DOMO, INC. — Call Transcript 2020

Welcome to Domo's third 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. To ask a question during the session, you will need to 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. With that, I will hand it over to Peter Lowry, Domo's Vice President of Investor Relations. Please go ahead. Good afternoon, and 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 on to 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 our go-to-market strategy, our expectations for our sales and 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. For a discussion of these risks and uncertainties, please refer to the documents we filed with the SEC, in particular, today's press release, our 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's 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 directly comparable GAAP measure. With that, let me hand it over to Josh. Josh? Thank you, Julie. Hello, everyone. Thanks for joining the call. First, I hope that everyone's in good health. As we all know, this year has presented unimaginable health and economic challenges across the globe, and we indeed hope this pandemic is a once-in-a-lifetime event. On the call today, I'm going to focus on a few items. First, a huge financial milestone that we've been working toward for years, and the implications of our recent success, increased financial flexibility, and our plans to drive efficient revenue growth. Second, how Domo's differentiated platform uniquely positions us to help our customers with their digital transformation initiatives. Third, I'll cover Q3 highlights, including several significant upsells and wins across a variety of industries. I'll touch on some recent industry recognition. I'm going to start with sharing how ecstatic I am that we achieved a significant milestone. As of Q3, Domo is a recurring revenue, cash flow positive company that has happy customers with gross retention north of 90% and is growing subscription revenue north of 20% with a total annualized revenue run rate of over $200 million. This is the culmination of over 1,000 people, including several hundred that are here today, and we have been working on this for over 10 years. This is the culmination of listening to customers and building what they need. This is the culmination of putting our hearts and souls into our customers and our vision, and we are only just getting started. We are the only publicly traded independent cloud-based BI company, and we have countless opportunities in front of us. A huge thank you to our customers and a huge thank you to our team members, my partners, and our investors who've always believed in us. We are going to return that belief with greatness. Not many, if any, believed we would get to cash flow positive this fast after our IPO two years ago. I put it on the calendar for Q3 fiscal year 2021, I adamantly believed we would make it one way or another. Despite ups and downs and pandemics, earthquakes, unrest, political upheaval, cuts, and losses, great people and wonderfully innovative customers banded together to create what is now a world-class organization. I recently put up a billboard that says simply, "There's a pony in there somewhere." The reference is from President Ronald Reagan. He often told a story. The story concerns twin boys of five or six. Worried that the boys had developed extreme personalities, one was a total pessimist, the other a total optimist, their parents took them to a psychiatrist. Well, first the psychiatrist treated the pessimist. Trying to brighten his outlook, the psychiatrist took him to a room piled to the ceiling with brand-new toys. Instead of yelping with delight, the little boy burst into tears. "What's the matter?" the psychiatrist asked, baffled. "Don't you want to play with any of the toys?" "Yes," the little boy bawled, "but if I did, I'd only break them." Next, the psychiatrist treated the optimist. Trying to dampen his outlook, the psychiatrist took him to a room piled to the ceiling with horse manure. Instead of wrinkling his nose in disgust, the optimist emitted just the yelp of delight and clambered to the top of the pile, dropped to his knees, and began gleefully digging out scoop after scoop with his bare hands. What do you think you're doing?" the psychiatrist asked, just as baffled by the optimist as he had been by the pessimist. "With all this manure," the little boy replied, beaming, "there must be a pony in here somewhere." Well, I think President Ronald Reagan certainly could have been referring to eternal but hopefully measured optimism for entrepreneurs. For good luck, I put up that billboard at the beginning of this quarter that repeated that phrase, "There's a pony in there somewhere." We've been through our shares of ups and downs, but I was always 100% convinced this would eventually turn into a fantastic, even world-class company. Maybe it's my entrepreneurial optimism shining through, but we found the pony, a big, recurring revenue, fast-growing, cash flow positive company with all kinds of happy customers, innovations, and market positions to go out and capitalize on. Since our IPO, we've been committed to getting to adjusted cash flow positive with the cash on our balance sheet without raising a dime. I'm thrilled to announce today that in Q3, we achieved it. In fact, we achieved it with $84 million remaining in the bank, substantially more than anyone imagined. In Q3, we posted 25% billings growth, an acceleration from 23% last quarter. The continued growth in our base of recurring revenue and reaching cash flow positive status gives us increased financial flexibility to pursue the tremendous growth opportunity in front of us. Let me talk a little bit about our unique positioning in helping our customers with their digital transformation initiatives. As we all know, what has happened this year has forced companies, their employees, customers, and supply chains to reimagine how they operate. The need for real-time information, speed, and business agility that digital transformation provides has only accelerated. These elements have always been crucial and are the reason we founded the company. In this climate, these business priorities have moved to the forefront. Our customers have challenged us to solve their business problems with data at an unprecedented speed, and we've delivered for them. Domo's unique platform has three pillars that drive our differentiation. The first is our data integration capabilities that solve backend integration at cloud scale without moving data. Second is our ability to drive insights and action with AI and to put well-governed business intelligence power into the hands of business users in an easy-to-use self-service and mobile-first solution. Third is the ability to build data-driven apps in a low-code, no-code way that can modernize business processes at high speed and extend the value of data analytics and insights outside the organization to customers and partners. Our platform's ability to solve at scale and in record time the backend and front-end challenges to make data more valuable internally and externally for customers is a huge key to our differentiation. Our most significant wins this quarter were driven by proof of concepts, POCs, where we were able to demonstrate our ability to deliver better solutions faster than the competition. The reason we can compose solutions so quickly is part of the inherent flexibility and scalability of the Domo cloud-first platform, which brings all the services needed, integration, data management, data science, AI and machine learning, governance, distribution to citizen developers, and more to the data and apps. Through intelligent, analytics-based applications built on the Domo platform in a low-code, no-code environment, we are helping customers to rapidly modernize business processes, leveraging artificial intelligence and automating workflows. Our platform, through our Domo Everywhere offering, also goes beyond traditional embedded analytics capabilities and enables customers to extend their analytics and the value of their data to external stakeholders such as customers and supply chain partners, while also generating new revenue models. I'll share a couple examples of this in just a few minutes. Our view is that the demand for speed, business agility, and real-time analytics is not something that goes away after the pandemic, and we will continue to deliver this to our customers. Now, let me discuss how we are thinking about our increased financial flexibility and our plans to drive efficient growth. I'm particularly proud of how our employees have delivered during the pandemic. I would point out that our recent performance occurred against the backdrop of pretty significant cost reductions this year and a severe economic downturn. Our employee headcount in Q3 was down year-over-year, yet we've continued to grow our recurring revenue with reduced expenses. We've also been relentlessly focused on customer success, which is reflected in our higher retention rates. Going forward, we plan to invest in client services and other areas of our business that directly support our ability to serve and grow existing accounts. Now let me talk about some of the business highlights in Q3. One highlight was the seven-figure annual upsell I mentioned on last quarter's call with a Fortune Global 500 retail conglomerate. We won this deal based on our outperformance in speed and scale compared to the competition. Domo was chosen to help the organization integrate massive volumes of data from its existing systems without replacing or re-architecting them so business decision-makers could understand critical, time-sensitive business metrics. One of the key factors in our selection was not just Domo's ability to access and integrate data, but our ability to provide data governance at scale and do so without adding burden to already strained IT teams. None were built to perform at cloud scale and in record time like Domo. Another highlight in the U.S. federal space, where we leveraged a partner relationship to close an almost seven-figure annual new logo contract to power PRAC, a public-facing website that gives taxpayers the ability to see and explore pandemic relief spending data. Several of our largest expansions this quarter demonstrate the success of customers having with Domo and how we can grow with the success. For example, we closed a seven-figure upsell with technology and media conglomerate that is using our Domo Everywhere solution to extend the value of its analytics and data and the full power of Domo externally to its community of tens of thousands of partners. We were initially chosen based on our superior speed and scale. The significant expansion was based on the successful rollout to a subset of the company's massive partner network. We also signed a large upsell deal for Domo Everywhere that gives a learning management system or LMS software company the ability to embed and monetize LMS analytics into its software solution for its growing customer base. Before the initial contract, this customer had evaluated numerous solutions and also built a homegrown option that just didn't completely fit their vision. After a POC, the customer selected Domo because it was the only solution that allowed the company to extend the interactive analytics and data experience it wanted for their customers at scale. The most recent expansion was driven by the demand the company has seen across the rest of its customer base for its Domo-powered analytics, which the company has also turned into a new revenue stream. Now let me talk about some recent industry recognition. Our team continues to receive accolades that reflect our commitment to product innovation, customer success, and our corporate culture. Most recently, Domo, with our customer, Unilever, was named a winner in Ventana Research Digital Leadership Awards for the support that data and the Domo platform played in Unilever's national philanthropic initiative, United for America, which provided more than $25 million worth of support to local communities. In addition, Domo was named an overall experience and credibility leader in the Dresner Advisory Services 2020 SME BI study. Lastly, Domo was named for the ninth year in a row as a Utah Business Best Company to Work For. In closing, I continue to be impressed by the work our team is doing to help customers thrive, and I'm impressed by our employees' performance in this environment. It is extremely rewarding as well to know we achieved our quarterly results while also hitting the significant milestone of getting to cash flow positive in the quarter with plenty of cash in the bank. I am looking forward to continuing to execute on our tremendous growth opportunity, and I sincerely thank our employees for their commitment, and I'm so excited to take a moment and celebrate this milestone with them. I'm so incredibly proud of all that they've accomplished. With that, I will turn it over to the Bruce. Bruce? Thank you, Josh. We had a strong Q3, and at the same time, we hit several important milestones this quarter. As Josh mentioned, we met our commitment to reach positive operating cash flow without the need to raise additional capital. In fact, we reached this milestone with $84 million in the bank, substantially ahead of our plans at the IPO, and we intend to stay operating cash flow positive going forward. Another milestone is that our gross retention rate increased to over 90% and represents a record high. A third milestone is record subscription gross margins at 81%, an important metric in driving long-term profitability. These achievements are a result of many incremental internal improvements we have made across the business, enhanced by the market shifting towards solutions such as ours that provide modern ways to create, distribute, and use data to run businesses. I will now review the details behind our performance and then discuss fourth quarter and fiscal 2021 full-year guidance. Our Q3 billings of $55.7 million, a year-over-year increase of more than 25%, was driven by strong new customer count growth, upsells and expansions, and high retention rates. We delivered these results overcoming a tough year-over-year large deal comparison by generating a much higher volume of transactions than one year ago. At the same time, we maintained our standard billing terms, even against the backdrop of pandemic-driven challenges in some segments of our customer base. We have 59% of our customers under multi-year contracts at the end of Q3. Our remaining performance obligations, or RPO, grew 21% compared to the same quarter last year. Current RPO, or RPO expected to be recognized as revenue over the next 12 months, grew 22% year-over-year. Q3 total revenue was $53.6 million, a year-over-year increase of 20%. Subscription revenue grew 24% year-over-year and represented 87% of total revenue. International revenue in the quarter represented 24% of total revenue, consistent with Q2. Our subscription gross margin was 81%, up more than four percentage points from 76% in Q3 of last year, and a slight improvement from last quarter. We continue to be successful managing our data center costs even as volumes continue to increase. In Q3, operating expenses decreased by 6% from last year, even though revenue increased by 20%. The net effect of increased revenue, while being cost efficient, improved our operating margin by 31 percentage points from the same quarter last year. Now let me comment briefly on our investment and margin approach going forward. Now that we have hit the milestone of becoming adjusted cash flow positive, we plan to continue to generate positive operating cash flow. At the same time, since we have cushion on the balance sheet and have demonstrated leverage in the business, we believe we can safely take some of that leverage and invest more in growth than we have over the last two years. We're already building our sales force capacity and plan to make additional investments in some new product areas in order to support our growth plans. We can make these investments, yet continue to expand margins. Although we expect margin improvement to occur at a lesser rate than we have demonstrated recently as we sought to achieve cash flow profitability. We will provide specific guidance and more color around these themes when we announce our Q4 results. Our net loss was $11.9 million, and our net loss per share was $0.40. This was based on 29.5 million weighted average shares outstanding, basic and diluted. In Q3, we reported adjusted cash flow from operations of $1.4 million, an improvement of $6.2 million over last quarter. Adjusted cash flow from operations excludes $3.1 million of share purchases in Q3 under our employee stock purchase plan. The amount is included as a positive amount in our GAAP cash flow from financing section of our cash flow statement, and an offsetting negative amount in our GAAP cash flow from operations section, with no effect on our cash balance. Turning now to our balance sheet as of October 31, we had cash and cash equivalents of approximately $84 million. Now to discuss what we expect in Q4 and the full fiscal year 2021. For Q4, we are expecting billings of about $72 million, as we are experiencing strength in our business and have good visibility as we head into the remainder of Q4. For the current fiscal year, we now expect billings of about $222 million, up from $208 million that we guided to last quarter, and well above our initial outlook of $190 million based on our COVID-19 downside case that we used for reducing costs. On expenses, we're planning on our Q4 operating expenses to increase modestly from Q3 levels. While we expect to see a decrease in operating expenses in fiscal year 2021, we expect them to increase in fiscal year 2022. We expect Q4 adjusted net cash provided by operations of approximately $1.5 million, and expect full year adjusted net cash used in operations of approximately $11 million. Now the formal guidance. For the fourth quarter of fiscal year 2021, we expect GAAP revenue to be in the range of $53.3 million-$54.3 million. We expect non-GAAP net loss per share, basic and diluted, of $0.42-$0.46. This assumes 30.1 million weighted average shares outstanding, basic and diluted. For the full year of fiscal 2021, we expect GAAP revenue to be in the range of $206.6 million-$207.6 million, representing year-over-year growth of 19%-20%. We expect non-GAAP net loss per share, basic and diluted, of $1.83-$1.87. This assumes 29.3 million weighted average shares outstanding, basic and diluted. In closing, we're pleased with our execution in Q3 and are optimistic about our financial position and growth opportunities as we close out fiscal year 2021 and head into next year. With that, we'll open up the call for questions. Operator? As a reminder, to ask a question, you will need to press star one on your telephone. To withdraw your question, press the pound key. Your first question comes from the line of Sanjit Singh from Morgan Stanley. Your line is open. Hi. Thank you for taking the question. Congrats to you both on the cash flow positives. It was a long road, and you got there, and that was quite an achievement. In terms of thinking about the quarter, the 20% billings growth against a tougher comp is really impressive. Bruce, I was wondering if you could sort of talk about the velocity of deals. I think in your script you mentioned a higher volume of deals compared to last year. Can you just sort of describe where that demand is coming from a vertical perspective or just from a sales perspective, how you're driving that increased volume of blocking and tackling business? Sure. Happy to. This was an extremely high transaction volume quarter, led by one of the highest growth in percentages year-over-year on new customers, what we call new logo accounts. It was also just high transaction volumes within our current customer base as well. I think that has to do with just the, on the one hand, the increased operational rigor that we're using to manage the sales force. We really picked it up with the pandemic, just assuming we just needed to work harder, but that's absolutely paid off for us. At the same time, our offering just fits nicely into what our customers need today. I mean, they need a product that's easy to use, easy to install, easy to roll out to end users, that's in the cloud, that's on your phone, and that can scale. Just the general trend toward digital transformation within businesses is what we feed nicely into. Between the operational rigor and the fact that our solutions really meet what the market needs just drove very healthy transaction volumes this quarter. We're really pleased with that. It's a very healthy quarter. That's very promising. Josh, if I think about, I was sort of looking at the website earlier today, kind of the messaging just seems so much more targeted and crisper in sort of positioning Domo as one, a data integration platform, two, a business intelligence solution, and three, an intelligent app platform. Can you talk to me about where you're seeing sort of traction? I'm sure the BI case is sort of obvious, but both on the data integration side and on the intelligent app side, where you're sort of seeing customer traction on those parts of the use cases? Yeah, I talked about it a little bit in my comments, the fact that we're seeing these POCs where we'll go in and work with a big customer, someone who has usually many experiences trying out other things, usually many experiences with alternatives that are already installed at their place of business, and there's still one or two things they can't get done. They call us in for a POC, and we connect the data they haven't been able to connect to before. Then, of course, we're able to distribute that data in such a timely, quick manner to so many people in the organization. In most cases, there'll be these apps that we end up helping facilitate, low-code, no-code apps, and they really end up helping out with workflow and accomplishing things that they had teams of people that it took to accomplish before, or they weren't even accomplishing it. It is a combination of those three things, and it's been exciting to see the pace picking up. Another thing that we mentioned is Domo Everywhere. We'll have these large customers that will come in, start using our products and services, and find so much benefit from being able to distribute that information so easily with real-time data, no matter the size of the data, to all their internal constituents. That then, of course, the next question that that begs is, can we get this to our partners? Can we get this to our vendors? Can we get this to our suppliers? We highlighted one of the largest ones that we work with today with literally tens of thousands of partners that they're distributing data to, and it's the lifeblood of their business. The relationship with their 10,000 partners is the lifeblood of their business, and they're using us to manage all of those communications now and making those partners so much more adept at reacting to what's taking place in this ever-changing digital world. Digital transformation is definitely the wave that we're riding, and it's these three simple things that we happen to do better than anyone else. That's great. If I could just speak one last one, toggling back to Bruce. If I look at the Q4 guidance, obviously all year, you've been beating and raising that number, even the original guidance for the year, we're now above that. Q4 does imply a slowdown back to sort of 10%-11% growth. Can you walk us through some of the underlying assumptions behind your billing guidance as we get into sort of year-end from a closure rate or from a demand environment perspective, just to put some context on the guidance for Q4? Sure. Well, first let me highlight that we basically brought up our guidance in Q4 by about $6 million off our implied guidance from last quarter. What drove that was the fact that we are off to just a very good start to Q4, maybe one of our best starts ever for a month. On top of that, we just have good visibility into our pipeline, and it's also supported by the fact we just came off-high transaction volumes, which we think is very healthy. Particularly in this environment, to have that many new customers and sales and transactions from your current customers is just very healthy. We obviously seek to do better than that number. We use the same approach that we've always used. We provide guidance on what we know, and I just have to repeat myself. We know a lot now. That's why we brought the number up by $6 million. What we hope for is, our users are usually very active, and we can only guide by what we know. Most of what's going to happen through the rest of the quarter is still before us, but we like what we see so far. That's the basic thoughts behind our guidance, and we're happy that we've brought it up by a significant amount from last quarter. We would love to do better. If everything stays the same, we certainly hope we can do it. That's very clear. Thank you, Bruce. Appreciate it. Congrats. I'll say something that I've said a few times over the last few quarters. Our goal right now is to get consistently above 20%, then it'll be get consistently above 30%. I think when you look at this one, like Bruce said, it's a substantial raise from where it was a quarter ago. I think that's something that should be definitely taken into account. We crushed our number, hit cash flow positive, did it with lower expenses, and brought up guidance by a substantial amount, and we still feel like there's a lot of gas in the tank there. You know what our goals are and what we're trying to accomplish, and what we want to consistently be able to deliver, but also guide to. Right now, we're hoping that we can deliver to it, but feel like this is the best place to guide. We haven't had as many quarters of the current situation that we're sitting in, as we like to be comfortable enough to guide up as high as we'd like to, but definitely see deals and opportunities out there. Feel like this is the appropriate guidance to do, and then hopefully some things will fall our way and we'll continue to be north of the 20% grower as we have been the last few quarters. Appreciate it, Josh. Thank you. Your next question comes from the line of Brad Zelnick from Credit Suisse. Your line is open. Great. Thank you so much for taking the question. Congrats. It's really great to see two quarters in a row now greater than 20% growth and hitting this milestone. There were a lot of naysayers that didn't think you could pull it off, and I'm really proud of you guys. It's good to see this. This accomplishment. Yeah, for sure. Maybe my first question, if I may. I know we still got to get through Q4, but I imagine you all are doing your planning and thinking forward into next year, and understanding that the beginning of a new fiscal year is usually a good time to make some adjustments to your go-to-market and strategy. I used to work for a sales leader many years ago that would say, "Whatever you did this year to be successful, you got to change it up. It's not going to work next year." What are some of the changes that you might be contemplating, and how might you be able to mix it up, even if just slightly correcting course, to drive real sustainable 20% growth into 2022? Well, I think some of the things that we are doing to mix it up. We just started many of them, but having Ian as a new sales leader is something that's been a big mix up in terms of how it's affected the team. The way he manages is dramatically different than what we've seen before, and it's proven to be effective. His leaders that work for him, like him, and the team's really kind of snapping to it. That's been something that I think is going to have an impact for a long time. I think that alone is going to give us north of 20% growth for a long time. We've got John Mueller, who's been leading the marketing organization, and those two leaders coming together. Again, I think just that alone and better execution is going to be north of 20%. I think beyond that, it's then looking at these pockets where when we go-to-market, what pockets do we have today that we could double down on and triple down on? We've tried to highlight some of those things, but apps, for instance, is one thing that