John Domo, the A drives the with we we’ve more myself all feel underpinned well. the market that we the gens -- behavior more can I organizations of and Miller rigor are we a really think, working then to have strong And alignment us we

Brad Zelnick

Thank one you Maybe, a really up visionary I Ian, just with if it. definition. appreciate another and you’re follow for about Josh. any by may that, just I for you, Josh,

I think most of agree. us

analytics But about needed to or out versus guys today, even other Your platforms complementing, you opportunities cloud you data I partners think, for what the pipeline. another there, if other be possible type might early. on competitors you you view to Are warehousing companies mind for other are the mobile one fast were which there what world forward -- I competing data remembered competing talking we of data these point you? built file I at to and they or these which comes one platforms to because is solution extent offering. But front-end where with a are are public out what with there Domo, very think actually

Josh James

we deal you one possible dollar in I’ll this, with We, our the I one just at, probably when partners. close retailer, again, as guess, view them largest the several mean, million and of of apparel Yeah. look that retailers more use I world.

of data have on and rip that them and of the see organization. that to it to today processes take their apps and accomplish they processes slow. hundreds of that to take build our the at inside for manual data But top may look To hours needed Everything You together put tasks digital its other way terms everything out they else they to had executives ability the else. in to didn’t place. transformation get true and

well, and If to place. to ability you in automate want that and have all have those to data it of make faster, you compete one automate processes then much your

available to to one to matter able different no old. that to you that sense like just then there’s the down, that have. in And quick data I us. need need all connect else mean, the have real-time terms first, Power that able in large to size for You fall be how Tableau scale systems is companies. But does down tiny is good BI is. no When you be of, falls And

They’ve world down and their comes them. help to how are how are the with to has using their going how really they’re AWS are it XX help you data going Snowflakes of going storing and people in with Tableau. about strategy group little So got the to a you people play to you how that that love

all I brings truly backhanded he using a platform little compliment. visionary, for And you get be great, visualization that organization, large nothing over bit time. if there’s Domo. together a Tableau allow nimble like just to it but But a those like you to folks, We’re as I is your data think of want for

Brad Zelnick

all. Not at

Josh James

I to that. here’s the want happening would I bit continue our just just work just customers be what think out. to the didn’t say, much at time let’s that’s Tableau. doing, play platform comes hey, and and see if and we think a But starting And look we wouldn’t something and finally our might be as so while There’s willingness hard than over else little time, nothing we diligent going, make products. they you kind up put to that. want it’ll a compliment. out our our into and that how said, are out accelerate visionary. we been to to what in into taken customers. it take we Over it I that you’re it’s if But to that’s and relentless wanted it’s what’s But biggest COVID close where we’re the prove with the figure go to okay. a for use prove time, world right, out. because backhanded to if little We world’s biggest want whole to have needs We the right we’ve been easier, of And better do

Brad Zelnick

you Thank for that, Josh.

and this tree And is doing have of public printed grows think to and this of guys definitely well. you’re shared straight quarters company, of somebody I a with is moving me, direction heaven you any wants the point really no proof since a the in right

my for you the taking So and and team questions. congrats again thanks to once

Josh James

new My Thank Thanks, saying. you. Brad. favorite

Operator

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

now is line Your open.

Jennifer Lowe

on relative of area was industry experiences and you. think touch dissatisfied organizations was a I couple that other years productivity the back productivity point? significantly about efficiency the you an how since that both you’re at where force you get I sales you’re think, think and benchmarks. do sort level and in your then? the to And improved how ago, wanted Thank -- with you Great. am focus, feel curious Clearly, footprint? sales Bruce, the you much of I of to Josh seeing of out where just if at existing business pretty I this the do has of So do can more

Josh James

Hi, we on been we -- side. be level enterprise of Yes. it ballpark particularly might have an overall should record. It think gets the what thought quarter. super was If a Yeah. that strong from that force, enterprise the this is to Jennifer. It expected in a sales

better, head -- because our at business point, at that with well, that. the this but are we to relative continuing time, me think down parts year-over-year. over we improve point, same the at can on, So do -- this benchmarks that at there the of we’re headcounts happy focused We, rep we’re least to very

-- build but to primary right continue out to want also now. heavy we hiring we we’re [ph] So mode in also

really we’re want So about weeks we we so we’ve are incredible feel even done really don’t kind that unique where we in the the undercover feel getting stepped last do over brands few opportunity good market, here. the are the results. some it about the really of We with good transactions out. We to make sure

now as couple and start good we at again, force a the worried it’s about very off success, that of to to sales we’ve again. know how it hit, start, the QX But the had then, we didn’t of quarters out. to up We’re going a year building really COVID play very want just beginning

