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22-05-2025
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Q1 2026 Domo Inc Earnings Call
Peter Lowry; Vice President, Investor Relations; Domo Inc Joshua James; Chief Executive Officer; Domo Inc Tod Crane; Chief Financial Officer; Domo Inc RJ Tracy; Chief Revenue Officer; Domo Inc Yi Fu Lee; Analyst; Cantor Fitzgerald & Co., Inc. Jared Jungjohann; Analyst; TD Cowen Eric Martinuzzi; Analyst; Lake Street Capital Markets, LLC Operator Greetings and welcome to the Domo Q1 fiscal year 2026 earnings call.(Operator Instructions) As a reminder, this conference is being is now my pleasure to introduce your host, Peter Lowry, Vice President of Investor Relations. Thank you. Peter, you may begin. Peter Lowry Good the call today, we're joined by Josh James, our Founder and CEO; and Tod Crane, our Chief Financial Officer.I'll lead off with our Safe Harbor Statement. And then, on to the press release was issued after the market closed and is available on the Investor Relations section of our note this call contains forward-looking statements about our business, as defined under Federal Securities Laws. These statements involve risks, uncertainties, and assumptions, including, but not limited to, statements and projections about our future financial performance, growth prospects, cash position, sales efforts, technology developments, new business opportunities, transactions and initiatives, the potential impact of artificial intelligence, and other macroeconomic factors on our a detailed discussion of these risks and uncertainties, please refer to our public filings, including today's press release; our most recent annual report on Form 10-K; and quarterly report on Form 10-Q -- all available on the SEC website. These documents list important risk factors that could cause our actual results to differ, materially, from our forward-looking will also discuss non-GAAP financial measures during the call, which we use as supplemental indicators of Doma's performance. Other than revenue, unless otherwise stated, we will be discussing our results of operations on a non-GAAP measures should be viewed as complements to, not substitutes for, our GAAP results. Please see the reconciliation of our non-GAAP results to the most directly comparable GAAP measure on our Investor Relations website, at that, I'll turn it over to Josh. Josh? Joshua James Thank you, Pete. Hello, everyone. Thanks for joining us on the call, today.I am pleased to report that, in Q1, we demonstrated substantial operating leverage in the business, showing that our model is truly again, we exceeded guidance on billings, revenue, and non-GAAP EPS; and generated positive adjusted free cash flow. Notably, this marks the first time we've achieved a positive operating margin in a saw a significant increase in pipeline activity generated by our ecosystem, a dramatic increase in our sales efficiency, a substantial lengthening of our contracts, and an acceleration in RPO growth -- all reflecting the durable, trusted relationships we have with our a direct result of this momentum and due to continued strength in the business, we are raising our full-year guidance. Tod will have more to say about that, are confident that we have finally achieved a business model that will provide continued operating leverage for years to you'll recall, a few years ago, we identified cracks forming in our business and knew we needed to institute changes to our model. We rapidly converted our business to consumption-based pricing and reconfigured our technology and go-to-market motion to become very substantial changes our team has made, over the last few years, have led to measurably improved performance, with the following metrics highlighting that the new model is working:Subscription Remaining Performance Obligations', or RPO, growth accelerated to 24% year over year. Subscription Total Contract Value, or TCV, was up 69% year over Subscription RPO was up 61% year over year. Net retention was up sequentially for the third consecutive quarter and ARR was also up productivity was up over 60% year over year and up for the third consecutive quarter. Gross retention improved to 86%, from 85% last of these metrics support my belief that we are taking the right steps to return to sustainable long-term profitable growth and give me confidence in our Q2 and FY26 outlook for billings growth in RPO is a direct result of our unwavering commitment to our customers' success. By prioritizing their needs and building trusted collaborative relationships, we consistently deliver meaningful outcomes that lead to higher customer-first approach has led to longer-term contractual commitments, underscoring the trust our clients place in Domo as their strategic partner. The loyalty and confidence of our customers not only drive RPO growth but also strengthen retention, a strong proof point that the model is salesforce productivity increased over 60% in Q1. And, although we won't update this metric every quarter, I wanted to share it because it further reinforces my confidence in our ability to grow efficiently. This metric highlights the success of the improved in Q1. And we see ample opportunity for continued retention for consumption customers, in Q1, was significantly higher than for seat-based customers. Consumption customers now represent over 70% of our ARR, heading toward 90% by the end of the year. And as our renewal base increasingly shifts to consumption, we expect it to be another tailwind to positive retention consumption engine is an integral component that drives the success of this the past several quarters, we have made significant progress in transitioning from cash burn to achieving free cash flow positivity and expanding our operating we look ahead, we expect to exit this year at 5% billings growth and 5% operating margin. And we anticipate exiting FY27 at 10% billings growth and 10% operating achievements demonstrate not only our strengthening fundamentals but, also, substantial progress on our Rule of 40 profile. This shows that our model is working and positions us for sustained profitable growth, going held our annual user conference, Domopalooza, earlier this year. And I'm consistently inspired by the powerful