we see as a big differentiator. These low-code, no-code apps and solving business problems. That's what enabled us to get these state deals and these federal deals. That's what enabled us to get the really large retailer that we talked about, global retailer. Then you see Domo Everywhere. That's what's enabling us to get some really large upsells with some of our customers. Our entire sales team's not trained on all of those things. It's saying, "Okay, what are the three or four things that we can really train the sales team on that are applicable to every single customer?" It's taken some time to gather all that information. I think that's another area that, as Ian and John dictate which things we're going to train the team on and go-to-market with, we're going to see some additional performance there. The next thing I would say is finding partners. We highlighted it last quarter and this quarter for the first time, seeing some real traction with partners in the marketplace where we're delivering big deals, seven-figure deals from partners, and that's something that we haven't had before. We'll be seeing our partner efforts continue to increase, and now not just noise, but also deals. We're excited about what can happen with Snowflake over the long-term. We're excited about our position in the marketplace. We're excited that people are coming to us as a large independent public traded business intelligence company that's cloud-based. We're the only one. That's facilitating conversations as well. No, it shows that a lot of these investments that you've been making, like talking about the partner channel, they're really beginning to bear fruit in a meaningful way. Along those lines, Josh, I always felt like there's been this opportunity to become more of a standard inside of your accounts. I feel like some of the early success that we would hear about, and I know going back to Target and others, like you had some of these massive commitments. As well, a lot of customers that we would speak to were more, "Hey, it's a division, it's a specific use case." Just maybe being something beyond a great solution for that particular use case around data aggregation and analytics. Are there any proof points that you can speak to just in maybe capturing more success in driving that expansion in these large organizations and becoming that standard? Oh, yeah. I think that's the other shoe to drop, to be honest with you. Something I think about a lot. If you look at our top 10 customers, the revenue we're receiving from our top 10 customers today is almost double what it was a year ago. We're seeing massive expansion inside these accounts where this has been a long journey. I always kind of felt like the size of this company, it behaves still like it's 1/5 the size. We're still figuring things out as $200 million run rate. When you look at some of these accounts, like you said, initially we got in, we made some great progress. We had a hard time expanding beyond the department that we were in to become the de facto solution, because there were all these competing components. It took us a long time to figure out how to speak the right language to the different constituents in the organization. We took a year or two figuring out how to speak to CIOs more effectively, but now we're good at that. Once we got good at all those things, then to your point, where's the proof points? I was looking at the top 10 customers earlier today, and we have customers paying us several million dollars a year, and one of them is still just expanding. Our second largest customer is a customer that we went into a few years ago. We got a good deal, then we got another good deal, and then finally we got a corporate-wide deal, and then we got a corporate-wide deal for all of their vendors. It does happen. As we get more and more customers like that we can talk to, what I'm excited about is being able to one of these quarters soon say, "All right, here's five new names. Here's the journey that we just had with them for the last four years, and these are representative of what we think every customer can and should look like, because here's the five things that we can do for them that no one else can do." They're great brands, and they're extremely intelligent companies. We have those customers and those proof points, just not enough that we're out there publicly talking about yet. They have been happening, they've happened, they're signed, and more of them are in the pipeline. As those come to fruition, having the sales and marketing organization and what they need to go and tell the customers is going to be, I mean, we can almost just sit there and mine our current customer base without signing up any new customers, and have years and years of explosive growth. I think that is what's happening. You've really hit the nail on the head with that question. Thanks so much, Josh. If I could sneak in one quick one for the Bruce. Bruce, as we think about this milestone of reaching operating cash flow profitability, obviously, if we think about the factors, it's going to be bookings, billings, top line growth. It's also going to be, at least in this year, you've had some COVID-related savings. Are there any other key areas of productivity or optimization to call out that we should be thinking about? Yeah, I think we have a kind of a twofer working for us right now. I think on the one hand, there's still a lot more we can get out of our investment platform we have right now in marketing and product. We still have the ability to get a lot more out of that. At the same time, we also are in, I would say, a pretty comfortable position to start adding resources. For example, we've already started hiring sales reps, this year has been a year of down reps compared to last year, that's because we were very cautious when COVID-19 hit, and we've kept the cautious posture. We've already started adding more reps and layering them in. We're also quite pleased with the productivity that we've gotten from the reps that we've had. We feel very comfortable putting that layer in. If we can get additional bang out of the buck that already exists, and then be able to add that in and still generate positive cash flow, we think that's a pretty good spot to be in. Our main focus is really, we really think that we're well-positioned to grow, and we want to take advantage of it, but do it prudently, continue to generate positive cash flow, and watch the return we get on those investments. Watch them carefully. So far, the indication is that we'll get a great yield from them, but we'll still continue to be very careful about it at the same time. Thanks so much, guys, for taking the questions, and congrats again. Thank you. Your next question comes from the line of Derrick Wood from Cowen and Company. Your line is open. Great. Nice to talk to you guys, and I'll echo my congratulations on lots of good milestones here. Josh, I wanted to touch on Domo Everywhere, because it's interesting. Last night, Snowflake talked about seeing a lot of traction with data sharing, and that it's really a transformational capability companies are starting to embrace. You guys also have a unique position to serve this kind of capability, and it clearly sounds like you're seeing some similar demand. I guess, when you look at your installed base, any way to kind of size up the opportunity you think you have to really cross-sell Domo Everywhere and how you're going to lean into this going out over the next year? Yeah. Domo Everywhere is something that's applicable to almost all of our customers. It's something that we've put a lot of product effort into, especially over the last year, as we've seen more and more progress there on the sales side. It's our high priority right now as well from a product perspective. We continue to see huge opportunities there in meeting the needs of the customers and the opportunity there in the marketplace, really in a way that no one else can. There's embed, which is what a lot of people talk about when they talk about this kind of an opportunity, and that's what our competitors do. Truly taking our whole platform and making that available for our customers to offer to their partners and their vendors, and that kind of an experience versus just an embedded analytics, it is a highly complex set of software that really creates an experience that's untouchable. We feel really good about our unique selling proposition, about our differentiators, about our defensibility in that space. You're going to see some more efforts from us from a product perspective, and definitely a lot more efforts from a sales perspective and having sales leaders and salespeople that are dedicated to this opportunity. That's part of Ian's plans. Yeah. Okay. Makes sense. Great to hear you're seeing such a pickup in new logo growth. Can you unpack that a little bit more? Is that driven by better sales productivity? Are you getting leads from different channels that you didn't have before? Does this suggest you're seeing increased win rates against the competition? Would be great to hear more detail on the underlying drivers. Yeah. We're getting more referenceable customers and customers that are employees that are moving to other companies and saying, "I can't be here without Domo." That's definitely led to a bunch of logos. We've had the execution that I was talking about earlier from Ian and his management team. They've been doing a lot of sales blitzes and a lot of, I guess, moving to a monthly cadence from a quarterly cadence. Having the team on that kind of a cadence, especially when you're in a remote workforce, has actually been really positive for us, because you don't get to see everybody all the time. You're not walking around cube to cube. Having everybody really focused on a monthly number has been part of Ian's strategy that's worked really effectively. Those are two of the ways that we've been getting more logos. I'd say the third is just that marketing is continuing to find opportunities and ways to efficiently bring in new logos. That seems to be working out for us in terms of picking up the pace and the rate that we can generate new logos for us. Great. All right. If I could squeeze one more. Bruce, I think you did mention that you may be off to the best start of a quarter ever. Anything more to elaborate in terms of what you guys are seeing? Well, I would just say that the momentum that we experienced in Q3 seems to be continuing, and it makes sense given, again, what Josh just pointed to operationally. The rigor is there, and we're still applying it on the sales side. On the marketing side, again, focused on branding and messaging on certain product areas, getting more clarity, providing better sales tools. The list goes on and on. Fortunately, we've always been worried and then cautious given the economic environment. That just seems to be the same. It hasn't deteriorated than what we said last quarter. If it just stays where it is, we're in pretty good shape. It's manifesting itself in just a great start to the quarter. It's always much more comforting to have a good start than not. Yeah, this is just a continuation of what we've been seeing. It gave us the ability to raise guidance by $6 million for a quarter, which frankly, is a lot. It's more than we've done in a very long time. I just think we can count on reasonable high level transaction volumes. We can continue to sell. What's good about getting a lot more new customers is we already know we can sell into them. It doesn't matter the size. We can continue to sell into them. That just provides more fertile ground for the upsell business. We just have everything seem to be going our way, and we're going to keep working pretty hard at even doing a better job at acquiring customers at a reasonable cost. We don't feel we're anywhere near our potential. If we can just keep it up through the rest of this quarter into next year, we're going to have a good quarter and look forward to a good next year. Sounds good. Well done. Thanks. Thanks a lot. Your next question comes from the line of Jennifer Lowe from UBS. Your line is open. Great. Thank you. Maybe, Bruce, could I just follow-up on the last discussion there and just dig in slightly deeper, because I know you're always very conservative on forecasting large deals, and it's great to see this high level of transactions which seem to really be supporting the guidance. Maybe just sort of specifically, how's the large deal pipeline looking going into Q4, which is normally a pretty strong quarter for that? Is any of that in the guide, or is that sort of upside to even what we're talking about here? Yeah. We still are building a large deal pipeline. We have the ability to do that given the size of our customers. The big customers seem to just keep buying more and more. We keep finding more and more use cases, so that's comforting. We have the ability to keep building a large deal pipeline. I will say, in guidance, it does not assume a significant number of large deals. Maybe I'm even going to go further. It really doesn't assume any single, I'll say, reasonably sized deal. That's good to know, because in Q4s, we tend to have just lots of activity. It's just the nature of Q4s. The guidance is founded on transaction volume, line of sight for what we see, a good start, with a little bit of upside if we are able to close some larger-sized deals. Great. Maybe just taking a step back, I think for me, one of the other standouts was just the larger upsell deals that you're doing within your base, given sort of the discussion around being a bit more flexible, how you get into those organizations and then expand once you're in there, it seems to really be playing out. I'm curious, as you get these seven-figure type deals that are upsells on your existing footprint, is it still largely carving out opportunities around the existing BI footprint, or are you starting to displace some of those categories as those deals get bigger and bigger a bit more? First of all, I'll say that all our large customers, they have every product out there in the BI space and the reporting space and the data space. We're able to just solve problems that haven't been solved by other technologies or sets of technologies or combinations of technologies. That's pretty comforting. It means we are very unique in our ability to bring that whole stack and in just record time, get data delivered, to create data and deliver it in ways that customers just don't have the ability to do it. That generally comes out of a wide variety of budget areas. Some of these are revenue-enhancing, so they kind of create their own budgets. Over time we do start eating into the available budgets for other technologies. It's our own customers, this is what we said earlier, it's our own customers that figure this out, and they determine what technologies they can turn off or decommission or roll back. We don't have to do that. We used to do that, and we found that's kind of deductive. Why don't we just let the customer do that? Why don't we just bring a solution they don't have with the stack they have today? They'll find all kinds of ways to use it and expand, whether or not it's eating into another budget. We are finding they are able to start using parts of marketing budget, sales budget, and the IT budget itself. Our IT-friendly message, "Keep everything you have and just extend it," allows the IT department to embrace it, or even the BI department to embrace it. Sometimes they have this excess budget, and sometimes they're able to rearrange things in our favor. We let them figure that out. That's been our approach, and it's working for us, and it's not the same thing we did a few years ago. We think it's a much better way to approach the market, a very friendly way, a better partner-friendly way, the better customer-friendly way, certainly a more friendly IT way to go about approaching our customers. Great. Thank you. Your next question comes from a line of Patrick Walravens from JMP. Your line is open. Oh, great. Thank you. Let me add my congratulations. Josh, what do you want your software to be able to do in the future that it can't do today? That's a good question. Pat, there's just some additional things. I'd say number one, be more and more partner-friendly, so be able to integrate even more seamlessly with partners than we do. We've been able to identify some partners that we have had great successes with our customers, but it's taken a little more back-end work than maybe is possible. Seeing those possibilities and trying to identify them and to really do more there, I think, is an opportunity for us on the upside. From a usability perspective, I think once you get all of these executives using these products, there's not other software in the world that enterprise CXOs use to run their business besides Word, Excel, PowerPoint, email, and social media. This is actually the real business tool that they use to run their business. When you're the first company to have those people actually logging in and getting things on their phone and getting text messages and in-app messages, that's some real opportunity and power to leverage in the platform. I know that we're the first ones to do that at scale. We've seen that at these customers. Like that question I was answering earlier, about what happens when you get in there and you finally start expanding and seeing these CXOs use these products has been really fun. I would say there's more opportunity there as well, Pat. Cool. Thanks. As we see some of these other companies that are focusing on particular verticals in AI and sometimes extracting really enormous amounts of money, how much of a part of the vision for Domo is that, commercial IoT or government for the intelligence agencies or the media industry? Yeah, I think we've seen some of the efforts there with our data science and with our AI and ML, and there's certainly more opportunities there. IoT, we put a lot of effort into. It was one of those things that there still needed to be four or five pieces to really finish the solution up. There have been some players that have taken a really deep approach to very specific niche verticals that they've been really successful, and more power to them. It's been awesome to watch them and inspiring, certainly. You can see some of the ways that the world's going to evolve when you can see someone get so deep in an organization. I think there's opportunities there as well, and we're continuing to I mentioned one of our big efforts in product right now is Domo Everywhere. The other really big effort underway is just continuing more and more advanced analytics, because as we get into these big customers, that's one of the things that they look for from us. If they're going to replace everything else that they have inside their organization, they want to see more and more advanced analytics and more data science opportunities and more machine learning opportunities. Those are some of the partners that I was talking about, where I think we have more opportunities to really partner up and become closer to others in the ecosystem, and that'll help us understand that better. Awesome. Thanks a lot. Your next question comes from the line of Jack Andrews from Needham. Your line is open. Great. Thanks for taking my question, congratulations again on the results. It was nice to see the uptick in gross retention, I just wanted to flush that out a little bit if we could. You talked about investing in customer success a bit more. Should we think of this as sort of a new dedicated team? What do you think the impact from gross retention rates could be moving forward, given some of these investments? Yeah, our retention's been awesome, and it's been so fun to watch that climb up to numbers that I think we're more used to. It was just a long time coming in terms of this is a really complex space, and we've taken a really broad approach. There were a lot of things that we needed to shore up to really create the right kind of experience that we wanted our customers to have, and we've done that with the product. Then it was getting the leadership correct there. We have a new leader there that's been doing a great job, and his next stable of leaders have I mean, they're just on fire. They're having a lot of fun. They're excited about what they do. They love our customers. They love Domo. They're passionate. They love telling me anytime I do anything wrong. It's just awesome. They're so passionate about what they do, and we're seeing that reflection in the way that they fight for our customers to make sure that the customers get everything that they need in order to return to us and buy more and more products from us. We're seeing, we talked about our upsells, but a big swath of our customer base is upselling and buying additional products and services. Whether that's buying an extra $1 or an extra $1 million, it's a pretty good sign that they're happy when they're investing more and more into your product. I think that's the best thing that we're seeing there. The incremental investments are just as the revenue base grows, you need to continue to invest there. We'll do some innovative things as well, but we have the expense base that's mapped to that revenue base to be able to do that. They're not large incremental investments. It's more just as the revenue grows, we'll continue making investments there because we love seeing the results that we're getting out of that team. Great. Thanks for your perspective, and thanks for fitting me into the call. You bet. You're welcome. Our next question comes from the line of Kamil Mielczarek from William Blair. Your line is open. Hey, guys, it's Bhavan here. Thanks for taking the question. Hey, Bhavan. Hey, and congrats on the billings number. That was really good. Maybe one for Josh here. We touched on partners, and I want to focus on the SI partners a little bit. It's really exciting and starting to see them deliver implementations of that scale. I guess, have you seen any of them, Josh, start to implement applications? They have customers where they're starting to monetize those themselves a little bit. Is that something that could happen or should happen over time? It should definitely happen over time, and we're starting to see some of that. The FedGov deal that we talked about, that's definitely one of those situations where they were really happy to go-to-market with us. They chose us. It was a big bake-off. They went, and then they took their combined proposal in and were successful at selling that to the federal government, and so that was really nice to see. We think there's a lot more of these to come. I really think that question that was asked early on in the call was really apropos for where we're at right now. The other shoe just hasn't dropped in terms of people understanding how successful we really are at our big accounts, and how we really do a takeover, and they sunset all of their other tools eventually, and really center in on us from top to bottom in their organization, and then expanding out from their organization to their vendors and suppliers. I think as that kind of messaging gets out there more, hopefully industry analysts write more favorable reports about us as they get their quadrants to map more, I think, where the market is going, which is where we've always been, then we'll see some more success in those areas. There's been some headwinds there historically, for sure. Yeah. Ultimately, that I think becomes a really interesting flywheel long-term because they have such high CX-level relationships. It's good to hear, though, that it's starting to happen a little bit. A quick one for Bruce, actually two quick ones for Bruce. One, you guys have talked about continuously improving enterprise sales productivity. Obviously, it improved, given you've cut the number of sales reps, but the billings, et cetera, have been really strong. Are you at a point where you don't think you have room for more productivity given you want to ramp-up more salespeople? Is there still room for productivity in the ramp of salespeople sort of over a 12-month period as left to layer in on top of the improved productivity? I'd love to understand the dynamics between those two pieces of the sales investment coming up. We measure the productivity on the concept of a ramped head, a ramped rep, and that's been nice and healthy. We give, depending on whether it's a corporate rep or an enterprise rep, six months to nine months, sometimes 12 months. To answer your question, there is absolutely built-in ramping on the reps we have. That really sets up growth for us. On top of that, we plan to hire more reps. Yeah, they need to ramp, and we have a ramping schedule. As we layer them in, that's kind of another layer of growth. Then we still have, even though we're pleased with the overall productivity of the sales force, we still think there's even room to improve that over time. That way we have three ways to grow, if we focus on just the concept of productivity per rep. That's how we think about it. Got you. One quick one for both of you, or even Ian if he's there. Visibility, this question has come up with investors, which is, as people have seen demand pick up in the back half of this year, and people accelerated digital transformation initiatives, analytics initiatives, we need to get data to executives on their mobile devices faster, et cetera. As you look forward, I know you're not giving guidance, but as you look forward, do you worry that there's an air pocket Q1, Q2 next year where people then take a pause? How do you think about that vis-a-vis visibility maybe compared to where it was a year ago, two years ago? I'd just love to understand how you're thinking about that. Thanks. Well, what we have going for us is just the whole portfolio of industries, customer sizes, types of customers, types of use cases that are just common sense use of a platform such as ours to just simply get data to people in ways they just can't get today. I don't see why that's going to change at any time in the future. We certainly argue as the economy gets better, it ought to get better. Maybe the activity ought to pick up, and those troubled industries finally can start purchasing from us. We've had success with troubled industries, but not nearly what we would have had we not had this economic downturn. Not only that. I just like that. Bruce was going to say one of the, I think, hesitations around calling some of the big deals is one of my reps just texted me an answer if they're listening to the questions, and I got a text message, and it says, "Tell him the answer is cure COVID." COVID's been great from the sense that it's really helped, I think, accelerate a lot of digital transformation, and it's helped us pick up new partners and really prove our ability to rapidly respond and have a very flexible no-code, low-code offering, et cetera. At the same time, there's still just unknowns out there. You're talking to big customers about really large deals, and you know it's not a normal environment. As much as you know that they need us, it just gets really hesitant to start calling those deals when it would meaningfully impact your guidance. I think that is, in fact, one of the answers, but pipeline's looking good. We have really interesting conversations with customers that we've known for a long time, and there's really big upsells that are out there. We're also seeing new customers come in that know what we've done for other customers because our customer left their former employer and went to a new one and brings us a big, juicy deal. There's deals out there for sure. Like Bruce said earlier, we've had a good beginning of our quarter, and we've brought in some decent-sized deals already. It'll just be interesting to see how the rest of this quarter plays out. We've been a 20% grower for the last few quarters, and we're going to do our damnedest to make sure that that's the case again. Just given the environment that we're all living in, it feels appropriate to be a little conservative. Yeah. Bruce, it's every metric pacing, as you guys said, seems to be going well. Congrats, guys. Thanks for squeezing me in. Appreciate it. Yeah. Excellent. Thank you. Ladies and gentlemen, this concludes Domo's third quarter fiscal year 2021 earnings call. Thank you for participating. You may now disconnect.

