NASDAQ:DOMO Domo Q1 2026 Earnings Report $14.29 +0.61 (+4.46%) Closing price 06/5/2025 04:00 PM EasternExtended Trading$14.35 +0.06 (+0.42%) As of 06/5/2025 07:54 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings HistoryForecast Domo EPS ResultsActual EPS-$0.09Consensus EPS -$0.19Beat/MissBeat by +$0.10One Year Ago EPS-$0.33Domo Revenue ResultsActual Revenue$80.11 millionExpected Revenue$77.75 millionBeat/MissBeat by +$2.37 millionYoY Revenue GrowthN/ADomo Announcement DetailsQuarterQ1 2026Date5/21/2025TimeAfter Market ClosesConference Call DateWednesday, May 21, 2025Conference Call Time5:00PM ETConference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Earnings HistoryCompany ProfilePowered by Domo Q1 2026 Earnings Call TranscriptProvided by QuartrMay 21, 2025 ShareLink copied to clipboard.PresentationSkip to Participants Operator00:00:00a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Peter Lowry, Vice President, Investor Relations. Thank you, Peter. You may begin. Peter LowryVP, IR at Domo00:00:12Good afternoon. On the call today, we're joined by Josh James, our Founder and CEO and Todd Crane, our Chief Financial Officer. I'll lead off with our Safe Harbor statement and then on to the call. Our press release was issued after the market closed and is available on the Investor Relations section of our website. Please note this call contains forward looking statements about our business as defined under federal securities laws. Peter LowryVP, IR at Domo00:00:40These 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 business. For 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 ks 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 statements. We will also discuss non GAAP financial measures during the call, which we use as supplemental indicators of Domo's performance. Other than revenue, unless otherwise stated, we will be discussing our results of operations on a non GAAP basis. Peter LowryVP, IR at Domo00:01:51These measures should be viewed as complements to, not substitutes for our GAAP results. Please see the reconciliation of our non GAAP results to their most directly comparable GAAP measure on our Investor Relations website at domoinvestors.com. With that, I'll turn it over to Josh. Josh? Josh JamesCEO at Domo00:02:11Thank you, Pete. Hello, everyone, and 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 working. Once 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 Q1. Josh JamesCEO at Domo00:02:44We 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 customers. As a direct result of this momentum and due to continued strength in the business, we are raising our full year guidance. Todd will have more to say about that shortly. We are confident that we have finally achieved a business model that will provide continued operating leverage for years to come. As you'll recall, few years ago, we identified cracks forming in our business and knew we needed to institute changes to our model. Josh JamesCEO at Domo00:03:30We rapidly converted our business to consumption based pricing and reconfigured our technology and go to market motion to become ecosystem friendly. The 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 year. Long term subscription RPO was up 61% year over year. Josh JamesCEO at Domo00:04:12Net retention was up sequentially for the third consecutive quarter and sequentially. Sales force productivity was up over 60% year over year and up for the third consecutive quarter. Gross retention improved to 86% from 85% last quarter. All 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 FY twenty twenty six outlook for billings growth. Our growth in RPO is a direct result of our unwavering commitment to our customers' success. Josh JamesCEO at Domo00:04:55By prioritizing their needs and building trusted collaborative relationships, we consistently deliver meaningful outcomes that lead to higher satisfaction. This 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 working. Our sales force 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 model. Josh JamesCEO at Domo00:05:40Retention improved in Q1 and we see ample opportunity for continued progress. Gross 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 toward consumption, we expect it to be another tailwind results. The consumption engine is an integral component that drives the success of this model. Josh JamesCEO at Domo00:06:15Over the past several quarters, we have made significant progress transitioning from cash burn to achieving free cash flow positivity and expanding our operating margin. As we look ahead, we expect to exit this year at 5% billings growth and 5% operating margin and we anticipate exiting FY '20 '20 '7 at 10% billings growth and 10% operating margin. These achievements demonstrate not only our strengthening fundamentals, but also substantial progress on Rule of 40 profile. This shows that our model is working and positions us for sustained profitable growth going forward. We 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 customers. Josh JamesCEO at Domo00:07:11We 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 organization. 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 scale. FileVine enhances its customers operations with an analytics offering powered by Domo Everywhere. Josh JamesCEO at Domo00:08:11The 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 making. At Domopalooza, we also outlined our strategic priorities for FY twenty twenty six, 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 focus. As it relates to adoption, the demand for our advanced product capabilities is greater than ever. Josh JamesCEO at Domo00:09:07We 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 customers. 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 practices. We are seeing a notable difference in the usage of our product by customers who are actively engaged with our technical teams and we are actively working to provide more of that support across our customer base. On 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 agents. Our customers are AI curious and have a sense of urgency about adopting AI, but they struggle with how to drive real business value. Josh JamesCEO at Domo00:10:17We 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 Catalyst. In 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 work. Josh JamesCEO at Domo00:11:09With 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 management. We 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 weeks. Hakoda, 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 interest and complementary skills going beyond just job titles. Coancheck, 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, Comantic has adopted proactive strategies that ensure vehicle uptime and enhance route efficiency. Josh JamesCEO at Domo00:12:38This has been especially critical delivery driven economy where timely operations are paramount. After 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 tools. This 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 exploration. Now moving on to the ecosystem. Josh JamesCEO at Domo00:13:27I'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 and others. We are seeing very encouraging trends in the partner metrics that we track. Conversion rates for partner sourced deals remains well above those for traditional marketing sourced leads. Our 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 quarter. Josh JamesCEO at Domo00:14:11That's 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 working. Additionally, we built strong relationships with system integrators