ways Domo is driving transformation and delivering meaningful impact for our heard from a global technology and services firm, which highlighted the remarkable journey toward transformative data integration. Over just the past year, they have rapidly expanded their data capabilities by transitioning from fragmented legacy systems to a cohesive AI-enhanced platform, powered by Domo. This transformation has significantly boosted decision-making abilities for over 100,000 people across the CEO of Filevine, a leading legal technology platform, highlighted the transformative impact of AI on the legal industry, emphasizing the company's innovative strides, with products like Chat with Your Case, which efficiently manages vast amounts of structured and unstructured legal data to allow its customers to effectively manage their cases, at enhances its customers' operations with an analytics offering powered by Domo Everywhere. The CEO mentioned that Filevine's impressive retention rate of over 95% climbs to nearly 100%, when Domo is integrated, showcasing Domo's vital role in optimizing data-driven decision Domopalooza, we also outlined our strategic priorities for FY26, including driving adoption, innovating with AI across the platform; continuing to focus customer relationships and multi-year contracts; and developing our ecosystem of partners.I've already discussed the incredible impact that multi-year contracts are having on our business, which is evidenced by the growth we're seeing in metrics like RPO and the corresponding impacts on retention.I'd, now, like to give a brief update on each of the other three areas of it relates to adoption, the demand for our advanced product capabilities is greater than ever. We continue to accelerate customer adoption by focusing on AI agent deployment, governance best practices, workflow automation, and data pipeline optimization, which are driving deeper engagement and increasing the overall impact Domo has on our ongoing initiatives, including strategic consulting packages and extensive AI academy webinar series, and expanded technical enablement are empowering customers and partners to build sophisticated AI-driven solutions, while reinforcing governance and security are seeing a notable difference in the usage of our products by customers who are actively engaged with our technical teams. And we are actively working to provide more of that support across our customer the AI front, we launched Agent Catalyst at Domopalooza, which leverages our existing ETL data governance, security, and workflow capabilities to allow our customers to rapidly innovate with AI customers are AI-curious and have a sense of urgency about adopting AI. But they struggle with how to drive real business are leaning in to show how Domo is an ideal solution to capitalize on the promise of AI. In fact, in one of the general sessions at Domopalooza, we offered to build a free agentic AI solution for attendees and, unbelievably, over 200 customers signed up on the first day. It's amazing to see what some of those customers have been able to accomplish, so quickly, with Agent fact, just today, we hosted an Agentic AI Innovation Summit for data, AI, and tech leaders, focused on advancing intelligent AI agents that automate workflows and decision making, featuring expert speakers from Google, AWS, Domo, and more. With over 6,000 people registering, the event was a key gathering to explore how agentic AI is reshaping the future of the rapid success and the rapidly building momentum, we've already seen customers build agents that do the following: accelerate the ability to spot, classify, and take action, based on anomalies at solar farms; reduce dropout rates in schools by working with students that are at risk of not graduating; streamlining their charitable operations by making it easier to capture and process tax Information; optimize the performance of hotel locations by providing better summarizations and indicators on ways to improve, redefining the future of their business with AI efficiencies related to data, inventory, tax equipment, and sales also heard from leading data and AI consultants who showcased that they were able to use Agent Catalyst to build powerful agents in less than two a leading Snowflake Systems Integrator, showcased Agent Catalyst's impact by creating an agent that revolutionizes conference networking through intelligent attendee matching, based on shared interests and complementary skills going beyond just job a leading Databricks SI, highlighted their success in using Domo's Agent Catalyst to optimize fleet management operations. By integrating with Databricks for real-time analytics, Koantek has adopted proactive strategies that ensure vehicle up-time and enhance route efficiency. This has been especially critical in a delivery-driven economy, where timely operations are many years of effort and investment, we have built a robust platform that includes seamless data access, advanced ETL capabilities, comprehensive data governance and security, streamlined workflows, automated alerts, approvals, and powerful visualization strong infrastructure positions us uniquely to support the development of AI-driven solutions that address real-world business challenges. Nearly every customer conversation that we are having aligns with some form of AI-driven workflow or agentic moving on to the ecosystem.I'm very happy to report that we continue to make significant improvements to our integrations with our Cloud Data Warehouse or CDW partners, including Snowflake, Databricks, Oracle, Google, and are seeing very encouraging trends in the partner metrics that we track. Conversion rates for partner source deals remains well above those for traditional marketing source early-stage partner pipeline continues to grow at a very rapid pace. Partner-sourced leads and the number of deals that moved from top of the funnel to later stages in the pipeline were up more than 200% from last from just one CDW partner. And we have several more partners we are just beginning to go to market with. So just imagine where that could lead. The model is we build strong relationships with System Integrators linked to several of these CDWs, expanding our ecosystem and market reach even Domo