Speaker 9: Welcome to Domo's third 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. To ask a question during the session, you will need to 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. With that, I will hand it over to Peter Lowry, Domo's Vice President of Investor Relations. Please go ahead. Welcome to Domo's third quarter fiscal year 2021 earnings call. welcome to domo's third quarter fiscal year 2021 earnings call At this time, all participants are in a listen-only mode. at this time all participants are in a listen-only mode After the speaker's presentation, there will be a question- and- answer session. after the speaker's presentation there will be a question- and- answer session To ask a question during the session, you will need to press star one on your telephone. to ask a question during the session you will need to press star one on your telephone Please be advised that today's conference is being recorded. please be advised that today's conference is being recorded If you require any further assistance, please press star zero. if you require any further assistance please press star zero With that, I will hand it over to Peter Lowry, Domo's Vice President of Investor Relations. with that i will hand it over to peter lowry domo's vice president of investor relations Please go ahead. please go ahead

Speaker 11: Good afternoon, and 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 on to the call. Julie? Good afternoon, and welcome. good afternoon and welcome On the call today, we have Josh James, our Founder and CEO, Bruce Felt, our CFO, and Julie Kehoe, our Chief Communications Officer. 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 on to the call. julie will lead off with our safe harbor statement and then on to the call Julie? julie

Speaker 8: 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 our go-to-market strategy, our expectations for our sales and 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. For a discussion of these risks and uncertainties, please refer to the documents we filed with the SEC, in particular, today's press release, our most recently filed annual report on Form 10-K, and our most recently filed quarterly report on Form 10-Q. Thanks, Pete. 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. 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 our go-to-market strategy, our expectations for our sales and new business initiatives, the impact of COVID-19 on our business, and our financial condition. 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 our go-to-market strategy our expectations for our sales and 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. these statements are subject to a variety of risks uncertainties and assumptions For a discussion of these risks and uncertainties, please refer to the documents we filed with the SEC, in particular, today's press release, our most recently filed annual report on Form 10-K, and our most recently filed quarterly report on Form 10-Q. for a discussion of these risks and uncertainties please refer to the documents we filed with the sec in particular today's press release our 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's 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 directly comparable GAAP measure. With that, let me hand it over to Josh. Josh? 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. 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's performance. in addition during today's call we will discuss non-gaap financial measures which we believe are useful as supplemental measures of domo's performance Other than revenue, unless otherwise stated, we will be discussing our results of operations on a non-GAAP basis. 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. 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 directly comparable GAAP measure. please refer to the tables in our earnings press release for a reconciliation of our non-gaap financial measures to the most directly comparable gaap measure With that, let me hand it over to Josh. with that let me hand it over to josh Josh? josh

Speaker 7: Thank you, Julie. Hello, everyone. Thanks for joining the call. First, I hope that everyone's in good health. As we all know, this year has presented unimaginable health and economic challenges across the globe, and we indeed hope this pandemic is a once-in-a-lifetime event. On the call today, I'm going to focus on a few items. First, a huge financial milestone that we've been working toward for years, and the implications of our recent success, increased financial flexibility, and our plans to drive efficient revenue growth. Second, how Domo's differentiated platform uniquely positions us to help our customers with their digital transformation initiatives. Third, I'll cover Q3 highlights, including several significant upsells and wins across a variety of industries. I'll touch on some recent industry recognition. I'm going to start with sharing how ecstatic I am that we achieved a significant milestone. Thank you, Julie. thank you julie Hello, everyone. hello everyone Thanks for joining the call. thanks for joining the call First, I hope that everyone's in good health. first i hope that everyone's in good health As we all know, this year has presented unimaginable health and economic challenges across the globe, and we indeed hope this pandemic is a once-in-a-lifetime event. as we all know this year has presented unimaginable health and economic challenges across the globe and we indeed hope this pandemic is a once-in-a-lifetime event On the call today, I'm going to focus on a few items. on the call today i'm going to focus on a few items First, a huge financial milestone that we've been working toward for years, and the implications of our recent success, increased financial flexibility, and our plans to drive efficient revenue growth. first a huge financial milestone that we've been working toward for years and the implications of our recent success increased financial flexibility and our plans to drive efficient revenue growth Second, how Domo's differentiated platform uniquely positions us to help our customers with their digital transformation initiatives. second how domo's differentiated platform uniquely positions us to help our customers with their digital transformation initiatives Third, I'll cover Q3 highlights, including several significant upsells and wins across a variety of industries. third i'll cover q3 highlights including several significant upsells and wins across a variety of industries I'll touch on some recent industry recognition. i'll touch on some recent industry recognition I'm going to start with sharing how ecstatic I am that we achieved a significant milestone. i'm going to start with sharing how ecstatic i am that we achieved a significant milestone As of Q3, Domo is a recurring revenue, cash flow positive company that has happy customers with gross retention north of 90% and is growing subscription revenue north of 20% with a total annualized revenue run rate of over $200 million. This is the culmination of over 1,000 people, including several hundred that are here today, and we have been working on this for over 10 years. This is the culmination of listening to customers and building what they need. This is the culmination of putting our hearts and souls into our customers and our vision, and we are only just getting started. We are the only publicly traded independent cloud-based BI company, and we have countless opportunities in front of us. A huge thank you to our customers and a huge thank you to our team members, my partners, and our investors who've always believed in us. As of Q3, Domo is a recurring revenue, cash flow positive company that has happy customers with gross retention north of 90% and is growing subscription revenue north of 20% with a total annualized revenue run rate of over $200 million. as of q3 domo is a recurring revenue cash flow positive company that has happy customers with gross retention north of 90% and is growing subscription revenue north of 20% with a total annualized revenue run rate of over $200 million This is the culmination of over 1,000 people, including several hundred that are here today, and we have been working on this for over 10 years. this is the culmination of over 1,000 people including several hundred that are here today and we have been working on this for over 10 years This is the culmination of listening to customers and building what they need. this is the culmination of listening to customers and building what they need This is the culmination of putting our hearts and souls into our customers and our vision, and we are only just getting started. this is the culmination of putting our hearts and souls into our customers and our vision and we are only just getting started We are the only publicly traded independent cloud-based BI company, and we have countless opportunities in front of us. we are the only publicly traded independent cloud-based bi company and we have countless opportunities in front of us A huge thank you to our customers and a huge thank you to our team members, my partners, and our investors who've always believed in us. a huge thank you to our customers and a huge thank you to our team members my partners and our investors who've always believed in us We are going to return that belief with greatness. Not many, if any, believed we would get to cash flow positive this fast after our IPO two years ago. I put it on the calendar for Q3 fiscal year 2021, I adamantly believed we would make it one way or another. Despite ups and downs and pandemics, earthquakes, unrest, political upheaval, cuts, and losses, great people and wonderfully innovative customers banded together to create what is now a world-class organization. I recently put up a billboard that says simply, "There's a pony in there somewhere." The reference is from President Ronald Reagan. He often told a story. The story concerns twin boys of five or six. Worried that the boys had developed extreme personalities, one was a total pessimist, the other a total optimist, their parents took them to a psychiatrist. We are going to return that belief with greatness. we are going to return that belief with greatness Not many, if any, believed we would get to cash flow positive this fast after our IPO two years ago. not many if any believed we would get to cash flow positive this fast after our ipo two years ago I put it on the calendar for Q3 fiscal year 2021, I adamantly believed we would make it one way or another. i put it on the calendar for q3 fiscal year 2021 i adamantly believed we would make it one way or another Despite ups and downs and pandemics, earthquakes, unrest, political upheaval, cuts, and losses, great people and wonderfully innovative customers banded together to create what is now a world-class organization. despite ups and downs and pandemics earthquakes unrest political upheaval cuts and losses great people and wonderfully innovative customers banded together to create what is now a world-class organization I recently put up a billboard that says simply, "There's a pony in there somewhere." The reference is from President Ronald Reagan. i recently put up a billboard that says simply "there's a pony in there somewhere." the reference is from president ronald reagan He often told a story. he often told a story The story concerns twin boys of five or six. the story concerns twin boys of five or six Worried that the boys had developed extreme personalities, one was a total pessimist, the other a total optimist, their parents took them to a psychiatrist. worried that the boys had developed extreme personalities one was a total pessimist the other a total optimist their parents took them to a psychiatrist Well, first the psychiatrist treated the pessimist. Trying to brighten his outlook, the psychiatrist took him to a room piled to the ceiling with brand-new toys. Instead of yelping with delight, the little boy burst into tears. "What's the matter?" the psychiatrist asked, baffled. "Don't you want to play with any of the toys?" "Yes," the little boy bawled, "but if I did, I'd only break them." Next, the psychiatrist treated the optimist. Trying to dampen his outlook, the psychiatrist took him to a room piled to the ceiling with horse manure. Instead of wrinkling his nose in disgust, the optimist emitted just the yelp of delight and clambered to the top of the pile, dropped to his knees, and began gleefully digging out scoop after scoop with his bare hands. Well, first the psychiatrist treated the pessimist. well first the psychiatrist treated the pessimist Trying to brighten his outlook, the psychiatrist took him to a room piled to the ceiling with brand-new toys. trying to brighten his outlook the psychiatrist took him to a room piled to the ceiling with brand-new toys Instead of yelping with delight, the little boy burst into tears. "What's the matter?" the psychiatrist asked, baffled. "Don't you want to play with any of the toys?" "Yes," the little boy bawled, "but if I did, I'd only break them." Next, the psychiatrist treated the optimist. instead of yelping with delight the little boy burst into tears "what's the matter?" the psychiatrist asked baffled "don't you want to play with any of the toys?" "yes," the little boy bawled "but if i did i'd only break them." next the psychiatrist treated the optimist Trying to dampen his outlook, the psychiatrist took him to a room piled to the ceiling with horse manure. trying to dampen his outlook the psychiatrist took him to a room piled to the ceiling with horse manure Instead of wrinkling his nose in disgust, the optimist emitted just the yelp of delight and clambered to the top of the pile, dropped to his knees, and began gleefully digging out scoop after scoop with his bare hands. instead of wrinkling his nose in disgust, the optimist emitted just the yelp of delight and clambered to the top of the pile dropped to his knees and began gleefully digging out scoop after scoop with his bare hands What do you think you're doing?" the psychiatrist asked, just as baffled by the optimist as he had been by the pessimist. "With all this manure," the little boy replied, beaming, "there must be a pony in here somewhere." Well, I think President Ronald Reagan certainly could have been referring to eternal but hopefully measured optimism for entrepreneurs. For good luck, I put up that billboard at the beginning of this quarter that repeated that phrase, "There's a pony in there somewhere." We've been through our shares of ups and downs, but I was always 100% convinced this would eventually turn into a fantastic, even world-class company. Maybe it's my entrepreneurial optimism shining through, but we found the pony, a big, recurring revenue, fast-growing, cash flow positive company with all kinds of happy customers, innovations, and market positions to go out and capitalize on. What do you think you're doing?" the psychiatrist asked, just as baffled by the optimist as he had been by the pessimist. "With all this manure," the little boy replied, beaming, "there must be a pony in here somewhere." Well, I think President Ronald Reagan certainly could have been referring to eternal but hopefully measured optimism for entrepreneurs. what do you think you're doing?" the psychiatrist asked just as baffled by the optimist as he had been by the pessimist "with all this manure," the little boy replied beaming "there must be a pony in here somewhere." well i think president ronald reagan certainly could have been referring to eternal but hopefully measured optimism for entrepreneurs For good luck, I put up that billboard at the beginning of this quarter that repeated that phrase, "There's a pony in there somewhere." We've been through our shares of ups and downs, but I was always 100% convinced this would eventually turn into a fantastic, even world-class company. for good luck i put up that billboard at the beginning of this quarter that repeated that phrase "there's a pony in there somewhere." we've been through our shares of ups and downs but i was always 100% convinced this would eventually turn into a fantastic even world-class company Maybe it's my entrepreneurial optimism shining through, but we found the pony, a big, recurring revenue, fast-growing, cash flow positive company with all kinds of happy customers, innovations, and market positions to go out and capitalize on. maybe it's my entrepreneurial optimism shining through but we found the pony a big recurring revenue fast-growing cash flow positive company with all kinds of happy customers innovations and market positions to go out and capitalize on Since our IPO, we've been committed to getting to adjusted cash flow positive with the cash on our balance sheet without raising a dime. I'm thrilled to announce today that in Q3, we achieved it. In fact, we achieved it with $84 million remaining in the bank, substantially more than anyone imagined. In Q3, we posted 25% billings growth, an acceleration from 23% last quarter. The continued growth in our base of recurring revenue and reaching cash flow positive status gives us increased financial flexibility to pursue the tremendous growth opportunity in front of us. Let me talk a little bit about our unique positioning in helping our customers with their digital transformation initiatives. As we all know, what has happened this year has forced companies, their employees, customers, and supply chains to reimagine how they operate. Since our IPO, we've been committed to getting to adjusted cash flow positive with the cash on our balance sheet without raising a dime. since our ipo we've been committed to getting to adjusted cash flow positive with the cash on our balance sheet without raising a dime I'm thrilled to announce today that in Q3, we achieved it. i'm thrilled to announce today that in q3 we achieved it In fact, we achieved it with $84 million remaining in the bank, substantially more than anyone imagined. in fact we achieved it with $84 million remaining in the bank substantially more than anyone imagined In Q3, we posted 25% billings growth, an acceleration from 23% last quarter. in q3 we posted 25% billings growth an acceleration from 23% last quarter The continued growth in our base of recurring revenue and reaching cash flow positive status gives us increased financial flexibility to pursue the tremendous growth opportunity in front of us. the continued growth in our base of recurring revenue and reaching cash flow positive status gives us increased financial flexibility to pursue the tremendous growth opportunity in front of us Let me talk a little bit about our unique positioning in helping our customers with their digital transformation initiatives. let me talk a little bit about our unique positioning in helping our customers with their digital transformation initiatives As we all know, what has happened this year has forced companies, their employees, customers, and supply chains to reimagine how they operate. as we all know what has happened this year has forced companies their employees customers and supply chains to reimagine how they operate The need for real-time information, speed, and business agility that digital transformation provides has only accelerated. These elements have always been crucial and are the reason we founded the company. In this climate, these business priorities have moved to the forefront. Our customers have challenged us to solve their business problems with data at an unprecedented speed, and we've delivered for them. Domo's unique platform has three pillars that drive our differentiation. The first is our data integration capabilities that solve backend integration at cloud scale without moving data. Second is our ability to drive insights and action with AI and to put well-governed business intelligence power into the hands of business users in an easy-to-use self-service and mobile-first solution. The need for real-time information, speed, and business agility that digital transformation provides has only accelerated. the need for real-time information speed and business agility that digital transformation provides has only accelerated These elements have always been crucial and are the reason we founded the company. these elements have always been crucial and are the reason we founded the company In this climate, these business priorities have moved to the forefront. in this climate these business priorities have moved to the forefront Our customers have challenged us to solve their business problems with data at an unprecedented speed, and we've delivered for them. our customers have challenged us to solve their business problems with data at an unprecedented speed and we've delivered for them Domo's unique platform has three pillars that drive our differentiation. domo's unique platform has three pillars that drive our differentiation The first is our data integration capabilities that solve backend integration at cloud scale without moving data. the first is our data integration capabilities that solve backend integration at cloud scale without moving data Second is our ability to drive insights and action with AI and to put well-governed business intelligence power into the hands of business users in an easy-to-use self-service and mobile-first solution. second is our ability to drive insights and action with ai and to put well-governed business intelligence power into the hands of business users in an easy-to-use self-service and mobile-first solution Third is the ability to build data-driven apps in a low-code, no-code way that can modernize business processes at high speed and extend the value of data analytics and insights outside the organization to customers and partners. Our platform's ability to solve at scale and in record time the backend and front-end challenges to make data more valuable internally and externally for customers is a huge key to our differentiation. Our most significant wins this quarter were driven by proof of concepts, POCs, where we were able to demonstrate our ability to deliver better solutions faster than the competition. The reason we can compose solutions so quickly is part of the inherent flexibility and scalability of the Domo cloud-first platform, which brings all the services needed, integration, data management, data science, AI and machine learning, governance, distribution to citizen developers, and more to the data and apps. Third is the ability to build data-driven apps in a low-code, no-code way that can modernize business processes at high speed and extend the value of data analytics and insights outside the organization to customers and partners. third is the ability to build data-driven apps in a low-code no-code way that can modernize business processes at high speed and extend the value of data analytics and insights outside the organization to customers and partners Our platform's ability to solve at scale and in record time the backend and front-end challenges to make data more valuable internally and externally for customers is a huge key to our differentiation. our platform's ability to solve at scale and in record time the backend and front-end challenges to make data more valuable internally and externally for customers is a huge key to our differentiation Our most significant wins this quarter were driven by proof of concepts, POCs, where we were able to demonstrate our ability to deliver better solutions faster than the competition. our most significant wins this quarter were driven by proof of concepts pocs where we were able to demonstrate our ability to deliver better solutions faster than the competition The reason we can compose solutions so quickly is part of the inherent flexibility and scalability of the Domo cloud-first platform, which brings all the services needed, integration, data management, data science, AI and machine learning, governance, distribution to citizen developers, and more to the data and apps. the reason we can compose solutions so quickly is part of the inherent flexibility and scalability of the domo cloud-first platform which brings all the services needed integration data management data science ai and machine learning governance distribution to citizen developers and more to the data and apps Through intelligent, analytics-based applications built on the Domo platform in a low-code, no-code environment, we are helping customers to rapidly modernize business processes, leveraging artificial intelligence and automating workflows. Our platform, through our Domo Everywhere offering, also goes beyond traditional embedded analytics capabilities and enables customers to extend their analytics and the value of their data to external stakeholders such as customers and supply chain partners, while also generating new revenue models. I'll share a couple examples of this in just a few minutes. Our view is that the demand for speed, business agility, and real-time analytics is not something that goes away after the pandemic, and we will continue to deliver this to our customers. Now, let me discuss how we are thinking about our increased financial flexibility and our plans to drive efficient growth. I'm particularly proud of how our employees have delivered during the pandemic. Through intelligent, analytics-based applications built on the Domo platform in a low-code, no-code environment, we are helping customers to rapidly modernize business processes, leveraging artificial intelligence and automating workflows. through intelligent analytics-based applications built on the domo platform in a low-code no-code environment we are helping customers to rapidly modernize business processes leveraging artificial intelligence and automating workflows Our platform, through our Domo Everywhere offering, also goes beyond traditional embedded analytics capabilities and enables customers to extend their analytics and the value of their data to external stakeholders such as customers and supply chain partners, while also generating new revenue models. our platform through our domo everywhere offering also goes beyond traditional embedded analytics capabilities and enables customers to extend their analytics and the value of their data to external stakeholders such as customers and supply chain partners while also generating new revenue models I'll share a couple examples of this in just a few minutes. i'll share a couple examples of this in just a few minutes Our view is that the demand for speed, business agility, and real-time analytics is not something that goes away after the pandemic, and we will continue to deliver this to our customers. our view is that the demand for speed business agility and real-time analytics is not something that goes away after the pandemic and we will continue to deliver this to our customers Now, let me discuss how we are thinking about our increased financial flexibility and our plans to drive efficient growth. now let me discuss how we are thinking about our increased financial flexibility and our plans to drive efficient growth I'm particularly proud of how our employees have delivered during the pandemic. i'm particularly proud of how our employees have delivered during the pandemic I would point out that our recent performance occurred against the backdrop of pretty significant cost reductions this year and a severe economic downturn. Our employee headcount in Q3 was down year-over-year, yet we've continued to grow our recurring revenue with reduced expenses. We've also been relentlessly focused on customer success, which is reflected in our higher retention rates. Going forward, we plan to invest in client services and other areas of our business that directly support our ability to serve and grow existing accounts. Now let me talk about some of the business highlights in Q3. One highlight was the seven-figure annual upsell I mentioned on last quarter's call with a Fortune Global 500 retail conglomerate. We won this deal based on our outperformance in speed and scale compared to the competition. I would point out that our recent performance occurred against the backdrop of pretty significant cost reductions this year and a severe economic downturn. i would point out that our recent performance occurred against the backdrop of pretty significant cost reductions this year and a severe economic downturn Our employee headcount in Q3 was down year-over-year, yet we've continued to grow our recurring revenue with reduced expenses. our employee headcount in q3 was down year-over-year yet we've continued to grow our recurring revenue with reduced expenses We've also been relentlessly focused on customer success, which is reflected in our higher retention rates. we've also been relentlessly focused on customer success which is reflected in our higher retention rates Going forward, we plan to invest in client services and other areas of our business that directly support our ability to serve and grow existing accounts. going forward we plan to invest in client services and other areas of our business that directly support our ability to serve and grow existing accounts Now let me talk about some of the business highlights in Q3. now let me talk about some of the business highlights in q3 One highlight was the seven-figure annual upsell I mentioned on last quarter's call with a Fortune Global 500 retail conglomerate. We won this deal based on our outperformance in speed and scale compared to the competition. one highlight was the seven-figure annual upsell i mentioned on last quarter's call with a fortune global 500 retail conglomerate. we won this deal based on our outperformance in speed and scale compared to the competition Domo was chosen to help the organization integrate massive volumes of data from its existing systems without replacing or re-architecting them so business decision-makers could understand critical, time-sensitive business metrics. One of the key factors in our selection was not just Domo's ability to access and integrate data, but our ability to provide data governance at scale and do so without adding burden to already strained IT teams. None were built to perform at cloud scale and in record time like Domo. Another highlight in the U.S. federal space, where we leveraged a partner relationship to close an almost seven-figure annual new logo contract to power PRAC, a public-facing website that gives taxpayers the ability to see and explore pandemic relief spending data. Domo was chosen to help the organization integrate massive volumes of data from its existing systems without replacing or re-architecting them so business decision-makers could understand critical, time-sensitive business metrics. domo was chosen to help the organization integrate massive volumes of data from its existing systems without replacing or re-architecting them so business decision-makers could understand critical time-sensitive business metrics One of the key factors in our selection was not just Domo's ability to access and integrate data, but our ability to provide data governance at scale and do so without adding burden to already strained IT teams. one of the key factors in our selection was not just domo's ability to access and integrate data but our ability to provide data governance at scale and do so without adding burden to already strained it teams None were built to perform at cloud scale and in record time like Domo. none were built to perform at cloud scale and in record time like domo Another highlight in the U.S. federal space, where we leveraged a partner relationship to close an almost seven-figure annual new logo contract to power PRAC, a public-facing website that gives taxpayers the ability to see and explore pandemic relief spending data. another highlight in the u.s federal space where we leveraged a partner relationship to close an almost seven-figure annual new logo contract to power prac a public-facing website that gives taxpayers the ability to see and explore pandemic relief spending data Several of our largest expansions this quarter demonstrate the success of customers having with Domo and how we can grow with the success. For example, we closed a seven-figure upsell with technology and media conglomerate that is using our Domo Everywhere solution to extend the value of its analytics and data and the full power of Domo externally to its community of tens of thousands of partners. We were initially chosen based on our superior speed and scale. The significant expansion was based on the successful rollout to a subset of the company's massive partner network. We also signed a large upsell deal for Domo Everywhere that gives a learning management system or LMS software company the ability to embed and monetize LMS analytics into its software solution for its growing customer base. Several of our largest expansions this quarter demonstrate the success of customers having with Domo and how we can grow with the success. several of our largest expansions this quarter demonstrate the success of customers having with domo and how we can grow with the success For example, we closed a seven-figure upsell with technology and media conglomerate that is using our Domo Everywhere solution to extend the value of its analytics and data and the full power of Domo externally to its community of tens of thousands of partners. for example we closed a seven-figure upsell with technology and media conglomerate that is using our domo everywhere solution to extend the value of its analytics and data and the full power of domo externally to its community of tens of thousands of partners We were initially chosen based on our superior speed and scale. we were initially chosen based on our superior speed and scale The significant expansion was based on the successful rollout to a subset of the company's massive partner network. the significant expansion was based on the successful rollout to a subset of the company's massive partner network We also signed a large upsell deal for Domo Everywhere that gives a learning management system or LMS software company the ability to embed and monetize LMS analytics into its software solution for its growing customer base. we also signed a large upsell deal for domo everywhere that gives a learning management system or lms software company the ability to embed and monetize lms analytics into its software solution for its growing customer base Before the initial contract, this customer had evaluated numerous solutions and also built a homegrown option that just didn't completely fit their vision. After a POC, the customer selected Domo because it was the only solution that allowed the company to extend the interactive analytics and data experience it wanted for their customers at scale. The most recent expansion was driven by the demand the company has seen across the rest of its customer base for its Domo-powered analytics, which the company has also turned into a new revenue stream. Now let me talk about some recent industry recognition. Our team continues to receive accolades that reflect our commitment to product innovation, customer success, and our corporate culture. Before the initial contract, this customer had evaluated numerous solutions and also built a homegrown option that just didn't completely fit their vision. before the initial contract this customer had evaluated numerous solutions and also built a homegrown option that just didn't completely fit their vision After a POC, the customer selected Domo because it was the only solution that allowed the company to extend the interactive analytics and data experience it wanted for their customers at scale. after a poc the customer selected domo because it was the only solution that allowed the company to extend the interactive analytics and data experience it wanted for their customers at scale The most recent expansion was driven by the demand the company has seen across the rest of its customer base for its Domo-powered analytics, which the company has also turned into a new revenue stream. the most recent expansion was driven by the demand the company has seen across the rest of its customer base for its domo-powered analytics which the company has also turned into a new revenue stream Now let me talk about some recent industry recognition. now let me talk about some recent industry recognition Our team continues to receive accolades that reflect our commitment to product innovation, customer success, and our corporate culture. our team continues to receive accolades that reflect our commitment to product innovation customer success and our corporate culture Most recently, Domo, with our customer, Unilever, was named a winner in Ventana Research Digital Leadership Awards for the support that data and the Domo platform played in Unilever's national philanthropic initiative, United for America, which provided more than $25 million worth of support to local communities. In addition, Domo was named an overall experience and credibility leader in the Dresner Advisory Services 2020 SME BI study. Lastly, Domo was named for the ninth year in a row as a Utah Business Best Company to Work For. In closing, I continue to be impressed by the work our team is doing to help customers thrive, and I'm impressed by our employees' performance in this environment. Most recently, Domo, with our customer, Unilever, was named a winner in Ventana Research Digital Leadership Awards for the support that data and the Domo platform played in Unilever's national philanthropic initiative, United for America, which provided more than $25 million worth of support to local communities. most recently domo with our customer unilever was named a winner in ventana research digital leadership awards for the support that data and the domo platform played in unilever's national philanthropic initiative united for america which provided more than $25 million worth of support to local communities In addition, Domo was named an overall experience and credibility leader in the Dresner Advisory Services 2020 SME BI study. in addition domo was named an overall experience and credibility leader in the dresner advisory services 2020 sme bi study Lastly, Domo was named for the ninth year in a row as a Utah Business Best Company to Work For. lastly domo was named for the ninth year in a row as a utah business best company to work for In closing, I continue to be impressed by the work our team is doing to help customers thrive, and I'm impressed by our employees' performance in this environment. in closing i continue to be impressed by the work our team is doing to help customers thrive and i'm impressed by our employees' performance in this environment It is extremely rewarding as well to know we achieved our quarterly results while also hitting the significant milestone of getting to cash flow positive in the quarter with plenty of cash in the bank. I am looking forward to continuing to execute on our tremendous growth opportunity, and I sincerely thank our employees for their commitment, and I'm so excited to take a moment and celebrate this milestone with them. I'm so incredibly proud of all that they've accomplished. With that, I will turn it over to the Bruce. Bruce? It is extremely rewarding as well to know we achieved our quarterly results while also hitting the significant milestone of getting to cash flow positive in the quarter with plenty of cash in the bank. it is extremely rewarding as well to know we achieved our quarterly results while also hitting the significant milestone of getting to cash flow positive in the quarter with plenty of cash in the bank I am looking forward to continuing to execute on our tremendous growth opportunity, and I sincerely thank our employees for their commitment, and I'm so excited to take a moment and celebrate this milestone with them. i am looking forward to continuing to execute on our tremendous growth opportunity and i sincerely thank our employees for their commitment and i'm so excited to take a moment and celebrate this milestone with them I'm so incredibly proud of all that they've accomplished. i'm so incredibly proud of all that they've accomplished With that, I will turn it over to the Bruce. with that i will turn it over to the bruce Bruce? bruce