linked to several of these CDWs, expanding our ecosystem and market reach even more. Our 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 earlier. Josh JamesCEO at Domo00:14:49Now, let me highlight a few of our customer wins in the quarter driven by our complete platform, advanced features and consumption model. First, in terms of new logos, a geospatial service company chose Domo after completing a thorough self guided POC that highlighted our extensive capabilities including AIML, ProCode features like Bricks, Jupyter Notebooks along with the strong technical expertise of engagement team. This was a former prospect that returned to Domo following a failed Microsoft Fabric implementation. Boo. Another new logo win 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. Josh JamesCEO at Domo00:15:38They value the company wide analytics with unlimited user licenses provided under our consumption model. In 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 the company wide rollout of thousands of datasets 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 everywhere. And 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. Josh JamesCEO at Domo00:16:30With 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 AIML projects. Gilmore has earned top owners 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 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 category. The effectiveness of our model is clearly on display. Josh JamesCEO at Domo00:17:18The business delivered beats on all the important metrics and facilitated raises to our annual guidance. Virtually every important internal metric is improving. Our 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 retention. Josh JamesCEO at Domo00:17:46The 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 their technology stack is perfectly set up to capitalize on the AI momentum in the marketplace. The model 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 margin. And with that, I'll hand it over to our Chief Financial Officer, Todd Crane. Tod CraneCFO at Domo00:18:30Thanks, Josh. We exceeded our Q1 guidance for billings, revenue and non GAAP EPS and were adjusted free cash flow positive. Total revenue was $80,100,000 and billings were 63,900,000.0 As 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 flow. As we leverage the early 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 growth. Tod CraneCFO at Domo00:19:14Gross 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 two percentage point improvement in gross retention for FY 2026 compared to the prior year. Our year over year net retention was 94%, up sequentially for the third consecutive quarter and up more than four percentage points year over year. Our 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 ones. Tod CraneCFO at Domo00:19:55Significant. Current subscription RPO grew 5% year over year to $226,000,000 and our total subscription RPO grew 24% to $4.00 $8,000,000 an acceleration from 14% growth in Q4. Improved sales force 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 margin. In addition to improving operating margin, generating positive free cash flow remains a key focus. In Q1, adjusted free cash flow was $1,300,000 a significant improvement from Q1 last year. Tod CraneCFO at Domo00:20:37Our cash balance increased from $45,300,000 in Q4 to $47,200,000 at the end of Q1. Looking forward, we expect our adjusted free cash flow to be slightly positive positive for the year. Moving 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 $3,600,000 Non GAAP net loss per share was $0.09 based on 39,700,000.0 weighted average shares outstanding. Tod CraneCFO at Domo00:21:18Because we are in a net loss position, all share and per share amounts are the same for basic and diluted. As for guidance, for Q2, we expect billings of 69,000,000 to $70,000,000 which represents growth of 1% to 2% year over year. We expect GAAP revenue of 77,500,000.0 to $78,500,000 and non GAAP net loss per share of $03 to $07 assuming 40,500,000.0 weighted average shares outstanding. For the full year, we are raising our guidance for billings, revenue and non GAAP net loss per share. We expect billings of $312,000,000 to $322,000,000 GAAP revenue of $312,000,000 to $320,000,000 and non GAAP net loss per share of $0.18 to $0.26 assuming 41,000,000 weighted average shares outstanding. Tod CraneCFO at Domo00:22:09In 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 growth. With that, we will open the call for questions. Operator? Operator00:22:23Thank you. We will now be conducting a Q and A session. Thank you. Our first question comes from the line of Yifu Li with Cantor Fitzgerald. Please proceed. Yi Fu LeeEquity Research Analyst at Cantor Fitzgerald00:23:11Thank you for taking my question. Congrats on the very strong start Josh, Todd and team. Maybe like Josh and Todd maybe can you just flip back to the macro environment? Just to start off the competition, it doesn't seem like with all the trade tariffs, right, negotiated that's coming along that's affecting the business as the fundamentals clearly inflecting positively? And then on the Domepolusa event, obviously well attended, you were there as well. Yi Fu LeeEquity Research Analyst at Cantor Fitzgerald00:23:43Can you comment more on the I guess like the when you talk about one of the partners who 2x terms of grew 2x and mature faster. How do you get the other partners to, I guess, to be on the same track? Maybe start with that and Ellis, I have a couple more follow ups. Josh JamesCEO at Domo00:24:04Yes. So from a macro perspective, it's definitely not a great environment, but it's our team seems to be building marketing through it. I think the way that customers view us as a way a path forward when it comes to AI. Like 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. Josh JamesCEO at Domo00:24:30I 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 twelve months. We 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 we kind of had to serially go through and get it ready for different partners. And 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 already. Josh JamesCEO at Domo00:25:28It's just that one's further ahead. So we do expect to see the same kind of activity from the other partners and expect that partners are going to end up being equal amount of new logo activity as all of our other marketing activities combined. Yi Fu LeeEquity Research Analyst at Cantor Fitzgerald00:25:46And then, Jeff, can you just comment a little bit more like a 6x increase on sales productivity? Obviously, feel free to have RJ comment as well. Like in terms of if you can break it down, what is it that is 6x better this quarter that is it because you're working more with the partners ecosystem or is it a combination with the consumption model that's driving it, the 6x increase? And then flipping back to Domepolooza, in terms of the pipeline building activity, obviously, we were on the floor speaking with all your partners and some of your customers as well. How is the pipeline building efforts on that? Yi Fu LeeEquity Research Analyst at Cantor Fitzgerald00:26:25And how does it translate into the second half closure? Josh JamesCEO at Domo00:26:29Yes. So consumption is definitely an important component of our model. And we're I think we're seeing in this Q1 just really leveraging the model. The model is working. We worked really hard on changing our model over the last several years and really starting to see the fruits of that actually getting operational leverage at the same time. Josh JamesCEO at Domo00:26:47So we think there's going to be good profitable growth from here. And 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 relationships. 