Welcome, everybody. Glad you could join us today. Hope everybody's had a good opportunity to meet with our customers, partners, and everybody else who's here. I think you'll all find the energy of this event's really just fantastic. It's something we look forward to all year. It's just a huge shot in the arm for us, for our customers, for everybody that's involved with the event. It's just wonderful to have our investors and analysts be able to come and be a part of that. Anyway, welcome everybody that's here in person. For those of you who aren't here in person, I'm Todd Crane, CFO of Domo. Excited to cover a number of different topics today. We've got Josh James, our CEO; RJ Tracy, our CRO; and then Chris Willis, our Chief Design Officer, here with us. All of us will be covering on a few different things.
We're a smaller group. We'd love it to be conversational. We'd love it to be discussion.
We have some teams.
Oh, yes. Our esteemed board members here: David Jolley, new member of the board; Dan Strong; and Daniel. Very, very excited to have them be able to attend with us.
Two members of the audit committee, so be careful what you say. They will audit you so hard and so fast.
Of course, Peter Lowry, our Head of Investor Relations. Huge shout-out to Peter for arranging all of this and having it all be very organized. A lot of logistics go into this as well. Definitely thankful for his contributions there. With that, I think we can go ahead and dive in, and we'll have Josh kick it off. I think what we'll do, we'll have Josh kick it off, and then we'll probably kind of move into a Q&A while we have Josh's time. As you can imagine, he gets pulled a million different directions during Domopalooza. We'll have him go. We'll do some Q&A with Josh, and then we'll continue on the rest of the agenda.
Great. Yeah. I thought I'd start off just highlighting some of the things that we've been really focused on. We're pretty close to the earnings call, so that's always topical. Internally at the office, these are the things that we're talking about. This is the slide that we shared internally. It's similar to the one we had last year. We updated it to last year was about product-led growth, and that's really about adoption. We really want, as we made some progress there, trying to get the company to really focus around what are the things that we can do. We tested out a bunch of—we have several different groups that are testing different ways to interact with the customers that drive the usage of consumption, that drive down those credits, whether it's different use cases or approaches.
Actually, RJ, why don't you mention a few of those things that we're doing with the use cases and with Adam's team?
Yeah. On the base, yeah. These packages offer lots of different services. It basically allows us to go in and help people, things like AI readiness. As you've seen, some of the Agent Catalyst that was announced, a lot of that starts with being able to get your data ready in the first place to have this AI readiness product in Domo. A lot of customers need help getting started. It could be that. It could be helping them optimize pipelines or designing architecture. Especially as we play with these multiple clouds, being able to architect pipelines in an efficient manner. It's lots of different components of Domo, but it's about education, about creating power users. It's about driving adoption across all the different products that we have, as well as helping people adopt additional tech they're not using today.
We might recognize that they're using our integration with ETL, but they haven't quite used our Workflow Engine. We'll go in and we'll help them find opportunities to use workflow to automate processes and stuff, so.
Thanks. Yeah. That's adoption. There's probably going to be some more disruptions to the way that we approach the market in terms of the types of employees that we have. We started out with the traditional account managers. I think they're becoming less relevant because it's important that, A, customers call and they feel like they're talking to someone that's smarter than them about the product and more technical than them if they're technical. We probably need to swap that role for someone that's more technical. AI, obviously, you saw—did any of you see the opening session in a couple of you? Yes, one this morning?
Yeah.
Yes.
Yes.
Yes. Yeah. My session. Couple. I mean, obviously, we're talking about AI, AI, AI, AI. Pretty much every session has an AI component to it. It's been really fun to see customer interest in it because we've helped people organize their data, present their data, display their data, share their data. The real value—I literally said on the show—the real value comes from the things that happen after that, actually. It's been hard for customers to figure out how to do that, whether it's building an application, building a data product. AI agents, we have all the components. We've been building them for years, in some cases, over a decade. You add all those components together, and you actually can build these agents.
This agent catalyst that we launched, we think, is going to be transformative for our business as a data point, hot off the press. When I shared agentcatalyst.ai with the audience, there were about 500 customers in attendance. We have already had 200 customers sign up for a free agent request. That is extremely exciting. I mean, I would have been happy with 30-50, but clearly 200 in the first hour. I think that is going to help drive the need for our platform. In the few one-on-ones that I have already had today, I was seeing that resonate pretty loudly with customers. That is exciting. Third piece is multi-year contracts. We talked about this on the earnings call, tried to lay it out. We will probably, in a quarter, share even more data with you. I think there is a time and a place to share things.
When the stock's moving and the revenue's growing, you have a more receptive audience. I don't want to waste it right now. We think that's going to be some great tailwinds for us. It literally is just math. With the success that we're having adopting those customer contracts, and if you want to look into the data and look at what we said, there's enough morsels there. You can go and draw some of your own conclusions. With the fact that we were able to get that by only addressing six months of renewals, when it takes about 18 months of renewals to get to the whole customer base, and we've already delivered over 2-3% from a retention perspective, gross retention perspective, it tells you how much additional upside is there. We're not even good at it yet.
I think even once the 18 months runs, we're still going to improve the way we approach people. That's, I think, a really exciting component. Again, we're not growing revenue yet in historical financials the way we want to. That's certainly going to be a driver because, as you all know, and as we think about constantly, when you're on the operating side, you're a $300 million company, and you add 2% to the gross retention, you decide it's $6 million, and you don't have to go out and sell with a cocktail TV that may not be exactly where you want it to be, given where the macro is. Keeping that high profit margin dollars there by just improving things with nothing other than incentives to the sales organization around long-term contracts is a very inexpensive way to drive the business.
We're really focused on that this year. Lastly, the ecosystem. You've talked about that for a year. We are seeing success. We are seeing lots of signs of success. It's just a question of when that's going to impact the numbers in a meaningful way. Even though just last week, or just on Monday, we had ESTAF yesterday, two days ago, and RJ was updating us on the impact that some of those CDWs are already having in our pipe. I think it's coming sooner rather than later. Those are the strategic initiatives we're focused on. We'll open it up for questions from you guys for 10 to 15 minutes, and then I'll bail.
Yeah. Okay. Thank you, Josh, and the Domo team for putting up such a live tree at the keynote this morning. Obviously, Josh, we'd love for you to jump out that laser. I was hoping like, "Is that how he's doing it?
I was open too. It was a mess.
Josh, maybe start with you first, right? Love how you set the theme on GenAI. It's a theme on every executive's mind: taking out lunch, cutting jobs. And you guys are addressing this head-on. Unlike other peers, that doesn't—try to avoid this question, right? I guess.
If I may interject for you to get your question, that's something that I saw in these follow-ups that I've been having today already. We had a customer in here that was telling us they're trying to use—think of all the big tech names—they're trying to use a couple of them to create AI, and they did figure out how to piece it together. It is cumbersome. It is not real-time. They're moving data all over the place. They're like, "If we could do that, we didn't realize we could do that in Domo. We want to do that in Domo. We want to have a follow-up meeting about this immediately." If we can do this in Domo, then all the other agents that you're talking about, we need to build in Domo as well. We're already approved from a security perspective to do things in Domo.
I think there's just going to be a lot of upside for us there. I don't think we probably should have had—probably should have had some more confidence about it. I don't think that we realized there's this—was it Jeff Bezos? I saw something, I think, last night.
That was the carry-on.
No, I saw something that said—I think it was Jeff Bezos—but you think the risks are too great, and you think the upside's too small. I think, as we're thinking through our business, it's kind of hard to imagine that we're in as good of a position as we are with AI. Every time we talk to a customer that's in the middle of it, they're like, "You guys, what you're doing is way better than everybody that's out there that's doing stuff." Again, think of all the big tech names. We're more of a thorough solution that's available right now. When RJ was up there and showed, "Here's four solutions that literally have been built in the last two weeks," I heard that in my follow-up meetings as well.
