Q1 2022 Domo Inc Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to the Domo Q1 fiscal year 2022 earnings call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During the session. You on these press star 1 on your telephone please be advised that todays call.
<unk> is being recorded on fees.
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Now I'd like to hand, the conference over to your speakers day, Mr. Peter Lowry, Vice President of Investor Relations. Please go ahead.
Good afternoon, and welcome on the call today, we have Josh James our patented 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.
Our 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 related to our business under federal Securities laws, including statements about financial projections, the plans and expectations for on a go to market strategy our expectations.
Our sales on new business initiatives, the impact of COVID-19 on our business and our financial condition. These statements are subject to a variety of risks uncertainties and assumptions per.
For discussion on these risks and uncertainties. Please refer to the 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 could 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 on our earnings press release for a reconciliation of our non-GAAP financial measures.
The most directly comparable GAAP measure with that let me hand, it over to Josh Josh.
Thank you Julie Hello, everyone. Thanks for joining us on the call I hope everyone is certainly in good health.
And when I am done today, it's going to be extremely difficult for the Bruce to not use bullishness.
You'll see us raise guidance today.
We see potential upside in our future.
In Q1, we got off to a great start to our fiscal year 2022.
We had a record Q1 across many important metrics, including new business and retention.
We posted 25 per cent billings growth.
23% subscription revenue growth.
And 24% total revenue growth with a 90% plus retention rate across both the enterprise and corporate segments of our business and in every geography.
Yeah with a full recognition that its been a humbling process and a ton of hard work from our people to create this great company and even get to the spot.
I read all the reports and despite the performance that we've been putting up C. C. How some people have characterized our growth profile.
Now for those of you who know me you know that I'm not generally known as an infinitely patient on ending the understanding not demanding kind of guy.
So you'll appreciate that it's very hard to be patient long enough to wait for all the characterizations to catch up with reality.
Obviously, I'm, saying that a bit ingest, but with what we have consistently been producing I think it's important to do some math it calls out how strong and consistent our performance has actually been.
Over the last 4 quarters, we've seen 23%, 25%, 28% and now 25% growth in billings.
I know everyone on the phone calls exceptionally good at math and that sounds to me like billings have consistently grown each quarter by an average of 25 per cent.
So in fact for more than a year, we've been operating at that next phase.
We've been growing billings at 25 per cent.
And like I've said, many times you know we're playing for more.
I can't wait to see what the team does in future quarters to accelerate growth using our integrated platform to deliver bi leverage at cloud scale in record time.
Now, there's certainly a tremendous amount of work in front of us.
But it's been worth it.
Because we have all felt like there is so much unrecognized and unrealized potential what we built here.
Despite the fact that it has not been easy.
We've been grinding it out and here, we are with an average of 25% billings growth over the last 4 quarters.
But the big question to me has always been when is the friction is going to come out of the system a little bit.
When is the flywheel going to really start cranking.
Where is that tipping point that I know, we are bound you run into with the combined progress on potential that we have.
I mean, I've seen tipping points I've seen them at my companies I've seen them with other companies.
You can tell when they happen because all of a sudden you have a new profile on the market.
A new swagger.
Our new unstoppable ability to consistently grow and win.
These tipping points can be a byproduct of product launches.
Partnerships stamps of approval investments.
We're big customer wins that shocked the market and announced the arrival of the company as a long term leader and force to be reckoned with.
We've been striving for a shipping point like that of Domo.
I believe that a tipping point for domo could come in the form of a big instantly recognizable brand that has adopted domo broadly and that's driving a fantastic return off their investment in our products.
And also where that investment changes the way they run their business as it spans globally across their operations.
1 is that customer so badly.
I've wanted that statement transaction and we've had several.
Candidate customers that I think could certainly evolved into that.
Now I've seen glimpses of that potential tipping point coming.
For instance, here are a few nuggets that had been grabbing my attention recently.
As we stated last quarter. After 10 years of toilet Labor day signed 10 customers with at least $1 million on a R. R. Seemingly out of nowhere and just 1 additional year of time that number doubled to 20 customers with a $1 million on a R. R.
Okay interesting that must mean something.
Then.