Everywhere solution has also helped us form new customer relationships by enabling Domo customers to securely share data with their customers, just like Filevine, who we mentioned let me highlight a few of our customer wins in the quarter, driven by our complete platform-advanced features and consumption in terms of new logos, a geospatial services company chose Domo, after completing a thorough self-guided POC that highlighted our extensive capabilities, AI/ML, pro-code features like Bricks, Jupyter Notebooks, along with the strong technical expertise of our engagement team. This was a former prospect that returned to Domo, following a failed Microsoft Fabric implementation, [boo].Another new logo in was with a mortgage company that chose Domo to gain deeper insights into their loan portfolios, branch performance, and risk management, addressing limitations in their current legacy reporting systems. They valued the company-wide analytics with unlimited user licenses provided under our consumption terms of upsells, a transportation technology company chose to expand with Domo by 10 times its original contract value, following a successful consulting project that built trust and enabled a company-wide roll-out of thousands of data sets and dashboards. They valued Domo's flexible consumption model, which allowed them to scale to 600 users, following an acquisition without traditional licensing constraints; and leveraged advanced features like Workflows, Governance, and Domo lastly, a healthcare company expanded with Domo to support wide-scale deployment and accelerated project implementation. Our consumption model was critical because the full-platform access and unlimited licenses are enabling rapid adoption and integration into core strategic business initiatives. With strong momentum from successful deployments, the company is positioned to expand further, with Domo, into new business units and embed Domo deeper in the organization through workflow automation and AI/ML has earned top honors, across several leading industry reports and awards. We were the top -ranked vendor in three Dresner Advisory Services market reports: the 2025 Wisdom of Crowds, Cloud Computing, and BI Market Study for the ninth consecutive year; the 2025 Self-Service BI Market Study for the seventh consecutive year; and the 2025 Collective Insights Report for the fourth time. And CRN recognized Domo on its 2025 Big Data 100 list in the Big Data Business Analytics effectiveness of our model is clearly on business delivered beats on all the important metrics and facilitated raises to our annual guidance. Virtually ,every important eternal metric is sales efficiency was stellar this quarter. The pipeline generated through our ecosystem partners has increased, just like we said it would. The strength of our customer relationships delivered outsized improvements in RPO and contract length, which should lead to substantial measurable improvements in gross and net transition to consumption is delivering higher usage, higher customer satisfaction, and higher retention. And our customers are leveraging AI agents at a rapid pace, demonstrating that our technology stack is perfectly set up to capitalize on the AI momentum in the model is dramatically different from three years ago and has us poised for profitable growth.I'm thrilled to be able to say that we're going to exit this year at 5% billings growth and 5% operating margin, on our way to exiting next year at 10% billings growth and 10% operating that, I'll hand it over to our Chief Financial Officer, Tod Crane. Tod Crane Thanks, exceeded our Q1 guidance for billings, revenue, and non-GAAP EPS; and were adjusted for cash flow positive. Total revenue was $80.1 million and billings were $63.9 a company, and in my role as CFO, a primary focus is driving operational efficiency and managing the company to achieve positive operating margins and free cash we leverage the early-stage success with our ecosystem partners, it further positions us for growth, while maintaining disciplined control over costs. It allows us to continue to scale our sales efforts effectively and achieve a stronger return on sales investments, supporting sustainable and profitable retention improved to 86%, from 85% in Q4 and 83% a year ago. This is the fourth consecutive quarter at 85% or above. And we continue to expect a 2 percentage point-improvement in gross retention for FY26, compared to the prior year-over-year net retention was 94%, up sequentially for the third consecutive quarter and up more than 4 percentage points year over improving retention rates are another important factor because profitable growth is difficult when retention rates are low. Retaining customers is far more cost effective than acquiring new RPO growth is also significant. Current Subscription RPO grew 5% year over year to $226 million. And our total Subscription RPO grew 24% to $408 million, an acceleration from 14% growth in salesforce productivity, higher retention rates, and accelerating RPO growth all support my confidence that we are well positioned to accelerate our billings growth over the remainder of the year, while also expanding our operating addition to improving operating margin, generating positive free cash flow remains a key focus. In Q1, adjusted for cash flow was $1.3 million, a significant improvement from Q1 last year. Our cash balance increased from $45.3 million in Q4 to $47.2 million at the end of forward, we expect our adjusted free cash flow to be slightly positive in Q2 and positive for the on to margins and profitability. Our non-GAAP Subscription gross margin increased sequentially to 81.6%, a level we expect to maintain in the near term and improve over time. Non-GAAP operating margin was 1.3% and non-GAAP net loss was $3.6 net loss per share was $0.09, based on 39.7 million weighted average shares outstanding. Because we are in a net loss position, all share and per share amounts are the same for basic and for guidance: for Q2, we expect billings of $69 million to $70 million, which represents growth of 1% to 2% year over year. We expect GAAP revenue of $77.5 million to $78.5 million and non-GAAP net loss per share of $0.03 to $0.07, assuming 40.5 million weighted average shares the full year, we are raising our guidance for billings, revenue, and non-GAAP net loss per share. We expect billings of $312 million to $322 million, GAAP revenue of $312 million to $320 million, and non-GAAP net loss per share of $0.18 to $0.26, assuming 41 million weighted average shares conclusion, I am very pleased with both our internal metrics and the results we have discussed today, which indicate that we are on the path towards sustained long-term profitable that, we will open the call for questions. Operator? Operator Thank you. We will now be conducting a Q&A session.