So for do at over and for least hopefully, effect both, combined the very the long Domo. run growth be will good

Jennifer Lowe

timeline, giving just currently free your word given If that point? the come the feel year, you burn cash are growth. good as expanding of you’ve out more at is around trajectory kind you this the a flexibility. productivity… as we that flow should you continue seen far the the mentioned between And the the there, that Great. pointed next push you that, read pretty we improvement margin the timing And on debt I head the you that Bruce, of of point, revenue message lines And relative level maybe think, out through should where Josh prepared we the away about expect used to you in and bit we’ve with remarks, I of to into of profitability discussion, so sort of all that improvements in front had

Josh James

things. I couple of a think

Jennifer Lowe

the of that in spending a … to seems to good seen currently. way to-date relative sort again? the up right opportunity inch we’ve Is little all a what like to the more contextualize opportunity bit pipeline the maybe what on

Josh James

zero we’re about certainly that this. we’re to appropriate a a we’d When wanted We long goal I time the positive gave saying QX was to be because went to gave to be we there, been get to the in cash think flow positive guidance public, QX. that’s in to the to for I that we quickly But give. way cash it it’s we as guidance we circled able flow as be able once and hoping The saw possible. is, Yeah. QX. get

getting something it So it record because inch can’t same think, maintain. And single forward, a and it’s burn of we’re slowly, I to been assuming gains and invest, looking maintain that keep to we’ll the the improve cash those happy good really get zero up track thing a come force in be We’d we’ve those. not public really that want might be we’ve we quickly we’re bringing got as sequentially place. since productivity possible getting we slightly and every there quarter, down. going And can we’ve for opportunities to now we that as been going to positive down

invest we to be So want to able forward. going

there it the maintain also start and been bottomline really have get that we improvements. ways at looking like then not we want find keep that number heads the and of to and as and cash productivity as We’re can to to sequentially quick said, producing. zero But it offense increase as dropping are to then as playing much then Bruce

Jennifer Lowe

Great. Thank you both.

Operator

you. Thank

Derrick Wood Cowen. Our question next from comes with

is line open. Your now

Derrick Wood

in see environment, I’ll no and congratulations. to XX% in billings Thanks echo my this plus Really impressive growth doubt.

Josh James

Thanks.

Derrick Wood

to in yeah, just not Domo, much some signing So, really show they a and the longer to Josh, a of it mentioned, was with obviously, in other up wins, and had state you’ve near-term, that agreement it State goes expansion, work the you but interesting multiyear Iowa are and that for they want fashion.

in we point government just maybe federal this or opportunities am the or with should I how other at -- time? think So about other states local

Josh James

Yeah.

COVID. government seen particular, mean, I all well. enterprise whether we’ve big to global the Iowa, things signed is, A, that people I to, goal into we can think everything state number fortune get all places, really real let’s big states had customer, besides opportunity. it’s a other with one do it’s these we do we have Fortune in once up, B, this that those and have or actually that XXX the And retain we’ve company, organizations, federal government a or of we with that and we the with transition them managing

lights all us grow quickly for as excited whether going types to data never out it been guys out the is, or you’re to were oh, [ph] about so talking so they to do. departments videos you to the state as that wow, able about health start that, different some out different internally, say, distribute with whatever see that. different the their like, because other So they’re and of to diseases, effectively manage for have off all governors we’re how of that’s county accomplish. data have then, we the they’re system now we’ve health things to TMV When our speaking to internally see county can getting the CIOs it that, other being these we’re really truly And future be bet they’ve that. platform been and going to efficiently the us with help that with really coming seen that the from you trying able so they and their states And data that play of charter systems problems, able help

to and kind I a going of also So it’s will there. probably have Miller add John pipe our -- in comments opportunities few here about

John Miller

to that the Josh, thanks, Yeah. quick think it validation platform even you. get point circumstances with with I applications them Derrick. were that’s in Domo system in point our Thank this in and create good in It’s of or can our what accelerated and and and just Thank a well. such being able the an really of for proof just can even the the today. of and good really We’ve It the the to you, seen the and mind proposition, live strengths we within Utah, of fact turnaround the in enterprises flexibility a plays of that amazing all just what do up case state Sure. transformation State Domo value these to really is in state traction hours. just XX able deliver we were

Derrick Wood

creates top of ability as And of build funnel, that conversations, we these applications? Thanks I And is is go platform should a for how that I’m of doors, driver is or awareness, kind this shown the meaningful there? back a just is to opportunity to as up think opens revenue what is that work creates the think else something that we new marketing that guess new the -- curious, of your should color. follow about that the just power

