• Total Revenue: $78.8 million.
• Subscription Revenue: 91% of total revenue.
• Q4 Billings: $102.6 million.
• Subscription RPO: $403.6 million, up 14% year-over-year.
• Long-term Subscription RPO Growth: 38% year-over-year.
• Gross Retention: 85% in Q4.
• Adjusted Free Cash Flow: $6 million in Q4.
• Cash Balance: Increased to $45.3 million in Q4 from $40.9 million in Q3.
• Subscription Gross Margin: 81.4%.
• Non-GAAP Operating Margin: 4.1%.
• Non-GAAP Net Loss: $1.8 million.
• Non-GAAP Net Loss Per Share: $0.05 based on 39.3 million weighted average shares outstanding.
• FY26 Billings Guidance: $310 million to $320 million.
• FY26 GAAP Revenue Guidance: $310 million to $318 million.
• FY26 Non-GAAP Net Loss Per Share Guidance: $0.29 to $0.39.
• Q1 FY26 Billings Guidance: $62 million to $63 million.
• Q1 FY26 GAAP Revenue Guidance: $77.5 million to $78.5 million.
• Q1 FY26 Non-GAAP Net Loss Per Share Guidance: $0.18 to $0.22.

• Warning! GuruFocus has detected 6 Warning Signs with DOMO.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Domo Inc (NASDAQ:DOMO) exceeded guidance for billings, revenue, non-GAAP EPS, and adjusted free cash flow in Q4.
• Subscription RPO growth accelerated to 14% year-over-year, with long-term subscription RPO growth at 38%.
• The company successfully transitioned 65% of its ARR to a consumption model, with plans to reach 90% by the end of fiscal year '26.
• Domo Inc (NASDAQ:DOMO) has built strong partnerships with cloud-based data warehouses (CDWs) and system integrators (SIs), enhancing lead conversion rates.
• Domo Inc (NASDAQ:DOMO) received several industry awards for its AI capabilities, highlighting its strong position in the AI and data analytics market.

Negative Points

• Gross retention was 85% in Q4, which, while improved, still falls short of the company's long-term goal of 90%.
• The company is still working on increasing the volume of leads from its partner ecosystem to confidently adjust guidance upward.
• Domo Inc (NASDAQ:DOMO) has a debt of about $120 million, which it plans to address over the next four years.
• The software spending environment remains challenging, impacting the pace of new customer acquisitions.
• There is a need for ongoing investment in aligning sales and technical resources with the ecosystem strategy, which could impact short-term profitability.

Q & A Highlights

Q: Can you comment on the macroeconomic environment and its impact on customer decisions? A: Joshua James, CEO, noted that customers are making well-organized and thoroughly considered purchase decisions, similar to recent years. RJ Tracy, VP of Partners, added that they haven't seen recent changes but are vigilant about potential impacts.

Q: Can you explain the dynamic between renewals and consumption, and discuss the company's cash and debt position? A: Tod Crane, CFO, explained that consumption conversions often reset renewal dates, causing a $5 million shift in renewals out of Q1. Regarding cash and debt, he highlighted a strong free cash flow result in Q4, increasing cash balance to $45 million, with $120 million in debt to manage over four years.

Q: How are partnerships with Snowflake and Databricks performing relative to expectations? A: Joshua James, CEO, emphasized significant progress in aligning with the ecosystem, noting a 5x increase in conversion rates for ecosystem-generated leads and a 2-3x increase in close rates. He expects these partnerships to meaningfully impact billings in the future.

Q: Are there any planned changes to the go-to-market strategy or sales hiring? A: Joshua James, CEO, stated they will continue focusing on the ecosystem and hiring profiles with experience in CDWs. The shift to a consumption model requires a different skill set, emphasizing customer adoption and ROI.

Q: How is the transition from consumption to partnership models progressing, particularly with SIs and CDWs? A: Joshua James, CEO, noted positive feedback from SIs and CDWs, highlighting their role in facilitating relationships. He mentioned that Domo Everywhere is helping customers generate revenue, leading to multimillion-dollar deals for Domo.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.