Q4 2020 Domo Inc Earnings Call

And the move.

[music] margin.

Perfect.

[music].

Ladies and gentlemen, thank you for standing by and welcome to the Domo to the fourth quarter fiscal year 2021 earnings call.

At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session. The ask a question. During the session you will need the press star one on your telephone. Please be advised that today's conference is being recorded if you require any further assistance. Please press star zero.

And with that I will hand, the call over to Peter Lowry, Domo, Vice President of Investor Relations.

Good afternoon welcome on the call today, we have Josh James our founder and CEO, Bruce felt our CFO and Julie Kehoe, Our Chief Communications Officer.

Julie will lead off with our Safe Harbor statement, and then onto the call Julie.

Thanks Pete.

The press release was issued after the market close 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 or to our business under federal security laws, including statements about financial projections. The plans on expectations for our go to market strategy, our expectations for our <unk>.

Sales of new business initiatives, the impact of COVID-19 on our business on our financial condition. These statements are subject to a variety of risks uncertainties and assumptions.

For a discussion of these risks and uncertainties. Please refer to documents we filed with the SEC in particular today's press release on most recently filed annual report on form 10-K, and our most recently filed quarterly report on form 10-Q.

These documents contain and identify important risk factors and other information that may cause our actual results to differ materially from those contained in our forward looking statements. In addition, during today's call. We will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of domo performance.

Other than revenue unless otherwise stated we will be discussing our results of operations on a non-GAAP basis. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results. Please refer to the tables in our earnings press release for a reconciliation of our non-GAAP financial measures to the most.

Direct comparable GAAP measure with that let me hand, it over to Josh over to you Josh.

Well, thank you Julie and Hello, everyone. Thanks for joining us on the call today.

Hope that everyone on the family is in good health.

I'm grateful for every member of our team who over the last 12 months found the dedication creativity and resolve to support our customers on our business, resulting in what was really an outstanding year.

I'm optimistic about the macro recovery that's in front of our entire society as we all focus on getting back to normal.

Now to Domo as performance.

We really had a breakout quarter and year and I am so proud of our team and really the decade of work from so many people.

Q4 capped a tremendous four quarters from domo.

In Q4, we posted 28% billings growth.

26% subscription revenue growth and.

And 23% total revenue growth.

The over the last four quarters.

Billings growth.

Started at 13% in Q1.

Grew to 23% in Q2.

25% in Q3, and now 28% in Q4.

Im excited beyond belief to see that acceleration.

And also we set ourselves up to really execute well as we enter into this new fiscal year.

Digital transformation initiatives remain a top spending priority in 2021.

And over the year, we've seen that the demand for modern bi has accelerated and it fits squarely into our value proposition of helping customers leverage their existing be on investments.

Do it at a massive scale on the cloud.

And at an unbelievable speed.

In many cases businesses want data faster than ever.

And are embracing transformation for all parts of their business from machines to end users.

As an example.

Our cold chain equipment manufacturer needed.

Needed to closely monitor sensors for temperature controlled refrigeration units housing Covid vaccines.

The customers connecting the Iot data compliance the C.

<unk> and other regulatory data to effectively manage safe vaccine distribution.

Oh and by the way.

We do look of that solution for them in less than 60 days.

These examples are becoming more and more normal.

Just last week.

CIO customer proactively reached out to us to let us know how its static they are with domo.

They're innovating in this company with Domo to create a new service that is the insurance insurance industry's first true aggregated view of the entire insurance experience between the insurance consumer insurance agency.

And the insurance carrier.

All seen analyzed and dynamically presented by Domo.

To put some of this the numbers.

<unk> is helping this company, bringing together the 143 cloud data connections across 17 different sales force orbs Cree.

Creating over 7 million rows of data representing over $170 million in insurance premium.

And as he said to US this is only the beginning.

We also introduced several new product capabilities to make it easier to put any data to work more effectively and we've seen a market that is moving in our direction.

<unk>.

In better recognition of Domo is the unique value.

The building on this point.

As we've seen with much of the consolidation that's been taking place on our space.

Domo was way out in front of building the future model for modern beyond.

We're now seeing this come to fruition.

Not only have we been copied by many others.

Finally, the market's coming to us.

And recognizing that leadership in our vision.

And finally, we've dramatically improved our analyst rankings.

So for instance, <unk>.

<unk> moved into the challenger quadrant and the other important 2021, Gartner magic quadrant for analytics and business intelligence platforms.

This was due to the recognition.

Of the quality of our products, particularly in the areas of data preparation.

And Manageability.

Which give line of business.

And Dave of leaders more capability and confidence to put data to work at scale in record time across the entire business.

This improved drinking in the Gartner Magic quadrant will certainly have an impact on our business.

Given our reputation for delivering ease of use solutions that appeal to the line of business executives. We believe our full end to end capabilities should really be a tailwind to our sales efforts.

On a go to market, we're finding that our message of delivering the leverage at cloud scale in record time.

Tim used to resonate.

In addition.

Led by our sales leadership of Antical Jessica.

And Jim Kowalski, but also.

Led by many other sales leaders throughout the Jeffs and Jim's U S organizations and also led by our sales leaders in Europe and Asia.

Our sales rigor in our sales force productivity have significantly improved.

The resulting of course in better new business cadence throughout the year.

I'm really proud of that we achieved our strong topline performance, while driving operating expenses down year over year.

This has also put us on a much better position financially.

We reached the adjusted operating cash flow positive milestone in Q3.

And in fact, we were free cash flow positive in Q3 and Q4.

We also ended the year with more than $200 million of IRR across more than 2000 customers and more than $90 million of cash on the bank.

We've also made strong progress with our domo everywhere solution.

Now this is our offering that helps customers extend the value of their data outside of their organizations to their customers partners and suppliers.

Domo everywhere isn't just embedded analytics.

It also allows a full domo experience to our customers' customers.

Helping them deliver new data experiences and creating new revenue streams by monetizing data they already have.

And we are of very strong pipeline of Domo everywhere deals heading in the fiscal year 'twenty two.

Last year in fact, we closed more than 200 deals.

With Domo everywhere.

With over 10 of them north of a $100000 and two of them that were seven figure contracts.

So now let me talk about some of the Q4 business highlights.

Q4 was driven by continued strong customer count growth significant new wins and continued expansion with existing customers.

One highlight was a seven figure of <unk> at a global health Enterprise for company wide analytics to help improve the patient experience.

We won this deal because we were able to solve their data integration issues and get the right data to the right people across the organization better and faster before domo.

This process of getting the right data together and making it actionable used to take them of weeks every time they wanted to run the data and now with Domo.

<unk>.

Another highlight was a seven figure deal with a partner that is bringing next generation health products to market with Doe most intelligent apps.

Additionally, in the public sector, we also signed a state expansion with more than $500000.

And to provide analytics around vaccine distribution.

We're proud of the value we've delivered the state governments.

Which has also resulted in expansions out.