One guy said, "We did with you guys in three weeks that something we've been trying to do for six months with other tech vendors." Yeah, that's something that we're going to lean into, not just with what you heard today, but we have several more announcements planned over the coming months because we can build these agents so fast. We need to—like you said, people don't know where to start. Every executive wants to do something, but they don't know where to start. If we can say, "Think about Smartsheet. Think about ServiceNow. Here's 100 of them. We've made all these. I guess let's package them up and sell them instead of just, 'Here's a platform. Let's help you understand how to do it.'" That will lead to so many additional conversations. We think there's a real opportunity there.
Got it. Thanks for that, Josh. For those people on the call, this is Julie with Kenneth and Gerald. Sorry, I forgot to introduce myself. I guess the question, Josh, becomes, "How does Domo hedge against this GenAI risk?" Right? Is Agent Catalyst the real deal to do this? Is that the approach?
Yeah. I mean, there's two pieces to it. From an opportunity perspective, we definitely don't see it as something that's going to cannibalize us because we're doing everything we can internally to cannibalize the way that we built our product. Things that you used to have to click 25 times in order to build, now there's Domo GPT, and you can literally just say, "Build a dashboard that does this and says this," and boom, it's done. "Connect this data." Boom, it's done. We're doing everything we can to cannibalize the historical ways that we've done things. Because of that, I think it puts us in a great position. Again, if you want to go build an agent, it's not like you just go and say, "Build some code and build an agent." No.
You have to have all those pieces that we talked about today. You have to have ETL. You have to have a way to display it. You have to have governance. You have to have these components that, by the way, we've already built. You have to have a workflow engine. You have to have ability for a human to go in and approve things. We've done all that. I think that's the first piece. The second piece is, to your point, these offerings, we think, can actually be something that drives a lot of consumption of Domo. By the way, it only works if we have all those components. I need a platform to do it in. We've got 1,500 people, 1,500 customers here that that's exactly what they already use us for. They just don't have that final piece.
If we can help them unlock even more value from all the work they've already done, that's a huge win for our customers and us. The consumption model really helps.
That's my next point, Josh. The strategic focus to switch to the consumption model, right? Because you're saying, "Look, GenAI is going to eliminate seats." That's fair, right? We see it on the news, right? Press, right? It's not—we can't hide from it, right? Because it's consumption-based and bots, machines are running the world. Your consumption model, do you think the consumption model will drive more upside than the seats you lose?
Absolutely, because people try stuff. If your product works, then you're betting on your product, and you're betting on the fact that they're going to get a taste. They're going to like it. They're going to do a lot more with it. We've seen that, I think, when Concentrix was on stage. That's one of the things that they alluded to. Last night, when I was talking, he told me about many, many instances where people in their company are saying, "Hey, we're thinking about buying this from Software A and Software Vendor B. How much is it? It's $500,000. We're going to go buy 800 licenses." I think I can do that in Domo for you. Give me a couple of weeks. They literally go build it in a couple of weeks. We're going to only get $14,000 for that.
It's awesome. If we can go do 50 of those, it's so—well, it's so sticky. It's so sticky, though, right? Concentrix is also exciting because it's top to bottom, giant enterprise, top to bottom. We didn't have a lot of those historically. Seeing those—and then we talked to US Bank, a third of their business. They're really influential. We're trying to do everything we can to make sure that we're connected at the CIO level and that it's an approved, established product. We're seeing that with AI.
That's the thing that I keep on hearing from customers is, "We're surprised that we got this approved, but it was already approved from the CIO to put the data where it is with Domo." Because we already approved all the governance that you already have in place, that we were allowed to leverage AI as well. It's like, "Great.
Josh, I have—we've talked to a ton of customers. I sat here and I told you last year that Domo is the company that has the biggest difference between valuation and what customers say. So many people say you're sticky and are evangelical. It is not in the numbers. I guess at this point, what things outside of pipeline—I get the pipeline's bigger and I get there's partners—can you give us examples to say that consumption's working? We're almost two years into this. Can you point and say, "Here's what we're seeing that shows that we think we're going to accelerate out of this"?
Yeah. I think one of the first big points is our net retention or gross retention for our consumption cohort is much higher than it is for our seed. The disconnect between what customers are saying and then the growth or the lack thereof really comes down to the retention. There was just a much bigger hole at the bottom of the bucket than there was historically. A lot of that had to do with customers where we were not on stable footing. We talked about that at their earnings call as well. We used to go look at our top 50 customers, and we would sit there at the end of their earnings—it would be right before their earnings call. We are like, "All right. How many at risk do we have on this list?" He is like, "Eight of them.
Nine of them." Now it is down to one or two, which is pretty healthy.
I mean, I guess at this point, you're above 50%. You're 60% on the consumption model. You see.
We're almost 70.
Yeah. Almost 70 now. By year-end, you think you'll get to 90. That's kind of what my math suggests too. Do you guys have a ton of confidence in the acceleration, or is it still TBD?
No, we have a ton of confidence in it. It's, I think, which quarter?
Yeah. I mean.
That's the question. For me, that's the question. We also alluded to that as well. I think by the end of Q2, we're going to have a much better idea about our pipeline. We're also going to have a much better idea about these consumption cohorts that had a chance to go through a renewal process, right? Because you've got to go through a whole year, or if it's a two-year deal, you got to go through a whole two years before you actually really understand. Our sample size is getting big enough that we're confident in it. Every quarter, that's going to be informed. I think we're going to have updates at the end of Q2 and at the end of Q3. We know there's going to be some acceleration in Q3, Q4 from a revenue perspective.
We don't know how much, but we know there's going to be some acceleration. Importantly, I think we're also going to be able to look at the, because of the multi-year deals and because of the consumption cohort that has a higher gross revenue retention, we'll be able to look and say, "Okay. Not only can we tell you a little bit more about Q3, Q4, but we think there's a new bar on a new floor on gross retention." I could see us getting insights into what that number is going to be for next year, halfway through this year.
Sorry, I just have one more, but nobody else has a ton.
Yeah.
When I look at this business, you guys were a fast grower above 20% for a long time. I know that Domo can do so many different things. I also know the environment's competitive, and competitors offer all kinds of stuff. The math is super easy to run through and say, "Hey, if you're at 90% consumption, here's consumption retention. Here's what I think new business sales have been in the last 12 months, and here's what I think." I can get that math. In this environment that's a tougher macro, and if things do not get worse, if things do not get better, do you think Domo is a double-digit growth business, or is it something lower?
No, it's double-digit, for sure. I'll be shocked if we're not north of 10% next year. Shocked. In this environment, with the current numbers that we have, we don't need anything to change. We just need some more time to go by.
If nobody else has questions, I'll ask another one. You guys, as this business grows, what kind of investments do you need to make incrementally? Or do you guys feel like—because the other observation I'll make is that we're not Silicon Valley, West Coast investor guys. We care about cash flow and things like that. We definitely don't have a problem with where you're at now, but you guys have debt that's growing at a super high rate. It's big, plus the interest. Do you think that—do you expect to show a lot of leverage, or do you think that as this business grows, you need to invest in it to drive this growth?
I think there's definitely a lot of leverage. We're investing quite a bit into R&D that isn't going to drive the next 12 months of revenue growth. We still actually have a pretty substantial amount on the P&L that allows us to invest while maintaining cash flow positivity. We are actually paying—that debt's not growing. We are paying a big chunk of the interest down. I mean, $13 million, $14 million a year in interest like that?
Yeah. Right. Yeah. $12 million, $14 million.
We are cash flowing that as well.
Yeah. We're paying the 8% cash, and you get a 5% peg, so.
He sells well.
I know that he does very well, yeah.
Yeah, I think—we're going to continue to generate cash. We're not trying to generate a ton of cash right now. I think as you see growth come back, there's going to be, to your point, there will absolutely be leverage in the model.
Josh, can you talk about the Salesforce composition now in terms of the size of it, the maturity, the productivity? Also, perhaps as part of the same question, you mentioned that traditional account manager might be less relevant. I was hoping you could elaborate on that.