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 bigger, we 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 customer. So that's been a really positive development that we've been talking about for a while. Josh JamesCEO at Domo00:27:39This quarter we're seeing the numbers actually hit and we'll see those numbers in billings. And 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 of our other marketing activities. That's kind of 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. Josh JamesCEO at Domo00:28:19And you saw us this last quarter, we first time ever, we've been positive into Q1, net operating net margin positive. And 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. And there's a lot of upside to that. But we're finally in a different category of company than where we've been the last three years. And this is because of all the reconfiguration, the consumption model, being able to get the multiyear deals because customers love what we're doing with them. Josh JamesCEO at Domo00:28:52And then also all the efforts that we put into those partnerships with CDWs. Yi Fu LeeEquity Research Analyst at Cantor Fitzgerald00:28:58Thanks for that Josh. And just one last one on the technology front before I move on to Tyler on the financial side is, obviously you talked a lot about Authentic AI. We saw Catalyst you launched 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? Yi Fu LeeEquity Research Analyst at Cantor Fitzgerald00:29:23And I think it's going to tie to my question latest for Todd, like the RPO, right? What is it that the customers are adopting in terms of wall to wall that leads to the longer duration, long contract sizes? Josh JamesCEO at Domo00:29:38Yes. 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 it. This is 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. Josh JamesCEO at Domo00:30:01And by the time I got to the thirty seven 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 it. So boom, thirty seven 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 allow them to use LMs inside their organization. Josh JamesCEO at Domo00:30:30And 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 and 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. Josh JamesCEO at Domo00:30:58It 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 to. So, I mean, you see that kind of stuff. Josh JamesCEO at Domo00:31:14There's two agents that were created by an individual that got trained on our agentic platform. And all of that is driving consumption in our product. And they're much happier. And we're not seen as a visualization tool. So we are definitely here primetime ready for the AI agent world. Yi Fu LeeEquity Research Analyst at Cantor Fitzgerald00:31:33Excellent, excellent, Josh. I'm going to move out thanks for that. I'm going to move out to Todd on the financials. Todd, obviously RPO subscription RPO is a key focus, right? Short term is up 24% this quarter, up from 14% last quarter and long term even better 61%. Yi Fu LeeEquity Research Analyst at Cantor Fitzgerald00:31:51Can you help us break it down Todd? Why is this metric inflecting so much better? And what are the factors that's driving customers go long term with normal? And also you also upped your guidance, right, in terms of like beating it. I thought you raised it a little on the EPS side. Yi Fu LeeEquity Research Analyst at Cantor Fitzgerald00:32:14What gives you confidence that you're able to gain the operating efficiency for the rest of the year? And how conservative are you with the model? And that's it from me. And thank you, gentlemen, for taking all my questions. Tod CraneCFO at Domo00:32:29Yes. Thanks for the question, Yi. Yes, RPO very happy with the result there coming in at over $400,000,000 That's growth of 24% year over year with current growing 5%, long term growing 61%. I think the technology and the things that the example that Josh just gave powerful in terms of the ability of our customers to get value from our product very, very quickly. Tod CraneCFO at Domo00:32:55And then you pair that with consumption, which allows them to quickly unlock that value not being limited by seats, not being limited by not having access to the full platform. They can try anything. They can go in there and explore. So we're seeing kind of 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 contracts. So that's the story with RPO. Tod CraneCFO at Domo00:33:19Very happy with the growth there. In terms of the leverage in the model, if you look at our operating expenses over the last four or five quarters, there's been kind of a steady improvement and a steady demonstration that we're getting leverage there. We're 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 LeeEquity Research Analyst at Cantor Fitzgerald00:33:45Okay. Thanks again, guys. Congrats. Tod CraneCFO at Domo00:33:47Thank you. Thanks, Ian. Operator00:33:51Thank you. Our next question comes from the line of Wood with TD Cowen. Please proceed. Jared JungjohannAnalyst at Cowen00:34:00Hi, team. This is Jared Jundrelin on for Derrick Wood. As 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 CraneCFO at Domo00:34:16Yes. So 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 an increase from there. In terms of the dynamic related to consumption, it does tie the revenue more closely with the costs. So that's in large part the reason why we're expecting that to increase over time going forward. Jared JungjohannAnalyst at Cowen00:34:43Awesome. 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 CraneCFO at Domo00:35:00Yes. I'll jump in on that one and Josh feel free to chime in too. Yes. On the enterprise side, I mean, it's a large portion of our business. It's an important part of our business. Tod CraneCFO at Domo00:35:09We had great success there over the years. We have a lot of great enterprise customers. And 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 JungjohannAnalyst at Cowen00:35:31Awesome. Awesome. And then as you gain more traction with these cloud partners and get adopted into modern stack, what area of your solution set are you seeing these customers really dive into? Josh JamesCEO at Domo00:35:47Yes. 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 that. We have more connectors than anybody in the industry and we have a very robust system to be able to help them manage the ETL. And when 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 thousand, even 100,000 users. Josh JamesCEO at Domo00:36:17And so if you can have all of those people also accessing that data in formats that they want in a secure way, then it just drives more adoption of that CDW and secures the CDWs relationship even more. Most 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 butter. So 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 and ability to weather different changes that are going through. Josh JamesCEO at Domo00:37:06And we're seeing we're kind of you 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 JungjohannAnalyst at Cowen00:37:24Awesome. 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 ecosystem. And given that sort of 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 about margin expansion, but maybe just talk to that a little. Thank you. Tod CraneCFO at Domo00:37:46Yes. 