Looking at our customer data.
Not only do we have 20 customers with at least $1 million on air or we have several contracts with enormous multinational industry Titans worth more than 2 million a year and a few over $4 million a year.
And that's getting to be respectable.
In fact, we're having discussions with customers about $10 million annual contracts.
It might not happen this year or even next but these conversations are real and on the table.
So now this is starting to feel like the company, we've been trying to create alone.
We have customers, who adopt us broadly in the organization and have over a dozen upsells on their way to site wide usage.
Over I've been waiting for companies to have the confidence to go site wide much earlier in their relationship with us.
Now in order for that to happen, we need to see other companies who are already successful at scale with us.
And then the ones who follow have the confidence to adopt and grow much more quickly.
I've been waiting for this moment, there's potential seminal moment when customers have the confidence to go whole hog in their adoption to broadly standardize on domo.
Well.
I'm over the moon excited to be able to say.
That has finally happened it's a big day for us it's a huge moment, it's a potential tipping point like announcement.
This quarter, we had the largest upsell in the history of our company.
What makes this deal so special is that it's a top 15 global brand with broad C suite support.
Tens of thousands of potential users dozens of internal use cases and has championed by the CIO to become their global standard.
They are becoming 1 of our largest customers and it's certainly on us to deliver but we found the right people to partner with internally. We did the work to prove the use cases over long periods of time, and we are rapidly installing across their organization.
We believe this record upsell is a harbinger of things to come.
This data point is major validation of our technology and the business value, we can deliver at scale and equally important.
A proof point.
For every other current customer and potential customer in the marketplace to be able to confidently standardize aggressively and rapidly across their organization with expectations of success unseen thus far in their experiences with other technologies.
These large and successful deployments should give customers more confidence and standardizing on domo as their modern bi platform and that will be able to successfully evolve with their needs.
We have much more work to do with our customers yet it is humbling and gratifying.
The trust they put in our teams and our technology and.
And by the way do you know what they are saying about us our customers. They literally are saying that we make the best companies better.
It sounds like a fine tagline to me and yes, even representative of what we actually do.
So in addition to this major announcement that I just made about our record record setting upsell, we continue to see new logo growth as well.
For example, we won a sizable new contract with another Fortune 500 company. This time, a consumer product company to avoid them to provide companywide analytics.
This was a deal driven by I T and the <unk> group was the primary buyer.
Of all the solutions they were considering domo was the best able to provide the solution they needled across their entire organization.
They chose us in part because of our position as an independent vendor.
And because of the breadth of our connectors.
We have the ability to bring all the customers' data together to solve complex and organization wide business challenges.
In fact.
Our recently commissioned total economic impact report conducted by Forrester consulting.
So the 345% return on investment for our sampling of Domo customers.
In addition, these customers saw payback from their investment in less than 6 months.
I also want to acknowledge some of our recent product and company recognitions this quarter.
We announced an expansion to our AWS relationship, including our achievement of the AWS machine learning competency status and applied AI, demonstrating our proven ability to create value on top of AWS services.
We announced a new native integration for Amazon redshift.
Similar to our earlier Snowflake news.
To help customers better leverage their cloud data investments.
And we also announced access access to thousands of data products with AWS data exchange in Domo to help customers more easily transformed business with modern B I for all.
In Dresner Advisory services, 'twenty 'twenty, 1 cloud computing and business intelligence market study Domo was ranked as the number 1 vendor for the fifth consecutive year that's insane.
And our COVID-19 tracker that we launched last year, when 2 Webby Awards, and a fast company world changing idea recognition.
I'm also proud that we were acknowledged with our partner choice humanitarian by fast company for our efforts to leverage data to help address extreme poverty in Nepal.
And on another important front, we remain committed to leading out on diversity equity and inclusion.
For the fourth consecutive year Domo was named to the women Tech counsels 'twenty 'twenty, 1 shatter list for our commitment to developing and successfully implementing measures that helped break the glass ceiling for women in technology and fostering gender inclusive cultures.
And we continue to hold up our commitments to the parity pledge to create a more diverse slate of candidates inner.
Interviewing at least 1 qualified women and 1 qualified underrepresented minority candidate for every open position of Domo.
