DOMO, INC. Q3 FY2025 earnings call

• Exceeded billings, revenue, and non-GAAP EPS guidance in Q3.
• Grew subscription RPO by 3% year over year and subscription RPO beyond 12 months by 14% year over year.
• Partner-sourced contribution to billings up over 20% from Q2; number of partner opportunities in North America pipeline up over 90% from Q2.
• Reached goal of converting majority of customers to consumption by end of year, a quarter early; 100% of new logo deals in Q3 were consumption contracts, representing 55% of ARR.
• AI initiatives driving value for customers, with customers creating and deploying AI agents in Domo for quicker results.

In Q3, total revenue was $79.8 million, with subscription revenue making up 89% of that. Subscription RPO was $354.1 million, up 3% year over year. Subscription RPO beyond 12 months grew 14% year over year. The average contract length across the entire customer base increased by 13% year over year.

• Q4 billings expected to be $98 million to $104 million; GAAP revenue expected $77.5 million to $78.5 million; non-GAAP net loss per share $0.13 to $0.17.
• Full-year billings expected $305.5 million to $311.5 million; GAAP revenue $315.5 million to $316.5 million; non-GAAP net loss per share $0.60 to $0.64.
• Expecting positive adjusted free cash flow of at least $4 million to $5 million in Q4.

• Statements made on the call include forward-looking statements subject to risks, uncertainties, and assumptions such as macroeconomic conditions, impact of artificial intelligence on business, and risks related to financial projections and cash position. Refer to SEC filings for detailed risk factors.

Q: Inquire about success with consumption-based model and growth in consumption cohort vs rest of customers, and where consumption customers are spending more/less A: Josh James mentioned strong strength with consumption customers, seeing wider adoptions, faster adoptions, and consolidation away from legacy products. Tod Crane noted it aligns with ecosystem pricing models and pipeline from ecosystem converts better and are bigger deals.

Q: How Agentic AI drives consumption and converts remaining base to consumption quicker A: Josh James said AI has picked up steam, Agentic AI is a data product allowing customers to take advantage of work done with Domo, driving close rates higher. RJ Tracy added AI success requires other data products which Domo has, helping drive consumption.

Q: Gross retention rate drivers and churn implications A: Tod Crane said nothing vastly different from first half, dealing with budgetary constraints of some customers. Josh James emphasized ecosystem and consumption model helping with retention as contracts are longer, reducing renewal pressure.

Q: Macro environment impact on customer behavior and post-election implications A: Josh James said macro hasn't changed much, consumption model helps customers make strategic decisions, ecosystem strengthens relationships with customers.

Q: Q4 billings outlook and FY '26 guidance A: Tod Crane said not giving FY '26 guidance but seeing positive momentum in pipeline from ecosystem. Josh James mentioned allocating dollars to ecosystem play instead of short-term optimization, seeing growth potential in next year's billings.