(Operator Instructions)Yi Fu Lee, Cantor Fitzgerald. Yi Fu Lee Thank you for taking my question. Congrats on a very strong start, Josh, Todd, and Josh and Todd, can you just flip back to the macroenvironment, just to start off [conversation].Does it seem like with all the trade, tariffs, right, negotiation that's coming along, that's affecting the business? That the fundamentals are clearly affected, positively?And then, on the Domopalooza event, obviously, well attended; you were there, as well. Can you comment more on, like, the -- when you talk about one of the partners who, 2x, in terms of -- who, 2x, (inaudible), how do you get the other partners to be on the same track?Maybe, start with that. And, also, I have a couple more follow-ups. Joshua James Yeah. From a macro perspective, it's definitely not a great environment. But our team seems to be marketing through it. I think that the way that customers view is as a way, a path forward, when it comes to we mentioned, almost every conversation we're having with customers, right now, is how to leverage the data that they have inside Domo and how they can create agents. So that's been a very positive development and, it's driving activity.I think, from a macro perspective, people are definitely more hesitant than they were five years ago. But I don't think it's changed a lot in the last 12 have a few customers that talk about tariffs. But it hasn't been a large issue.I think when it comes to the partners that you're talking about, we do have one partner that's moving faster than the other one, so far. But that's been mostly tied to where we've made the investment and our product was most ready for. And we had to serially go through and get it ready for different so, we've had a lot of activity with Snowflake. And that activity, we expect also, with Databricks and with Oracle and with IBM and with Google and others, internationally. So we're having, actually, a lot of success and a lot of stuff in the pipeline, just that one's further ahead. So we do expect to see the same kind of activity from the other partners and expect that the partners are going to end up being equal amount of new logo activity as all other marketing activities, combined. Yi Fu Lee And then, Josh, can you just tell me a little bit more: like, a 6x increase on self-productivity. Obviously, feel free to have RJ comment, as well, like, in terms of: if you could break it down, why is it that it's 6x better this quarter, that? Is it because you're working more with the partner ecosystem or the combination with the consumption model that's driving it -- the 6x?And then, flipping back to Domopalooza: in terms of the pipeline building activity, obviously, you were on the floor, speaking with all your partners and some of your customers, as well. How is the pipeline building efforts on that? And how does it translate into second-half closure? Joshua James Yeah. Consumption is definitely an important component of our model. And we're, I think, seeing, in this Q1, just, really, leverage in the model work. We worked really hard on changing our model, over the last several years. And we're really starting to see the fruits of that -- and actually get operational leverage, at the same time. So we think there's going to be good profitable growth from the efficiency that we're seeing in the sales organization is, first of all, obviously, interest because of what we're doing, from an AI perspective; and then, also, what we're doing with the CDWs, that really has made our business more defensible and it's created more opportunities and when we look at our pipeline, this will be the quarter that we actually see a meaningful amount of deals closed that have been in the pipeline for the last few quarters. And so, close rates are higher; deals are a little bit think retention is going to be higher. And we go in with relationships with a partner who's espousing the positive attributes of our business and how we help the that's been a really positive development that we've been talking about for a while. This quarter, we're seeing the numbers actually hit. And we'll see those numbers in with the pipeline that we also see building for Q3 and Q4, we feel very good about the fact that, as we enter next year, we'll probably have the same amount of business that's being generated from our partners as we do from all other marketing what we're seeing, right now. And, as that plays out, we'll give more guidance around that. But I think that's what gives us the confidence that we can say, hey, for the last three years, we've been saying we're going to reconfigure the model, we're going to invest, and we're going to get back to growth. And you saw us this last quarter, we -- first-time ever, we've been positive in a Q1, net margin then, the other thing is: we're sitting here saying, not only that, we're going to be 5% margin positive and 5%, growth exiting this year; and double those numbers for exiting next year. There's a lot of upside to we're finally in a different category of company than where we've been the last three years. And this because of all the reconfiguration; the consumption model being able to get the multi-year deals because customers love what we're doing with them; and then, also, all the efforts that we put into those partnerships with CDWs. Yi Fu Lee Thanks for that, Josh. And just one -- the last one on the technology side, before I move on to talk on the financial side, is, obviously, you talked a lot about agentic saw Catalyst launch at Domopalooza. And then, there was another thing called, ML Model Management. Can you discuss what are you most excited about, in terms of the product adoption?And I think