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 margins. So we're not trying to get to 30% margins overnight. Tod CraneCFO at Domo00:38:01We're going to slow and steady expansion towards that 5% and then that 10% level over the next couple of years. But that's going to allow us plenty of room to continue to invest in these partnerships. Operator00:38:19Thank you. Our next question comes from the line of Eric Martinuzzi with Lake Street. Please proceed. Eric MartinuzziSenior Research Analyst at Lake Street Capital00:38:28Curious 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, I guess we're in our third year or so of the consumption based pricing contracts. As 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 kind of drives a higher year over year growth in that consumption based installed base. RJ TracyCRO at Domo00:39:05Yes. So our focus on consumption pricing is to make sure that this is RJ Tracy, CRO with Domo. So our real goal of 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 platform. So solve more use cases, get them using AgenTeq AI solutions that help them to take action on the data. RJ TracyCRO at Domo00:39:30And 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 us. And 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 MartinuzziSenior Research Analyst at Lake Street Capital00:39:53Got 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 metric. As those cohorts are you seeing the consumption based cohorts as more likely to adopt the AI and the newer products? Or is it kind of an equal mix between the folks who aren't on consumption base that are on the per seat based pricing? RJ TracyCRO at Domo00:40:32Yes. They're a lot more likely to adopt because there's not a restriction or a paywall in front of them before they adopt. So when 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. RJ TracyCRO at Domo00:40:55We're 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 thirty seven minutes build an agent and that might only take a couple of credits. And then they'll decide whether they're getting value from that or not. And if they keep it running, then it'll 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 out. So significant increase in adoption across the entire platform including users. Eric MartinuzziSenior Research Analyst at Lake Street Capital00:41:26Got it. And then last question is around the I guess the progression of the billings growth implied in the guidance. If 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 on kind of yet to be filled in at the top of the funnel? Tod CraneCFO at Domo00:41:57Yes. It's based on a number of factors. We consider a number of different inputs in our financial models. Pipeline 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 increases. But yes, based on everything we're seeing, we have confidence that we'll exit at five. Tod CraneCFO at Domo00:42:17And so you can kind of do the math between what we guided for Q2 and the five for Q4 and get to what we're going to be around for Q3. Eric MartinuzziSenior Research Analyst at Lake Street Capital00:42:27Got you. Thanks for taking my questions. Tod CraneCFO at Domo00:42:30No problem. Thanks, Eric. Operator00:42:33Thank you. Our last question comes from the line of Patrick Walravens with Citizens JMP. Please proceed. Analyst00:42:43Great. This is Nick on for Pat. Thank you for taking my question and congrats on the quarter. Josh, at Domopaloosen on the call today, you mentioned that 200 customers who wanted to try Aging Catalyst. And I was wondering if you could speak a little on what demand looks like today for that offering? Analyst00:42:57And then Todd one for you. It's been almost nine months since you stepped into the role of 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? Josh JamesCEO at Domo00:43:09Yes. 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 conversations. But I'm going have RJ talk a little bit more about the opportunities and some of the activities that we're seeing in their pipeline. RJ TracyCRO at Domo00:43:33Yes. So 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 hydration. They need access to data. They need to be able to transform that data. RJ TracyCRO at Domo00:43:52They need a way to surface it out or embed it to where their users are at or where their customers are at. 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 need. And 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. Analyst00:44:12Perspective and the agents, talk about some of the ServiceNow stuff that we're seeing as well. RJ TracyCRO at Domo00:44:17Yes. So we have a customer right now that's 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 workflow. So one of the use cases was helping get data to hydrate a warehouse. And in this example, customers can start a ticket in ServiceNow. RJ TracyCRO at Domo00:44:42They want to bring data into their warehouse. And typically that requires now a person to then take that ticket, go out, do an integration, upload data. We're now Domo's 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 thirty seconds to a minute instead of sometimes several days or weeks to get that human ready. RJ TracyCRO at Domo00:45:12We're 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 in, AI is helping them find a replacement. It's automating the process for that. It's immediately notifying people and asking that 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 shifts. So those are some of the examples and use cases that we're seeing. Analyst00:45:50Got it. Thank you, RJ. Thank you, Josh. Tod CraneCFO at Domo00:45:53Yes. And then on your other question in terms of 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 going. So 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 continue to that march toward 90% plus gross retention. Tod CraneCFO at Domo00:46:20So that's the one thing that I'm really focused on in terms of improving. Very, 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 derisk that. And then that longer term portion of RPO also derisks our forward looking revenue and our forecast beyond this year. Analyst00:46:47Got it. Thank you for that. And congrats again on the quarter. Josh JamesCEO at Domo00:46:51Thank you. Thank you. Operator00:46:55Thank you. With that, that concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.Read moreParticipantsExecutivesPeter LowryVP, IRJosh JamesCEOTod CraneCFORJ TracyCROAnalystsYi Fu LeeEquity Research Analyst at Cantor FitzgeraldJared JungjohannAnalyst at CowenEric MartinuzziSenior Research Analyst at Lake Street CapitalAnalystPowered by Key Takeaways Management reported they beat Q1 guidance on billings, revenue and non-GAAP EPS, achieved the first positive operating margin in a Q1 and generated positive adjusted free cash flow, leading to an upward revision of full-year guidance. Key metrics under the reconfigured consumption-based model showed subscription RPO growth of 24% year-over-year, total contract value up 69%, long-term RPO up 61%, sales productivity up over 60%, and improved net and gross retention. Consumption pricing now represents over 70% of ARR (targeting 90% by year-end), which executives say is driving higher usage, customer satisfaction and renewal rates by removing per-seat barriers. The ecosystem strategy is gaining traction, with partner-sourced pipeline from cloud data warehouse integrations up more than 200% quarter-over-quarter, and expectations that partner deals will soon match all other marketing efforts combined. Domo’s new Agent Catalyst AI offering is seeing rapid customer adoption, with users building production-ready AI agents in minutes—highlighting the platform’s readiness to support AI-driven workflows. