Hello, everybody. We'll get started. For those online, the general session ran a little long. We had Drew Brees here. He was kind of fantastic, I think.
I didn't know he's such a nice guy and a good quarterback. We're glad you can make it here today. We have, I guess, two purposes today. One, we certainly have content. We'd like to get you give you some more insight into our go to market and our kind of platform play, so to speak, in addition to that.
But this is also a great opportunity to introduce you to other members of the management team, starting with the go to market team, the sales team. They've been on board. I kind of joke, Dean's almost off probation. And what I tell them in a recurring revenue point of view, I said, look, you will now be on auto renewal as opposed to opt in. Every three months, right?
Every but no, you'll be auto renewal at this point. And but again, thank you, and I will let me review the agenda with you. Before I do that, we will be making forward looking statements. They never come exactly true. So just be aware.
So here's the agenda today. So I'm just saying hello to you now. We'll go right as quickly as possible. We'll get you to the go to market team. It's really Dean, our Chief Revenue Officer, and our whole sales leadership is here, which includes North America Enterprise, North America CommercialCorporate, our EMEA team and our APAC team.
So all the leaders are here. We will then go just cover the power of the platform. You got a taste of it already. Apps is part of it, but there are other elements of the platform that matter from a go to market point of view. And then we'll have the technology team come in and go deeper into the platform and what it means and what the components are and fundamentally how we play nice with other technologies and how we fit in well with other technologies.
I'll cover just a brief summary of kind of the financial themes, pretty much a lot of what we already covered on the earnings call, but I'll just review that one more time, and then we'll leave it open for Q and A. All right? So with that, let me hand the mic over or he's mic'd to Dean Jeremiah, who is our Chief Revenue Officer. Thank you, Bruce. Welcome to the investment community.
And here's a good. So maybe a second on your background?
Yes. So first and foremost, thank you so much for coming and investing your time to get to know us a little bit more. My name is Dean Germer. I've joined Domo I was actually at Domapalooza last year in an interview capacity. I joined about ten and a half months ago.
The last fifteen years prior to Domo, I was at, SAP. My last four years at SAP, I had about a $1,800,000,000 group.
I was responsible for all North America sales for their services group. So everything that I've been doing for the last fifteen years has been
at the enterprise level. SAP really only had direct sales calling on billion dollar plus companies. And so I'm excited to share what the team has been able to do over the last nine months and kind of the direction we're going. Just as a quick kind of a responsibility standpoint, I've got a responsibility that spans kind of all the inside sales, the go to market for all sales and AEs, the renewals team, the services team, tech support, customer success and education. So we really have an end to end view of the customer life cycle, and we are absolutely focused to make sure that they're crazy successful given our land and expand strategy.
Bruce, is it which button goes forward? Grain. I guess I can try, but I might ask you if you know.
There.
Go like this. This way.
Thank you. Okay. So what I wanna talk about is kind of the major transformation levers that, when I first joined, and and I actually did an investment, an analyst call with Bruce probably forty days in or so to my time here. What is the journey we've been on? If you think about Domo as was maybe eighteen months, two years ago, the the motions were focused on a very heavy marketing spend that had a tremendous amount of inbound leads coming in.
And that was serviced more by remote sales, but and and that was typically at a slightly lower level in the company because those inbound leads were form fills. They ended up in with more activities in slightly smaller companies. And there was generally an avoidance to try not to tangle with a CIO because in that land and expand strategy, the the motion and the conversation with CIOs often proved deadly early on. The motion was more about landing and almost becoming shadow IT versus selling and doing the platform. And my comment would be is what we've done, and we just kicked off our fiscal year here in February, is we now have a very specific set, an ideal customer profile.
That's driven primarily by putting all of our marketing and sales efforts into companies that have $250,000,000 in revenue or more. The outbound marketing now is extremely targeted at a named, target list. So we're taking kind of all the power of Domo and pointing it in a much more consistent and deliberate way. The reps that are being hired tend to be in geo, so they're closer to customers, can have much more customer facing time and activity. And we're targeting with our messaging, with our sales motions, end executives in the companies to hook on to bigger problems.
And we're we're not shying away at all from CIOs. In fact, we're we're embracing CIOs. We find them to be critical to bless us so that when we do land, that it's allowed to grow. It's got sun on it. It can get water.
That that That initial land is allowed to grow, and it's sanctioned. And the sales team, we really modeled the success that Ian and Paul had had in our international sales committee. They own that end to end customer life cycle, and that's now both with, Jeff, who runs our corporate business and Jim that runs enterprise. They very much look over that end to end life cycle of a customer. I want to now talk about what does it feel different if you're a customer?
