DOMO, INC. Q2 FY2025 earnings call

• Exceeded revenue guidance in Q2. - Gross retention improved to 88%, a highlight for the quarter. - Refinanced debt to extend maturity to August 2028 and reduce interest rates. - Progressed in ecosystem partnerships with CDWs, with over 60 joint deals in the pipeline and 5 new customers from Domo Everywhere partners. - Shift to consumption-based pricing with over 45% of ARR on consumption contracts and goal to have majority by year-end. - Leadership changes: David Jolley transitioning to senior advisor, Todd Crane to become CFO.

In Q2, total revenue was $78.4 million, a year-over-year decrease of 2%. Subscription revenue represented 90% of total revenue and was flat year-over-year. Billings were $68.6 million. Gross retention was 88%, up from 83% in Q1. Subscription gross margin was 82.4%. Over 45% of ARR was on consumption contracts, with the goal of having a majority of ARR on consumption by year-end.

• Q3 non-GAAP billings expected 70 million to 75 million, GAAP revenue 77 million to 78 million, non-GAAP net loss per share $0.14 to $0.18. - Full year billings expected approximately 305 million to 315 million, GAAP revenue 313 million to 315 million, non-GAAP net loss per share $0.69 to $0.77. Guidance reflects redeployment of assets for long-term growth.

• Risks associated with forward-looking statements, including macroeconomic conditions, impact of AI, and differences between actual results and forward-looking statements as per SEC filings.

Q: Congrats on the P&L performance and questions about strategic conversations with customers and partnership impact.

A: Joshua James discussed how partnerships with CDWs change perception and enable better customer conversations.

Q: Questions about partnership pipeline timeframe and deal closure.

A: Joshua James mentioned early successes but needing more data, with varying deal sizes.

Q: Questions about sales and marketing cost efficiencies.

A: David Jolley talked about headcount-related efficiencies and shifting to a more efficient sales process.

Q: Questions about refinancing terms and CDW partnerships.

A: David Jolley discussed refinancing terms, and Joshua James mentioned partnerships with multiple CDWs and other ecosystem partners.

Q: Questions about coopetition dynamics with CDWs.

A: Joshua James explained complementary nature and how Domo fits into CDW solutions.

Q: Questions about billings reset and expense creep.

A: Joshua James discussed redeployment of assets and David Jolley talked about cost moderation in Q3.