it's going to tie into my question later for Tod, like RPO, right? What is it that the customers are adopting, in terms of (inaudible) that leads to the longer duration, long contract sizes? Joshua James Yeah. I think the thing that I'm most excited is that we're teaching customers how to build their own agents. And they're doing a text message I got just this morning, from our team, and it was a customer that said, I just want to provide some feedback on the recent AI agent training, hosted by you, guys, last Wednesday. I followed along the video. I paused only to make a few data sets to use. And by the time I got to the 37-minute mark, I actually had a working AI agent that was looking at my data sets, invoices, intakes, contracts; and composing and delivering a combined weekly category management summary for sourcing managers, based on the little bit of direction I gave boom! 37 minutes, they got an agent working inside their organization because they're already using Domo. The data is already governed. It's already secure. We allowed them to use LMs inside their then, this guy goes on and says, I tried another one today from scratch; specifically to see if I could just ask the AI to iterate through a list of items for me and act on each one. It is nearly production ready. A few hours later, this AI agent accesses a data set of associates who've been recently transferred to another manager and who are corporate cardholders. The AI agent looks at a row of data containing the new manager, the old manager, and the worker who was transferred. It then generates an email based on the prompt I gave it. It then sends the email; then, it does it again until it's done with all the rows. It worked, beautifully, the first time. It composed an absolutely lovely email, even identifying more information from the data, without me telling you you see that kind of stuff. There's two agents that were created by an individual that got trained on our agentic platform. All of that is driving consumption in our product. They're much we're not seen as a visualization tool so we are definitely, here, primetime ready, for the AI agent world. Yi Fu Lee Excellent Josh. I'm going to move on -- thanks for that. I'm going to move on to Tod on the obviously, subscription RPO is a key focus, right? Short term is up 24% this quarter, up from 14% last quarter; long term, even better, 61%. Can you help us break it down, Tod? Why is this metric inflecting so much better? And what are the factors that driving customers go long term with Domo?And, also, you also upped your guidance, right, in terms of, like, beating it, as well as you raised it a little on the EPS side. What gives you confidence that you're able to gain the operating efficiency for the rest of the year? How conservative are you with the model?That's it from me. Thank you, gentlemen, for taking all my questions. Tod Crane Thanks for the question, RPO: very happy with the result there, coming in at over $400 million for Subscription RPO. That's growth of 24% year over year, with current growing 5%, long term growing 61%.I think the technology and the things -- the example that Josh just gave is very powerful, in terms of the ability of our customers to get value from our product very then, you pair that with consumption, which allows them to quickly unlock that value, not being limited by seeds, not being limited by not having access to the full platform, they can try anything. They can go in there and we're seeing that powerful combination of our good technology, our consumption model, contributing to stronger customer relationships, which is, in turn, allowing us to get longer-term the story of RPO. Very happy with the growth terms of the leverage in the model: if you look at our operating expenses over the last four or five quarters, there's been a steady improvement and a steady demonstration that we're getting leverage continuing to do that. We've made great progress there. And, as we look ahead and model out what the rest of this year looks like, we see an opportunity to continue to expand margins. And we will continue to do that. Yi Fu Lee Okay. Thanks, again, Josh. Congrats. Operator Derrick Wood, TD Cowen. Jared Jungjohann Hi, team, this is Jared Jungjohann, on for Derek we incorporate new consumption dynamics and AI elements into your cost of goods sold, how should we be thinking about gross margin trajectory over the medium term? Tod Crane We were at 81.6% subscription gross margin this quarter. We expect it to remain around that level for the near term, with the long-term goal of having it increase from terms of the dynamic related to consumption, it does tie the revenue more closely with the cost. So that's, in large part, the reason why we're expecting that to increase over time, going forward. Jared Jungjohann Awesome, appreciate that color. And then, can you talk to some of the trends you're seeing in your enterprise space versus commercial base?And then, maybe, how do these evolving partnerships impact that? Are you seeing these partnership deals skew larger or -- just some color there? Tod Crane Yeah. I'll jump in on that one. And, Josh, feel free to chime in, On the enterprise side, it's a large portion of our business. It's an important part of our business. We've had great success there over the years. We have a lot of great enterprise if we look at the leads that are coming in from partner, a significant portion of those are enterprise leads. And so, we're seeing this as a real opportunity to continue to expand our presence in the enterprise and to continue to have success there. So we're definitely encouraged by that. Jared Jungjohann Awesome. And then, as you gain more traction with these cloud partners and get adopted into the modern stack, what area of your solution set are you seeing these customers really dive into? Joshua James Yeah. One of the biggest things with the clouds is they're looking to get more and more information into their clouds. They want to hydrate their clouds. And we have a unique ability to do have more connectors than anybody in the industry. And we have a very robust system to be able to help them manage the we walk into an account, instead of the 100 or so people that might be using a CDW; when we're