As a result.
In Q1.
36% of all new hires were women or underrepresented minorities.
Thank you to all our Domo sapiens they've worked so hard so diligently and tirelessly.
We have not yet reached our destination, but we were on the path.
I'm so proud of what they have done and so grateful to be lucky enough to work with such a passionate and capable team.
In closing I do feel this is a seminal moment for domo potential tipping point to push us to that next level of growth.
We will continue to focus on our customers and our people here at Domo and hope you will see accelerating growth out of assume and with that I think I've now made it sufficiently difficult for Bruce to be the Bruce.
The floor is yours my friend.
Thank you Jos and yes, you can make it a little difficult but Bruce.
But I think there'll be a little Bruce anyway.
We had another strong Q1, driven by a number of record key metrics as Josh has highlighted.
Ill review the details behind our performance provide an update on some of our recent financial analyst session commentary and then discuss second quarter and fiscal 'twenty 'twenty 2 full year guidance.
We delivered Q1 billings at $58.2 million a strong year over year increase of 25% driven once again by new customer count growth.
South on expansions.
Record Q1 retention rates strength across all geographies and improving sales force productivity.
I am, particularly pleased with our billings growth against a tough compare due to the 6 million of total billings reported for state deals in Q1 of last year.
Net retention remained above 100 per cent and tick up a bit from Q4.
What is promising on net retention is the amount of growth, we just experienced in new ACD from existing customers, providing the visibility to expect higher net retention rates.
The revenue is recognized.
We now have 61% of our customers on a dollar weighted basis under multiyear contracts at the end of Q1.
Up from 54% a year ago.
Our remaining performance obligations or RP O grew 24 per cent compared to the same quarter last year.
Current RP O.
Or are expected to be recognized as revenue over the next 12 months grew 22% year over year.
Q1, total revenue was $61 million a year over year increase of 24% subscription revenue grew 23% year over year and represented 87 per cent of total revenue.
International revenue in the quarter represented 23% of total revenue on.
Subscription gross margin was a record 83%.
More than 4 percentage points from 79 per set in Q1 of last year and up over 1 percentage point from last quarter.
We can tell you to be successful managing our data center costs, even as volumes increase in fact over the last 12 months, we have seen daily volumes increased substantially while our data center costs had decreased year over year as we continue to focus on driving leverage.
From our infrastructure.
In Q1 operating expenses increased only 1% from last year.
Even though revenue increased by 24%.
And that's trading.
Bill day to drive significant leverage out of our total cost structure.
The net effect of increased revenue, while leveraging cost.
On a program and our operating margin of 24 percentage points from the same quarter last year.
Our net loss was $8 million down from $18.4 million a year ago and our net loss per share was 26.
This is based on 31 million weighted average shares outstanding.
Click and dilutive.
In Q1, where we reported adjusted cash flow from operations of 1.4 million.
Our cash balance was approximately $85 million.
Cash decreased by $6 million as a result of tax driven share repurchases related to our restricted stock unit program.
Going forward, we may use a portion of cash generated for similar anti dilutive measures, while maintaining sufficient cash balances.
Now, let me give a brief update on some of the financial analyst session commentary, we provided as part of our user conference, where we outlined our path to 20% plus sustained growth.
At the analyst session, we outlines a variety of growth drivers and longer term targets to achieve our growth objectives. In Q1, we made great initial progress across these metrics.
1 of the more important drivers of increasing sales head count.
We are on track with hiring enough sales capacity to support our 20% growth target and in fact have hired over 20% more new reps compared to a year ago as of this call and now have a record number of reps on board.
Our sales execution momentum continues even against the backdrop of this rapid hiring pace as our sales force productivity was up year over year in Q1.
Our enhanced marketing message on continues to resonate with our target customer base, and we have stronger sales and marketing alignment to capitalize on that messaging.
We continue to see the market moving on in our direction and we have experience and enhanced market positioning from the industry analyst community.
As a result, we continue to add marquee reference to both customers and high value added use cases.
And as Josh mentioned, our gross retention rates were over 90% and that is a year over year increase of almost 5 full percentage points, we're particularly pleased with the result, given that Q1 is our seasonally most challenging renewal quarter.