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallDomo Q1 202600:00 / 00:00Speed:1x1.25x1.5x2xTranscript SectionsPresentationParticipants Earnings DocumentsPress Release(8-K) Domo Earnings Headlines3 Overrated Stocks Showing Warning SignsJune 5 at 7:30 PM | msn.comDomo Named a Leader in the 2025 Nucleus Research Analytics Technology Value MatrixJune 5 at 4:05 PM | businesswire.comTrump’s treachery This might just be the greatest time in America to be an energy company. Since taking office in 2025, President Donald Trump has followed through aggressively on his promises to revive the U.S. energy sector — putting fossil fuels front and center. He declared a national energy emergency on day one, signed sweeping executive orders to fast-track oil and gas development, and gutted environmental regulations that once slowed projects down. Incentives for green energy have been slashed or redirected, with renewable tax credits eliminated, tariffs placed on imported solar components, and billions in clean-energy funding pulled back.June 6, 2025 | Porter & Company (Ad)Domo to Participate in the D.A. Davidson Technology SummitJune 4 at 4:05 PM | businesswire.comTD Cowen lifts Domo stock price target to $13 from $10.50June 2, 2025 | investing.comDOMO Q1 Earnings Call: Consumption Model and AI Initiatives Drive Operating Leverage Amid Flat RevenueMay 30, 2025 | msn.comSee More Domo Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Domo? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Domo and other key companies, straight to your email. Email Address About DomoDomo (NASDAQ:DOMO), together with its subsidiaries, operates a cloud-based business intelligence platform in North America, Western Europe, Canada, Australia, and Japan. Its platform digitally connects from the chief executive officer to the frontline employee with the various people, data, and systems in an organization, as well as giving them access to real-time data and insights, and allowing them to manage business via various browsers and visualization engines accessible across laptops, TV screens, monitors, tablets, and smartphones. The company was formerly known as Domo Technologies, Inc. and changed its name to Domo, Inc. in December 2011. 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PresentationSkip to Participants Operator00:00:00a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Peter Lowry, Vice President, Investor Relations. Thank you, Peter. You may begin. Peter LowryVP, IR at Domo00:00:12Good afternoon. On the call today, we're joined by Josh James, our Founder and CEO and Todd Crane, our Chief Financial Officer. I'll lead off with our Safe Harbor statement and then on to the call. Our press release was issued after the market closed and is available on the Investor Relations section of our website. Please note this call contains forward looking statements about our business as defined under federal securities laws. Peter LowryVP, IR at Domo00:00:40These 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 business. For 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 ks 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 statements. We will also discuss non GAAP financial measures during the call, which we use as supplemental indicators of Domo's performance. Other than revenue, unless otherwise stated, we will be discussing our results of operations on a non GAAP basis. Peter LowryVP, IR at Domo00:01:51These measures should be viewed as complements to, not substitutes for our GAAP results. Please see the reconciliation of our non GAAP results to their most directly comparable GAAP measure on our Investor Relations website at domoinvestors.com. With that, I'll turn it over to Josh. Josh? Josh JamesCEO at Domo00:02:11Thank you, Pete. Hello, everyone, and 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 working. Once 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 Q1. Josh JamesCEO at Domo00:02:44We 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 customers. As a direct result of this momentum and due to continued strength in the business, we are raising our full year guidance. Todd will have more to say about that shortly. We are confident that we have finally achieved a business model that will provide continued operating leverage for years to come. As you'll recall, few years ago, we identified cracks forming in our business and knew we needed to institute changes to our model. Josh JamesCEO at Domo00:03:30We rapidly converted our business to consumption based pricing and reconfigured our technology and go to market motion to become ecosystem friendly. The 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 year. Long term subscription RPO was up 61% year over year. Josh JamesCEO at Domo00:04:12Net retention was up sequentially for the third consecutive quarter and sequentially. Sales force productivity was up over 60% year over year and up for the third consecutive quarter. Gross retention improved to 86% from 85% last quarter. All 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 FY twenty twenty six outlook for billings growth. Our growth in RPO is a direct result of our unwavering commitment to our customers' success. Josh JamesCEO at Domo00:04:55By prioritizing their needs and building trusted collaborative relationships, we consistently deliver meaningful outcomes that lead to higher satisfaction. This 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 working. Our sales force 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 model. Josh JamesCEO at Domo00:05:40Retention improved in Q1 and we see ample opportunity for continued progress. Gross 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 toward consumption, we expect it to be another tailwind results. The consumption engine is an integral component that drives the success of this model. Josh JamesCEO at Domo00:06:15Over the past several quarters, we have made significant progress transitioning from cash burn to achieving free cash flow positivity and expanding our operating margin. As we look ahead, we expect to exit this year at 5% billings growth and 5% operating margin and we anticipate exiting FY '20 '20 '7 at 10% billings growth and 10% operating margin. These achievements demonstrate not only our strengthening fundamentals, but also substantial progress on Rule of 40 profile. This shows that our model is working and positions us for sustained profitable growth going forward. We 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 customers. Josh JamesCEO at Domo00:07:11We 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 organization. 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 scale. FileVine enhances its customers operations with an analytics offering powered by Domo Everywhere. Josh JamesCEO at Domo00:08:11The 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 making. At Domopalooza, we also outlined our strategic priorities for FY twenty twenty six, 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 focus. As it relates to adoption, the demand for our advanced product capabilities is greater than ever. Josh JamesCEO at Domo00:09:07We 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 customers. 