Josh James

an for with is, say, and on the what think application went the off a we and of when in more rapidly can selling that point kind I can entirely with we powerful offer would of to real proof I competition. real door this No situation we in platform. and latter us different Yeah. walk lights the COVID the It together of situation relative offers else situation. that because the that an put the our is one whole extensiveness

relationship, So establish establish out in then a expanding paying relationship it a us get there. there, and helps from

So able of epiphany it to an the got was week that’s work. us for is, wow, terms in were what we But really went something off, I in think, do a hard here lot in solution pretty people we’re before, build to and of need attention they a have rapid ability because conversations and of a now we having having the weren’t that form. these solutions we

we’re So with looking at we’re doing customers. our what

or for then same are it an of that that can take those, the and app transforms plays sales into and where that run those that vein XX motion first us. and doing a of has I group We’re teams think that sales now customers the turn we go types play, running XX there’s a just thing that taking

Derrick Wood

Great. Congrats again.

Josh James

Thank you.

Operator

next our with And you. Suri Bhavan comes Blair. Thank William question from

line open. now Your is

Bhavan Suri

there. I phenomenal question job guys. win. want to dive Hey, your very for and into Thanks my large taking

address. office the this partnering what at the is we’ve can of As talked of with example, instead about well, past the in that CIO an displacing and apparel retailer, everything, about this we saying, okay,

the you’ve of in built those the like, and how sort connector of land platform? a perspective? from do visualization how the think about think tentacles of work is I’d that as Is in expansion replacing mobile Is Is it put of So that how components motion piece? think do about what in of landed So everything piece? the where growing And together, are love technology enterprises, these then we where some over you state a it should large piecemeal you app you time about storage expanding to that piece? stack? maybe stack the the understand you

Josh James

that question. to involved It a lot deal. and because with comments was we one touch have. thanks answer to we the be everything this this of the representative pretty really You fantastic -- all think for that for upset rep a ask Ian I going and on do possibilities that. to But bet. and Ian Bhavan it’d and great I’m deal intimately the he was can

please will you Ian, So, go ahead.

Ian Tickle

is an really Josh. exciting… Thanks, Bhavan. Yeah. Hi, This

Bhavan Suri

Hi, Ian.

Ian Tickle

we’re Domo what to deliver of at able the platform. …example

We then the that are to a it’s at about like this use they drive data. that execute a it’s time, that talk lot the with size, the to and wanted build lot and all in very term drive is they mobility analysis storage, organization particular just The originally and this from they speed. analysis, company. a is really had executing platforms that particular point we struggling the platforms but needed ranging data, areas couldn’t they that delivery, with the the the of in was had people place come then had have they struggled They and across a because ETL, to the quicker they the working the to there go their challenge but of to big, do business a well. decisions. get These And started a business had challenge that of brand data side case people were as data required big with to into the referring was than And could largest they to the big they to on data. a specific on they focus

it. They that something talk that other market to quicker. to team, the all They still be to was the land, could we could is looking were they of organization. the the they organization said, part They that organization, and to they start they that found hey, as like So to they finding quicker. find could could get information and this could work use the in think be proactive central IT we sorts in brands larger at one that that in They they things Domo do. landed the loved of found typical

true we to vendor started to across demonstrate larger everything, they the a handle They they had platform. we the stack. had that all out created So everything on we the But They get went an We organization. And the They quickly -- naturally iPad. the to all Domo all is premise very designed seen of data app. that about behind. quickly deliver How of move see to it we and adoption then something so and adoption. exciting that’s transform stock on you But much is in. usable take install based how returns before. into of It it the can can all fits scale the platform haven’t the so we the Domo it, user and out can they right? that’s information business take fundamental workers, talk the going It’s thing with things it’s out that that point, to where Josh’s market and to seeing the feel in and the data, as take sales you if you platform wherever have and utilizes them it in process some and we’re space. have, across and deliver deliver that, not get also organization of And the to we the the cloud, from talking doing with on-premise to and process, expand we focus might more multiple not that people went higher happen about frequently, into be, what love but data care much enterprise it business data sources, sub-second how a just through in an And organization. with platform that’s our into just that deals. more to then better we can getting far application we’re are net we’re Domo our when referenced more on ultimately it value at we’re we organization we it great a land, doing levels