In summary, our Q1 performance is a strong start to achieving our growth goals outlined at our analyst session and validates that our strategy is working.
Now to discuss what we expect in Q2 and the full year fiscal year 'twenty 2.
For Q2.
Spectrum billings growth of 20% year over year.
We're off to a good start with billings pacing well above where we were at the same time last year.
Partly driven by the expansion goes Josh spoke about a few minutes ago.
As well as generally good momentum across the business.
In addition, we have several drivers that could provide upside to our expected Q2 billings.
For the current fiscal year, we expect billings growth of about 18% year over year up.
Up from our previous guidance of 16%.
On expenses, we're planning for Q2 operating expenses, increasing from Q1 levels, primarily as we continued to pursue our growth initiatives, including increased sales capacity.
For the year, we're also expecting operating expenses to increase with the largest increase in sales and marketing.
We continue to plan for Q2 and full year adjusted net cash provided by operations to be slightly positive throughout the year.
Now the formal guidance for the.
The second quarter of FY 'twenty 2.
<unk> GAAP revenue to be in the range of 60 million to $61 million.
We expect non-GAAP net loss per share basic and diluted of <unk> 35.
39 cents. This assumes 31.8 million weighted average shares outstanding basic and diluted.
For the full year of FY 'twenty, 2 we expect GAAP revenue to be in the range of 246 million.
$2.252 million.
Representing year over year growth of 17% to 20%.
We expect non-GAAP net loss per share basic and diluted.
The $1.33 to $1.41.
This assumes 31.9 million weighted average shares outstanding basic and diluted.
And clearly felt we're extremely pleased with our strong performance in Q1 and believe we are very well positioned to execute against our growth initiatives.
With that we'll open up the call for questions on.
Operator.
Thank you and as a reminder, at this time, if you'd like to ask a question simply press star 1 on your telephone keypad.
Sure if you wish to withdraw question press the pound key.
Your first question will come from a chance Sanjeev Singh from Morgan Stanley. Please go ahead.
Thank you for taking the questions and congrats to a really strong start to the year.
Josh to start with you and lets talk about this expansion deal, which hopefully is a harbinger of things to come could you talk to us a little bit about <unk>.
1 the potential size of this deals either from a dollar basis or if you can't do not dollars users would be great. But then more importantly, how long did it take to win this deal on what were the sort of the key factors to get this deal over the line and was it competitive.
In terms of this upsell triangles on existing customer maintenance right there.
Yeah, you bet and thank you for calling us out in your.
And your reports is as you're here number 1 choice for software and mid market. We certainly appreciate on that.
And on this deal it is a really exciting deals is the biggest upsell, it's almost the biggest deal that we've ever done.
It's 1 of our certainly 1 of our 5 largest customers now.
It's a transformational deal because of how it's happening too it's not little bite size pieces.
It was several poc's across the org.
And proving what we could do and how quickly and rapidly we can do it and what scale, we can do that.
That really that whole stack that we built being able to provide all of that <unk> leverage in the record time that we did.
Is really what gave them the confidence and so there was a bunch of business leaders.
That we're able to validate with the CIO wanted to do and gave the CIO with the confidence to say.
This this is the global standard and we think that even though there's contracts.
Good contract as it is there's a ton of upside for us with this customer and we think that this is where a lot of our customers are going to head. We don't we don't have very many.
Large scale enterprise customers, where we have complete site wide distribution on.
In fact, we only pay only have just a couple.
And so to know that the vast majority of all of our enterprise customers have this kind of potential.
And then finally seeing that potential come through is really exciting and so deals already done already working on the.
The installations.
In multiple places are going really well and it's a ton of upside here for a lot of reasons.
The thing that on the most excited about is <unk>.
Now, even though we cant talk about who they are yet over time I suspect that we will and.
We'll certainly talk about them with with our potential customers in other current customers.
And that's just going to give a lot of people confidence to to move other chips in on domo because they can see what we can do for them and that's the tipping point that I was talking about because it did happen.
Last company you get to a scheduled.