Yeah. We have a variety of account managers, some of them more technical than others. The more technical ones are having a bigger impact on the customers right now, helping them understand different use cases, helping them connect different data sources, helping them build AI agents. I think that profile is going to be a better profile for us going forward. There's still need for project managers. Some of our bigger customers are still need for relationship management. I just see that profile changing over time. In terms of the sales composition, we'll talk about that.
Yep. We've got about 100 direct sellers right now. In North America, we've split the team into reps that own customer accounts and then reps that own the logo. Both of those teams, we're adding reps to right now as we're starting to see pipeline increase from some of the partner activity. We're making sure that we're staying ahead of that. We've got a team of ADMs as well that help drive leads pipeline for the reps.
Daniel, would you mind sharing your thoughts on how you think about the business as an investor and as a board member? I am curious if Daniel was at BlackRock for a long time and managed $100 billion there and now has his own fund, but he has been involved with the story for a long time. I think it is always interesting to hear his take.
Yeah. I think you guys have already touched on a number of things that are important. The valuation, obviously, is pretty compelling in terms of what the downside risk looks like versus the upside from a simple math perspective. We also talked about the fact that a number of indicators, but we can't say yet how far they're going to go. It feels like we've perhaps passed that inflection point in a positive way for a lot of important things. Maybe put RJ on the spot for a second. Talk about the rep productivity, which I was mentioning before we started this. I think that's one of the best signs I see currently that can help us get line of sight how good things could be in the future. We've got a couple of quarters now of improving results there. RJ, you're talking to be checking that.
Yeah. No, I can speak to that. RJ mentioned we're leaning in on hiring on both of those teams, the new logo and the customer account teams. The reason we feel good about starting to lean in on the hiring there is the rep productivity. One of our main goals is to not only get back to growth, but do it efficiently and stay cash flow positive, control our own destiny, expand growth, and expand margins simultaneously, right? I'm confident we can walk and chew gum at the same time with the scale of revenue that we have. The level of rep productivity we're seeing right now is getting close to kind of where we were back when we were growing at 20-30%. Seeing that level of rep productivity is really, really encouraging.
I'm excited to be able to lean in and put a little more capacity in the system. We'll obviously be monitoring that closely to make sure that productivity holds as we add capacity in. It is a fantastic place to be.
Part of that has been closed rates. Closed rates have actually increased, which I think is really reflective of the ecosystem strategy and the fact that we're not fighting by ourselves anymore. There's other people around the table that are helping us out.
Which goes back to the question that Alex was saying, your investments, right? RJ was talking about 100 direct sales right now, right? Obviously, October floors, you guys are going heavy with Snowflake, right? How much more capacity RJ needs to add throughout the year as he's also in that position?
It's a great question. We're going to add it as we see pipeline being built. We're watching it every day to report on all the pipeline being generated from partners. We're monitoring the closed rates all the way through the sales cycle. We'll make sure that we stay ahead of the hiring so that we're building capacity at the rate that we're generating leads so we don't lose efficiency along the way, but we also don't get in a spot where we have more leads than reps.
RJ, do you think there's any, at this point, you talked to a ton of your customers and migrated a lot to consumption model, which, by the way, I think makes so much sense and lowers the bar to getting Domo in the organization. Props to you guys for all the changes you've made because I think they've been fantastic. Are there large renewals that you guys are worried about anymore? Are there any ones that if you look over the next 12 months and you say, "Hey, we can see that they're not using us very much. We know that right now it's a tough environment to sell anything." Are there big things you guys are worried about?
Yeah. I'd say we're worried 80% less than we've been worried historically, just based on the number of big customers on that top 50 list that used to be there that either got fixed or churned out. The ones that are remaining are happy and using. Ironically, we've always had customers that were using us. Use has never been an issue. We were in an organization, and we only had one department. There was someone else that had two, and someone else that had three, and someone else that had one. A new CIO comes in, and we didn't have the right relationship. Unfortunately, we didn't go to consumption model years and years ago because consumption fixes it also because you're not paying for seats. I mean, it used to happen to us all the time. Now we're watching it happen.
We're sitting down with customers, and they'll be like, "Yeah, actually, we just got rid of this software vendor. We got rid of that software vendor. We got rid of this. Only 14 people are using that, but we were paying $100,000 for it. And now you guys are doing it for us." The fact that they're not paying for seats dramatically changes how they perceive us as well.
Can you follow up on what RJ just said? I know when they go hunt with Snowflake and other CDW cloud data warehouse, they only usually the feedback I got from the floor was, "Oh, they can use this SI and Domo." That's all we need to close it.
True.
Right? What are you dismissing? Those three or four vendors?
Oh, I mean, it's 50 different vendors when we're in there. There's certainly any visualization engines, Teradata's of the world, Microsoft products, Tableau products. They might have a little some software from a commission software company that is helping create a report that eight people are looking at. They spend $100,000 on it, and they can't get rid of it because the CFO looks at it. They come in and build it in a couple of days, and they're like, "Oh, we don't need that vendor anymore." That just increases our stickiness. We got great margins. We're getting paid for what we need to get paid for. Maybe someday, if we have the pricing power, we'll be able to increase it even more. We feel like we have a great model.
The most important thing we've been trying to figure out has increased retention. Having more sticky places and more people in an organization, pretty different dynamic than where we were up until a year and a half ago. We were still 10%-20% consumption. We did that. In the last 21 months, we've gone from 5% to almost 70%. It is dramatically different.
Josh, can you comment on Mark's on the tips?
Yeah. Mark's been in the company for a long time. He's managed a lot of different things. He loves operational excellence. He likes making sure a lot of things, a lot of T's are crossed, a lot of I's are dotted. There are projects that we have that are cross-departmental. Adoption is a great one. How do you take what each group's doing and find the best practices? It's hard to find someone that's respected by everyone in the organization so they can go cross-departmental. He's proven that over the years that everyone knows he's on their side. He's trying to help out. He's got a team that's just going to be focused on that operational excellence and the biggest projects that we're working on.
Josh, I know he's not in the room. I know he's been with the firm for like 10 years since he's been customer success and then also Chief Analytic Boss. What do you expect of him the first 90-100 days? I know you talked about best practices. What else do you think he's going to bring?
More operational rigor and more confidence internally that when we decide that we're going to do something as an organization, it's going to happen. A partner that everyone can lean on in order to accomplish kind of the big hairy tasks that, again, are cross-departmental because those are always hard because you got pockets of people doing different things and not talking. Again, he's got a great relationship with everybody. We think he's set up for success.
We've spoken about attendance being up here year over year. Are you finding a lot of that is the different use cases under consumption? Companies are sending more people, or is this relationship with the CDWs driving more excitement? I don't oppose those here.
I think it's vastly misunderstood how much our customers really do rely on us and that we are their standard. Alex mentioned that. He's talked to a lot of people where that is the case. We've had this, we've kind of had this external narrative because we had some financial metrics that told a story that it was hard to argue against that story because it was a big streaming story. It was a pocket of our business that was susceptible. It wasn't the whole business. We've churned through that. I think what you're seeing this year and what's exciting, what's really exciting for me, going to the opening reception last night, everyone's talking about all the plans that they have and that they're, and most of it was just around workflows. Workflows is a big topic. Workflows is one of the components of AI, right?
You need to, you're processing through something, but then you want to have an action that takes place. That is by definition a workflow. That is how you make these AI agents. A lot of people thinking about that. Also, I thought Concentrix at the ONKIT said it really well when he's going around internally in the organization trying to tell everybody, "Don't think about this like BI. Think about so what? What can you do with it?" He feels like there's a great platform here to build these apps. U.S. Bank talked about the apps they're building, right? Talking about the apps with AI, NBA, and looking at what they're doing just to figure out how to stream things internally based on AI telling them which game is going to be seen the most.
That is based on real-time information about records and about what is getting talked about in social sentiment. That is really cool stuff. That is the kind of stuff that we are hearing from customers. We have to go and make sense of it when we talk about the financials. Hopefully, we are out of that muck here soon. There are some double-digit growth numbers, and then we will be able to have more of a receptive audience about the whys.
