DOMO, INC. Q4 FY2025 earnings call

Key Points

• Exceeded Q4 guidance for billings, revenue, non-GAAP EPS, and adjusted free cash flow; expect positive adjusted free cash flow for Q1 and FY 2026.
• Subscription RPO growth accelerated to 14% YOY, long-term subscription RPO growth to 38% YOY; RPO exceeded $400 million for the first time.
• Four ways to enhance customer retention: stopped charging for seats, partnered with CDWs, shifted to consumption, and improved customer satisfaction.
• Built out partner network: added CDW system integrators, leveraged Domo Everywhere for B2B2B/B2B2C solutions, and saw success with CDW partner deals.
• AI capabilities: Domo's platform enables AI and data-driven innovations, with positive customer feedback on AI accessibility; Domo AI won several awards.
• Industry recognition: Received Dresner Advisory Services Technology Innovation Awards and top distinctions in analytics platform categories.

Total revenue for Q4 was $78.8 million, with subscription revenue making up 91% of that. Total subscription RPO ended the quarter at $403.6 million, up 14% year over year, a significant acceleration from Q3. Subscription RPO beyond twelve months grew 38% year over year. Gross retention was 85% in Q4, the third consecutive quarter at 85% or above. In FY 2025, consumption customers had gross retention of over 90% and net retention of over 100%.

Q4 Results

• Billings: $102.6 million; Revenue: $78.8 million.

Q1 Guidance

• Billings: $62 million to $63 million; GAAP revenue: $77.5 to $78.5 million; non-GAAP net loss per share: $0.18 to $0.22.

FY 2026 Guidance

• Billings: $310 to $320 million; GAAP revenue: $310 to $318 million; non-GAAP net loss per share: $0.29 to $0.39; expect cash flow positive in Q1 and FY 2026; gross retention expected to improve by at least 2 percentage points.

Risks

• Forward-looking statements subject to risks like macroeconomic conditions, AI impact, and uncertainties in financial projections; refer to SEC filings for detailed risk factors.

Q: How is the macro affecting customers' willingness to purchase?

A: Josh James said purchases are well-backed with metrics, similar to previous times; RJ Tracy agreed no recent significant impact yet.

Q: Explain the $5 million shift in renewals and cash balance?

A: Todd Crane explained consumption conversions reset renewal dates, shifting $5 million from Q1 to other quarters; cash balance increased to $45.3 million in Q4, with $6 million adjusted free cash flow in Q4 being the highest in company history.

Q: Talk about partnerships with Snowflake, Databricks, etc.?

A: Josh James mentioned ecosystem focus, higher conversion rates for partner deals, and substantial progress with CDW partners and system integrators; close rates for partner deals are much higher.

Q: Guidance and pipeline for back half?

A: Todd Crane said leads from partners are positive, but need volume predictability; once volume is known, guidance for back half can be adjusted.