in an account, we might see 10,000, 50,000, even 100,000 so, if you can have all of those people also accessing that data and formats that they want in a secure way, then it just drives more adoption of that CDW and secures the CDW's relationship even of the CDWs are out there trying to build other use cases. And they're all trying to expand beyond IT central functions and go into creating marketing use cases and sales use cases and operations use cases. And that's our bread and it really is a good combination of us with the CDWs. And one of the things that we get out of that is we get a CIO-blessed relationship, which makes our relationship with that customer much stronger in our ability to weather different changes they are going seeing -- we have an ability to sit on top of multiple CDWs. And that's actually something that CIOs like; as well as, people are shifting their strategies or adopting one CDW and moving to others. And it really puts us in a unique position. Jared Jungjohann Awesome. I'll just finish up with one last one. But real positive commentary around the guidance and what you're seeing out of the CDW that strength in commentary, I'm wondering how you're thinking of investing in growth versus investing in margins. You've obviously factored in a little bit of op margin expansion. But, maybe, just talk to that a you. Tod Crane Yeah. It's a great question. It's always a balancing act. We feel confident that we're getting the right investments in place and that we have an opportunity to keep that momentum going with the CDWs, while still expanding we're not trying to get to 30% margins overnight. We're going to slow and steady expansion towards that 5% and then, that 10% level, over the next couple of that's going to allow us plenty of room to continue to invest in these partnerships. Operator Eric Martinuzzi, Lake Street. Eric Martinuzzi Curious to learn a little bit more about your pricing policy on your consumption-based contracts. Just as you've got -- as you've been at this for now: we're in our third year or so of the consumption-based pricing these come up for renewal, is there an opportunity to raise prices? Or is it really just more there's a natural -- as the customer uses the product more, they consume more and that's what drives a higher year-over-year growth in that consumption-based installed base? RJ Tracy Yeah. Our focus on consumption pricing is to make sure that -- this is RJ Tracy, CRO, with our real goal with consumption is to align the value that customers get with how they pay. And so, it's a natural motion for us to go work with customers and help them get more value out of the platform. Solve more use cases, get them using agentic AI solutions that help them to take action on the as they use the product, then it drives the usage up; which we want to go in and then, help them get a better rate on their consumption price. So it's a pretty natural motion for we're still figuring out the best methods for adoption. But it's a real natural motion for customers because as they get more value, then they pay more. Eric Martinuzzi Got you. And then, the cohorts: again, we're looking at -- this is a consumption-based question. As you've seen those cohorts come back for renewal, you already talked about, hey, we're up to 70% of the installed -- of the ARR is on a consumption-based pricing those cohorts -- are you seeing the consumption-based cohorts as more likely to adopt the AI and the newer products? Or is it an equal mix between the folks who aren't on consumption-based that are on the per seat-based pricing? RJ Tracy Yeah. They're a lot more likely to adopt because there's not a restriction or a paywall in front of them before they you buy Domo, the entire platform is available to our customers to use. When we were on seat-based pricing, any feature that they hadn't paid for was hidden behind the paywall. And so, it created a barrier of entry for customers to go in and adopt that technology; where, now, if they want to try -- like the customer example that Josh read, if they want to try out one agent, they can go in, and in 37 minutes, build an agent. And that might only take a couple of then, they'll decide whether they're getting value from that or not. If they keep it running, then it will consume more and more over the year. And if not, they can shut it off and they paid, maybe, a couple of credits to try something significant increase in adoption across the entire platform, including users. Eric Martinuzzi Got it. And then, last question is around the progression of the billings growth implied in the I take your Q2 billings growth, midpoint looks like a little over 1% growth. But you're talking about exiting the year: so a Q4 billings growth rate of 5%. Is that based on things that you already have in the pipeline? Or is that yet to be filled in at the top of the funnel? Tod Crane Yeah. It's based on a number of factors. We consider a number of different inputs in our financial is certainly one of them: the trajectory of the pipeline, pipeline generation, quality of the pipeline. And then, just historical trends: what we're seeing, in terms of rep productivity, those kind of yeah, based on everything we're seeing, we have confidence that we'll exit at 5%. And so, you can do the math between what we guided for Q2 and the 5% for Q4 and get to what we're going to be around for Q3. Eric Martinuzzi Got you. Thanks for taking my questions. Tod Crane No problem. Thanks, Eric. Operator Pat Walravens, Citizens JMP. Great. This is [Nick], on for Pat. Congrats on the at Domopalooza and on the call today, you mentioned the 200 customers who wanted to try Agent Catalyst. I was wondering if you could speak a little on what demand looks like today for that then, Tod, one for you. It's been almost nine months since you stepped into the role as CFO. What is one thing that's been harder than you thought? And what is one thing that has been easier than you thought, since assuming your new role? Joshua James Yah. I talked a little bit about the kind of conversations we're having with our customers. They're just ongoing and continual. And they're not just exploratory, right? Like I mentioned, they're actually making things in these trainings and in these I'm going to