How is that changing things in the field? So we saw at the beginning or when I joined is that the biggest fight we had was almost trying to get out of the Power BI, Tableau, VizBox comparison. And in order to avoid IT, we would land in departments, and we would probably have a small footprint. So the departmental buy wasn't a big enough dollar amount to necessarily require us going and getting full enterprise approval and certification. And we were landing with per seat pricing.
And what we're now doing is walking in with a completely different value prop story and entry point. And we're we're talking about you know, this whole theme today or or over Domain Plouza is the power of the platform. If we walk in with the power of the platform and we're talking we're hooking to critical digital transformation initiatives, you know, the product is so robust now. We have so many ways to show that we're so far outside of that box. The apps that we can build, the fact that there's AI and ML, the fact that we can publish to customer suppliers and to their customers, it allows us to really go from shadow IT to a fully endorsed IT supported platform, and that really allows things to spread rapidly.
And so we're we're basically landing somewhere with a very strong value prop that's probably departmental in nature, but showing what the platform could do for everybody. And now what we're talking about is what is the rate of speed on that journey you can go on. It's it's but they're not they never thought that where we land is the ending point. They think it's just the beginning now, and we have an opportunity to say how fast can you consume. And so what's happening was customers are piloting couple thousand seats, wondering about tens of thousand seats.
And that's an enormous transformation over the last, I would say, two quarters where companies are jumping in and saying, okay. I see the vision, and I now am gonna try these much larger programs and projects. We're also experimenting with platform pricing. We find that the we've built a CIO council to help guide us, And that CIO council has given us a lot of good feedback around this platform was built for everybody in the company. That was always Josh's vision.
But if you've got a very, very, very steep per user price, it's only sprinkled out to limited. So if you walk in now with the CIO's approval and you talk about an enterprise wide platform and a very, very clear path to roll that out as fast as possible, it's a completely different dynamic than when you were locked in at a very high seat cost in a small department that wasn't approved. What we're also seeing, and we're going to talk next and have each of the sales leaders talk about the changing things. There's not really a budgeted Domo line item in most IT budgets right now. So we're not there yet.
But what we're seeing is a fierce return on investment. And Forrester, did something called the Total Economic Impact Study, showing about a 432% return on ROI and a payback period well under a year. We are seeing great power when we position everything on the right for them creating and opening up budget in a way that is a lot different than when it when we were walking in with a very high seat cost and a very departmental use case. So what I'd love to do is have, Ian and Jim, Paul and Jeff, please come on up. Let's do quick intros, and we'll what we're going to do now is just talk about a couple, real world example deals to give you a sense of what's the business shape look like now.
And I'd say before we jump into this specifically, we've, implemented a lot of sales training so that every person that touches a customer across all North America, across all Europe, across all APAC now has a consistent, set of training, consistent set of tools to kind of live by the things we just talked about. So let's do a quick intro. Jeff, maybe you start.
I'll start and then do my thing and
Yes. Yes. And then we'll hit.
Alright. Nice to meet everybody. I'm Jeff Skousen. I've been with Domo since the very beginning, so a little over eight years. So I've enjoyed this ride.
And so I wanted to cover a couple of things today, a couple of use cases or or recent sales that highlight some of the things that Dean was talking about. This first one with a large home automation system, we had landed in a sales and marketing use case. And they, I think, were using Tableau at the time, couldn't get the traction with the business users. And so they were loving what we were doing but couldn't expand in their organization because we were getting roadblocked by the CIO. So he came to me one day and he said, Hey, I need some help.
We're trying to build out this app so we can put it into the hands of all of our sales reps that are going door to door to see commissions and everything. And I and asked if we could please make an introduction because our CEO knows their CEO. And anyway, through that, we were introduced to their CIO and went in, and I believe it was Darren and Josh and I went in and talked to her. And she opened up and said, hey. I thought you were just a data visualization tool and that you couldn't do what you were doing.
And so, you know, similar to what you saw today, what Josh outlined, we outlined with her, and and she said, I had no idea. I've got a bunch of things you guys could help me out with. And so we were able to land a really nice contract on an app to enable their sales force of 2,500 users. So it's an example of landing departmentally and expanding throughout the organization and really doing an enterprise type deal with this company that and this is the corporate space, right? So this is a large deal where we're focused mainly on companies that are $1,000,000,000 and below.
So this one was $5.56 $5.38 ks on this one right here. It's what it ended up at. So very nice sized deal for the corporate space, way higher than the average had been when we were talk when we're just looking internal use case. The second one, it's a leading marketing a content marketing company, and they were actually using Looker. And what they wanted to do, they they they cover large enterprises on this next company, and they wanted to extend their platform to all their customers.