And everybody asked about look here's my list of 12 concerns. Hence you just keep repeating blue chip customers that are willing to talk to get rid of each 1 of those concerns that they have and it gives them that confidence and that's I think what just happened here.
Well congrats on that and looking forward to see on how that evolves for the for the broader opportunity of Domo I guess my next question too and this is probably for Bruce, but Josh feel free to chime in as well.
Which is really around the question around growth rates. So 3 numbers, we have billings growth of 25% RPM growth of 21% current ARPA growth of 22% and then if you look at your bookings growth sort of revenue plus.
Change in RTL that was like I think by my calculations, a big big number at 38%.
So Bruce what I put the 18% billings growth.
In terms of the full year guide, which of those numbers that I just laid out you think best represents the trajectory of the business as you see it.
Yes.
Thanks for the question I don't I don't I don't quite get your last number but we can we can just talk about that separately Navy I just don't understand.
That size of a number.
But yeah, I mean, as Josh pointed out you see you.
Do you see Directionally, where we're headed.
We posted on average.
You know 25% growth.
We really do like the play for that.
We've had.
Thanks come together during the quarter that have allowed us to achieve that.
Even if we didn't see.
All of that at the beginning of the quarter on.
I'll say the same thing's true now we have.
We have visibility that allows us to give 20% guidance.
But as I mentioned, we have a lot.
A lot in the hopper.
That makes us feel very good about the 20% and of things balance the way we hope they do we.
We'll do better than that.
So and we also think of this this is a long game I mean, we went on we're trying to set up just strength of these and not just any 1 quarter.
So they're all representative of what's possible and.
I think we've been able to like.
Moving the numbers up into a much better zip code than we ever have before and you know.
As you can tell by our posture here.
We still think that we have.
More and more room to bring these numbers up as our execution at the machine.
Really gets cranked up here.
So you know.
I think that gives you a good idea of our thinking so I'll just stop there.
Great I appreciate it thank you Bruce.
Youre welcome.
Our next question will come from Derrick Wood of Cowen. Please go ahead.
Great. Thanks, I'll Echo my congratulations great start to the year.
I'll start with you Josh 1 on 1 of the things we keep hearing about.
How differentiated your low code no code capabilities are around building analytic apps from doing it quickly.
Are you seeing more of these platform use cases, and just got it.
How does that platform approach get you into new budgets in a new users and how is that creating market differentiation against other vendors.
I think it really demonstrates how we can evolve with our customers most of our customers.
Including the 1 we talked about today.
Big deal that we had the big up so that we had most of them have everything under the Sun already installed somewhere in the organization.
When we have this low code no code ability to create applications that are very specific business intelligence.
Applications or applications that no 1 would consider it to be business intelligence, but really.
Theres a function inside the organization, they're trying to do in a very specific way that they would have to go out to an outside vendor at great expense, an impossibility to be able to continue to manage instead they come to us we have all of the day to all the connectors.
Have the ability to greet this drink by leverage on that includes building. These low code no code apps and so they see us relative to the other technologies they are using and they see how much more effectively we can.
We can.
Evolved with them by building these low code no code apps and that's exactly what happened with this upsell as well we put together a couple of apps as part of the POC and there's nothing else like it in the marketplace period.
So I think that is something that is we're going to talk a lot more about over the coming years, because we're certainly seeing it in hundreds of our customers.
That's great to hear and maybe for Bruce or maybe Josh as well, but.
Joe Nice marquee win large sounds like multimillion dollar deal.
As you look forward and you look at your pipelines and you think about.
Transactional deal flow and large deal flow and you know it sounds like you've been working on this for a while are there other large deals that <unk> been working on and are maturing and how do you think about the growth motion between the transactional deals and the large deals.
Look out over the rest of the year.
He actually I'm going to have Ian Tickle, our chief revenue officer, He's here with us. So I'll have him answer that question great question.
Hi, Derik thanks for the question.
We've seen really good progress in making sure we have a nice blend as the opportunities that we're working towards in the pipeline. So doing a lot of great work with Joe met or in marketing to make sure that we have a good mix of new logo across most of the revenue bands, which are built in our up sell engine as well, which is going very well.