Speaker 3: Thank you, Josh. We had a strong Q3, and at the same time, we hit several important milestones this quarter. As Josh mentioned, we met our commitment to reach positive operating cash flow without the need to raise additional capital. In fact, we reached this milestone with $84 million in the bank, substantially ahead of our plans at the IPO, and we intend to stay operating cash flow positive going forward. Another milestone is that our gross retention rate increased to over 90% and represents a record high. A third milestone is record subscription gross margins at 81%, an important metric in driving long-term profitability. These achievements are a result of many incremental internal improvements we have made across the business, enhanced by the market shifting towards solutions such as ours that provide modern ways to create, distribute, and use data to run businesses. Thank you, Josh. thank you josh We had a strong Q3, and at the same time, we hit several important milestones this quarter. we had a strong q3 and at the same time we hit several important milestones this quarter As Josh mentioned, we met our commitment to reach positive operating cash flow without the need to raise additional capital. as josh mentioned we met our commitment to reach positive operating cash flow without the need to raise additional capital In fact, we reached this milestone with $84 million in the bank, substantially ahead of our plans at the IPO, and we intend to stay operating cash flow positive going forward. in fact we reached this milestone with $84 million in the bank substantially ahead of our plans at the ipo and we intend to stay operating cash flow positive going forward Another milestone is that our gross retention rate increased to over 90% and represents a record high. another milestone is that our gross retention rate increased to over 90% and represents a record high A third milestone is record subscription gross margins at 81%, an important metric in driving long-term profitability. a third milestone is record subscription gross margins at 81% an important metric in driving long-term profitability These achievements are a result of many incremental internal improvements we have made across the business, enhanced by the market shifting towards solutions such as ours that provide modern ways to create, distribute, and use data to run businesses. these achievements are a result of many incremental internal improvements we have made across the business enhanced by the market shifting towards solutions such as ours that provide modern ways to create distribute and use data to run businesses I will now review the details behind our performance and then discuss fourth quarter and fiscal 2021 full-year guidance. Our Q3 billings of $55.7 million, a year-over-year increase of more than 25%, was driven by strong new customer count growth, upsells and expansions, and high retention rates. We delivered these results overcoming a tough year-over-year large deal comparison by generating a much higher volume of transactions than one year ago. At the same time, we maintained our standard billing terms, even against the backdrop of pandemic-driven challenges in some segments of our customer base. We have 59% of our customers under multi-year contracts at the end of Q3. Our remaining performance obligations, or RPO, grew 21% compared to the same quarter last year. Current RPO, or RPO expected to be recognized as revenue over the next 12 months, grew 22% year-over-year. I will now review the details behind our performance and then discuss fourth quarter and fiscal 2021 full-year guidance. i will now review the details behind our performance and then discuss fourth quarter and fiscal 2021 full-year guidance Our Q3 billings of $55.7 million, a year-over-year increase of more than 25%, was driven by strong new customer count growth, upsells and expansions, and high retention rates. our q3 billings of $55.7 million a year-over-year increase of more than 25% was driven by strong new customer count growth upsells and expansions and high retention rates We delivered these results overcoming a tough year-over-year large deal comparison by generating a much higher volume of transactions than one year ago. we delivered these results overcoming a tough year-over-year large deal comparison by generating a much higher volume of transactions than one year ago At the same time, we maintained our standard billing terms, even against the backdrop of pandemic-driven challenges in some segments of our customer base. at the same time we maintained our standard billing terms even against the backdrop of pandemic-driven challenges in some segments of our customer base We have 59% of our customers under multi-year contracts at the end of Q3. Our remaining performance obligations, or RPO, grew 21% compared to the same quarter last year. we have 59% of our customers under multi-year contracts at the end of q3. our remaining performance obligations or rpo grew 21% compared to the same quarter last year Current RPO, or RPO expected to be recognized as revenue over the next 12 months, grew 22% year-over-year. current rpo or rpo expected to be recognized as revenue over the next 12 months grew 22% year-over-year Q3 total revenue was $53.6 million, a year-over-year increase of 20%. Subscription revenue grew 24% year-over-year and represented 87% of total revenue. International revenue in the quarter represented 24% of total revenue, consistent with Q2. Our subscription gross margin was 81%, up more than four percentage points from 76% in Q3 of last year, and a slight improvement from last quarter. We continue to be successful managing our data center costs even as volumes continue to increase. In Q3, operating expenses decreased by 6% from last year, even though revenue increased by 20%. The net effect of increased revenue, while being cost efficient, improved our operating margin by 31 percentage points from the same quarter last year. Now let me comment briefly on our investment and margin approach going forward. Q3 total revenue was $53.6 million, a year-over-year increase of 20%. q3 total revenue was $53.6 million a year-over-year increase of 20% Subscription revenue grew 24% year-over-year and represented 87% of total revenue. subscription revenue grew 24% year-over-year and represented 87% of total revenue International revenue in the quarter represented 24% of total revenue, consistent with Q2. international revenue in the quarter represented 24% of total revenue consistent with q2 Our subscription gross margin was 81%, up more than four percentage points from 76% in Q3 of last year, and a slight improvement from last quarter. our subscription gross margin was 81% up more than four percentage points from 76% in q3 of last year and a slight improvement from last quarter We continue to be successful managing our data center costs even as volumes continue to increase. we continue to be successful managing our data center costs even as volumes continue to increase In Q3, operating expenses decreased by 6% from last year, even though revenue increased by 20%. in q3 operating expenses decreased by 6% from last year even though revenue increased by 20% The net effect of increased revenue, while being cost efficient, improved our operating margin by 31 percentage points from the same quarter last year. the net effect of increased revenue while being cost efficient improved our operating margin by 31 percentage points from the same quarter last year Now let me comment briefly on our investment and margin approach going forward. now let me comment briefly on our investment and margin approach going forward Now that we have hit the milestone of becoming adjusted cash flow positive, we plan to continue to generate positive operating cash flow. At the same time, since we have cushion on the balance sheet and have demonstrated leverage in the business, we believe we can safely take some of that leverage and invest more in growth than we have over the last two years. We're already building our sales force capacity and plan to make additional investments in some new product areas in order to support our growth plans. We can make these investments, yet continue to expand margins. Although we expect margin improvement to occur at a lesser rate than we have demonstrated recently as we sought to achieve cash flow profitability. We will provide specific guidance and more color around these themes when we announce our Q4 results. Now that we have hit the milestone of becoming adjusted cash flow positive, we plan to continue to generate positive operating cash flow. now that we have hit the milestone of becoming adjusted cash flow positive we plan to continue to generate positive operating cash flow At the same time, since we have cushion on the balance sheet and have demonstrated leverage in the business, we believe we can safely take some of that leverage and invest more in growth than we have over the last two years. at the same time since we have cushion on the balance sheet and have demonstrated leverage in the business we believe we can safely take some of that leverage and invest more in growth than we have over the last two years We're already building our sales force capacity and plan to make additional investments in some new product areas in order to support our growth plans. we're already building our sales force capacity and plan to make additional investments in some new product areas in order to support our growth plans We can make these investments, yet continue to expand margins. we can make these investments yet continue to expand margins Although we expect margin improvement to occur at a lesser rate than we have demonstrated recently as we sought to achieve cash flow profitability. although we expect margin improvement to occur at a lesser rate than we have demonstrated recently as we sought to achieve cash flow profitability We will provide specific guidance and more color around these themes when we announce our Q4 results. we will provide specific guidance and more color around these themes when we announce our q4 results Our net loss was $11.9 million, and our net loss per share was $0.40. This was based on 29.5 million weighted average shares outstanding, basic and diluted. In Q3, we reported adjusted cash flow from operations of $1.4 million, an improvement of $6.2 million over last quarter. Adjusted cash flow from operations excludes $3.1 million of share purchases in Q3 under our employee stock purchase plan. The amount is included as a positive amount in our GAAP cash flow from financing section of our cash flow statement, and an offsetting negative amount in our GAAP cash flow from operations section, with no effect on our cash balance. Turning now to our balance sheet as of October 31, we had cash and cash equivalents of approximately $84 million. Now to discuss what we expect in Q4 and the full fiscal year 2021. Our net loss was $11.9 million, and our net loss per share was $0.40. our net loss was $11.9 million and our net loss per share was $0.40 This was based on 29.5 million weighted average shares outstanding, basic and diluted. this was based on 29.5 million weighted average shares outstanding basic and diluted In Q3, we reported adjusted cash flow from operations of $1.4 million, an improvement of $6.2 million over last quarter. in q3 we reported adjusted cash flow from operations of $1.4 million an improvement of $6.2 million over last quarter Adjusted cash flow from operations excludes $3.1 million of share purchases in Q3 under our employee stock purchase plan. adjusted cash flow from operations excludes $3.1 million of share purchases in q3 under our employee stock purchase plan The amount is included as a positive amount in our GAAP cash flow from financing section of our cash flow statement, and an offsetting negative amount in our GAAP cash flow from operations section, with no effect on our cash balance. the amount is included as a positive amount in our gaap cash flow from financing section of our cash flow statement and an offsetting negative amount in our gaap cash flow from operations section with no effect on our cash balance Turning now to our balance sheet as of October 31, we had cash and cash equivalents of approximately $84 million. turning now to our balance sheet as of october 31 we had cash and cash equivalents of approximately $84 million Now to discuss what we expect in Q4 and the full fiscal year 2021. now to discuss what we expect in q4 and the full fiscal year 2021 For Q4, we are expecting billings of about $72 million, as we are experiencing strength in our business and have good visibility as we head into the remainder of Q4. For the current fiscal year, we now expect billings of about $222 million, up from $208 million that we guided to last quarter, and well above our initial outlook of $190 million based on our COVID-19 downside case that we used for reducing costs. On expenses, we're planning on our Q4 operating expenses to increase modestly from Q3 levels. While we expect to see a decrease in operating expenses in fiscal year 2021, we expect them to increase in fiscal year 2022. We expect Q4 adjusted net cash provided by operations of approximately $1.5 million, and expect full year adjusted net cash used in operations of approximately $11 million. Now the formal guidance. For Q4, we are expecting billings of about $72 million, as we are experiencing strength in our business and have good visibility as we head into the remainder of Q4. for q4 we are expecting billings of about $72 million as we are experiencing strength in our business and have good visibility as we head into the remainder of q4 For the current fiscal year, we now expect billings of about $222 million, up from $208 million that we guided to last quarter, and well above our initial outlook of $190 million based on our COVID-19 downside case that we used for reducing costs. for the current fiscal year we now expect billings of about $222 million up from $208 million that we guided to last quarter and well above our initial outlook of $190 million based on our covid-19 downside case that we used for reducing costs On expenses, we're planning on our Q4 operating expenses to increase modestly from Q3 levels. on expenses we're planning on our q4 operating expenses to increase modestly from q3 levels While we expect to see a decrease in operating expenses in fiscal year 2021, we expect them to increase in fiscal year 2022. while we expect to see a decrease in operating expenses in fiscal year 2021 we expect them to increase in fiscal year 2022 We expect Q4 adjusted net cash provided by operations of approximately $1.5 million, and expect full year adjusted net cash used in operations of approximately $11 million. we expect q4 adjusted net cash provided by operations of approximately $1.5 million and expect full year adjusted net cash used in operations of approximately $11 million Now the formal guidance. now the formal guidance For the fourth quarter of fiscal year 2021, we expect GAAP revenue to be in the range of $53.3 million-$54.3 million. We expect non-GAAP net loss per share, basic and diluted, of $0.42-$0.46. This assumes 30.1 million weighted average shares outstanding, basic and diluted. For the full year of fiscal 2021, we expect GAAP revenue to be in the range of $206.6 million-$207.6 million, representing year-over-year growth of 19%-20%. We expect non-GAAP net loss per share, basic and diluted, of $1.83-$1.87. This assumes 29.3 million weighted average shares outstanding, basic and diluted. In closing, we're pleased with our execution in Q3 and are optimistic about our financial position and growth opportunities as we close out fiscal year 2021 and head into next year. With that, we'll open up the call for questions. Operator? For the fourth quarter of fiscal year 2021, we expect GAAP revenue to be in the range of $53.3 million-$54.3 million. for the fourth quarter of fiscal year 2021 we expect gaap revenue to be in the range of $53.3 million-$54.3 million We expect non-GAAP net loss per share, basic and diluted, of $0.42-$0.46. we expect non-gaap net loss per share basic and diluted of $0.42-$0.46 This assumes 30.1 million weighted average shares outstanding, basic and diluted. this assumes 30.1 million weighted average shares outstanding basic and diluted For the full year of fiscal 2021, we expect GAAP revenue to be in the range of $206.6 million-$207.6 million, representing year-over-year growth of 19%-20%. for the full year of fiscal 2021 we expect gaap revenue to be in the range of $206.6 million-$207.6 million representing year-over-year growth of 19%-20% We expect non-GAAP net loss per share, basic and diluted, of $1.83-$1.87. we expect non-gaap net loss per share basic and diluted of $1.83-$1.87 This assumes 29.3 million weighted average shares outstanding, basic and diluted. this assumes 29.3 million weighted average shares outstanding basic and diluted In closing, we're pleased with our execution in Q3 and are optimistic about our financial position and growth opportunities as we close out fiscal year 2021 and head into next year. in closing we're pleased with our execution in q3 and are optimistic about our financial position and growth opportunities as we close out fiscal year 2021 and head into next year With that, we'll open up the call for questions. with that we'll open up the call for questions Operator? operator