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 practices. We are seeing a notable difference in the usage of our product by customers who are actively engaged with our technical teams and we are actively working to provide more of that support across our customer base. On 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 agents. Our customers are AI curious and have a sense of urgency about adopting AI, but they struggle with how to drive real business value. Josh JamesCEO at Domo00:10:17We 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 Catalyst. In 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 work. Josh JamesCEO at Domo00:11:09With 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 management. We 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 weeks. Hakoda, 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 interest and complementary skills going beyond just job titles. Coancheck, 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, Comantic has adopted proactive strategies that ensure vehicle uptime and enhance route efficiency. Josh JamesCEO at Domo00:12:38This has been especially critical delivery driven economy where timely operations are paramount. After 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 tools. This 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 exploration. Now moving on to the ecosystem. Josh JamesCEO at Domo00:13:27I'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 and others. We are seeing very encouraging trends in the partner metrics that we track. Conversion rates for partner sourced deals remains well above those for traditional marketing sourced leads. Our 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 quarter. Josh JamesCEO at Domo00:14:11That's 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 working. Additionally, we built strong relationships with system integrators linked to several of these CDWs, expanding our ecosystem and market reach even more. Our 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 earlier. Josh JamesCEO at Domo00:14:49Now, let me highlight a few of our customer wins in the quarter driven by our complete platform, advanced features and consumption model. First, in terms of new logos, a geospatial service company chose Domo after completing a thorough self guided POC that highlighted our extensive capabilities including AIML, ProCode features like Bricks, Jupyter Notebooks along with the strong technical expertise of engagement team. This was a former prospect that returned to Domo following a failed Microsoft Fabric implementation. Boo. Another new logo win 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. Josh JamesCEO at Domo00:15:38They value the company wide analytics with unlimited user licenses provided under our consumption model. In 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 the company wide rollout of thousands of datasets 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 everywhere. And 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. Josh JamesCEO at Domo00:16:30With 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 AIML projects. Gilmore has earned top owners 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 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 category. The effectiveness of our model is clearly on display. Josh JamesCEO at Domo00:17:18The business delivered beats on all the important metrics and facilitated raises to our annual guidance. Virtually every important internal metric is improving. Our 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 retention. Josh JamesCEO at Domo00:17:46The 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 their technology stack is perfectly set up to capitalize on the AI momentum in the marketplace. The model 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 margin. And with that, I'll hand it over to our Chief Financial Officer, Todd Crane. Tod CraneCFO at Domo00:18:30Thanks, Josh. We exceeded our Q1 guidance for billings, revenue and non GAAP EPS and were adjusted free cash flow positive. Total revenue was $80,100,000 and billings were 63,900,000.0 As 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 flow. As we leverage the early 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 growth. Tod CraneCFO at Domo00:19:14Gross 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 two percentage point improvement in gross retention for FY 2026 compared to the prior year. Our year over year net retention was 94%, up sequentially for the third consecutive quarter and up more than four percentage points year over year. Our 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 ones. Tod CraneCFO at Domo00:19:55Significant. Current subscription RPO grew 5% year over year to $226,000,000 and our total subscription RPO grew 24% to $4.00 $8,000,000 an acceleration from 14% growth in Q4. Improved sales force 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 margin. In addition to improving operating margin, generating positive free cash flow remains a key focus. In Q1, adjusted free cash flow was $1,300,000 a significant improvement from Q1 last year. Tod CraneCFO at Domo00:20:37Our cash balance increased from $45,300,000 in Q4 to $47,200,000 at the end of Q1. Looking forward, we expect our adjusted free cash flow to be slightly positive positive for the year. Moving 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 $3,600,000 Non GAAP net loss per share was $0.09 based on 39,700,000.0 weighted average shares outstanding. Tod CraneCFO at Domo00:21:18Because we are in a net loss position, all share and per share amounts are the same for basic and diluted. As for guidance, for Q2, we expect billings of 69,000,000 to $70,000,000 which represents growth of 1% to 2% year over year. We expect GAAP revenue of 77,500,000.0 to $78,500,000 and non GAAP net loss per share of $03 to $07 assuming 40,500,000.0 weighted average shares outstanding. For the full year, we are raising our guidance for billings, revenue and non GAAP net loss per share. We expect billings of $312,000,000 to $322,000,000 GAAP revenue of $312,000,000 to $320,000,000 and non GAAP net loss per share of $0.18 to $0.26 assuming 41,000,000 weighted average shares outstanding. Tod CraneCFO at Domo00:22:09In 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 growth. With that, we will open the call for questions. Operator? Operator00:22:23Thank you. We will now be conducting a Q and A session. Thank you. Our first question comes from the line of Yifu Li with Cantor Fitzgerald. Please proceed. Yi Fu LeeEquity Research Analyst at Cantor Fitzgerald00:23:11Thank you for taking my question. Congrats on the very strong start Josh, Todd and team. Maybe like Josh and Todd maybe can you just flip back to the macro environment? Just to start off the competition, it doesn't seem like with all the trade tariffs, right, negotiated that's coming along that's affecting the business as the fundamentals clearly inflecting positively? And then on the Domepolusa event, obviously well attended, you were there as well. Yi Fu LeeEquity Research Analyst at Cantor Fitzgerald00:23:43Can you comment more on the I guess like the when you talk about one of the partners who 2x terms of grew 2x and mature faster. How do you get the other partners to, I guess, to be on the same track? Maybe start with that and Ellis, I have a couple more follow ups. Josh JamesCEO at Domo00:24:04Yes. So from a macro perspective, it's definitely not a great environment, but it's our team seems to be building marketing through it. I think the way that customers view us as a way a path forward when it comes to AI. Like 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. Josh JamesCEO at Domo00:24:30I 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 twelve months. We 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 we kind of had to serially go through and get it ready for different partners. And 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 already. Josh JamesCEO at Domo00:25:28It's just that one's further ahead. So we do expect to see the same kind of activity from the other partners and expect that partners are going to end up being equal amount