Domo, Inc. Q2 FY2026 earnings call

• In Q2, Domo beat guidance on billings, revenue, delivered first positive non-GAAP EPS, and generated positive free cash flow. NRR for customers on consumption contract was 108%. • Focus has been on sustainable, profitable growth, overhauling approach with ecosystem focus, partner-centric go-to-market, and shift to consumption model. • New ACV growth accelerated, sales force productivity and subscription RPO growth improved. • Strong demand for advanced AI solutions, with Domo offering complete integrated modern AI and analytics stack. • Streamlined go-to-market and R&D, engaging with customers consultatively leading to longer-term contracts. • Consumption model benefits with escalators in multiyear contracts and encouraging renewal trends. • Highlighted customer wins across industries leveraging CDW partnerships. • Domo earned top industry awards and is committed to attracting top talent.

No specific product segment financial performance with revenue contribution % provided in the transcript.

• Q3 guidance: Billings $75.5M - $76.5M, GAAP revenue $78.5M - $79.5M, non-GAAP net loss per share $0.03 - $0.07. • Full-year guidance raised: Billings $317M - $321M, GAAP revenue $316M - $320M, non-GAAP net loss per share $0.11 - $0.19. • Raised Rule of 40 guidance to 6% for both billings growth and non-GAAP operating margin for fiscal year '26, with expectation to reach 10% in fiscal year '27.

• Contains forward-looking statements involving risks, uncertainties, and assumptions including those related to future financial performance, growth prospects, cash position, sales efforts, technology developments, new business opportunities, transactions, initiatives, potential impact of artificial intelligence, and macroeconomic factors. Detailed risks discussed in public filings.

Q: Derrick Wood with TD Cowen asked about the Snowflake conference, pipeline build, and converting pipelines.

A: Joshua G. James said the Snowflake event was electric, generated thousands of leads, and new ACV growth is meaningful, with leads from CDWs expected to impact numbers in Q3.

Q: Brett Richard Huff with Stephens asked about NRR use cases and wall-to-wall opportunities.

A: Joshua G. James said more technical people engaging with customers is beneficial, and CDW partnerships are strengthening current relationships with additional use cases.

Q: Kincaid LaCorte with Citizens Bank asked about international markets and verticals with consumption model success.

A: Joshua G. James mentioned Japan's strong performance and R.J. Tracy discussed consumption model enabling scaling and new use cases like integration and AI.

Q: Yi Fu Lee with Cantor Fitzgerald asked about hyperscaler relationships and financials.

A: Joshua G. James and R.J. Tracy discussed partnerships with CDWs and hyperscalers, and Tod Crane provided updates on financial guidance and growth drivers.

Q: Max Michaelis with Lake Street Capital Markets asked about customer buying behavior differences.

A: Joshua G. James mentioned enterprises want partners and being in alignment with their strategies is improving deal closure speed.