Can you give us examples of the use cases that are driving? Because you guys do so much. I know that when I talked to customers, nobody uses you that I talked to, or very few people use you for ETL. That is something that big that you guys harp on is like, "This is a core capability that we have." I think one of the challenges I've heard, I know you guys have a longer sales cycle than maybe some companies. Have you guys found use cases where you can go and say, "Go to every restaurant and say, 'Hey, here's something that we can save you money and implement us for this'?" What are the use cases that are driving incremental adoption over the last 12 months?
Are there consistencies where you can say, "Hey, these are the problems we're solving for customers and really accelerating the go-to-market?
Yeah. I think ETL is actually, it drives a bunch of revenue for us. I mean, I'll talk about one of the use cases, RJ, and then you'll probably answer this better. Certainly, one of the use cases for half of our customer base, right? Half of our customer base is sub-billion dollars in revenue. That use case is pretty much the same across every customer, which is top to bottom, CEO to everyone in the organization, all their analytics, all their data, all their connectors, all their ETL, all their data warehouse, all in one spot. Now we're building all these agents on top of it to help them get more value and drive more usage and increase the revenue that we're getting from them. I think that's something that's across our entire customer base, which has been really interesting.
RJ, you're probably the best person in the company at how you pitch things. So talk about the use cases that work, what resonates, what doesn't.
I would say too, part of the reason why you hear people aren't using us for ETL is just because prior to the ecosystem, if you wanted to use our ETL, you had to use everything. You had to use our connectors. You had to use ETL. You had to use our backend. It had to be our visuals. It had to be everything was fully contained. What consumption and ecosystems allowed us to do is break that apart. Everyone in general has thought of us as a visual layer. Our sales cycle sometimes is a little longer because people are saying, "Hey, we need you for visuals." We spend a couple of weeks walking them through and saying, "Well, you need to place the store of the data.
You need a place to ETL it. All of a sudden, we're expanding that use case. I would say almost every customer that uses Domo uses our ETL engine. It's a very significant part of our platform. Customers love it. What we're doing with moving to ecosystem is we're shifting that mindset to say, "If you want just ETL, you can use this there. If you want just connectors, you can use this there. It can be on top of your data foundation. You can bring in other tech that complements it, or you can expand that offering." That's where consumption is so beautiful. A customer might say, "I need you for connectors. That's all I need." Now they've got access to everything.
You pull data in as a connector, and you're like, "I was going to go ETL it through this ETL tool, but I'm already here. I don't want to have to log out of Domo, go log back into this new system, redo the ETL, go back into Domo, pull new data in." We see customers starting to migrate. As far as use cases go, yeah, we've got tons of repeatable use cases that we see. Our reps try to focus on really helping customers to we focus on three main things, which is increasing revenue, reducing cost, or mitigating risk. We do that across every department. It's not necessarily that we're trying to say, "Oh, we did this one thing in marketing really well." All of our marketing customers want to reduce their cost to acquire customers.
They want to improve efficiencies on how they spend money. They want a bigger return. They want to create pipelines that they can understand their ideal customer profile and how they can convert more of those and how they can bill them. We help with that whole customer journey in most of the customers. You get the niche use cases like some of these AI use cases we're starting to see where now they're looking at, "Man, how can I automate some of these actions?" We're seeing that across some of the examples that you saw today. I think you're going to see that expand. As fast as AI is improving, you're going to see those use cases just get better and better.
Any soft metrics, RJ, you could give us on the AI path trace? Out of 10 customers or 100 customers, let's just say, how many of those 10 or 100 customers are going to ask for AI?
Are you going to ask for it?
Yeah.
We have 200 today.
Oh, because you dance.
That's what it takes. I'll do that every day.
If we need to do that, I'll get some more usage.
AI is going to be a big part of the conversation going forward. It has not been historically. I think the last data I saw, we have over 500 customers that are using AI right now in their implementation. Our Domo GPT has certainly been a big component. Thousands and thousands and thousands of users of that. They like how fast it is at building things that they might not have thought about before. Instead of having to go through the whole historical create a dashboard process and write a bunch of code, just use Domo GPT. That has been nice as well.
What I know you're going big on Snowflake, Josh and Tim. I was wondering, does it make sense to—I know the answer is we are talking to other CDWs as well. Does it make sense to mature the relationships, let's say, with a Databricks, Oracle, etc., to the same level of Snowflake? Or am I?
Oh, we will for sure. For sure. That's in process. That's absolutely happening. It just needs more time. The relationship we have with Snowflake will be the same relationship that we have with Databricks, the same relationship that we have with GCP, the same relationship that we have with Oracle.
I guess when will you wave the flag and say, "Hey, Databricks is another?
It is right now. We get leads from them all the time.
The partner that you saw on stage today, Quantiphi, that built the fleet ops, agentic AI, they are an exclusive Databricks partner that's also venture-backed by Databricks. They had to get permission from Databricks to partner with us. We are their only technology partner this year. They've scrapped every other tech partner, all the other ETL tools, visual layers, integration layers. In fact, their CTO said they did an evaluation, and they said, "We looked at all the tech, and they all play right about here." There is this big gap. Here is where Domo plays. They said, "We can't go into business with any other vendor." Just last week, they sent us three leads.
If we could maybe continue on with the partnership version. Obviously, Snowflake being the furthest along, how do you think about maybe learnings from building out with Snowflake as you did that you're applying going forward with being an Oracle?
Yeah. So it's a lot of the same strategy, right? All these clouds, I mean, Databricks is a Lakehouse architecture. At the end of the day, people use the technologies very similarly. From a technology standpoint, we're going to market with them the same way: Snowflake, Databricks. There's some unique opportunity for us to partner with a few of these as well. As an example, Oracle has NetSuite. NetSuite's trying to push a cloud, but they want something more turnkey. Domo already provides a turnkey backend solution. We potentially could sit that on top of NetSuite, they call it NSAW, and go to market with them to provide a turnkey solution to smaller businesses that aren't going to manage a warehouse. Outside of that, the strategy is really the same. It's about we do something really well, and they do something really well.
It is a really good marriage in all of these different cloud vendors for us to partner together.
About growth opportunities. Okay. We talked about Snowflake, the CDWs, the SIOs, right? I call that one bucket, let's just say. Heard good things about workflow, has good potential. And then the third thing I'd like to see you announce today, Josh, was agent balance, right? Out of these three things, right? If you have to say near-term, mid-term, long-term opportunities, which is your bread and butter.
Bread and butter is just doing what we've been doing, just fixed retention, and we'll be double-digit growth. CDWs, layers on top of that. That is going to be an immediate opportunity for us for sure. We've been investing there for a long time. Our relationship with those other vendors besides Snowflake is pretty similar already. We're a little more advanced just on the sales relationship with Snowflake, with the number of sales leaders and sales managers and sales reps. In terms of the technology, not dissimilar. We're very far along with we've had customers that have pulled us into GCP a long time ago. We've had customers that have pulled us into Oracle. We have a bunch of NetSuite customers. The technologies work. It's more just figuring out the go-to-market component. We're going to have meaningful relationships.
We know we have in all four of those vendors at least.
About the other two legs, Workflow, Agent Catalyst, and anything I missed?
No, I think the other piece is Domo Everywhere. That's a big part of our ecosystem as well. We'll talk to FileVine tomorrow on stage. It was another conversation I was having with Cedrix. They have a bunch of AI agents, and they're really big AI agents that they put a bunch of consulting around. There's an opportunity there for us to partner with them to help them, to give them the platform for all the other agents that we have that then go and go build for their customers. I've had three one-on-ones last night and this morning already with customers. Every single one of them has a Domo Everywhere opportunity.
Taking that data and then sharing it out to their franchisees or to their customers is something that a lot of times customers are not necessarily aware of because their use case was internal data, internal BI. Then they recognize, "Well, if we could just do this and provide this to our customers, that would be really cool." They think they need a lot of additional functionality. They do, and we have it, and they do not necessarily know about that. Helping to educate our customers there is something we have been getting a lot more leads from over the last several months as well.