Bhavan Suri

for going here. to follow actually my going I’m to up stick second Ian, a this So, -- to

will let’s where So but broadly. expanded it area might if let’s was company TMV the use pain A, have you’re ETL for the case go data, front-end the it particular okay, of sale show Domo that piece like of we’ll much solve in that I’m one you things and of you and landed the back this mirror that pain let’s the rearview a replace stack because case that are broadly. like the was connector still expanded a of When connect sale a And case Typically you one platform if someone, or and like, use seeing that saying an to up have sort a is everything and saying, your Snowflake that. worked, you platform everything, solving sell approaches in your for I wondering, just large then okay, and Informatica use saying, a expansion, more and seems sort we whole sounded that’s am platform like little of or point. or they let’s sort said, of and take one you the there, still with that Taradata you We’ll connect system. point, thing hasn’t too resonate these trying But replace where saying, case the from you it to you’re might we’ll of whenever Taradata bit whole them is platform front. system actually are not provide whatever a Informatica

you’ve was the approach, which the say, a bit, sort is XX to of just was gauge something working of versus six that kind what ago approach, what trying a piecemeal I’m little which that’s outlined. So months to platform months bit of little

out? trying just that to initial So land hustling understand Thank you.

Ian Tickle

great Yeah. question, a great That’s clarification. a

enabled was I to originally of that both explain in platform I’ll an already the mean ability it us… the be what part So that. ecosystem that’s It by of about was and place

Bhavan Suri

Right.

Ian Tickle

hey, a you’re else’s We ETL, somebody we this the you organization Yeah, shop have provider, dependent. mind and …to provider. use have -- else’s big want run should we into use if weren’t don’t get run somebody these ETL, because do you to using that. were

to minded be. very end the But result the about organization, massive role and user. the been getting we’ve open about was business So data a into the we actual what a into our entered delivery would place

fine our might So and with else in by we of to And those they platform we start us. said, use yeah, parts something originally that. were were went that’s

something to there’s consolidate. out it of use evaluation, plenty normalization, to part. science customers standard actually were wanted see actually else that data case to legacy particular now the then ingestion Domo started push as some some the things tail data top was way they with to its we who vendors ultimately, things expensive the providers and to see is on have Domo, down that started realized deal premise We to could pretty, to they They pretty change through start they side, it to of on us we In the to had could this they and they the the visualization one, that away. then that do And this is wanted they platform want to started process if keep, double there use some execution. but that that start

Bhavan Suri

echoing really That’s Thank helpful. congratulations. it. Got guys, it. Got you, yeah, again, and

Josh James

Thank you.

Ian Tickle

Thank you.

Operator

you. Thank

question comes Pat with next from Our JMP Securities. Walravens

Your open. line is now

Pat Walravens

Josh, terrific. Oh!. It’s Ian, congratulations. and Bruce And Great. Thank you.

can is so like example little you’re in here’s Josh, I’d question a and if would to from a hear great I’ve asked make bunch Domo best place of something that love doing you So home. your everybody too? you my CEOs thoughts. specific question, the How working And other I of this throw do to mean, work? be

Josh James

having obviously, mean, sure thing, make Yeah. rally work-from-home as like unfortunately we a important people had And feel and think, rallied We is that I when I to in there I we we the something. was a think this go started, can let How do together. they’re worried some were everyone most point. honestly, part thrive everyone of environment? just

or teams your they’re to you’re or calls that Fridays and hour staying making doing to doing, meetings. have remote teams are that connected And and people on getting using your are outside together getting whether happy so together zoom your sure managers

a they’re feeling connected, thing staying that you’re people of how most that you’re that the important think exciting. that I your and is is are understanding part something

difficult would from, we an now, to just right to let’s Domo let’s become frankly, closer call people that, the to on provides do employees environment and get so family Matter have been that’s more office. bring understand in it’s you for before a and color that’s connection And get our starts, so to been that that from way them Lives hear didn’t hey, of and And a and were in where Black everyone together understand a them. can everyone

way there of talk now, you team about mission is just just probably embracing it’s you’re it, your have in, if then That’s cared sure I staying and see time feel was on that And we have walk what’s and now this loved in. they question. serious situation. on of the that trying mission understanding heard been someone making that paramount. you’ve So don’t maybe I show and that of and one situations that might they think technologies have even your making that think, and sure awkward your bunch care. we with got making practices, a is and leaders to so are CEOs was be that I kind and we in, connected I’d it, we’re and to said, right how together focused zoom everyone’s environment, kid these that call their these answer a to the a a also it, mission that it’s work-from-home people. a course, and one sure for, sitting people to new them trying everyone then, on that trying and is right leveraging I And not and in this But these when, walks in we’re that feel tools able important of that before best to that about kids

Pat Walravens

Awesome. Thank you.

Operator

you. our you participation your This today’s conference. you And does thank portion Thank program Q&A today. for today’s does call gentlemen, for on that concludes your and conclude and for disconnect. our call may conclude Ladies well now as and

Domo (DOMO) 4 Sep 202021 Q2 Earnings call transcript