Speaker 9: As a reminder, to ask a question, you will need to press star one on your telephone. To withdraw your question, press the pound key. Your first question comes from the line of Sanjit Singh from Morgan Stanley. Your line is open. As a reminder, to ask a question, you will need to press star one on your telephone. as a reminder to ask a question you will need to press star one on your telephone To withdraw your question, press the pound key. to withdraw your question press the pound key Your first question comes from the line of Sanjit Singh from Morgan Stanley. your first question comes from the line of sanjit singh from morgan stanley Your line is open. your line is open

Speaker 12: Hi. Thank you for taking the question. Congrats to you both on the cash flow positives. It was a long road, and you got there, and that was quite an achievement. Hi. hi Thank you for taking the question. thank you for taking the question Congrats to you both on the cash flow positives. congrats to you both on the cash flow positives It was a long road, and you got there, and that was quite an achievement. it was a long road and you got there and that was quite an achievement In terms of thinking about the quarter, the 20% billings growth against a tougher comp is really impressive. Bruce, I was wondering if you could sort of talk about the velocity of deals. I think in your script you mentioned a higher volume of deals compared to last year. Can you just sort of describe where that demand is coming from a vertical perspective or just from a sales perspective, how you're driving that increased volume of blocking and tackling business? In terms of thinking about the quarter, the 20% billings growth against a tougher comp is really impressive. in terms of thinking about the quarter the 20% billings growth against a tougher comp is really impressive Bruce, I was wondering if you could sort of talk about the velocity of deals. bruce i was wondering if you could sort of talk about the velocity of deals I think in your script you mentioned a higher volume of deals compared to last year. i think in your script you mentioned a higher volume of deals compared to last year Can you just sort of describe where that demand is coming from a vertical perspective or just from a sales perspective, how you're driving that increased volume of blocking and tackling business? can you just sort of describe where that demand is coming from a vertical perspective or just from a sales perspective how you're driving that increased volume of blocking and tackling business

Speaker 3: Sure. Happy to. This was an extremely high transaction volume quarter, led by one of the highest growth in percentages year-over-year on new customers, what we call new logo accounts. It was also just high transaction volumes within our current customer base as well. I think that has to do with just the, on the one hand, the increased operational rigor that we're using to manage the sales force. We really picked it up with the pandemic, just assuming we just needed to work harder, but that's absolutely paid off for us. At the same time, our offering just fits nicely into what our customers need today. I mean, they need a product that's easy to use, easy to install, easy to roll out to end users, that's in the cloud, that's on your phone, and that can scale. Sure. sure Happy to. happy to This was an extremely high transaction volume quarter, led by one of the highest growth in percentages year-over-year on new customers, what we call new logo accounts. this was an extremely high transaction volume quarter led by one of the highest growth in percentages year-over-year on new customers what we call new logo accounts It was also just high transaction volumes within our current customer base as well. it was also just high transaction volumes within our current customer base as well I think that has to do with just the, on the one hand, the increased operational rigor that we're using to manage the sales force. i think that has to do with just the on the one hand the increased operational rigor that we're using to manage the sales force We really picked it up with the pandemic, just assuming we just needed to work harder, but that's absolutely paid off for us. we really picked it up with the pandemic just assuming we just needed to work harder but that's absolutely paid off for us At the same time, our offering just fits nicely into what our customers need today. at the same time our offering just fits nicely into what our customers need today I mean, they need a product that's easy to use, easy to install, easy to roll out to end users, that's in the cloud, that's on your phone, and that can scale. i mean they need a product that's easy to use easy to install easy to roll out to end users that's in the cloud that's on your phone and that can scale Just the general trend toward digital transformation within businesses is what we feed nicely into. Between the operational rigor and the fact that our solutions really meet what the market needs just drove very healthy transaction volumes this quarter. We're really pleased with that. It's a very healthy quarter. Just the general trend toward digital transformation within businesses is what we feed nicely into. just the general trend toward digital transformation within businesses is what we feed nicely into Between the operational rigor and the fact that our solutions really meet what the market needs just drove very healthy transaction volumes this quarter. between the operational rigor and the fact that our solutions really meet what the market needs just drove very healthy transaction volumes this quarter We're really pleased with that. we're really pleased with that It's a very healthy quarter. it's a very healthy quarter

Speaker 12: That's very promising. Josh, if I think about, I was sort of looking at the website earlier today, kind of the messaging just seems so much more targeted and crisper in sort of positioning Domo as one, a data integration platform, two, a business intelligence solution, and three, an intelligent app platform. Can you talk to me about where you're seeing sort of traction? I'm sure the BI case is sort of obvious, but both on the data integration side and on the intelligent app side, where you're sort of seeing customer traction on those parts of the use cases? That's very promising. that's very promising Josh, if I think about, I was sort of looking at the website earlier today, kind of the messaging just seems so much more targeted and crisper in sort of positioning Domo as one, a data integration platform, two, a business intelligence solution, and three, an intelligent app platform. josh if i think about i was sort of looking at the website earlier today kind of the messaging just seems so much more targeted and crisper in sort of positioning domo as one a data integration platform two a business intelligence solution and three an intelligent app platform Can you talk to me about where you're seeing sort of traction? can you talk to me about where you're seeing sort of traction I'm sure the BI case is sort of obvious, but both on the data integration side and on the intelligent app side, where you're sort of seeing customer traction on those parts of the use cases? i'm sure the bi case is sort of obvious but both on the data integration side and on the intelligent app side where you're sort of seeing customer traction on those parts of the use cases

Speaker 7: Yeah, I talked about it a little bit in my comments, the fact that we're seeing these POCs where we'll go in and work with a big customer, someone who has usually many experiences trying out other things, usually many experiences with alternatives that are already installed at their place of business, and there's still one or two things they can't get done. They call us in for a POC, and we connect the data they haven't been able to connect to before. Then, of course, we're able to distribute that data in such a timely, quick manner to so many people in the organization. Yeah, I talked about it a little bit in my comments, the fact that we're seeing these POCs where we'll go in and work with a big customer, someone who has usually many experiences trying out other things, usually many experiences with alternatives that are already installed at their place of business, and there's still one or two things they can't get done. yeah i talked about it a little bit in my comments the fact that we're seeing these pocs where we'll go in and work with a big customer someone who has usually many experiences trying out other things usually many experiences with alternatives that are already installed at their place of business and there's still one or two things they can't get done They call us in for a POC, and we connect the data they haven't been able to connect to before. they call us in for a poc and we connect the data they haven't been able to connect to before Then, of course, we're able to distribute that data in such a timely, quick manner to so many people in the organization. then of course we're able to distribute that data in such a timely quick manner to so many people in the organization In most cases, there'll be these apps that we end up helping facilitate, low-code, no-code apps, and they really end up helping out with workflow and accomplishing things that they had teams of people that it took to accomplish before, or they weren't even accomplishing it. It is a combination of those three things, and it's been exciting to see the pace picking up. Another thing that we mentioned is Domo Everywhere. We'll have these large customers that will come in, start using our products and services, and find so much benefit from being able to distribute that information so easily with real-time data, no matter the size of the data, to all their internal constituents. That then, of course, the next question that that begs is, can we get this to our partners? Can we get this to our vendors? In most cases, there'll be these apps that we end up helping facilitate, low-code, no-code apps, and they really end up helping out with workflow and accomplishing things that they had teams of people that it took to accomplish before, or they weren't even accomplishing it. in most cases there'll be these apps that we end up helping facilitate low-code no-code apps and they really end up helping out with workflow and accomplishing things that they had teams of people that it took to accomplish before or they weren't even accomplishing it It is a combination of those three things, and it's been exciting to see the pace picking up. it is a combination of those three things and it's been exciting to see the pace picking up Another thing that we mentioned is Domo Everywhere. another thing that we mentioned is domo everywhere We'll have these large customers that will come in, start using our products and services, and find so much benefit from being able to distribute that information so easily with real-time data, no matter the size of the data, to all their internal constituents. we'll have these large customers that will come in start using our products and services and find so much benefit from being able to distribute that information so easily with real-time data no matter the size of the data to all their internal constituents That then, of course, the next question that that begs is, can we get this to our partners? that then of course the next question that that begs is can we get this to our partners Can we get this to our vendors? can we get this to our vendors Can we get this to our suppliers? We highlighted one of the largest ones that we work with today with literally tens of thousands of partners that they're distributing data to, and it's the lifeblood of their business. The relationship with their 10,000 partners is the lifeblood of their business, and they're using us to manage all of those communications now and making those partners so much more adept at reacting to what's taking place in this ever-changing digital world. Digital transformation is definitely the wave that we're riding, and it's these three simple things that we happen to do better than anyone else. Can we get this to our suppliers? can we get this to our suppliers We highlighted one of the largest ones that we work with today with literally tens of thousands of partners that they're distributing data to, and it's the lifeblood of their business. we highlighted one of the largest ones that we work with today with literally tens of thousands of partners that they're distributing data to and it's the lifeblood of their business The relationship with their 10,000 partners is the lifeblood of their business, and they're using us to manage all of those communications now and making those partners so much more adept at reacting to what's taking place in this ever-changing digital world. the relationship with their 10,000 partners is the lifeblood of their business and they're using us to manage all of those communications now and making those partners so much more adept at reacting to what's taking place in this ever-changing digital world Digital transformation is definitely the wave that we're riding, and it's these three simple things that we happen to do better than anyone else. digital transformation is definitely the wave that we're riding and it's these three simple things that we happen to do better than anyone else

Speaker 12: That's great. If I could just speak one last one, toggling back to Bruce. If I look at the Q4 guidance, obviously all year, you've been beating and raising that number, even the original guidance for the year, we're now above that. Q4 does imply a slowdown back to sort of 10%-11% growth. Can you walk us through some of the underlying assumptions behind your billing guidance as we get into sort of year-end from a closure rate or from a demand environment perspective, just to put some context on the guidance for Q4? That's great. that's great If I could just speak one last one, toggling back to Bruce. if i could just speak one last one toggling back to bruce If I look at the Q4 guidance, obviously all year, you've been beating and raising that number, even the original guidance for the year, we're now above that. if i look at the q4 guidance obviously all year you've been beating and raising that number even the original guidance for the year we're now above that Q4 does imply a slowdown back to sort of 10%-11% growth. q4 does imply a slowdown back to sort of 10%-11% growth Can you walk us through some of the underlying assumptions behind your billing guidance as we get into sort of year-end from a closure rate or from a demand environment perspective, just to put some context on the guidance for Q4? can you walk us through some of the underlying assumptions behind your billing guidance as we get into sort of year-end from a closure rate or from a demand environment perspective just to put some context on the guidance for q4

Speaker 3: Sure. Well, first let me highlight that we basically brought up our guidance in Q4 by about $6 million off our implied guidance from last quarter. What drove that was the fact that we are off to just a very good start to Q4, maybe one of our best starts ever for a month. On top of that, we just have good visibility into our pipeline, and it's also supported by the fact we just came off-high transaction volumes, which we think is very healthy. Particularly in this environment, to have that many new customers and sales and transactions from your current customers is just very healthy. We obviously seek to do better than that number. We use the same approach that we've always used. We provide guidance on what we know, and I just have to repeat myself. Sure. sure Well, first let me highlight that we basically brought up our guidance in Q4 by about $6 million off our implied guidance from last quarter. well first let me highlight that we basically brought up our guidance in q4 by about $6 million off our implied guidance from last quarter What drove that was the fact that we are off to just a very good start to Q4, maybe one of our best starts ever for a month. what drove that was the fact that we are off to just a very good start to q4 maybe one of our best starts ever for a month On top of that, we just have good visibility into our pipeline, and it's also supported by the fact we just came off-high transaction volumes, which we think is very healthy. on top of that we just have good visibility into our pipeline and it's also supported by the fact we just came off-high transaction volumes which we think is very healthy Particularly in this environment, to have that many new customers and sales and transactions from your current customers is just very healthy. particularly in this environment to have that many new customers and sales and transactions from your current customers is just very healthy We obviously seek to do better than that number. we obviously seek to do better than that number We use the same approach that we've always used. we use the same approach that we've always used We provide guidance on what we know, and I just have to repeat myself. we provide guidance on what we know and i just have to repeat myself We know a lot now. That's why we brought the number up by $6 million. What we hope for is, our users are usually very active, and we can only guide by what we know. Most of what's going to happen through the rest of the quarter is still before us, but we like what we see so far. That's the basic thoughts behind our guidance, and we're happy that we've brought it up by a significant amount from last quarter. We would love to do better. If everything stays the same, we certainly hope we can do it. We know a lot now. we know a lot now That's why we brought the number up by $6 million. that's why we brought the number up by $6 million What we hope for is, our users are usually very active, and we can only guide by what we know. what we hope for is our users are usually very active and we can only guide by what we know Most of what's going to happen through the rest of the quarter is still before us, but we like what we see so far. most of what's going to happen through the rest of the quarter is still before us but we like what we see so far That's the basic thoughts behind our guidance, and we're happy that we've brought it up by a significant amount from last quarter. that's the basic thoughts behind our guidance and we're happy that we've brought it up by a significant amount from last quarter We would love to do better. we would love to do better If everything stays the same, we certainly hope we can do it. if everything stays the same we certainly hope we can do it

Speaker 12: That's very clear. Thank you, Bruce. Appreciate it. Congrats. That's very clear. that's very clear Thank you, Bruce. thank you bruce Appreciate it. appreciate it Congrats. congrats

Speaker 7: I'll say something that I've said a few times over the last few quarters. Our goal right now is to get consistently above 20%, then it'll be get consistently above 30%. I think when you look at this one, like Bruce said, it's a substantial raise from where it was a quarter ago. I think that's something that should be definitely taken into account. We crushed our number, hit cash flow positive, did it with lower expenses, and brought up guidance by a substantial amount, and we still feel like there's a lot of gas in the tank there. You know what our goals are and what we're trying to accomplish, and what we want to consistently be able to deliver, but also guide to. I'll say something that I've said a few times over the last few quarters. i'll say something that i've said a few times over the last few quarters Our goal right now is to get consistently above 20%, then it'll be get consistently above 30%. our goal right now is to get consistently above 20% then it'll be get consistently above 30% I think when you look at this one, like Bruce said, it's a substantial raise from where it was a quarter ago. i think when you look at this one like bruce said it's a substantial raise from where it was a quarter ago I think that's something that should be definitely taken into account. i think that's something that should be definitely taken into account We crushed our number, hit cash flow positive, did it with lower expenses, and brought up guidance by a substantial amount, and we still feel like there's a lot of gas in the tank there. we crushed our number hit cash flow positive did it with lower expenses and brought up guidance by a substantial amount and we still feel like there's a lot of gas in the tank there You know what our goals are and what we're trying to accomplish, and what we want to consistently be able to deliver, but also guide to. you know what our goals are and what we're trying to accomplish and what we want to consistently be able to deliver but also guide to Right now, we're hoping that we can deliver to it, but feel like this is the best place to guide. We haven't had as many quarters of the current situation that we're sitting in, as we like to be comfortable enough to guide up as high as we'd like to, but definitely see deals and opportunities out there. Feel like this is the appropriate guidance to do, and then hopefully some things will fall our way and we'll continue to be north of the 20% grower as we have been the last few quarters. Right now, we're hoping that we can deliver to it, but feel like this is the best place to guide. right now we're hoping that we can deliver to it but feel like this is the best place to guide We haven't had as many quarters of the current situation that we're sitting in, as we like to be comfortable enough to guide up as high as we'd like to, but definitely see deals and opportunities out there. we haven't had as many quarters of the current situation that we're sitting in as we like to be comfortable enough to guide up as high as we'd like to but definitely see deals and opportunities out there Feel like this is the appropriate guidance to do, and then hopefully some things will fall our way and we'll continue to be north of the 20% grower as we have been the last few quarters. feel like this is the appropriate guidance to do and then hopefully some things will fall our way and we'll continue to be north of the 20% grower as we have been the last few quarters

Speaker 12: Appreciate it, Josh. Thank you. Appreciate it, Josh. appreciate it josh Thank you. thank you

Speaker 9: Your next question comes from the line of Brad Zelnick from Credit Suisse. Your line is open. Your next question comes from the line of Brad Zelnick from Credit Suisse. your next question comes from the line of brad zelnick from credit suisse Your line is open. your line is open

Speaker 2: Great. Thank you so much for taking the question. Congrats. It's really great to see two quarters in a row now greater than 20% growth and hitting this milestone. There were a lot of naysayers that didn't think you could pull it off, and I'm really proud of you guys. It's good to see this. Great. great Thank you so much for taking the question. thank you so much for taking the question Congrats. congrats It's really great to see two quarters in a row now greater than 20% growth and hitting this milestone. it's really great to see two quarters in a row now greater than 20% growth and hitting this milestone There were a lot of naysayers that didn't think you could pull it off, and I'm really proud of you guys. there were a lot of naysayers that didn't think you could pull it off and i'm really proud of you guys It's good to see this. it's good to see this This accomplishment. Yeah, for sure. Maybe my first question, if I may. I know we still got to get through Q4, but I imagine you all are doing your planning and thinking forward into next year, and understanding that the beginning of a new fiscal year is usually a good time to make some adjustments to your go-to-market and strategy. I used to work for a sales leader many years ago that would say, "Whatever you did this year to be successful, you got to change it up. It's not going to work next year." What are some of the changes that you might be contemplating, and how might you be able to mix it up, even if just slightly correcting course, to drive real sustainable 20% growth into 2022? This accomplishment. this accomplishment Yeah, for sure. yeah for sure Maybe my first question, if I may. maybe my first question if i may I know we still got to get through Q4, but I imagine you all are doing your planning and thinking forward into next year, and understanding that the beginning of a new fiscal year is usually a good time to make some adjustments to your go-to-market and strategy. i know we still got to get through q4 but i imagine you all are doing your planning and thinking forward into next year and understanding that the beginning of a new fiscal year is usually a good time to make some adjustments to your go-to-market and strategy I used to work for a sales leader many years ago that would say, "Whatever you did this year to be successful, you got to change it up. i used to work for a sales leader many years ago that would say "whatever you did this year to be successful you got to change it up It's not going to work next year." What are some of the changes that you might be contemplating, and how might you be able to mix it up, even if just slightly correcting course, to drive real sustainable 20% growth into 2022? it's not going to work next year." what are some of the changes that you might be contemplating and how might you be able to mix it up even if just slightly correcting course to drive real sustainable 20% growth into 2022