of new logo activity as all of our other marketing activities combined. Yi Fu LeeEquity Research Analyst at Cantor Fitzgerald00:25:46And then, Jeff, can you just comment a little bit more like a 6x increase on sales productivity? Obviously, feel free to have RJ comment as well. Like in terms of if you can break it down, what is it that is 6x better this quarter that is it because you're working more with the partners ecosystem or is it a combination with the consumption model that's driving it, the 6x increase? And then flipping back to Domepolooza, in terms of the pipeline building activity, obviously, we were on the floor speaking with all your partners and some of your customers as well. How is the pipeline building efforts on that? Yi Fu LeeEquity Research Analyst at Cantor Fitzgerald00:26:25And how does it translate into the second half closure? Josh JamesCEO at Domo00:26:29Yes. So consumption is definitely an important component of our model. And we're I think we're seeing in this Q1 just really leveraging the model. The model is working. We worked really hard on changing our model over the last several years and really starting to see the fruits of that actually getting operational leverage at the same time. Josh JamesCEO at Domo00:26:47So we think there's going to be good profitable growth from here. And 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 relationships. 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 bigger, we 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 customer. So that's been a really positive development that we've been talking about for a while. Josh JamesCEO at Domo00:27:39This quarter we're seeing the numbers actually hit and we'll see those numbers in billings. And 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 of our other marketing activities. That's kind of 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. Josh JamesCEO at Domo00:28:19And you saw us this last quarter, we first time ever, we've been positive into Q1, net operating net margin positive. And 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. And there's a lot of upside to that. But we're finally in a different category of company than where we've been the last three years. And this is because of all the reconfiguration, the consumption model, being able to get the multiyear deals because customers love what we're doing with them. Josh JamesCEO at Domo00:28:52And then also all the efforts that we put into those partnerships with CDWs. Yi Fu LeeEquity Research Analyst at Cantor Fitzgerald00:28:58Thanks for that Josh. And just one last one on the technology front before I move on to Tyler on the financial side is, obviously you talked a lot about Authentic AI. We saw Catalyst you launched 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? Yi Fu LeeEquity Research Analyst at Cantor Fitzgerald00:29:23And I think it's going to tie to my question latest for Todd, like the RPO, right? What is it that the customers are adopting in terms of wall to wall that leads to the longer duration, long contract sizes? Josh JamesCEO at Domo00:29:38Yes. 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 it. This is 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. Josh JamesCEO at Domo00:30:01And by the time I got to the thirty seven 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 it. So boom, thirty seven 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 allow them to use LMs inside their organization. Josh JamesCEO at Domo00:30:30And 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 and 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. Josh JamesCEO at Domo00:30:58It 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 to. So, I mean, you see that kind of stuff. Josh JamesCEO at Domo00:31:14There's two agents that were created by an individual that got trained on our agentic platform. And all of that is driving consumption in our product. And they're much happier. And we're not seen as a visualization tool. So we are definitely here primetime ready for the AI agent world. Yi Fu LeeEquity Research Analyst at Cantor Fitzgerald00:31:33Excellent, excellent, Josh. I'm going to move out thanks for that. I'm going to move out to Todd on the financials. Todd, obviously RPO subscription RPO is a key focus, right? Short term is up 24% this quarter, up from 14% last quarter and long term even better 61%. Yi Fu LeeEquity Research Analyst at Cantor Fitzgerald00:31:51Can you help us break it down Todd? Why is this metric inflecting so much better? And what are the factors that's driving customers go long term with normal? And also you also upped your guidance, right, in terms of like beating it. I thought you raised it a little on the EPS side. Yi Fu LeeEquity Research Analyst at Cantor Fitzgerald00:32:14What gives you confidence that you're able to gain the operating efficiency for the rest of the year? And how conservative are you with the model? And that's it from me. And thank you, gentlemen, for taking all my questions. Tod CraneCFO at Domo00:32:29Yes. Thanks for the question, Yi. Yes, RPO very happy with the result there coming in at over $400,000,000 That's growth of 24% year over year with current growing 5%, long term growing 61%. I think the technology and the things that the example that Josh just gave powerful in terms of the ability of our customers to get value from our product very, very quickly. Tod CraneCFO at Domo00:32:55And then you pair that with consumption, which allows them to quickly unlock that value not being limited by seats, not being limited by not having access to the full platform. They can try anything. They can go in there and explore. So we're seeing kind of 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 contracts. So that's the story with RPO. Tod CraneCFO at Domo00:33:19Very happy with the growth there. In terms of the leverage in the model, if you look at our operating expenses over the last four or five quarters, there's been kind of a steady improvement and a steady demonstration that we're getting leverage there. We're 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 LeeEquity Research Analyst at Cantor Fitzgerald00:33:45Okay. Thanks again, guys. Congrats. Tod CraneCFO at Domo00:33:47Thank you. Thanks, Ian. Operator00:33:51Thank you. Our next question comes from the line of Wood with TD Cowen. Please proceed. Jared JungjohannAnalyst at Cowen00:34:00Hi, team. This is Jared Jundrelin on for Derrick Wood. As 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 CraneCFO at Domo00:34:16Yes. So 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 an increase from there. In terms of the dynamic related to consumption, it does tie the revenue more closely with the costs. So that's in large part the reason why we're expecting that to increase over time going forward. Jared JungjohannAnalyst at Cowen00:34:43Awesome. 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 CraneCFO at Domo00:35:00Yes. I'll jump in on that one and Josh feel free to chime in too. Yes. On the enterprise side, I mean, it's a large portion of our business. It's an important part of our business. Tod CraneCFO at Domo00:35:09We had great success there over the years. We have a lot of great enterprise customers. And 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 JungjohannAnalyst at Cowen00:35:31Awesome. Awesome. And then as you gain more traction with these cloud partners and get adopted into modern stack, what area of your solution set are you seeing these customers really dive into? Josh JamesCEO at Domo00:35:47Yes. 