have RJ talk a little bit more about the opportunities and some of the activities that we're seeing in our pipeline. RJ Tracy Yeah. As we get leads, especially from the ecosystem, we're seeing a ton of customers that want to dive into AI and figure out what that looks like within their company, within their org. And a lot of those AI use cases require need access to data. They need to be able to transform that data. They need a way to surface it out or embed it to where their users are at or where their customers are we're seeing use cases all across our stack. And the great thing is that they can come in and buy just the components that they the entire stack is available to them. So ,at any time, they can start to use other components to help them and will help drive consumption and give more value to our customers. Joshua James From an AI perspective on the agents, talk about some of the ServiceNow stuff that we're seeing, as well. RJ Tracy Yeah. We have a customer, right now. They're surfacing particular use cases in ServiceNow. But it requires a human intervention to come in and to actually do all the work. So we're supplementing some of what they're doing in ServiceNow with our Agentic one of the use cases was helping get data to hydrate a warehouse. And, in this example, customers can start a ticket in ServiceNow. They want to bring data into their typically, that requires, now, a person to then take that ticket, go out, do an integration, upload data; where, now, Domo is automating that entire process. But we still allow for that human in the loop to approve or to reject a request. But if they approve it, then the data is uploaded immediately and that process now takes 30 seconds to a minute instead of, sometimes, several days or weeks to get that human seeing customers that want to automate labor management, where they want to automate the ability to help customer -- their employees that, maybe, can't work the next day and need to fill is helping them find a replacement. It's automating the process for that. It's immediately notifying people and asking if they can accept a shift that they weren't expecting to work. And that entire process can happen in seconds, instead of having someone have to go manage thousands of employees to figure out who can cover those are some of the examples and use cases that we're seeing. Got it. Thank you, RJ. Thank you, Josh. Tod Crane Yeah. And then, on your other question, in terms of (inaudible) harder and easier: I'll probably characterize that a little bit differently, if that's okay. I'll probably put it in categories of things I really want to -- something I really want to fix and things that I've been happy with how they've been for me, we're obviously pleased with the improvement in gross retention over last year and over last quarter. But that's a big, big focus for us, as an Executive Team, to continue that march toward 90%-plus gross retention. So that's the one thing that I'm really focused on in terms of very happy with our RPO performance. We've talked about that, already, a few times. But that 5% current RPO growth, not a huge number but it does point to that 5% exit rate that we talked about earlier and de-risk then, that longer-term portion of RPO also derisks our forward-looking revenue and our forecast beyond this year. Got it. Thank you for that. And congrats, again, on the quarter. Operator Thank that, that concludes today's may disconnect your lines, at this you for your participation.
Yahoo
18-05-2025
- Climate
- Yahoo
Fans wait out rain at Tacos and Tequila Festival
The Brief Attendees at this year's Taco and Tequila Festival had to evacuate because of severe weather Saturday. The event was delayed for around 30 minutes. Attendees said the delay wasn't as bad as waiting to reenter the festival. FORT WORTH, Texas - The Tacos and Tequila Festival was evacuated for about 30 minutes Saturday while a storm moved through the area. Organizers said the safety measures in place worked exactly as planned. Thousands packed Panther Island Pavilion for the fourth annual festival. Organizers kept a close eye on the forecast, as there was potential for severe weather in the area. What they're saying "We actually opened gates a little bit later because we wanted to make sure the site was safe when that storm cell or if any storm cells come through, that we're prepared for them," Social House Senior VP Joshua James said. The evacuation plan was put into motion around 5:30 p.m. Saturday. Everyone was asked to evacuate and encouraged to take shelter in their car or under a bridge at a nearby park. Fort Worth Police and the city's emergency management office were at the venue to help. The storm passed within 30 minutes, and people started to line up again, but the gates didn't open right away. High winds stuck around, and there was concern for the stage. When the gates reopened around 7 p.m., people were not allowed near the stage. What they're saying "Some people were agitated, but it is what it is, keep going," Oogande Vassel said. We're here now. The sun is shining, keep going." Vassel took shelter in the parking lot outside the gates and other people in his group went back to the truck to weather the storm. "I work outside for a living, it wasn't that bad," Vassel said. Evacuating because of the storm wasn't a big deal for other festival-goers like Roshanda Dorrough either. It was the waiting to get back in that was the difficult part. "All they said was 'wind hold," but they didn't say they were having trouble with the stage, and they were saying it was going to be like a two-hour wait to get back in," Dorrough said. "And when you've paid that much for a festival, you expect to enjoy it and not sit in line for an hour and a half." Organizers said it's important to have a plan in place for weather during the Texas spring. "It's not fun for people to have to work around weather," James said. "I mean it throws a wrench in everybody's plans and we appreciate everyone just being patient and understanding we are doing everything we can to keep everyone safe and safety is our number one priority." Organizers estimate around 10,000 people came to the festival. The Source Information in this article comes from interviews by FOX 4's Amelia Jones.