Speaker 7: Well, I think some of the things that we are doing to mix it up. We just started many of them, but having Ian as a new sales leader is something that's been a big mix up in terms of how it's affected the team. The way he manages is dramatically different than what we've seen before, and it's proven to be effective. His leaders that work for him, like him, and the team's really kind of snapping to it. That's been something that I think is going to have an impact for a long time. I think that alone is going to give us north of 20% growth for a long time. We've got John Mueller, who's been leading the marketing organization, and those two leaders coming together. Again, I think just that alone and better execution is going to be north of 20%. Well, I think some of the things that we are doing to mix it up. well i think some of the things that we are doing to mix it up We just started many of them, but having Ian as a new sales leader is something that's been a big mix up in terms of how it's affected the team. we just started many of them but having ian as a new sales leader is something that's been a big mix up in terms of how it's affected the team The way he manages is dramatically different than what we've seen before, and it's proven to be effective. the way he manages is dramatically different than what we've seen before and it's proven to be effective His leaders that work for him, like him, and the team's really kind of snapping to it. his leaders that work for him like him and the team's really kind of snapping to it That's been something that I think is going to have an impact for a long time. that's been something that i think is going to have an impact for a long time I think that alone is going to give us north of 20% growth for a long time. i think that alone is going to give us north of 20% growth for a long time We've got John Mueller, who's been leading the marketing organization, and those two leaders coming together. we've got john mueller who's been leading the marketing organization and those two leaders coming together Again, I think just that alone and better execution is going to be north of 20%. again i think just that alone and better execution is going to be north of 20% I think beyond that, it's then looking at these pockets where when we go-to-market, what pockets do we have today that we could double down on and triple down on? We've tried to highlight some of those things, but apps, for instance, is one thing that we see as a big differentiator. These low-code, no-code apps and solving business problems. That's what enabled us to get these state deals and these federal deals. That's what enabled us to get the really large retailer that we talked about, global retailer. Then you see Domo Everywhere. That's what's enabling us to get some really large upsells with some of our customers. Our entire sales team's not trained on all of those things. I think beyond that, it's then looking at these pockets where when we go- to- market, what pockets do we have today that we could double down on and triple down on? i think beyond that it's then looking at these pockets where when we go- to- market what pockets do we have today that we could double down on and triple down on We've tried to highlight some of those things, but apps, for instance, is one thing that we see as a big differentiator. we've tried to highlight some of those things but apps for instance is one thing that we see as a big differentiator These low-code, no-code apps and solving business problems. these low-code no-code apps and solving business problems That's what enabled us to get these state deals and these federal deals. that's what enabled us to get these state deals and these federal deals That's what enabled us to get the really large retailer that we talked about, global retailer. that's what enabled us to get the really large retailer that we talked about global retailer Then you see Domo Everywhere. then you see domo everywhere That's what's enabling us to get some really large upsells with some of our customers. that's what's enabling us to get some really large upsells with some of our customers Our entire sales team's not trained on all of those things. our entire sales team's not trained on all of those things It's saying, "Okay, what are the three or four things that we can really train the sales team on that are applicable to every single customer?" It's taken some time to gather all that information. I think that's another area that, as Ian and John dictate which things we're going to train the team on and go-to-market with, we're going to see some additional performance there. The next thing I would say is finding partners. We highlighted it last quarter and this quarter for the first time, seeing some real traction with partners in the marketplace where we're delivering big deals, seven-figure deals from partners, and that's something that we haven't had before. It's saying, "Okay, what are the three or four things that we can really train the sales team on that are applicable to every single customer?" It's taken some time to gather all that information. it's saying "okay what are the three or four things that we can really train the sales team on that are applicable to every single customer?" it's taken some time to gather all that information I think that's another area that, as Ian and John dictate which things we're going to train the team on and go- to- market with, we're going to see some additional performance there. i think that's another area that as ian and john dictate which things we're going to train the team on and go- to- market with we're going to see some additional performance there The next thing I would say is finding partners. the next thing i would say is finding partners We highlighted it last quarter and this quarter for the first time, seeing some real traction with partners in the marketplace where we're delivering big deals, seven-figure deals from partners, and that's something that we haven't had before. we highlighted it last quarter and this quarter for the first time seeing some real traction with partners in the marketplace where we're delivering big deals seven-figure deals from partners and that's something that we haven't had before We'll be seeing our partner efforts continue to increase, and now not just noise, but also deals. We're excited about what can happen with Snowflake over the long-term. We're excited about our position in the marketplace. We're excited that people are coming to us as a large independent public traded business intelligence company that's cloud-based. We're the only one. That's facilitating conversations as well. We'll be seeing our partner efforts continue to increase, and now not just noise, but also deals. we'll be seeing our partner efforts continue to increase and now not just noise but also deals We're excited about what can happen with Snowflake over the long- term. we're excited about what can happen with snowflake over the long- term We're excited about our position in the marketplace. we're excited about our position in the marketplace We're excited that people are coming to us as a large independent public traded business intelligence company that's cloud-based. we're excited that people are coming to us as a large independent public traded business intelligence company that's cloud-based We're the only one. we're the only one That's facilitating conversations as well. that's facilitating conversations as well

Speaker 2: No, it shows that a lot of these investments that you've been making, like talking about the partner channel, they're really beginning to bear fruit in a meaningful way. Along those lines, Josh, I always felt like there's been this opportunity to become more of a standard inside of your accounts. I feel like some of the early success that we would hear about, and I know going back to Target and others, like you had some of these massive commitments. As well, a lot of customers that we would speak to were more, "Hey, it's a division, it's a specific use case." Just maybe being something beyond a great solution for that particular use case around data aggregation and analytics. No, it shows that a lot of these investments that you've been making, like talking about the partner channel, they're really beginning to bear fruit in a meaningful way. no it shows that a lot of these investments that you've been making like talking about the partner channel they're really beginning to bear fruit in a meaningful way Along those lines, Josh, I always felt like there's been this opportunity to become more of a standard inside of your accounts. along those lines josh i always felt like there's been this opportunity to become more of a standard inside of your accounts I feel like some of the early success that we would hear about, and I know going back to Target and others, like you had some of these massive commitments. i feel like some of the early success that we would hear about and i know going back to target and others like you had some of these massive commitments As well, a lot of customers that we would speak to were more, "Hey, it's a division, it's a specific use case." Just maybe being something beyond a great solution for that particular use case around data aggregation and analytics. as well a lot of customers that we would speak to were more "hey it's a division it's a specific use case." just maybe being something beyond a great solution for that particular use case around data aggregation and analytics Are there any proof points that you can speak to just in maybe capturing more success in driving that expansion in these large organizations and becoming that standard? Are there any proof points that you can speak to just in maybe capturing more success in driving that expansion in these large organizations and becoming that standard? are there any proof points that you can speak to just in maybe capturing more success in driving that expansion in these large organizations and becoming that standard

Speaker 7: Oh, yeah. I think that's the other shoe to drop, to be honest with you. Something I think about a lot. If you look at our top 10 customers, the revenue we're receiving from our top 10 customers today is almost double what it was a year ago. We're seeing massive expansion inside these accounts where this has been a long journey. I always kind of felt like the size of this company, it behaves still like it's 1/5 the size. We're still figuring things out as $200 million run rate. When you look at some of these accounts, like you said, initially we got in, we made some great progress. We had a hard time expanding beyond the department that we were in to become the de facto solution, because there were all these competing components. Oh, yeah. oh yeah I think that's the other shoe to drop, to be honest with you. i think that's the other shoe to drop to be honest with you Something I think about a lot. something i think about a lot If you look at our top 10 customers, the revenue we're receiving from our top 10 customers today is almost double what it was a year ago. if you look at our top 10 customers the revenue we're receiving from our top 10 customers today is almost double what it was a year ago We're seeing massive expansion inside these accounts where this has been a long journey. we're seeing massive expansion inside these accounts where this has been a long journey I always kind of felt like the size of this company, it behaves still like it's 1/5 the size. i always kind of felt like the size of this company it behaves still like it's 1/5 the size We're still figuring things out as $200 million run rate. we're still figuring things out as $200 million run rate When you look at some of these accounts, like you said, initially we got in, we made some great progress. when you look at some of these accounts like you said initially we got in we made some great progress We had a hard time expanding beyond the department that we were in to become the de facto solution, because there were all these competing components. we had a hard time expanding beyond the department that we were in to become the de facto solution because there were all these competing components It took us a long time to figure out how to speak the right language to the different constituents in the organization. We took a year or two figuring out how to speak to CIOs more effectively, but now we're good at that. Once we got good at all those things, then to your point, where's the proof points? I was looking at the top 10 customers earlier today, and we have customers paying us several million dollars a year, and one of them is still just expanding. Our second largest customer is a customer that we went into a few years ago. We got a good deal, then we got another good deal, and then finally we got a corporate-wide deal, and then we got a corporate-wide deal for all of their vendors. It does happen. It took us a long time to figure out how to speak the right language to the different constituents in the organization. it took us a long time to figure out how to speak the right language to the different constituents in the organization We took a year or two figuring out how to speak to CIOs more effectively, but now we're good at that. we took a year or two figuring out how to speak to cios more effectively but now we're good at that Once we got good at all those things, then to your point, where's the proof points? once we got good at all those things then to your point where's the proof points I was looking at the top 10 customers earlier today, and we have customers paying us several million dollars a year, and one of them is still just expanding. i was looking at the top 10 customers earlier today and we have customers paying us several million dollars a year and one of them is still just expanding Our second largest customer is a customer that we went into a few years ago. our second largest customer is a customer that we went into a few years ago We got a good deal, then we got another good deal, and then finally we got a corporate-wide deal, and then we got a corporate-wide deal for all of their vendors. we got a good deal then we got another good deal and then finally we got a corporate-wide deal and then we got a corporate-wide deal for all of their vendors It does happen. it does happen As we get more and more customers like that we can talk to, what I'm excited about is being able to one of these quarters soon say, "All right, here's five new names. Here's the journey that we just had with them for the last four years, and these are representative of what we think every customer can and should look like, because here's the five things that we can do for them that no one else can do." They're great brands, and they're extremely intelligent companies. We have those customers and those proof points, just not enough that we're out there publicly talking about yet. They have been happening, they've happened, they're signed, and more of them are in the pipeline. As we get more and more customers like that we can talk to, what I'm excited about is being able to one of these quarters soon say, "All right, here's five new names. as we get more and more customers like that we can talk to what i'm excited about is being able to one of these quarters soon say "all right here's five new names Here's the journey that we just had with them for the last four years, and these are representative of what we think every customer can and should look like, because here's the five things that we can do for them that no one else can do." They're great brands, and they're extremely intelligent companies. here's the journey that we just had with them for the last four years and these are representative of what we think every customer can and should look like because here's the five things that we can do for them that no one else can do." they're great brands and they're extremely intelligent companies We have those customers and those proof points, just not enough that we're out there publicly talking about yet. we have those customers and those proof points just not enough that we're out there publicly talking about yet They have been happening, they've happened, they're signed, and more of them are in the pipeline. they have been happening they've happened they're signed and more of them are in the pipeline As those come to fruition, having the sales and marketing organization and what they need to go and tell the customers is going to be, I mean, we can almost just sit there and mine our current customer base without signing up any new customers, and have years and years of explosive growth. I think that is what's happening. You've really hit the nail on the head with that question. As those come to fruition, having the sales and marketing organization and what they need to go and tell the customers is going to be, I mean, we can almost just sit there and mine our current customer base without signing up any new customers, and have years and years of explosive growth. as those come to fruition having the sales and marketing organization and what they need to go and tell the customers is going to be i mean we can almost just sit there and mine our current customer base without signing up any new customers and have years and years of explosive growth I think that is what's happening. i think that is what's happening You've really hit the nail on the head with that question. you've really hit the nail on the head with that question

Speaker 2: Thanks so much, Josh. If I could sneak in one quick one for the Bruce. Bruce, as we think about this milestone of reaching operating cash flow profitability, obviously, if we think about the factors, it's going to be bookings, billings, top line growth. It's also going to be, at least in this year, you've had some COVID-related savings. Are there any other key areas of productivity or optimization to call out that we should be thinking about? Thanks so much, Josh. thanks so much josh If I could sneak in one quick one for the Bruce. if i could sneak in one quick one for the bruce Bruce, as we think about this milestone of reaching operating cash flow profitability, obviously, if we think about the factors, it's going to be bookings, billings, top line growth. bruce as we think about this milestone of reaching operating cash flow profitability obviously if we think about the factors it's going to be bookings billings top line growth It's also going to be, at least in this year, you've had some COVID-related savings. it's also going to be at least in this year you've had some covid-related savings Are there any other key areas of productivity or optimization to call out that we should be thinking about? are there any other key areas of productivity or optimization to call out that we should be thinking about

Speaker 3: Yeah, I think we have a kind of a twofer working for us right now. I think on the one hand, there's still a lot more we can get out of our investment platform we have right now in marketing and product. We still have the ability to get a lot more out of that. At the same time, we also are in, I would say, a pretty comfortable position to start adding resources. For example, we've already started hiring sales reps, this year has been a year of down reps compared to last year, that's because we were very cautious when COVID-19 hit, and we've kept the cautious posture. We've already started adding more reps and layering them in. We're also quite pleased with the productivity that we've gotten from the reps that we've had. We feel very comfortable putting that layer in. Yeah, I think we have a kind of a twofer working for us right now. yeah i think we have a kind of a twofer working for us right now I think on the one hand, there's still a lot more we can get out of our investment platform we have right now in marketing and product. i think on the one hand there's still a lot more we can get out of our investment platform we have right now in marketing and product We still have the ability to get a lot more out of that. we still have the ability to get a lot more out of that At the same time, we also are in, I would say, a pretty comfortable position to start adding resources. at the same time we also are in i would say a pretty comfortable position to start adding resources For example, we've already started hiring sales reps, this year has been a year of down reps compared to last year, that's because we were very cautious when COVID-19 hit, and we've kept the cautious posture. for example we've already started hiring sales reps this year has been a year of down reps compared to last year that's because we were very cautious when covid-19 hit and we've kept the cautious posture We've already started adding more reps and layering them in. we've already started adding more reps and layering them in We're also quite pleased with the productivity that we've gotten from the reps that we've had. we're also quite pleased with the productivity that we've gotten from the reps that we've had We feel very comfortable putting that layer in. we feel very comfortable putting that layer in If we can get additional bang out of the buck that already exists, and then be able to add that in and still generate positive cash flow, we think that's a pretty good spot to be in. Our main focus is really, we really think that we're well-positioned to grow, and we want to take advantage of it, but do it prudently, continue to generate positive cash flow, and watch the return we get on those investments. Watch them carefully. So far, the indication is that we'll get a great yield from them, but we'll still continue to be very careful about it at the same time. If we can get additional bang out of the buck that already exists, and then be able to add that in and still generate positive cash flow, we think that's a pretty good spot to be in. if we can get additional bang out of the buck that already exists and then be able to add that in and still generate positive cash flow we think that's a pretty good spot to be in Our main focus is really, we really think that we're well-positioned to grow, and we want to take advantage of it, but do it prudently, continue to generate positive cash flow, and watch the return we get on those investments. our main focus is really we really think that we're well-positioned to grow and we want to take advantage of it but do it prudently continue to generate positive cash flow and watch the return we get on those investments Watch them carefully. watch them carefully So far, the indication is that we'll get a great yield from them, but we'll still continue to be very careful about it at the same time. so far the indication is that we'll get a great yield from them but we'll still continue to be very careful about it at the same time

Speaker 2: Thanks so much, guys, for taking the questions, and congrats again. Thanks so much, guys, for taking the questions, and congrats again. thanks so much guys for taking the questions and congrats again

Speaker 7: Thank you. Thank you. thank you

Speaker 9: Your next question comes from the line of Derrick Wood from Cowen and Company. Your line is open. Your next question comes from the line of Derrick Wood from Cowen and Company. your next question comes from the line of derrick wood from cowen and company Your line is open. your line is open

Speaker 4: Great. Nice to talk to you guys, and I'll echo my congratulations on lots of good milestones here. Josh, I wanted to touch on Domo Everywhere, because it's interesting. Last night, Snowflake talked about seeing a lot of traction with data sharing, and that it's really a transformational capability companies are starting to embrace. You guys also have a unique position to serve this kind of capability, and it clearly sounds like you're seeing some similar demand. I guess, when you look at your installed base, any way to kind of size up the opportunity you think you have to really cross-sell Domo Everywhere and how you're going to lean into this going out over the next year? Great. great Nice to talk to you guys, and I'll echo my congratulations on lots of good milestones here. nice to talk to you guys and i'll echo my congratulations on lots of good milestones here Josh, I wanted to touch on Domo Everywhere, because it's interesting. josh i wanted to touch on domo everywhere because it's interesting Last night, Snowflake talked about seeing a lot of traction with data sharing, and that it's really a transformational capability companies are starting to embrace. last night snowflake talked about seeing a lot of traction with data sharing and that it's really a transformational capability companies are starting to embrace You guys also have a unique position to serve this kind of capability, and it clearly sounds like you're seeing some similar demand. you guys also have a unique position to serve this kind of capability and it clearly sounds like you're seeing some similar demand I guess, when you look at your installed base, any way to kind of size up the opportunity you think you have to really cross-sell Domo Everywhere and how you're going to lean into this going out over the next year? i guess when you look at your installed base any way to kind of size up the opportunity you think you have to really cross-sell domo everywhere and how you're going to lean into this going out over the next year

Speaker 7: Yeah. Domo Everywhere is something that's applicable to almost all of our customers. It's something that we've put a lot of product effort into, especially over the last year, as we've seen more and more progress there on the sales side. It's our high priority right now as well from a product perspective. We continue to see huge opportunities there in meeting the needs of the customers and the opportunity there in the marketplace, really in a way that no one else can. There's embed, which is what a lot of people talk about when they talk about this kind of an opportunity, and that's what our competitors do. Yeah. yeah Domo Everywhere is something that's applicable to almost all of our customers. domo everywhere is something that's applicable to almost all of our customers It's something that we've put a lot of product effort into, especially over the last year, as we've seen more and more progress there on the sales side. it's something that we've put a lot of product effort into especially over the last year as we've seen more and more progress there on the sales side It's our high priority right now as well from a product perspective. it's our high priority right now as well from a product perspective We continue to see huge opportunities there in meeting the needs of the customers and the opportunity there in the marketplace, really in a way that no one else can. we continue to see huge opportunities there in meeting the needs of the customers and the opportunity there in the marketplace really in a way that no one else can There's embed, which is what a lot of people talk about when they talk about this kind of an opportunity, and that's what our competitors do. there's embed which is what a lot of people talk about when they talk about this kind of an opportunity and that's what our competitors do Truly taking our whole platform and making that available for our customers to offer to their partners and their vendors, and that kind of an experience versus just an embedded analytics, it is a highly complex set of software that really creates an experience that's untouchable. We feel really good about our unique selling proposition, about our differentiators, about our defensibility in that space. You're going to see some more efforts from us from a product perspective, and definitely a lot more efforts from a sales perspective and having sales leaders and salespeople that are dedicated to this opportunity. That's part of Ian's plans. Truly taking our whole platform and making that available for our customers to offer to their partners and their vendors, and that kind of an experience versus just an embedded analytics, it is a highly complex set of software that really creates an experience that's untouchable. truly taking our whole platform and making that available for our customers to offer to their partners and their vendors and that kind of an experience versus just an embedded analytics it is a highly complex set of software that really creates an experience that's untouchable We feel really good about our unique selling proposition, about our differentiators, about our defensibility in that space. we feel really good about our unique selling proposition about our differentiators about our defensibility in that space You're going to see some more efforts from us from a product perspective, and definitely a lot more efforts from a sales perspective and having sales leaders and salespeople that are dedicated to this opportunity. you're going to see some more efforts from us from a product perspective and definitely a lot more efforts from a sales perspective and having sales leaders and salespeople that are dedicated to this opportunity That's part of Ian's plans. that's part of ian's plans

Speaker 4: Yeah. Okay. Makes sense. Great to hear you're seeing such a pickup in new logo growth. Can you unpack that a little bit more? Is that driven by better sales productivity? Are you getting leads from different channels that you didn't have before? Does this suggest you're seeing increased win rates against the competition? Would be great to hear more detail on the underlying drivers. Yeah. yeah Okay. okay Makes sense. makes sense Great to hear you're seeing such a pickup in new logo growth. great to hear you're seeing such a pickup in new logo growth Can you unpack that a little bit more? can you unpack that a little bit more Is that driven by better sales productivity? is that driven by better sales productivity Are you getting leads from different channels that you didn't have before? are you getting leads from different channels that you didn't have before Does this suggest you're seeing increased win rates against the competition? does this suggest you're seeing increased win rates against the competition Would be great to hear more detail on the underlying drivers. would be great to hear more detail on the underlying drivers