I mean, we saw it from other software companies. If you go with a premium package, right, which is your Domo Everywhere, that's the whole enchilada, the entire meal plan, right? Is there any metrics, soft metrics you can give us, right, the uplift instead of using a la carte, right? If I'm a Domo Everywhere customer, and what percentage is it right now? What's the ambition?
Yeah. Yeah. Domo Everywhere, it folds in under our consumption pricing model. As customers are sharing that data out with their customers, it's driving credit usage. It's driving revenue for us via that method. There's not a discrete package they have to buy to be able to—it just folds in under their credit model. If they're going to have a big Domo Everywhere use case, they've got to buy more credits. If that takes off like wildfire, that's going to cause them to be in a position where they're going to need to get into a bigger contract and buy more.
As an example, someone that spoke today came from a Domo Everywhere customer. They received data from one of our customers. They liked the data experience because they get the Domo experience, but it was only for one component of data. We get introduced to them because we know who they are. We have a customer that was on stage today that's paying us seven figures a year that came from Domo Everywhere from another customer. That is something that you can rinse and repeat. It's impacting, I would guess, about 30% of our revenue are from Domo Everywhere customers, customers that have Domo Everywhere as a part of their installation. That makes them so much more sticky because now they're sharing that data with their customers, with their partners. Again, that's much harder to rip out, right?
You do not want to change your—it is one thing to change your employee experience. It is another thing to change your customer experience or your vendor experience. It is definitely an important part of our business. It is very similar to what we do. It is just kind of a little different flavor. It is not like we spend a lot of extra time and R&D on it. It is just kind of a slight tweak.
I mean, we heard it loud and clear, Josh. Obviously, it's definitely more sticky. Retention rate is higher with Domo Everywhere. How about the unit economics, right? Can you comment on that topic?
Yeah. I mean, for the customers that are coming in through Domo Everywhere—so Domo Everywhere, I guess just to clarify for everybody, Domo Everywhere is our embedded analytics, right? The ability for our customers to embed analytics for their customers. That is what we mean when we talk about Domo Everywhere. That ability to embed is included in our consumption model. The unit economics are fantastic. I mean, as we were just talking about, as customers get a taste of Domo via Domo Everywhere because they are getting served it from Harvard Business today. They were talking about how their learners have a portal where they can log in and see how their company is utilizing those assets and those simulations, etc.
As those companies get a taste of it and get that hands-on experience with Domo and see the vision, it is really easy for them to be like, "Hey, I want some of the—I want to use this in my company." The acquisition cost is almost nothing for us to bring that customer on board. From a unit economics standpoint, fantastic, the customers that we are getting from that.
Do you have other agenda items that you want to present on?
Yeah. I think we had RJ next, and then Chris, and then me. I was going to bring up the end, but.
Okay. Any more questions, Jim, before we jump to that?
I want to go just back to the gross retention. What's in your control that can get it from 85% to 90%?
Tell your deals.
If we have somebody on a three-year deal, after 12 months, they're going to renew somewhere in the 97-99% range. If they're on a one-year deal, they're going to renew closer to an 80% number. There is a dramatic difference in retention rates if they're in a multi-year deal. Same thing, after 24 months, they're going to renew 99-98%. If they're in a two-year deal, then they would have only renewed at 80%, maybe less. That has a big impact. As we do more three-year deals, four-year deals, even five-year deals, it is just math because we can go and see what percentage of our business is going to be up for renewal. That RPO number is actually going to be a really important number.
We even provided some guides for this year that we see a 200 basis point improvement in gross retention coming this year based on that math and more to come. That is six months of effort to drive that 200 basis point improvement. As we continue to focus on that, it goes up from there. Yeah. Hopefully, if we are successful this year at doing that again, that will be an extra 4-5 percentage points. We will be looking at a floor of 90 next year. That is the goal.
Which would imply that CRPO will start to outpace that 5-6%, right, that you're increasing your GRR, your billings, and CRPO should be relative.
Yep. That's right. That's right. Yeah. We've provided color around. We see accelerating billings growth this year. And you're going to see CRPO be kind of a leading indicator for that.
The long-term, what that matters, right? It's 38%.
They both matter. Yeah. They both mean different things, right? The long-term is showing those, "Hey, we're doing a really good job getting our customers into multi-year contracts," which is going to have a great impact on gross retention. From a current RPO standpoint, that's going to be more of a signal of like, "Yeah, the billings growth, it's coming, it's happening." They kind of tell they're complementary to each other, but they tell two different stories.
All right. Thanks, everybody.
Yeah. Thanks, Josh. Appreciate it.
I really do appreciate it. Thank you. All right. I think we've got Mr. RJ up next. So I'll hand that over to you. You can flip through your.
All right. Sounds good. I think one of the important things to just call out with ecosystem is there's definitely an important strategy behind what we're doing. As I mentioned earlier, when Domo was built—when I started at Domo 12 years ago, data warehousing was on-prem. It was a multi-year project. It was multi-millions of dollars. It had like an 85% fail rate. Most people couldn't get their data warehouses really off the ground. People were keeping their data. When we started, there wasn't really warehousing that was available that we could go play with. We built up the entire stack really out of necessity. Josh's vision from day one has been, "Let's allow people to get data that helps them run their business, that can take action on so they can control the outcomes." We built up this stack.
Now separation of storage to compute, you're starting to see companies much, much smaller able to afford warehousing. Even departments are buying their own warehouses or installs of Databricks or GCP for different use cases. You might have a company that's standardized on a Snowflake, but their marketing department is just going to put the Google Analytics data in BigQuery. We're seeing that more and more. When we started, it was really easy for us to go in and go win these deals where it was like, "I can go spend millions of dollars trying to put all this together, or I can just do it in Domo, and I can start really small." Now the landscape has changed because now you can get $10,000 with a Snowflake or $10,000 with BigQuery.
Just throw Google Analytics in it or just throw your ERP data in it, and you're off into the races. As part of that, because we had the whole stack, we never built up an ecosystem. We didn't have to. You look at all the competitors. As we go through this, right, we've built on top of different clouds now. Now our technology can sit on all these clouds. What's really happening is you look at all these competitors. In the connector library, you look at like a FiveTran or Denodo or a Stitch. They have to sit on something. They don't have a backend. They built out partners because that was the only way they could sell. You get into your ETL tools. Same thing.
You've got to have a data warehouse or something for these technologies to sit on top of or to get data from. Same thing with the visual layer. Sigma only works on Snowflake and Databricks. Have to have one of those systems. The data's got to already be there. Part of our strategy has been, "Let's move to consumption. Let's separate out our tech so that we can charge for it independently. Let people know that we do ETL. We do connectors. We're not just a visual layer. Let's give customers the choice to be able to spend $10,000 on Snowflake and have GCP. Let's do the things that we do well. Let's sit around these warehouses because there's a reason why companies are buying these warehouses. We've never really provided the warehouse functionality.
Let's go play in these pockets that we've been competing against for the last seven or eight years. Part of the challenge has been that our reps will go into a deal, and they'll say, "Hey, who else are you looking at?" The customer thinks at introduction that we're just a visual layer. So they'll say, "Oh, we're looking at Sigma." Then our rep thinks we're competing against Sigma the whole time. What they don't realize is that it's the warehouse rep, the SI that's in here. It's the ETL rep that's in there. It's the connector rep. And it's a Sigma rep. All of them are promoting each other in this account. They're all telling them, "Oh, don't go to Domo. Don't go to Domo." That's a big change that we're making.
Now we're starting every conversation off with, "Hey, tell me about your architecture. We typically sit around your warehouse. What are you guys—what are you investing in?" We have customers say, "Well, we're looking at Snowflake." "Oh, perfect. Have you met your Snowflake rep yet? Let me introduce you." If they already have met that rep, we reach out to that rep. We're all mapped and cross-beam. We can see every customer that they have. We've mapped to prospects. We know who they're working with. Now our rep reaches out and says, "Hey, I'm selling to this customer. It sounds like they're looking at Snowflake. We'd love to partner with you." The Snowflake rep says, "Man, we'd love to have you in. That's great." We go to the SI that we got a relationship with, and we bring them in.