Epoch Times
18-05-2025
- Business
- Epoch Times
Night Activities in the San Francisco Bay Area That Don't Include Alcohol
For people looking to go out at night and have a good time without alcohol, here are some places to go and activities happening in and around the San Francisco Bay Area. Ocean Beach Cafe 'The cafe part was the bait—get people in the door so they could lay eyes on something they never knew existed,' Joshua James, owner of Ocean Beach Cafe, told the Epoch Times via email. 'Something that was becoming the biggest subject in the food and beverage industry.' That something is the world of non-alcoholic beverages, where James seeks to do more than just remove alcohol—he aims to reimagine what drinking could be and taste like. His intention is to have Ocean Beach Cafe be a beacon in the modern sobriety movement. From his 'The alcohol industry has totally been disrupted as the pendulum swings towards wellness, and they are not getting their previously guaranteed new customers because Gen Z is The front entrance to Ocean Beach Cafe in San Francisco. Courtesy of Joshua James James, a bartender with over 20 years of experience, said he always felt like he had a lot of potential but never really tapped into it. Related Stories 1/3/2025 1/25/2025 With that, in 2020 he decided to take a year off drinking alcohol, to see what would happen. 'That one change made me wildly productive, for the first time in my life. I realized I loved getting things done,' he said. He set a goal to make 50 non-alcoholic beverage review videos on YouTube, to see where it would take him; and 30 videos in, he walked into a deli that was permanently closing during COVID. He took the location and turned it into a non-alcoholic bar and retail bottle shop called Ocean Beach Cafe. 'I'd written 10 business plans before, but this was the one I saw all the way through,' he said. Joshua James, owner of Ocean Beach Cafe in San Francisco. Courtesy of Joshua James He said the cafe does 'Tasting Bazaars' at least twice a month, always on Saturdays. These are free tastings and usually feature 3 to 5 brands. There are also non-alcoholic mixology classes and temperance tastings via reservation, he said. The cafe also holds a #KeepOceanBeachClean event every Saturday starting at 10 a.m., with free food and drink given to volunteers starting around 11:30 a.m., made possible by a grant program from Civic Joy Fund, he said. Although it's not at night, he said that is the cafe's most well-attended event. Also, the cafe is on 'Meetup has been successful and indicative of the sheer amount of interest in socializing without alcohol as the default!' he said. Night Hikes at Mount Diablo State Park Although the night hikes are infrequent and limited in space, this is one not to miss. 'Night hikes on Mount Diablo are a rare and special treat and hikers can only enjoy them by either camping overnight on the mountain or by joining one of our docent-led hikes since the park closes at dark and it is not permitted to hike in the park without a docent to accompany you,' Stephen Smith from the Mount Diablo Interpretive Association told The Epoch Times via email. Dusk on Mount Diablo. Courtesy of Steve Smith Currently, the website Smith said, 'During the summer months we have many wonderful sights that can only be seen at night. A special plant whose blooms only open at dusk is the This plant can be seen on the Soap root with a bumblebee. Courtesy of Steve Smith He said the most coveted sighting is the nocturnal bird known as the common poorwill, which they look out for on the These birds are often heard before they are seen, with their distinctive 'poor-will' calls echoing through the night air. Smith said another special sight is the scorpions, which have an undeserved reputation. He said most visitors never see scorpions and are surprised to find out there are at least three species living on Mount Diablo, with the most common being the California forest scorpion—the largest in the area at up to two inches long. 'Once again, its ability to inflict a 'deadly' sting is a complete He said the scorpions only come out at night to hunt for other scorpions, insects, and small arthropods; and if you wish to see these fascinating creatures, join one of the summer night hikes and watch as an ultraviolet flashlight is used to locate them and cause them to glow in the dark. On the night hikes, he said, bats like the little brown bat come out at dusk to hunt insects and can be seen flitting about. Owls can often be heard hooting, especially the familiar hoot-hoo-hoot of the A scorpion under black light. Courtesy of Steve Smith Smith assured that the night hikes are safe and the terrain is a wide fire road, which is fairly smooth. He said to bring a flashlight, and he added that guides often provide several black lights to view scorpions along the way. He said none of the night animals are dangerous and all of them are trying to avoid people; the hikes are led as a group with safety in numbers, and several docents are on hand to guide. Food Truck Markets Pickleball For people looking to play pickleball, there are many At Paul Moore Park in San Jose, there are six At Memorial Park in Milpitas, there are six At West Valley College in Saratoga, there are six dedicated courts. Play hours open to the public are Mon–Thurs 2 p.m. to 10 p.m and Fri–Sun all day, though the times are subject to change. The college is located at 14000 Fruitvale Ave, Saratoga, 95070. The courts have lights, restrooms, and a $3 parking fee. At Mitchell Park in Palo Alto, there are 15 public Red Door Escape Room This is where friends or family members work as a team to race against the clock, discover clues, solve puzzles, and accomplish tasks with the goal to escape the room they are (pretend) trapped in. Depending on the location, Red Door has 30-minute and 60-minute games with different themes and challenge levels, which can be played with two to eight players. Their last episodes start a little after 10:30 p.m. The Red Door Escape Room has 4 locations: In In In In the Red Door Escape Room in Concord. Helen Billings/The Epoch Times Game Nights Black Diamond Games in Concord on Thursday nights The Game Parlour, a board game cafe in San Francisco, is It's Your Move, a game store in Oakland,
Yahoo
10-04-2025
- Business
- Yahoo
Joshua James Bought 5.1% More Shares In Domo
Those following along with Domo, Inc. (NASDAQ:DOMO) will no doubt be intrigued by the recent purchase of shares by Joshua James, Founder of the company, who spent a stonking US$502k on stock at an average price of US$6.50. While that only increased their holding size by 5.1%, it is still a big swing by our standards. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Notably, that recent purchase by Joshua James is the biggest insider purchase of Domo shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$8.16. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price. In the last twelve months insiders purchased 87.30k shares for US$572k. But insiders sold 44.10k shares worth US$358k. In the last twelve months there was more buying than selling by Domo insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction! View our latest analysis for Domo There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them). I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Domo insiders own 16% of the company, worth about US$48m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders. The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Domo insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Domo. Be aware that Domo is showing 2 warning signs in our investment analysis , and 1 of those is potentially serious... Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