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 that. We have more connectors than anybody in the industry and we have a very robust system to be able to help them manage the ETL. And when 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 thousand, even 100,000 users. Josh JamesCEO at Domo00:36:17And so if you can have all of those people also accessing that data in formats that they want in a secure way, then it just drives more adoption of that CDW and secures the CDWs relationship even more. Most 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 butter. So 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 and ability to weather different changes that are going through. Josh JamesCEO at Domo00:37:06And we're seeing we're kind of you 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 JungjohannAnalyst at Cowen00:37:24Awesome. 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 ecosystem. And given that sort of 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 about margin expansion, but maybe just talk to that a little. Thank you. Tod CraneCFO at Domo00:37:46Yes. 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 margins. So we're not trying to get to 30% margins overnight. Tod CraneCFO at Domo00:38:01We're going to slow and steady expansion towards that 5% and then that 10% level over the next couple of years. But that's going to allow us plenty of room to continue to invest in these partnerships. Operator00:38:19Thank you. Our next question comes from the line of Eric Martinuzzi with Lake Street. Please proceed. Eric MartinuzziSenior Research Analyst at Lake Street Capital00:38:28Curious 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, I guess we're in our third year or so of the consumption based pricing contracts. As 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 kind of drives a higher year over year growth in that consumption based installed base. RJ TracyCRO at Domo00:39:05Yes. So our focus on consumption pricing is to make sure that this is RJ Tracy, CRO with Domo. So our real goal of 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 platform. So solve more use cases, get them using AgenTeq AI solutions that help them to take action on the data. RJ TracyCRO at Domo00:39:30And 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 us. And 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 MartinuzziSenior Research Analyst at Lake Street Capital00:39:53Got 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 metric. As those cohorts are you seeing the consumption based cohorts as more likely to adopt the AI and the newer products? Or is it kind of an equal mix between the folks who aren't on consumption base that are on the per seat based pricing? RJ TracyCRO at Domo00:40:32Yes. They're a lot more likely to adopt because there's not a restriction or a paywall in front of them before they adopt. So when 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. RJ TracyCRO at Domo00:40:55We're 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 thirty seven minutes build an agent and that might only take a couple of credits. And then they'll decide whether they're getting value from that or not. And if they keep it running, then it'll 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 out. So significant increase in adoption across the entire platform including users. Eric MartinuzziSenior Research Analyst at Lake Street Capital00:41:26Got it. And then last question is around the I guess the progression of the billings growth implied in the guidance. If 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 on kind of yet to be filled in at the top of the funnel? Tod CraneCFO at Domo00:41:57Yes. It's based on a number of factors. We consider a number of different inputs in our financial models. Pipeline 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 increases. But yes, based on everything we're seeing, we have confidence that we'll exit at five. Tod CraneCFO at Domo00:42:17And so you can kind of do the math between what we guided for Q2 and the five for Q4 and get to what we're going to be around for Q3. Eric MartinuzziSenior Research Analyst at Lake Street Capital00:42:27Got you. Thanks for taking my questions. Tod CraneCFO at Domo00:42:30No problem. Thanks, Eric. Operator00:42:33Thank you. Our last question comes from the line of Patrick Walravens with Citizens JMP. Please proceed. Analyst00:42:43Great. This is Nick on for Pat. Thank you for taking my question and congrats on the quarter. Josh, at Domopaloosen on the call today, you mentioned that 200 customers who wanted to try Aging Catalyst. And I was wondering if you could speak a little on what demand looks like today for that offering? Analyst00:42:57And then Todd one for you. It's been almost nine months since you stepped into the role of 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? Josh JamesCEO at Domo00:43:09Yes. 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 conversations. But I'm going have RJ talk a little bit more about the opportunities and some of the activities that we're seeing in their pipeline. RJ TracyCRO at Domo00:43:33Yes. So 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 hydration. They need access to data. They need to be able to transform that data. RJ TracyCRO at Domo00:43:52They need a way to surface it out or embed it to where their users are at or where their customers are at. 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 need. And 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. Analyst00:44:12Perspective and the agents, talk about some of the ServiceNow stuff that we're seeing as well. RJ TracyCRO at Domo00:44:17Yes. So we have a customer right now that's 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 workflow. So one of the use cases was helping get data to hydrate a warehouse. And in this example, customers can start a ticket in ServiceNow. RJ TracyCRO at Domo00:44:42They want to bring data into their warehouse. And typically that requires now a person to then take that ticket, go out, do an integration, upload data. We're now Domo's 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 thirty seconds to a minute instead of sometimes several days or weeks to get that human ready. RJ TracyCRO at Domo00:45:12We're 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 in, AI is helping them find a replacement. It's automating the process for that. It's immediately notifying people and asking that 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 shifts. So those are some of the examples and use cases that we're seeing. Analyst00:45:50Got it. Thank you, RJ. Thank you, Josh. Tod CraneCFO at Domo00:45:53Yes. And then on your other question in terms of 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 going. So 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 continue to that march toward 90% plus gross retention. Tod CraneCFO at Domo00:46:20So that's the one thing that I'm really focused on in terms of improving. Very, 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 derisk that. And then that longer term portion of RPO also derisks our forward looking revenue and our forecast beyond this year. Analyst00:46:47Got it. Thank you for that. And congrats again on the quarter. Josh JamesCEO at Domo00:46:51Thank you. Thank you. Operator00:46:55Thank you. With that, that concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.Read moreParticipantsExecutivesPeter LowryVP, IRJosh JamesCEOTod CraneCFORJ TracyCROAnalystsYi Fu LeeEquity Research Analyst at Cantor FitzgeraldJared JungjohannAnalyst at CowenEric MartinuzziSenior Research Analyst at Lake Street CapitalAnalystPowered by