Now that rep, because we're working with them first, isn't promoting Sigma. They're not promoting FiveTran. They're not promoting Matillion. They're promoting Domo. It's one of the reasons you're seeing our close rate go up is because we're now embracing the ecosystem. It's bringing us into the conversation where historically we've sold directly to the line of business, and we've sold into these underserved business units. Now we're going in with the blessing of IT. Not only can we help them on the IT side, but we can actually help the business side as well, which is a place that all these warehouses have struggled. I went to a Databricks partner conference a few months back.
The question was asked at the conference, "Hey, how can partners help Databricks?" One of their sales executives stood up and said, "Whoever can help us get into the line of business is going to win." I'm over here going, "Us, we can help you. We can help you because we do it so well. It's what we've done." Snowflake reps and SEs will tell us that they'll go into a deal, and they're in IT, but they go to the marketing person and they say, "Hey, put your data in Snowflake and imagine what you could do with it." They pull up Snowflake, and it's a database. Snowflake, Databricks, they're vendors that are independent.
Sorry. Your thesis is because you work with Snowflake and Databricks, they bring you to CTO Seattle of the world, right? Why do they need help? Those guys, big guys, right? That CDWs help bring to the lines of business, right? They already got help from the top, right?
Yeah. The challenge is that if you look at a warehouse, if you talk to Forrester, Gartner, any of the big analysts out there, they will tell you that most companies only have about 20-40% of their data in a warehouse. Think about the data you guys use, spreadsheets that you have, or you go buy a software application that's not quite in the warehouse. Or you've got Google Analytics, and it's like, "We're not going to put that. It's too expensive. Just throw it in BigQuery. It's way cheaper. Google has a deal for us." We see that all over the place inside of an organization. They do not have that data together. What happens is the business users then take this really nice curated data from IT.
They pull it down into Power BI or Tableau, a desktop tool, and all the governance and security is gone. They can manipulate it. They change it. They share it with people they shouldn't. They take it with them when they leave the company. We fix that because now, again, you don't pay for licenses. When you buy Domo, you can, with permissions, open up and say, "Yeah, let these users, let these departments have access to the connector library." If you buy another competing tool, they only bought five licenses. It's not going anywhere else. That's why you see all the shadow IT in companies where, and we're in, I mean, we're in deals all the time. I was on site with a company last week. I was on with a site with another company two weeks ago.
Both of these companies have hundreds of thousands of users they'd like to share data out with. They have come to us saying, "We've got pockets of Alteryx, but we can't govern it because it's on these desktops.
Yeah. You bring more data to Snowflake.
Yeah. They're like, "We need somewhere to place this data that we can let people self-serve, but we can govern and control it." Domo is uniquely positioned there. If you have pockets of GCP, you have pockets of Databricks, you have pockets of Snowflake. In Domo, you can bring all that, and then you get to choose. When a connector is run, where does it place the data? When you're running ETL, where are you running that compute? Where are you visualizing it from? You now can bring all those systems together. When you're looking at a dashboard, that data could live in four different warehouses, and the end users would never know it. It looks like a seamless experience because we've brought it all together. We're uniquely positioned to do that.
Nobody else that I'm aware of can help serve IT and the lines of business at the same time and give self-service with governance. As you can see here, we can handle all the components. You brought up earlier, Yi, that, "Hey, they only need to sign a contract with you, Snowflake, and a vendor." I mean, I can tell you, even with just three of us in a deal, I've watched us sit on paper. The customers, all red lines are done, and we sit on it for three weeks because Snowflake's not done or the SI is not done. Now you add in there two or three additional vendors to do that, and it can delay deals by months.
The reps, even the SIs have told us, "We love that we can just go get this done, and we're not waiting on four other people to get paper done, to do POCs." It's just really seamless.
To answer your question, Yi, I think it's two simple things. I mean, there's more, but two big ones are we streamline the sales cycle, and we drive data into their platform, which drives revenue for them.
Data. That's why we love it.
Yeah. Think about it. You go into Snowflake. Let's say that Snowflake takes Domo into a deal, and we go into the finance department. Guess what? If there are 1,000 people in that company, all 1,000 people get access to the financial metrics that are important to them right from day one. If you take a Tableau into the deal, number one, you're bringing in your competitor. You probably do not really want them in there. You do not want Looker in there. You really do not want Power BI in there. Not really. That is the first thing. The second thing is that company bought 30 licenses. In order for that SI to expand, in order for Snowflake to expand, they need licenses to go first. They are waiting on other technology vendors to sell product before they can expand use cases.
With Domo, they have no worry about expansion. Everybody gets a license from day one. If you want to turn something on for somebody, it might only cost you $5 to try this out or test this out, but it's all available. All licenses, all access is completely included in Domo.
Jay, who's your counterpart at Snowflake?
We have executive relationships. Josh and I have been on site with Shraddar. He is recently leaving, but we have been on site and met with Sonny, their CIO. We have relationships. Their CRO is changing as well right now. They have actually a little bit of quite a bit of turnover there. It sounds like Shraddar is shaking some things up. We have also worked with Targ Dweek, who heads up one of their technology partnerships. We have relationships with people on our partner side. We are also mapped to over 20 Snowflake sales teams as well.
I think the 20 is primarily their new acquisition, right? Acquiring new logos. We're starting to get in with the acquisition teams as well. That's kind of another frontier that we're just.
That's right. We just put two reps over to start working with their existing customer base. All this net new acquisition.
Sorry. To clarify that, those 20 teams are go-to-market, new logo generators. You guys still have not been with legacy Snow customers that are making your every year changes.
Exactly. We just started that path. We've been in discussions with them on some Alteryx. They're seeing Alteryx, SAS, a couple of other Informatica even, where they've had a hard time getting into the cloud. They're not really driving a lot of compute for Snowflake, and a lot of customers are trying to figure out how to replace them right now. We're also working with them on some strategies on how we can be the company that can come in and help them move that spend into the cloud and manage it and govern it. This just kind of tells the story of Snowflake's really good in IT. So is Databricks, Google, all of the different cloud vendors. That's who they sell to. That's their primary buyer. We've typically gone into the line of business. It's a really good marriage. We complement each other.
We let them have the compute, and then we do all the things that we do well. I touched on this a little bit. There's also an opportunity for us, and we've been in discussions with Snowflake and some other vendors to OEM their technology behind the scenes. Today, Domo customers that sign up get a Domo backend, right? If they sign up and they're going to use Snowflake, we let Snowflake be the backend or Google or whoever. There's also discussions where they have a program that's opening up where we could actually OEM. Let's say we go into a marketing department, and that marketing department, their IT group has Snowflake but won't let them in it. They want a place to put the data. They want to do more analytics. We could potentially OEM a Snowflake backend for them.
The rep that owns that account at Snowflake would still get paid. They would still introduce us. That is where these current customers come into play really big for Domo. It is a gateway for us that we could help them get into the line of business where lines of business do not have to manage the warehouse. It is fully managed when Domo OEMs it. It makes it really simple. The IT side buys in because it is on the same technology that they have put their warehouse on.
Is that in place now?
Yep. We have current customers on an OEM Snowflake backend today.
You guys hold?
And.
When did they go into plants?
A year ago that we put customers on just to test out. Now we're in discussions on this new pilot that they've opened up too because the most important thing is making sure the rep that owns the end customer gets paid. That's something that Snowflake's been rolling out in a pilot program just a couple of months ago.
Okay. Thanks, RJ. Appreciate that.