And likewise, continuing on from last quarter, and George's comments with regards to strong partner network and contribution as well. So overall, we've got a very nice mix of course recurring and nonrecurring as well so good traction across all sectors at this moment. Thank you.
Great. Congrats again, thank you.
Yeah.
Thank you.
Your next question on come from Pavan Suri of William Blair. Please go ahead.
Great. Thanks, guys.
Really solid job, they're cross across the board I guess I wanted to touch on 2 sides on let's touch on partnerships first.
We discussed this a lot.
<unk> said, you know maybe by fiscal 'twenty 5 partnerships will contribute 50%, but as you see these platform deals and expansions partners provide a huge flywheel right because they've got to put to work strategy to work.
How are you seeing traction on partners I ask this question I think almost every quarter, but love to get an update on how that's playing out and is that flywheel starting to play out or are they getting really interested to say hey, there's domo thing I know, we have a bunch of people like centered on doing this but maybe we should be focusing on this domo thing because this is driving growth and will drive more growth for us how do you see that playing out now and how are we GA on that 15%.
Yes, I think.
You know the work, we're doing together with John and Mark Heaney Cranking really nice traction for US are very excited about the way we are positioning the offerings that we have I think domo Palooza, who is a great showcase of how are we starting to raise the night the message with the market space and moving forward with the opportunities that we have is what is creating.
Market momentum.
On this this is John Miller I think.
I know there is also this virtuous cycle when you get these big customers that.
But the bigger customers kind of create the priority with the the large ecosystem.
Partners, whether those are tack or whether those are systems integrators and.
What are those conversations go pretty smoothly at that point, So I think where we're excited to continue.
Continue to open doors, there and pushed those were the big opportunity.
I think it's probably worth sharing.
With the without any names, but worth sharing conversation, we just had.
For the installation of the of the big customer that we assigned.
Yes, with regards to the U S.
Yeah.
So I mean BSI side to it is really moving in the north direction. So we've had as I mentioned partner ecosystems building out.
As we look at the new logos and of course show logos, we deal with these organizations, who have preferred partners and with the preferred partners, sometimes the wheels moves together, where we've got great traction you have a great new opportunity that comes in as well and on the 2 come together and we really start to expand on 1 of the exciting things about the go to market from CIS.
Integrators and partners and just the entire ecosystem day is.
Is that as we build out the messaging and the value proposition to the users people recognize that this isn't just about technical capability. This is about business adoption and business adoption.
Helps drive and enable digital transformation and that's something that we're super excited about and as you can imagine <unk> sorry. So.
And we're getting lots of introductions into lots of new places, where she was always very very interesting for us as well.
That's great that's great.
I guess 1 other 1 from me, it's probably a little technical but love to walk through it. So 1 of the value adds a domo was if you think about it as a platform I can bring data and spent a lot of time building ingestion connectors E tail whatever I've got the data stores I've got all sorts of AI embedded in there I've got all kinds of.
Mr. Roberto et cetera, and then I've got kind of the storyboards the ability to build these applications on top story.
As technologies evolve you couldn't do that with the old guys and you can do with adjusted visualization, but on Adi has become more streamlined things. The rest API has become more standardized is there the rest of the people start putting this together themselves because the data movement data flow is more normalized or is the complexity still so high.
And that we've got a long ways to go before you get a fully drink environment, hence the value of something like Domo. Just help me think through some of the improvements in sort of data movement data management.
That are that are happening on standardization across the industry and sort of is that really a risk. Thank you.
Yeah, I don't think there's going to be any standardization for decades I mean.
These customers are all so complex that's why we use the word by leverage.
They have everything under the Sun ensure they're trying to take components of data stores that they have and trying to allow.
Other people they work with and I have to move the data every single time, they want to do something or every single time, they want to interact with the new application to accomplish something in and.
They'll certainly be.
You know more connectors more API is more standard frameworks and the nice thing is we sit on top of all of that we facilitate that we provide that leverage whatever it is the customer wants to do and if someone like snowflake comes along and stuff getting a lot of traction great. We worked with snowflake.
If they're doing something with AWS, great, we have great partnership with them as well and.