Speaker 7: Yeah. We're getting more referenceable customers and customers that are employees that are moving to other companies and saying, "I can't be here without Domo." That's definitely led to a bunch of logos. We've had the execution that I was talking about earlier from Ian and his management team. They've been doing a lot of sales blitzes and a lot of, I guess, moving to a monthly cadence from a quarterly cadence. Having the team on that kind of a cadence, especially when you're in a remote workforce, has actually been really positive for us, because you don't get to see everybody all the time. You're not walking around cube to cube. Having everybody really focused on a monthly number has been part of Ian's strategy that's worked really effectively. Those are two of the ways that we've been getting more logos. Yeah. yeah We're getting more referenceable customers and customers that are employees that are moving to other companies and saying, "I can't be here without Domo." That's definitely led to a bunch of logos. we're getting more referenceable customers and customers that are employees that are moving to other companies and saying "i can't be here without domo." that's definitely led to a bunch of logos We've had the execution that I was talking about earlier from Ian and his management team. we've had the execution that i was talking about earlier from ian and his management team They've been doing a lot of sales blitzes and a lot of, I guess, moving to a monthly cadence from a quarterly cadence. they've been doing a lot of sales blitzes and a lot of i guess moving to a monthly cadence from a quarterly cadence Having the team on that kind of a cadence, especially when you're in a remote workforce, has actually been really positive for us, because you don't get to see everybody all the time. having the team on that kind of a cadence especially when you're in a remote workforce has actually been really positive for us because you don't get to see everybody all the time You're not walking around cube to cube. you're not walking around cube to cube Having everybody really focused on a monthly number has been part of Ian's strategy that's worked really effectively. having everybody really focused on a monthly number has been part of ian's strategy that's worked really effectively Those are two of the ways that we've been getting more logos. those are two of the ways that we've been getting more logos I'd say the third is just that marketing is continuing to find opportunities and ways to efficiently bring in new logos. That seems to be working out for us in terms of picking up the pace and the rate that we can generate new logos for us. I'd say the third is just that marketing is continuing to find opportunities and ways to efficiently bring in new logos. i'd say the third is just that marketing is continuing to find opportunities and ways to efficiently bring in new logos That seems to be working out for us in terms of picking up the pace and the rate that we can generate new logos for us. that seems to be working out for us in terms of picking up the pace and the rate that we can generate new logos for us

Speaker 4: Great. All right. If I could squeeze one more. Bruce, I think you did mention that you may be off to the best start of a quarter ever. Anything more to elaborate in terms of what you guys are seeing? Great. great All right. all right If I could squeeze one more. if i could squeeze one more Bruce, I think you did mention that you may be off to the best start of a quarter ever. bruce i think you did mention that you may be off to the best start of a quarter ever Anything more to elaborate in terms of what you guys are seeing? anything more to elaborate in terms of what you guys are seeing

Speaker 3: Well, I would just say that the momentum that we experienced in Q3 seems to be continuing, and it makes sense given, again, what Josh just pointed to operationally. The rigor is there, and we're still applying it on the sales side. On the marketing side, again, focused on branding and messaging on certain product areas, getting more clarity, providing better sales tools. The list goes on and on. Fortunately, we've always been worried and then cautious given the economic environment. That just seems to be the same. It hasn't deteriorated than what we said last quarter. If it just stays where it is, we're in pretty good shape. It's manifesting itself in just a great start to the quarter. It's always much more comforting to have a good start than not. Yeah, this is just a continuation of what we've been seeing. Well, I would just say that the momentum that we experienced in Q3 seems to be continuing, and it makes sense given, again, what Josh just pointed to operationally. well i would just say that the momentum that we experienced in q3 seems to be continuing and it makes sense given again what josh just pointed to operationally The rigor is there, and we're still applying it on the sales side. the rigor is there and we're still applying it on the sales side On the marketing side, again, focused on branding and messaging on certain product areas, getting more clarity, providing better sales tools. on the marketing side again focused on branding and messaging on certain product areas getting more clarity providing better sales tools The list goes on and on. the list goes on and on Fortunately, we've always been worried and then cautious given the economic environment. fortunately we've always been worried and then cautious given the economic environment That just seems to be the same. that just seems to be the same It hasn't deteriorated than what we said last quarter. it hasn't deteriorated than what we said last quarter If it just stays where it is, we're in pretty good shape. if it just stays where it is we're in pretty good shape It's manifesting itself in just a great start to the quarter. it's manifesting itself in just a great start to the quarter It's always much more comforting to have a good start than not. it's always much more comforting to have a good start than not Yeah, this is just a continuation of what we've been seeing. yeah this is just a continuation of what we've been seeing It gave us the ability to raise guidance by $6 million for a quarter, which frankly, is a lot. It's more than we've done in a very long time. I just think we can count on reasonable high level transaction volumes. We can continue to sell. What's good about getting a lot more new customers is we already know we can sell into them. It doesn't matter the size. We can continue to sell into them. That just provides more fertile ground for the upsell business. We just have everything seem to be going our way, and we're going to keep working pretty hard at even doing a better job at acquiring customers at a reasonable cost. We don't feel we're anywhere near our potential. It gave us the ability to raise guidance by $6 million for a quarter, which frankly, is a lot. it gave us the ability to raise guidance by $6 million for a quarter which frankly is a lot It's more than we've done in a very long time. it's more than we've done in a very long time I just think we can count on reasonable high level transaction volumes. i just think we can count on reasonable high level transaction volumes We can continue to sell. we can continue to sell What's good about getting a lot more new customers is we already know we can sell into them. what's good about getting a lot more new customers is we already know we can sell into them It doesn't matter the size. it doesn't matter the size We can continue to sell into them. we can continue to sell into them That just provides more fertile ground for the upsell business. that just provides more fertile ground for the upsell business We just have everything seem to be going our way, and we're going to keep working pretty hard at even doing a better job at acquiring customers at a reasonable cost. we just have everything seem to be going our way and we're going to keep working pretty hard at even doing a better job at acquiring customers at a reasonable cost We don't feel we're anywhere near our potential. we don't feel we're anywhere near our potential If we can just keep it up through the rest of this quarter into next year, we're going to have a good quarter and look forward to a good next year. If we can just keep it up through the rest of this quarter into next year, we're going to have a good quarter and look forward to a good next year. if we can just keep it up through the rest of this quarter into next year we're going to have a good quarter and look forward to a good next year

Speaker 4: Sounds good. Well done. Thanks. Sounds good. sounds good Well done. well done Thanks. thanks

Speaker 3: Thanks a lot. Thanks a lot. thanks a lot

Speaker 9: Your next question comes from the line of Jennifer Lowe from UBS. Your line is open. Your next question comes from the line of Jennifer Lowe from UBS. your next question comes from the line of jennifer lowe from ubs Your line is open. your line is open

Speaker 6: Great. Thank you. Maybe, Bruce, could I just follow-up on the last discussion there and just dig in slightly deeper, because I know you're always very conservative on forecasting large deals, and it's great to see this high level of transactions which seem to really be supporting the guidance. Maybe just sort of specifically, how's the large deal pipeline looking going into Q4, which is normally a pretty strong quarter for that? Is any of that in the guide, or is that sort of upside to even what we're talking about here? Great. great Thank you. thank you Maybe, Bruce, could I just follow- up on the last discussion there and just dig in slightly deeper, because I know you're always very conservative on forecasting large deals, and it's great to see this high level of transactions which seem to really be supporting the guidance. maybe bruce could i just follow- up on the last discussion there and just dig in slightly deeper because i know you're always very conservative on forecasting large deals and it's great to see this high level of transactions which seem to really be supporting the guidance Maybe just sort of specifically, how's the large deal pipeline looking going into Q4, which is normally a pretty strong quarter for that? maybe just sort of specifically how's the large deal pipeline looking going into q4 which is normally a pretty strong quarter for that Is any of that in the guide, or is that sort of upside to even what we're talking about here? is any of that in the guide or is that sort of upside to even what we're talking about here

Speaker 3: Yeah. We still are building a large deal pipeline. We have the ability to do that given the size of our customers. The big customers seem to just keep buying more and more. We keep finding more and more use cases, so that's comforting. We have the ability to keep building a large deal pipeline. I will say, in guidance, it does not assume a significant number of large deals. Maybe I'm even going to go further. It really doesn't assume any single, I'll say, reasonably sized deal. That's good to know, because in Q4s, we tend to have just lots of activity. It's just the nature of Q4s. The guidance is founded on transaction volume, line of sight for what we see, a good start, with a little bit of upside if we are able to close some larger-sized deals. Yeah. yeah We still are building a large deal pipeline. we still are building a large deal pipeline We have the ability to do that given the size of our customers. we have the ability to do that given the size of our customers The big customers seem to just keep buying more and more. the big customers seem to just keep buying more and more We keep finding more and more use cases, so that's comforting. we keep finding more and more use cases so that's comforting We have the ability to keep building a large deal pipeline. we have the ability to keep building a large deal pipeline I will say, in guidance, it does not assume a significant number of large deals. i will say in guidance it does not assume a significant number of large deals Maybe I'm even going to go further. maybe i'm even going to go further It really doesn't assume any single, I'll say, reasonably sized deal. it really doesn't assume any single i'll say reasonably sized deal That's good to know, because in Q4s, we tend to have just lots of activity. that's good to know because in q4s we tend to have just lots of activity It's just the nature of Q4s. it's just the nature of q4s The guidance is founded on transaction volume, line of sight for what we see, a good start, with a little bit of upside if we are able to close some larger-sized deals. the guidance is founded on transaction volume line of sight for what we see a good start with a little bit of upside if we are able to close some larger-sized deals

Speaker 6: Great. Maybe just taking a step back, I think for me, one of the other standouts was just the larger upsell deals that you're doing within your base, given sort of the discussion around being a bit more flexible, how you get into those organizations and then expand once you're in there, it seems to really be playing out. I'm curious, as you get these seven-figure type deals that are upsells on your existing footprint, is it still largely carving out opportunities around the existing BI footprint, or are you starting to displace some of those categories as those deals get bigger and bigger a bit more? Great. great Maybe just taking a step back, I think for me, one of the other standouts was just the larger upsell deals that you're doing within your base, given sort of the discussion around being a bit more flexible, how you get into those organizations and then expand once you're in there, it seems to really be playing out. maybe just taking a step back i think for me one of the other standouts was just the larger upsell deals that you're doing within your base given sort of the discussion around being a bit more flexible how you get into those organizations and then expand once you're in there it seems to really be playing out I'm curious, as you get these seven-figure type deals that are upsells on your existing footprint, is it still largely carving out opportunities around the existing BI footprint, or are you starting to displace some of those categories as those deals get bigger and bigger a bit more? i'm curious as you get these seven-figure type deals that are upsells on your existing footprint is it still largely carving out opportunities around the existing bi footprint or are you starting to displace some of those categories as those deals get bigger and bigger a bit more

Speaker 3: First of all, I'll say that all our large customers, they have every product out there in the BI space and the reporting space and the data space. We're able to just solve problems that haven't been solved by other technologies or sets of technologies or combinations of technologies. That's pretty comforting. It means we are very unique in our ability to bring that whole stack and in just record time, get data delivered, to create data and deliver it in ways that customers just don't have the ability to do it. That generally comes out of a wide variety of budget areas. Some of these are revenue-enhancing, so they kind of create their own budgets. Over time we do start eating into the available budgets for other technologies. First of all, I'll say that all our large customers, they have every product out there in the BI space and the reporting space and the data space. first of all i'll say that all our large customers they have every product out there in the bi space and the reporting space and the data space We're able to just solve problems that haven't been solved by other technologies or sets of technologies or combinations of technologies. we're able to just solve problems that haven't been solved by other technologies or sets of technologies or combinations of technologies That's pretty comforting. that's pretty comforting It means we are very unique in our ability to bring that whole stack and in just record time, get data delivered, to create data and deliver it in ways that customers just don't have the ability to do it. it means we are very unique in our ability to bring that whole stack and in just record time get data delivered to create data and deliver it in ways that customers just don't have the ability to do it That generally comes out of a wide variety of budget areas. that generally comes out of a wide variety of budget areas Some of these are revenue-enhancing, so they kind of create their own budgets. some of these are revenue-enhancing so they kind of create their own budgets Over time we do start eating into the available budgets for other technologies. over time we do start eating into the available budgets for other technologies It's our own customers, this is what we said earlier, it's our own customers that figure this out, and they determine what technologies they can turn off or decommission or roll back. We don't have to do that. We used to do that, and we found that's kind of deductive. Why don't we just let the customer do that? Why don't we just bring a solution they don't have with the stack they have today? They'll find all kinds of ways to use it and expand, whether or not it's eating into another budget. We are finding they are able to start using parts of marketing budget, sales budget, and the IT budget itself. Our IT-friendly message, "Keep everything you have and just extend it," allows the IT department to embrace it, or even the BI department to embrace it. It's our own customers, this is what we said earlier, it's our own customers that figure this out, and they determine what technologies they can turn off or decommission or roll back. it's our own customers this is what we said earlier it's our own customers that figure this out and they determine what technologies they can turn off or decommission or roll back We don't have to do that. we don't have to do that We used to do that, and we found that's kind of deductive. we used to do that and we found that's kind of deductive Why don't we just let the customer do that? why don't we just let the customer do that Why don't we just bring a solution they don't have with the stack they have today? why don't we just bring a solution they don't have with the stack they have today They'll find all kinds of ways to use it and expand, whether or not it's eating into another budget. they'll find all kinds of ways to use it and expand whether or not it's eating into another budget We are finding they are able to start using parts of marketing budget, sales budget, and the IT budget itself. we are finding they are able to start using parts of marketing budget sales budget and the it budget itself Our IT-friendly message, "Keep everything you have and just extend it," allows the IT department to embrace it, or even the BI department to embrace it. our it-friendly message "keep everything you have and just extend it," allows the it department to embrace it or even the bi department to embrace it Sometimes they have this excess budget, and sometimes they're able to rearrange things in our favor. We let them figure that out. That's been our approach, and it's working for us, and it's not the same thing we did a few years ago. We think it's a much better way to approach the market, a very friendly way, a better partner-friendly way, the better customer-friendly way, certainly a more friendly IT way to go about approaching our customers. Sometimes they have this excess budget, and sometimes they're able to rearrange things in our favor. sometimes they have this excess budget and sometimes they're able to rearrange things in our favor We let them figure that out. we let them figure that out That's been our approach, and it's working for us, and it's not the same thing we did a few years ago. that's been our approach and it's working for us and it's not the same thing we did a few years ago We think it's a much better way to approach the market, a very friendly way, a better partner-friendly way, the better customer-friendly way, certainly a more friendly IT way to go about approaching our customers. we think it's a much better way to approach the market a very friendly way a better partner-friendly way the better customer-friendly way certainly a more friendly it way to go about approaching our customers

Speaker 6: Great. Thank you. Great. great Thank you. thank you

Speaker 9: Your next question comes from a line of Patrick Walravens from JMP. Your line is open. Your next question comes from a line of Patrick Walravens from JMP. your next question comes from a line of patrick walravens from jmp Your line is open. your line is open

Speaker 10: Oh, great. Thank you. Let me add my congratulations. Josh, what do you want your software to be able to do in the future that it can't do today? Oh, great. oh great Thank you. thank you Let me add my congratulations. let me add my congratulations Josh, what do you want your software to be able to do in the future that it can't do today? josh what do you want your software to be able to do in the future that it can't do today

Speaker 7: That's a good question. Pat, there's just some additional things. I'd say number one, be more and more partner-friendly, so be able to integrate even more seamlessly with partners than we do. We've been able to identify some partners that we have had great successes with our customers, but it's taken a little more back-end work than maybe is possible. Seeing those possibilities and trying to identify them and to really do more there, I think, is an opportunity for us on the upside. From a usability perspective, I think once you get all of these executives using these products, there's not other software in the world that enterprise CXOs use to run their business besides Word, Excel, PowerPoint, email, and social media. This is actually the real business tool that they use to run their business. That's a good question. that's a good question Pat, there's just some additional things. pat there's just some additional things I'd say number one, be more and more partner-friendly, so be able to integrate even more seamlessly with partners than we do. i'd say number one be more and more partner-friendly so be able to integrate even more seamlessly with partners than we do We've been able to identify some partners that we have had great successes with our customers, but it's taken a little more back-end work than maybe is possible. we've been able to identify some partners that we have had great successes with our customers but it's taken a little more back-end work than maybe is possible Seeing those possibilities and trying to identify them and to really do more there, I think, is an opportunity for us on the upside. seeing those possibilities and trying to identify them and to really do more there i think is an opportunity for us on the upside From a usability perspective, I think once you get all of these executives using these products, there's not other software in the world that enterprise CXOs use to run their business besides Word, Excel, PowerPoint, email, and social media. from a usability perspective i think once you get all of these executives using these products there's not other software in the world that enterprise cxos use to run their business besides word excel powerpoint email and social media This is actually the real business tool that they use to run their business. this is actually the real business tool that they use to run their business When you're the first company to have those people actually logging in and getting things on their phone and getting text messages and in-app messages, that's some real opportunity and power to leverage in the platform. I know that we're the first ones to do that at scale. We've seen that at these customers. Like that question I was answering earlier, about what happens when you get in there and you finally start expanding and seeing these CXOs use these products has been really fun. I would say there's more opportunity there as well, Pat. When you're the first company to have those people actually logging in and getting things on their phone and getting text messages and in-app messages, that's some real opportunity and power to leverage in the platform. when you're the first company to have those people actually logging in and getting things on their phone and getting text messages and in-app messages that's some real opportunity and power to leverage in the platform I know that we're the first ones to do that at scale. i know that we're the first ones to do that at scale We've seen that at these customers. we've seen that at these customers Like that question I was answering earlier, about what happens when you get in there and you finally start expanding and seeing these CXOs use these products has been really fun. like that question i was answering earlier about what happens when you get in there and you finally start expanding and seeing these cxos use these products has been really fun I would say there's more opportunity there as well, Pat. i would say there's more opportunity there as well pat

Speaker 10: Cool. Thanks. As we see some of these other companies that are focusing on particular verticals in AI and sometimes extracting really enormous amounts of money, how much of a part of the vision for Domo is that, commercial IoT or government for the intelligence agencies or the media industry? Cool. cool Thanks. thanks As we see some of these other companies that are focusing on particular verticals in AI and sometimes extracting really enormous amounts of money, how much of a part of the vision for Domo is that, commercial IoT or government for the intelligence agencies or the media industry? as we see some of these other companies that are focusing on particular verticals in ai and sometimes extracting really enormous amounts of money how much of a part of the vision for domo is that commercial iot or government for the intelligence agencies or the media industry

Speaker 7: Yeah, I think we've seen some of the efforts there with our data science and with our AI and ML, and there's certainly more opportunities there. IoT, we put a lot of effort into. It was one of those things that there still needed to be four or five pieces to really finish the solution up. There have been some players that have taken a really deep approach to very specific niche verticals that they've been really successful, and more power to them. It's been awesome to watch them and inspiring, certainly. You can see some of the ways that the world's going to evolve when you can see someone get so deep in an organization. I think there's opportunities there as well, and we're continuing to I mentioned one of our big efforts in product right now is Domo Everywhere. Yeah, I think we've seen some of the efforts there with our data science and with our AI and ML, and there's certainly more opportunities there. yeah i think we've seen some of the efforts there with our data science and with our ai and ml and there's certainly more opportunities there IoT, we put a lot of effort into. iot we put a lot of effort into It was one of those things that there still needed to be four or five pieces to really finish the solution up. it was one of those things that there still needed to be four or five pieces to really finish the solution up There have been some players that have taken a really deep approach to very specific niche verticals that they've been really successful, and more power to them. there have been some players that have taken a really deep approach to very specific niche verticals that they've been really successful and more power to them It's been awesome to watch them and inspiring, certainly. it's been awesome to watch them and inspiring certainly You can see some of the ways that the world's going to evolve when you can see someone get so deep in an organization. you can see some of the ways that the world's going to evolve when you can see someone get so deep in an organization I think there's opportunities there as well, and we're continuing to I mentioned one of our big efforts in product right now is Domo Everywhere. i think there's opportunities there as well and we're continuing to i mentioned one of our big efforts in product right now is domo everywhere The other really big effort underway is just continuing more and more advanced analytics, because as we get into these big customers, that's one of the things that they look for from us. If they're going to replace everything else that they have inside their organization, they want to see more and more advanced analytics and more data science opportunities and more machine learning opportunities. Those are some of the partners that I was talking about, where I think we have more opportunities to really partner up and become closer to others in the ecosystem, and that'll help us understand that better. The other really big effort underway is just continuing more and more advanced analytics, because as we get into these big customers, that's one of the things that they look for from us. the other really big effort underway is just continuing more and more advanced analytics because as we get into these big customers that's one of the things that they look for from us If they're going to replace everything else that they have inside their organization, they want to see more and more advanced analytics and more data science opportunities and more machine learning opportunities. if they're going to replace everything else that they have inside their organization they want to see more and more advanced analytics and more data science opportunities and more machine learning opportunities Those are some of the partners that I was talking about, where I think we have more opportunities to really partner up and become closer to others in the ecosystem, and that'll help us understand that better. those are some of the partners that i was talking about where i think we have more opportunities to really partner up and become closer to others in the ecosystem and that'll help us understand that better