There are some good consumption metrics here too. One thing I just want to highlight on consumption, it's pretty amazing, actually. You think about Concentrix on stage, they're talking about how they already, within 12 months, have 25,000 users and fully expect to be at 75,000 users by the end of this year. That is incredible. A lot of those other tools we had on the screen there, the Matillions, the FiveTrans, they're the kind of tools where you buy 500 licenses or 1,000. It's not 75,000. It's not 100,000. While we're not on a seat-based model, you've got 75,000 people in the product. Just the kind of demand as they get a taste of it and see what it's doing to impact their business, they're going to want more data in there.
They're going to be demanding that their BI team and their analytics and their IT team are putting more data in there for them to use. It is going to translate into consumption revenue for us. Not to mention the fact that you are incredibly sticky at that point, right? Some of the churn we've been seeing, as we mentioned earlier, we were on stable footing. It was a seat-based contract. We were in a narrow, small part of the company, hadn't been able to break out of that. We weren't part of the global IT strategy, the global data strategy. We're still been working through those weak accounts, and those have been turning out. We're replacing those with customers like Concentrix who started on consumption on day one. You can see that night-and-day difference in terms of how it's been done. Yes. Inception.
Yep. Touched on a lot of this too. I'll just add to this too. I know RJ's touched on it too. SIs, I mean, it's really hard to overstate the importance of these SIs, especially the people like Quantiphi, who's a dedicated Databricks implementer, and Hakoda, who's a dedicated Snowflake implementer. As we meet with these people, I mean, these are some of the smartest people in the entire world at implementing these products. When they sit down and actually take the time to evaluate our technology and see how it wraps around that warehouse, they are like this. I mean, one of these partners came to us and said, "We evaluated you and probably 10 other products, and it was you and no one else.
Your technology was head and shoulders above these other products that we're looking at." They see the vision of a simplified process where they can deploy solutions so much faster. We demoed a few on stage today that were done in less than two weeks. For them, I mean, that's where they know they have to go. They have to be able to quickly implement and get value with their customers and do it in a way where the customer's just getting a ton of work.
All right. They're going to be systematic, right? That's the.
Yes.
To ask more broadly, why is Domo do it much faster, more efficient?
I think, and I'll let RJ answer this too, but I think in large part it's because all of those areas of functionality are under the same roof. They don't have to log in and out of multiple tools to do all that. The SI doesn't have to go implement four different things. I mean, from the SI's perspective, they want their customer to have a seamless experience end to end, and we provide that. I don't know, RJ, if you want to add anything to that script. Okay. Chris, I know we're getting close to time here, but.
And.
Chris, I'll just introduce Chris quickly. Chris is one of our thought leaders on AI and a number of other things. He's been with the company really from close to day one, right?
15 years.
15 years.
I mean, I thought RJ was tenured, and I was like, "Wait a minute. I think I've been here longer than RJ.
We wanted to have Chris here today just to give us some quick thoughts on AI and where he sees that going. Chris, yeah, I'd love to have you share some thoughts.
Yeah. I just want to make sure I'm serving all of you well. It's probably a little unusual to have someone in my position sort of in these. I know numbers. By the way, I worked on Wall Street for a bit. I have a business degree along with some other things. To Todd's point, I think the things I can really illuminate on are why we're doing what we're doing. It's a long journey, right? There's this idea of almost like a—I was reading this interesting essay about the fidelity of purpose of the company which feels like us, right? It's like true believers, everybody.
I think if you look at sort of the evolution of things, as the world was kind of moving into these different sort of technological eras, the BW era, now into the AI era, we've been steadily kind of building that platform to solve the bigger problem. I think Josh said it at one point. If there's a certain problem that you're thinking about, you can't stop thinking about it. That's what you should be doing. That's really what we've—I think all of the stuff we're talking about, obviously, it has to have the fundamentals. It has to work, right? It has to connect. It has to have great product-market fit. We've built the capability. That capability, I think you're seeing it, is fungible, right? It's able to morph and fit very well with changing demands or different trends in the marketplace.
AI comes along, and all of a sudden, we're not pivoting. It's plugging really, really well in. In fact, it's doing several things. I think if we were very close-minded about this, if we weren't thinking about capability and adaptability, we would have just put AI and agentic technologies as another item in that left-hand column. It's important because we don't think that way. What you're getting from, I think, sensing in the room with a lot of people, it's like, "What do we do now? Where do we start? Are we already too far behind?" The platform and the way we think about AI and the agentic era is it's a shift in thinking. They do the same things we're doing, but it's reducing the complexity.
You talk about one of the challenges with a platform is it's hard to sell because there's a lot of stuff, right? As you're marching along, adding all of that capability, you're also adding value. At some point, the complexity is starting to challenge that. Now, all of a sudden, we have an ability to create, let's say, goal-oriented experiences versus task-oriented experiences, less dashboards and more answers. We do that. We are starting to do that. The ability to create—you were talking to Todd, which I thought was great—the kind of scale that we have with companies like 175,000 people. In the past, it would have been a lot of people to maintain customized experiences, dashboards, dashboards within dashboards, cards within cards, right? Apps within apps. It goes on and on and on.
All of a sudden, we have the tools to be able to create truly personalized experiences, which is, "Hey, we're away for two weeks, and we know you care about this, and we know this is your role, and we know the status of what's changing in the business. Here's what you should catch up on." When it comes to sort of the agents and what you saw, just to echo what you and RJ said about some of the partners, I worked directly with some of those partners, like Quantiphi and Hakoda. It was interesting to see how just going through the process of taking an idea, putting it into action on the platform, really changed, I think, their expectations. There's this certain expectation of what is possible.
Seeing the power of an integrated ecosystem that allows you to inherit all of the goodness, the governance, and the compliance. On top of that, I think customers are starting to see the importance of that integrated ecosystem along with the need for greater observability. Because it was great when you had, to your point, you might have 500 people on Informatica and FiveTran, and I don't know how many you might have on Snowflake, but your CEO is not logging into Snowflake. They're logging into the data products that have been created, the experiences that have been created. Now, all of a sudden, I think next, where the puck is kind of going in this case, is that integrated platform becomes more and more critical. The observability of your data quality becomes more critical.
Because you're going to want to be able to say, "Well, it's not just a dashboard that's not loading. It's like, well, wait, we want to stop this workflow. We need to put a halt on this automation." You guys have talked. You can go build all of that stuff outside of Domo, and that's fine. But you're essentially going to create the same problem with new technology. It's like, where's the data going? Why is it so complicated? Why can't I share it? How am I in the business of trying to maintain? How do I integrate it with this other thing that's adjacent to it? Josh talked about being in a few one-on-ones. I just got out of one before I got here.
It was interesting to see how companies are starting to see new opportunity in this long tail of problems that just a year or two ago were not possibly solved by technology, no matter how complicated. I think that's pretty interesting because if these large language models and these agentic technologies required fire up new kinds of servers, and then you had to learn Python and a Kubernetes cluster and stuff like that, we wouldn't be having conversations. All of a sudden, you're able to solve problems that were only a short time ago intractable, by just describing what you want. That's very different. These agents are great at planning using tools. Domo is the most sophisticated data toolkit on planning. We can leverage that and use that. I think were very difficult before it required a lot of things that didn't scale as easily.
That is why we really felt it was built for this moment. The fact that people usually show up to live conferences anymore, I was shocked. I think that's great. There was a lot of—it was just elbow room only last night. As someone who's worked in design and building applications, I don't really pay attention to what people tell me. I pay attention to what they do, right? What's the reason? That's what I do.
Chris, on that topic, I think you spoke at the CS conference back in 2020, and you did a great job. One of the things I remember is, "Hey, we've got this new partnership with Snowflake." I guess here we sit, four and a half years later, and we're talking about this Snowflake partnership, which is not to say I don't think it's going to be a great thing, but why hasn't it delivered to date what we thought it was going to do back then? Presumably, part of it is that they perceived you as a competitor. What else can—again, why is this time different?
That's exactly right. I mean, I was involved in the first Amazon deal we did as a partner. We got into the deal, and two weeks into it, the Amazon rep calls me up. It was one of my reps that I was running at the time pissed because the customer told them, "We don't need AWS anymore." The problem is that they had the right strategy; they had the right mentality to go partner. They didn't have the right technical strategy. The difference is that we have now removed our backend, and consumption pricing is different. If we would have partnered back then, we had no way to monetize anything except for licenses.