And I think we've been evolving spaces before the spend is going to continue to evolve.
But the ability to create things like those low code no code apps.
2.
The data put it into the fingertips of thousands of people across the organization, we are unparalleled and unmatched in the way that we do those things and so I think that's still at the end of the day. The value comes when there is something thats in the fingertips of the managers on the people that are making decisions and running the businesses and that is that is truly where we sit everything else.
Is this facilitating that experience and we do that ourselves when we do it with partners.
Gotcha Gotcha. Thanks from me a.
Color on that I wasn't really helpful. Thanks, guys I appreciate it you bet you bet.
As a reminder, in order to ask a question. Please press star 1 on your telephone keypad. Your next question will come from Jack Andrews of Needham. Please go ahead.
Well good afternoon, and thanks for taking my question on I'll Echo My congratulations on the results I wanted to ask about the.
The nice uptick in retention could you just provide some more detail in terms of is this uptick in retention just happening organically among customers that are driving more value from domo or are there specific tactics that you're using to drive that higher.
Yes, I mean, there's a lot of things it's been on multi year effort and most importantly, it's been the responsibility of the of a big chunk of the of the folks at our company that are responsible for our customers and their happiness and their efforts have really led to the increases that we've seen over the last.
Over the last few years, so first and foremost it's been them and I sent an email out today to all actually.
They just said the client services, Hey, Theres a specific acknowledgment, we all need to provide here that you guys are kicking <expletive> and a message.
And that's really truly what's been taking place just great people.
At our company great people in Utah, They love, making their customers happy.
They love getting Upsells, and it's really fun to see.
See that have a meaningful impact on our numbers and then.
I'll, let Ian touch a bit more on some of the specifics but Bruce.
First and foremost the spin on awesome effort from our people.
Yeah, I totally agree with Josh I think the team has been absolutely fantastic and the way the.
Only in an environment, where they were also used to visiting clients and having that face to face relationship they've had to remove themselves from us and go into a remote working environment and I think it's a testament to I E. The relationships to our client success team and everybody who help support them with our support team our education team. The training team worked together in the relationships that they build.
We are also seeing the over the last 12 to 18 months people have doubled down on that you saw on domo when they recognize the fact that we can return information far quicker than there might be some of the other providers that they might have at this point in time.
Either into the work we've been doing to try to educate and develop and showed the business value and deliver results really really impressive performance across the globe.
Clos success supported education Timna.
Thanks for the color on that just as a follow up question, Josh going back to the marquee customer you've been speaking about you mentioned that you found the right people to partner with internally I was just wondering if you could maybe expand on that comment there is there sort of a recipe now that you feel is perhaps Brooklyn bowl across.
<unk> other large upsell opportunities that you think you've sort of crack crack the code on how to win these deals.
Yes, I mean first and foremost it has to.
Pass the sniper test rate you got to have to look at it but like yes. This thing makes sense. So let me have my people check into it and check into it they will come back yeah. This looks like it will work great.
What's next what's the next step.
And so you got to get buy in from a lot of different departments. Because eventually these different departments have to pay per a CIO doesn't want no CIO and I know wants to have every part of the budget come out of their budget right. So there's gonna be on allocation that means you need to have business leaders stand up and say, yes, I'm going to get value out of this I'm going to get a return on this and then the other pieces being a.
We'll just say, okay I'll make sense now how can we get the confidence this is going to work here where else have you done. This at this scale at this size and we have plenty of customers, where we've done. This at this scale at this size, but most of them.
Kind of worth 1 upsell here another upsell there another up so here it ended up on the right spot, but we want customers build move more quickly adopt more quickly and that's what I think we're seeing here because of all the work that we've done over the last several years because of.
The happy customers that we have.
We now can get new relatively new customers that can come in and say Oh I want to replicate what those people have done over there and so it was.
Big complex deals that are big and complex and it's finding all the right people internally to support the Cio's decision and that's what we did and it was not only on their side, but on our side as well and it was just exciting to see kind of how that all came together.
Okay. That's great. Thank you.
You bet.
Thank you and we have no further questions. At this time. This will now conclude today's conference call. Thank you all very much for joining you may now disconnect.
On.
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