Q1 2025 Domo Inc Earnings Call Transcript
Key Points
- Domo Inc (DOMO) exceeded its revenue guidance and achieved positive adjusted free cash flow for Q1.
- The company reported a significant increase in net retention for consumption renewals, reaching over 115% in Q1.
- Over 90% of new contract dollar value in Q1 was on the consumption model, with over 30% of total ARR now on consumption.
- Domo Inc (DOMO) has seen strong momentum and upsells on consumption conversions, with a notable 30% upsell from an account-based marketing firm.
- The company has established strong partnerships with cloud data warehouse (CDW) providers, leading to increased pipeline generation and deal closures.
- Q1 billings were below target, primarily due to one large nonrenewal, which significantly impacted gross retention.
- Gross retention dropped to 83%, and net retention was 88%, reflecting challenges in maintaining customer contracts.
- Non-GAAP operating margin was negative 9.2%, down 7.2 percentage points from the previous year.
- Non-GAAP net loss increased to $12.3 million compared to $6.1 million a year ago.
- The company faces a challenging market environment, with continued pressure on traditional go-to-market channels and the need to lean into partner channels.
Greetings and welcome to the Domo first-quarter fiscal year 2025 earnings call. (Operator Instructions)
As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Peter Lowry, Vice President, Investor Relations. Thank you. You may begin.
Good afternoon. On the call today we have Josh James, our Founder and CEO; and David Jolley, our Chief Financial Officer. I'll lead off with our Safe Harbor statement and then on the call.
Our press release was issued after the market closed and is posted on the Investor Relations section of our website, where this call is also being webcast. Statements made on this call include forward-looking statements related to our business under federal securities laws. These statements are subject to a variety of risks, uncertainties, and assumptions. These include, but are not limited, to statements about our future and prospects, our financial projections, and cash position; statements regarding the potential of our
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