Speaker 10: Awesome. Thanks a lot. Awesome. awesome Thanks a lot. thanks a lot

Speaker 9: Your next question comes from the line of Jack Andrews from Needham. Your line is open. Your next question comes from the line of Jack Andrews from Needham. your next question comes from the line of jack andrews from needham Your line is open. your line is open

Speaker 5: Great. Thanks for taking my question, congratulations again on the results. It was nice to see the uptick in gross retention, I just wanted to flush that out a little bit if we could. You talked about investing in customer success a bit more. Should we think of this as sort of a new dedicated team? What do you think the impact from gross retention rates could be moving forward, given some of these investments? Great. great Thanks for taking my question, congratulations again on the results. thanks for taking my question congratulations again on the results It was nice to see the uptick in gross retention, I just wanted to flush that out a little bit if we could. it was nice to see the uptick in gross retention i just wanted to flush that out a little bit if we could You talked about investing in customer success a bit more. you talked about investing in customer success a bit more Should we think of this as sort of a new dedicated team? should we think of this as sort of a new dedicated team What do you think the impact from gross retention rates could be moving forward, given some of these investments? what do you think the impact from gross retention rates could be moving forward given some of these investments

Speaker 7: Yeah, our retention's been awesome, and it's been so fun to watch that climb up to numbers that I think we're more used to. It was just a long time coming in terms of this is a really complex space, and we've taken a really broad approach. There were a lot of things that we needed to shore up to really create the right kind of experience that we wanted our customers to have, and we've done that with the product. Then it was getting the leadership correct there. We have a new leader there that's been doing a great job, and his next stable of leaders have I mean, they're just on fire. They're having a lot of fun. They're excited about what they do. They love our customers. They love Domo. They're passionate. They love telling me anytime I do anything wrong. Yeah, our retention's been awesome, and it's been so fun to watch that climb up to numbers that I think we're more used to. yeah our retention's been awesome and it's been so fun to watch that climb up to numbers that i think we're more used to It was just a long time coming in terms of this is a really complex space, and we've taken a really broad approach. it was just a long time coming in terms of this is a really complex space and we've taken a really broad approach There were a lot of things that we needed to shore up to really create the right kind of experience that we wanted our customers to have, and we've done that with the product. there were a lot of things that we needed to shore up to really create the right kind of experience that we wanted our customers to have and we've done that with the product Then it was getting the leadership correct there. then it was getting the leadership correct there We have a new leader there that's been doing a great job, and his next stable of leaders have I mean, they're just on fire. we have a new leader there that's been doing a great job and his next stable of leaders have i mean they're just on fire They're having a lot of fun. they're having a lot of fun They're excited about what they do. they're excited about what they do They love our customers. they love our customers They love Domo. they love domo They're passionate. they're passionate They love telling me anytime I do anything wrong. they love telling me anytime i do anything wrong It's just awesome. They're so passionate about what they do, and we're seeing that reflection in the way that they fight for our customers to make sure that the customers get everything that they need in order to return to us and buy more and more products from us. We're seeing, we talked about our upsells, but a big swath of our customer base is upselling and buying additional products and services. Whether that's buying an extra $1 or an extra $1 million, it's a pretty good sign that they're happy when they're investing more and more into your product. I think that's the best thing that we're seeing there. The incremental investments are just as the revenue base grows, you need to continue to invest there. It's just awesome. it's just awesome They're so passionate about what they do, and we're seeing that reflection in the way that they fight for our customers to make sure that the customers get everything that they need in order to return to us and buy more and more products from us. they're so passionate about what they do and we're seeing that reflection in the way that they fight for our customers to make sure that the customers get everything that they need in order to return to us and buy more and more products from us We're seeing, we talked about our upsells, but a big swath of our customer base is upselling and buying additional products and services. we're seeing we talked about our upsells but a big swath of our customer base is upselling and buying additional products and services Whether that's buying an extra $1 or an extra $1 million, it's a pretty good sign that they're happy when they're investing more and more into your product. whether that's buying an extra $1 or an extra $1 million it's a pretty good sign that they're happy when they're investing more and more into your product I think that's the best thing that we're seeing there. i think that's the best thing that we're seeing there The incremental investments are just as the revenue base grows, you need to continue to invest there. the incremental investments are just as the revenue base grows you need to continue to invest there We'll do some innovative things as well, but we have the expense base that's mapped to that revenue base to be able to do that. They're not large incremental investments. It's more just as the revenue grows, we'll continue making investments there because we love seeing the results that we're getting out of that team. We'll do some innovative things as well, but we have the expense base that's mapped to that revenue base to be able to do that. we'll do some innovative things as well but we have the expense base that's mapped to that revenue base to be able to do that They're not large incremental investments. they're not large incremental investments It's more just as the revenue grows, we'll continue making investments there because we love seeing the results that we're getting out of that team. it's more just as the revenue grows we'll continue making investments there because we love seeing the results that we're getting out of that team

Speaker 5: Great. Thanks for your perspective, and thanks for fitting me into the call. Great. great Thanks for your perspective, and thanks for fitting me into the call. thanks for your perspective and thanks for fitting me into the call

Speaker 7: You bet. You bet. you bet

Speaker 5: You're welcome. You're welcome. you're welcome

Speaker 9: Our next question comes from the line of Kamil Mielczarek from William Blair. Your line is open. Our next question comes from the line of Kamil Mielczarek from William Blair. our next question comes from the line of kamil mielczarek from william blair Your line is open. your line is open

Speaker 1: Hey, guys, it's Bhavan here. Thanks for taking the question. Hey, guys, it's Bhavan here. hey guys it's bhavan here Thanks for taking the question. thanks for taking the question

Speaker 7: Hey, Bhavan. Hey, Bhavan. hey bhavan

Speaker 1: Hey, and congrats on the billings number. That was really good. Maybe one for Josh here. We touched on partners, and I want to focus on the SI partners a little bit. It's really exciting and starting to see them deliver implementations of that scale. I guess, have you seen any of them, Josh, start to implement applications? They have customers where they're starting to monetize those themselves a little bit. Is that something that could happen or should happen over time? Hey, and congrats on the billings number. hey and congrats on the billings number That was really good. that was really good Maybe one for Josh here. maybe one for josh here We touched on partners, and I want to focus on the SI partners a little bit. we touched on partners and i want to focus on the si partners a little bit It's really exciting and starting to see them deliver implementations of that scale. it's really exciting and starting to see them deliver implementations of that scale I guess, have you seen any of them, Josh, start to implement applications? i guess have you seen any of them josh start to implement applications They have customers where they're starting to monetize those themselves a little bit. they have customers where they're starting to monetize those themselves a little bit Is that something that could happen or should happen over time? is that something that could happen or should happen over time

Speaker 7: It should definitely happen over time, and we're starting to see some of that. The FedGov deal that we talked about, that's definitely one of those situations where they were really happy to go-to-market with us. They chose us. It was a big bake-off. They went, and then they took their combined proposal in and were successful at selling that to the federal government, and so that was really nice to see. We think there's a lot more of these to come. I really think that question that was asked early on in the call was really apropos for where we're at right now. It should definitely happen over time, and we're starting to see some of that. it should definitely happen over time and we're starting to see some of that The FedGov deal that we talked about, that's definitely one of those situations where they were really happy to go- to- market with us. the fedgov deal that we talked about that's definitely one of those situations where they were really happy to go- to- market with us They chose us. they chose us It was a big bake-off. it was a big bake-off They went, and then they took their combined proposal in and were successful at selling that to the federal government, and so that was really nice to see. they went and then they took their combined proposal in and were successful at selling that to the federal government and so that was really nice to see We think there's a lot more of these to come. we think there's a lot more of these to come I really think that question that was asked early on in the call was really apropos for where we're at right now. i really think that question that was asked early on in the call was really apropos for where we're at right now The other shoe just hasn't dropped in terms of people understanding how successful we really are at our big accounts, and how we really do a takeover, and they sunset all of their other tools eventually, and really center in on us from top to bottom in their organization, and then expanding out from their organization to their vendors and suppliers. I think as that kind of messaging gets out there more, hopefully industry analysts write more favorable reports about us as they get their quadrants to map more, I think, where the market is going, which is where we've always been, then we'll see some more success in those areas. There's been some headwinds there historically, for sure. The other shoe just hasn't dropped in terms of people understanding how successful we really are at our big accounts, and how we really do a takeover, and they sunset all of their other tools eventually, and really center in on us from top to bottom in their organization, and then expanding out from their organization to their vendors and suppliers. the other shoe just hasn't dropped in terms of people understanding how successful we really are at our big accounts and how we really do a takeover and they sunset all of their other tools eventually and really center in on us from top to bottom in their organization and then expanding out from their organization to their vendors and suppliers I think as that kind of messaging gets out there more, hopefully industry analysts write more favorable reports about us as they get their quadrants to map more, I think, where the market is going, which is where we've always been, then we'll see some more success in those areas. i think as that kind of messaging gets out there more hopefully industry analysts write more favorable reports about us as they get their quadrants to map more i think where the market is going which is where we've always been then we'll see some more success in those areas There's been some headwinds there historically, for sure. there's been some headwinds there historically for sure

Speaker 1: Yeah. Ultimately, that I think becomes a really interesting flywheel long-term because they have such high CX-level relationships. It's good to hear, though, that it's starting to happen a little bit. A quick one for Bruce, actually two quick ones for Bruce. One, you guys have talked about continuously improving enterprise sales productivity. Obviously, it improved, given you've cut the number of sales reps, but the billings, et cetera, have been really strong. Are you at a point where you don't think you have room for more productivity given you want to ramp-up more salespeople? Is there still room for productivity in the ramp of salespeople sort of over a 12-month period as left to layer in on top of the improved productivity? I'd love to understand the dynamics between those two pieces of the sales investment coming up. Yeah. yeah Ultimately, that I think becomes a really interesting flywheel long- term because they have such high CX-level relationships. ultimately that i think becomes a really interesting flywheel long- term because they have such high cx-level relationships It's good to hear, though, that it's starting to happen a little bit. it's good to hear though that it's starting to happen a little bit A quick one for Bruce, actually two quick ones for Bruce. a quick one for bruce actually two quick ones for bruce One, you guys have talked about continuously improving enterprise sales productivity. one you guys have talked about continuously improving enterprise sales productivity Obviously, it improved, given you've cut the number of sales reps, but the billings, et cetera, have been really strong. obviously it improved given you've cut the number of sales reps but the billings et cetera have been really strong Are you at a point where you don't think you have room for more productivity given you want to ramp- up more salespeople? are you at a point where you don't think you have room for more productivity given you want to ramp- up more salespeople Is there still room for productivity in the ramp of salespeople sort of over a 12-month period as left to layer in on top of the improved productivity? is there still room for productivity in the ramp of salespeople sort of over a 12-month period as left to layer in on top of the improved productivity I'd love to understand the dynamics between those two pieces of the sales investment coming up. i'd love to understand the dynamics between those two pieces of the sales investment coming up

Speaker 3: We measure the productivity on the concept of a ramped head, a ramped rep, and that's been nice and healthy. We give, depending on whether it's a corporate rep or an enterprise rep, six months to nine months, sometimes 12 months. To answer your question, there is absolutely built-in ramping on the reps we have. That really sets up growth for us. On top of that, we plan to hire more reps. Yeah, they need to ramp, and we have a ramping schedule. As we layer them in, that's kind of another layer of growth. Then we still have, even though we're pleased with the overall productivity of the sales force, we still think there's even room to improve that over time. We measure the productivity on the concept of a ramped head, a ramped rep, and that's been nice and healthy. we measure the productivity on the concept of a ramped head a ramped rep and that's been nice and healthy We give, depending on whether it's a corporate rep or an enterprise rep, six months to nine months, sometimes 12 months. we give depending on whether it's a corporate rep or an enterprise rep six months to nine months sometimes 12 months To answer your question, there is absolutely built-in ramping on the reps we have. to answer your question there is absolutely built-in ramping on the reps we have That really sets up growth for us. that really sets up growth for us On top of that, we plan to hire more reps. on top of that we plan to hire more reps Yeah, they need to ramp, and we have a ramping schedule. yeah they need to ramp and we have a ramping schedule As we layer them in, that's kind of another layer of growth. as we layer them in that's kind of another layer of growth Then we still have, even though we're pleased with the overall productivity of the sales force, we still think there's even room to improve that over time. then we still have even though we're pleased with the overall productivity of the sales force we still think there's even room to improve that over time That way we have three ways to grow, if we focus on just the concept of productivity per rep. That's how we think about it. That way we have three ways to grow, if we focus on just the concept of productivity per rep. that way we have three ways to grow if we focus on just the concept of productivity per rep That's how we think about it. that's how we think about it

Speaker 1: Got you. One quick one for both of you, or even Ian if he's there. Visibility, this question has come up with investors, which is, as people have seen demand pick up in the back half of this year, and people accelerated digital transformation initiatives, analytics initiatives, we need to get data to executives on their mobile devices faster, et cetera. As you look forward, I know you're not giving guidance, but as you look forward, do you worry that there's an air pocket Q1, Q2 next year where people then take a pause? How do you think about that vis-a-vis visibility maybe compared to where it was a year ago, two years ago? I'd just love to understand how you're thinking about that. Thanks. Got you. got you One quick one for both of you, or even Ian if he's there. one quick one for both of you or even ian if he's there Visibility, this question has come up with investors, which is, as people have seen demand pick up in the back half of this year, and people accelerated digital transformation initiatives, analytics initiatives, we need to get data to executives on their mobile devices faster, et cetera. visibility this question has come up with investors which is as people have seen demand pick up in the back half of this year and people accelerated digital transformation initiatives analytics initiatives we need to get data to executives on their mobile devices faster et cetera As you look forward, I know you're not giving guidance, but as you look forward, do you worry that there's an air pocket Q1, Q2 next year where people then take a pause? as you look forward i know you're not giving guidance but as you look forward do you worry that there's an air pocket q1 q2 next year where people then take a pause How do you think about that vis-a-vis visibility maybe compared to where it was a year ago, two years ago? how do you think about that vis-a-vis visibility maybe compared to where it was a year ago two years ago I'd just love to understand how you're thinking about that. i'd just love to understand how you're thinking about that Thanks. thanks

Speaker 3: Well, what we have going for us is just the whole portfolio of industries, customer sizes, types of customers, types of use cases that are just common sense use of a platform such as ours to just simply get data to people in ways they just can't get today. I don't see why that's going to change at any time in the future. We certainly argue as the economy gets better, it ought to get better. Maybe the activity ought to pick up, and those troubled industries finally can start purchasing from us. We've had success with troubled industries, but not nearly what we would have had we not had this economic downturn. Well, what we have going for us is just the whole portfolio of industries, customer sizes, types of customers, types of use cases that are just common sense use of a platform such as ours to just simply get data to people in ways they just can't get today. well what we have going for us is just the whole portfolio of industries customer sizes types of customers types of use cases that are just common sense use of a platform such as ours to just simply get data to people in ways they just can't get today I don't see why that's going to change at any time in the future. i don't see why that's going to change at any time in the future We certainly argue as the economy gets better, it ought to get better. we certainly argue as the economy gets better it ought to get better Maybe the activity ought to pick up, and those troubled industries finally can start purchasing from us. maybe the activity ought to pick up and those troubled industries finally can start purchasing from us We've had success with troubled industries, but not nearly what we would have had we not had this economic downturn. we've had success with troubled industries but not nearly what we would have had we not had this economic downturn

Speaker 7: Not only that. Not only that. not only that

Speaker 3: I just like that. I just like that. i just like that

Speaker 7: Bruce was going to say one of the, I think, hesitations around calling some of the big deals is one of my reps just texted me an answer if they're listening to the questions, and I got a text message, and it says, "Tell him the answer is cure COVID." COVID's been great from the sense that it's really helped, I think, accelerate a lot of digital transformation, and it's helped us pick up new partners and really prove our ability to rapidly respond and have a very flexible no-code, low-code offering, et cetera. At the same time, there's still just unknowns out there. You're talking to big customers about really large deals, and you know it's not a normal environment. As much as you know that they need us, it just gets really hesitant to start calling those deals when it would meaningfully impact your guidance. Bruce was going to say one of the, I think, hesitations around calling some of the big deals is one of my reps just texted me an answer if they're listening to the questions, and I got a text message, and it says, "Tell him the answer is cure COVID." COVID's been great from the sense that it's really helped, I think, accelerate a lot of digital transformation, and it's helped us pick up new partners and really prove our ability to rapidly respond and have a very flexible no-code, low-code offering, et cetera. bruce was going to say one of the i think hesitations around calling some of the big deals is one of my reps just texted me an answer if they're listening to the questions and i got a text message and it says "tell him the answer is cure covid." covid's been great from the sense that it's really helped i think accelerate a lot of digital transformation and it's helped us pick up new partners and really prove our ability to rapidly respond and have a very flexible no-code low-code offering et cetera At the same time, there's still just unknowns out there. at the same time there's still just unknowns out there You're talking to big customers about really large deals, and you know it's not a normal environment. you're talking to big customers about really large deals and you know it's not a normal environment As much as you know that they need us, it just gets really hesitant to start calling those deals when it would meaningfully impact your guidance. as much as you know that they need us it just gets really hesitant to start calling those deals when it would meaningfully impact your guidance I think that is, in fact, one of the answers, but pipeline's looking good. We have really interesting conversations with customers that we've known for a long time, and there's really big upsells that are out there. We're also seeing new customers come in that know what we've done for other customers because our customer left their former employer and went to a new one and brings us a big, juicy deal. There's deals out there for sure. Like Bruce said earlier, we've had a good beginning of our quarter, and we've brought in some decent-sized deals already. It'll just be interesting to see how the rest of this quarter plays out. We've been a 20% grower for the last few quarters, and we're going to do our damnedest to make sure that that's the case again. I think that is, in fact, one of the answers, but pipeline's looking good. i think that is in fact one of the answers but pipeline's looking good We have really interesting conversations with customers that we've known for a long time, and there's really big upsells that are out there. we have really interesting conversations with customers that we've known for a long time and there's really big upsells that are out there We're also seeing new customers come in that know what we've done for other customers because our customer left their former employer and went to a new one and brings us a big, juicy deal. we're also seeing new customers come in that know what we've done for other customers because our customer left their former employer and went to a new one and brings us a big juicy deal There's deals out there for sure. there's deals out there for sure Like Bruce said earlier, we've had a good beginning of our quarter, and we've brought in some decent-sized deals already. like bruce said earlier we've had a good beginning of our quarter and we've brought in some decent-sized deals already It'll just be interesting to see how the rest of this quarter plays out. it'll just be interesting to see how the rest of this quarter plays out We've been a 20% grower for the last few quarters, and we're going to do our damnedest to make sure that that's the case again. we've been a 20% grower for the last few quarters and we're going to do our damnedest to make sure that that's the case again Just given the environment that we're all living in, it feels appropriate to be a little conservative. Just given the environment that we're all living in, it feels appropriate to be a little conservative. just given the environment that we're all living in it feels appropriate to be a little conservative

Speaker 1: Yeah. Bruce, it's every metric pacing, as you guys said, seems to be going well. Congrats, guys. Thanks for squeezing me in. Appreciate it. Yeah. yeah Bruce, it's every metric pacing, as you guys said, seems to be going well. bruce it's every metric pacing as you guys said seems to be going well Congrats, guys. congrats guys Thanks for squeezing me in. thanks for squeezing me in Appreciate it. appreciate it

Speaker 3: Yeah. Excellent. Yeah. yeah Excellent. excellent

Speaker 7: Thank you. Thank you. thank you

Speaker 9: Ladies and gentlemen, this concludes Domo's third quarter fiscal year 2021 earnings call. Thank you for participating. You may now disconnect. Ladies and gentlemen, this concludes Domo's third quarter fiscal year 2021 earnings call. ladies and gentlemen this concludes domo's third quarter fiscal year 2021 earnings call Thank you for participating. thank you for participating You may now disconnect. you may now disconnect