If you can go get Domo's unlimited ETL connectors, workflows, and everything, and buy one license and get unlimited everything for that, and then I'm just going to go buy Tableau, we would have been cut out of the conversation. We had to first migrate to consumption, allow us to make money on the products and things that we do well, and then we had to open up so that we do not have a backend anymore. Now we are promoting compute inside of these clouds instead of taking it from them. That is the difference.
It really feels like the consumption pricing model. First time, I was so excited from a design perspective. I would do care about it. Care about it because incentives matter. Aligning the incentives with the product experience is crucial, and that was always felt like somewhat at odds. It was less than the future.
Chris, just on the design as well.
Yeah.
What is the future of—where's the puck going in terms of the design?
I love that.
What do you think? Looking at the portfolio at Domo, what do you think? Where's the puck going?
Yeah. A few points to talk about on that. One, we care passionately about our customers and them being successful at all different levels. In fact, from my design team standpoint, you can go down to the pavilion. They're there interviewing customers right now. How's it going? What are you doing? What's not working? We're always making improvements to the platform from a usability standpoint. There is an inherent challenge in that it is just wildly complicated and future-focused or built, right? One of the things I think is important is sort of the idea of this AI unlock, is that all enterprise software is characterized usually by the burdensome navigation. It just is because it's more than one thing, right? Or usually, it's several things. It's also not designed to be used by everybody in the organization. This is what's changing.
This is where I think the puck is going, which is that agents allow us to create new kinds of experiences. They allow us to reduce the complexity. They allow us to go from a very tool task-focused or centric kind of experience to a very goal-focused one. You are going to start seeing AI agents show up in lots of different pieces for the creators. Let them do their work better. Then being able to create—start to see a little bit on stage today, and you will see tomorrow—allowing us to create customized agents for everybody. These should be very easy to create. We are seeing agent builders. The difference there being agents are kind of more designed to do automations. Assistants are designed to do what we call AR for you versus AR for assistants. Does that help?
Yeah. I'll give Chris a quick shout-out too. I mean, I probably use 10 to 12 different software, enterprise software products on a weekly basis at least. Getting so used to the design and the ease of use within Domo, it just feels nice to be in there. That's a huge credit to Chris and his team. It's kind of ruined me on any other software product. I'm like, "Why does that look like that? Oh, that's so clunky. Why do I have to click five times to get there?" I just feel like Chris from day one has just done a fantastic job making sure our product is smooth, intuitive, and will continue to be that way, especially as you enter into this agentic AI era, like you just said, making that very approachable and easy for creators to leverage.
Yeah. I think we're very excited about it because in many ways, I really appreciate that. I mean, we all know the reality. There's a lot of work left to be done. I would say from a person who's been working on designing other enterprise startups and lots of other enterprise software, it's sad to say, but it's true that everything I've ever done has been complex, right? Because it has to work for you, and it has to work for you, and it has to work for you, which means it's not working really well for anyone, ideally. I think that's starting to change. You're going to see that changing. That's going to happen faster. There are new models and design patterns for that. It's going to go well beyond chat.
Nowhere on overtime. Just three quick ones.
No, you're great. I think we've got until about 3:25, so we can go until about 3:25. Yeah.
On the Databricks partnership, as well as other things I saw, like with Nestlé or Oracle partnership, if you hire for the Snowflake guys, right, the specialists call it, the skill set is not the same, right? The question I'm trying to get to is, how much extra—is it a different skill set you're going to have to look for, obviously, because it's a different platform? How does that impact the financial side?
I mean, I think my general philosophy is I think that where the market's going is I think that you're going to see reps long-term that are more technical than they are today. I think customers get more value out of reps that are a little bit more technical. It doesn't mean that we're just going to go hire technical people only. They need to have both sides of the fence, both skill sets. But I'm always looking for reps that are smarter. We've got lots of reps from Snowflake and Databricks that have even reached out. We've got a rep that was at Domo a little while ago, was at Databricks for a while, and wants to come back to Domo that we just hired back. So we're looking for those opportunities as well.
Yeah, we definitely are always going to look for reps that understand architecture and kind of can play in this new world that we're moving towards.
Yeah. From a financial standpoint, I mean, again, I'll mention the scale of our revenue. I mean, we'd love to be—revenue would be much higher than we're able to say, but $300 million in revenue gives us a really nice base to work with, where I've been calling this the year of threading the needle from a financial standpoint, making sure we have the right resources in place to capitalize on these key opportunities, capitalize on AI, and make sure we're doing adoption, and make sure we're capitalizing on the ecosystem opportunities. We've been able so far to find ways to put the right resources in the right places without putting ourselves in a major cash flow deficit. As I look ahead and look at our models, I feel like we can continue to do that.
Not only that, but expand margins modestly at the same time. That is the goal, and I see a path to being able to do that. RJ and his team have been great partners in terms of how we make sure we are making the most of every dollar we are putting into the company. I think our sales rep productivity numbers, the traction we are seeing with leads, and the pipeline from partner, that is all bearing out like we expect it to.
Yeah. Second question is Snowflake over here. Audrey, you spoke about you guys are friends, obviously, right now, partners with Snowflake. What happens one day? Because in the last call, our CEO of Snowflake talked about, "Hey, they do more work on the injection side." It's good that you're helping them. You scratch their back. They scratch yours, right, in this situation. What if they move more to the data injection side one day?
They could. Just like, I mean, Amazon does it. Google does it. Microsoft does it. It does not stop us from partnering with them. I think that as much as Amazon, you can buy Amazon Glue for ETL. They have a library of connectors. I think in general, I think those companies care about their customer experience as well. I think we will be able to play in those sandboxes. There are lots of different partners that are out there. If one of them moves, not all of them are going to move. Even if they do, I think that what you will find is that our connector library is extremely more robust than anybody's out there. It would take them a long time to go compete in the connector space.
How long do you think—let's guess estimates, right? You guys have over 1,000 connectors, right?
Yeah. Next closest is like 500. And they've been in business for years and years. They're trying to grow their connector library. It's just not as easy as people think it is. I think that we have a competitive advantage. Even if you have a couple of connectors in Snowflake, for example, you're probably not going to have them all there. You have to figure out where you want to manage all your pipelines. Do you want to manage them in four different places, or do you want to manage them in one place? I think people are willing to pay if they can have a better experience, and they can manage things in one location. We also have other technologies that they can use us for as well.
Then my last question is, when I was talking to customers, it's probably the mid and SMB side. They're actually all in with Domo because of customers that love your web analytics. Obviously, probably Josh plays a role, right, armature from the experience. For these customers, they actually want to go all in end-to-end with Domo, right? For these customers' type, right, it's great that you revamp your strategy to play nicely with Snowflake, right? For this particular couple of them I spoke with yesterday, it is, "Hey, we want to use it for end-to-end with even store side," right? How do you balance that for those customers? The reason she said is Domo is so easy to use and so cheap. That's the feedback.
Yeah. So I think it's about customer choice. We're not forcing customers into a particular warehouse. We still have our backend. We could choose to start putting some of that backend more on Snowflake and some on Databricks. We could spread out so that we're protected and that we're going in on several different partnerships. Long-term, what we're seeing is that those customers eventually, somewhere in their data strategy, eventually want a warehouse. We're just trying to make them aware that we can still be part of that strategy. Got it. So.
Okay. We've got about one more minute here. The last questions. I think from the finance standpoint, we've touched on a lot of the points I wanted to make: the improving productivity, RPO, multi-year contracts, and that impact that it's having on the business, being focused on both growth and profitability, and then the consumption. Prowess, we're making almost 70% of our AR on consumption. We've touched on a lot of the things that I kind of had as part of the finance section of this. Any final questions before we join the meeting? Okay.
Thank you, guys.
Wonderful. Thank you all for coming. Appreciate it.