And we've had a product for years that we've been working on called Domo Everywhere. And this enables us to extend and enhance our platform to our customers' customers. And so they wanted to look very good in front of their enterprise customers, and there's many big customers that they're servicing. And like I said, they were using Looker in house. They started looking at Tableau, Sisense, and a bunch of other companies to see if they could extend what they were trying to do.
They're really trying to they were really trying to retain their customers, and they needed something that looked very good and also could scale with their needs. And so in most of these decisions, they're trying to do build versus buy. So we're dealing with our technology groups. And in that one, we ended up landing at, a 400 just over $400,000 deal, which seemed like a no brainer for them when they considered what they would have to do to go, you know, build a data warehouse and, you know, do all the things to scale this to all their customers. And with Domo, we were able to implement this within about a month.
So just a couple of examples of, in the corporate space, do some very large deals, and we see this over and over again. We just landed another one that's not up here this week for another couple 100,000 trying to do the same thing, a little smaller use case, but these deals are getting very large, meaty deals in our space, which is something that we hadn't really planned on expected, but it's coming forth.
Yes. I just want to make a few more comments and then have Jeff comment, which is when we turned the knob on digital spending down and we shifted from kinda, you know, outbound marketing and and filtering leads, his team really had to go into a hunting mode and had to go out and really generate there a lot of demand. And what was amazing is, you know, when you're pointing where you're gonna go, Jeff's been able to point his team at the upper end of his spectrum. So they own the 0 to a billion dollar revenue companies, but everybody's pointed at 250,000,000 to a billion now. And so I wanted to make sure we highlighted the the size and the potential of this installed base.
And if you saw Domapalooza earlier, our platform can almost be a wall to wall solution, the data lake, the ETL tool. It it it literally for companies in this size, it can be an amazing, unique platform to go wall to wall. And I think we're gonna learn how to kinda land and go rapidly. Any other comments you have? Yeah.
I was just gonna say if you saw that that graphic that showed overlaying on a big company, a midsized company, and a small company or a smaller type company, like, we can sometimes be their entire platform. So they see it very, very valuable because they don't have some of those components that some of the enterprises have.
That's exactly right.
Thanks. So I
was gonna Jim, I was
gonna have you maybe share some comments on enterprise, a couple deals that yeah. I think you got the deals on the right. I'll share
with them
on the right.
Well, I'll I'll introduce myself as well. So Jim Kowalski. I lead the enterprise team here at Domo. I'm the new kid on the block. I've been here about nine months or so, I guess.
Just a a kind of a quick little bit of background. I I did a stint at MapR in the big data space. We during my tenure there, we grew about 49%, and we did a c round before we before we completed that. So got that done very well. Prior to that, I did I was at Marketo in a a very similar role.
I don't I don't know if you've heard this story before, but when I when I joined Marketo, about 720 750,000,000 in market cap. And the comment was from the street was, we need to grow our enterprise business because we had too many one year deals. There there's a lot of pressure on renewals. We had high customer acquisition cost. The company was selling exclusively in the line of business and needed to get to IT.
And, you know, stop me anytime if you've heard this story before. Right? So I joined Marketo. We're about 780,000,000 in in market cap. I ran the enterprise team there.
And sixteen months later, we were acquired by Vista Equity Partners for 1,900,000,000.0. And so that's kinda through that journey. And then prior to that, I did 47 quarter ends at Oracle. So for those of you not in the Oracle world, that's that's ten years ten and a half years. So I had a, you know, a a a pretty good breadth and depth.
Right? And what we're doing here from an enterprise standpoint, you know, I I think, first and foremost, just kinda organizationally, is we're simplifying a little bit. So we we were able to to to move, you know, quite a few unproductive heads and and just kinda simplify from a regional standpoint, get closer to the customer. So we took a took a lot of the focus away from headquarters and more in front of the customer. And as Dean said, that that full customer life cycle.
We're we're we continue to we've we've moved some, you know, sort of, I guess, call point solution people out, and we brought in more more enterprise capable platform sellers. And, you know, we're already we're already seeing some some dividends. So I wanted to, you know, just kinda point out a couple of stories here. I'm gonna start here on the in in this corner, the auto parts retailer, because it's a it's a great story. It's a microcosm of of really Domo.
There were two executives that were Domo customers at another organization, and they moved to this retailer. And the first thing they do is they called their old Domo rep and said, I wanna do the same thing again. I wanna buy Domo for my division, and, you know, let's let's bang this in and not tell anybody. And, so they they had about two conversations, and the CIO got word of it. And so, you know, we got I got the call and said, well, the CIO sniffed this out.
And, you know, you look at the CIO's background, certified Oracle executive, sits on Oracle's BI committee, the SAP HANA advisory board, you know, you name it. Right? All the all the big names. So we went in there, and we met with that CIO. And we about ten minutes into the presentation so we, you know, we were kind of loaded for a confrontation.
Right? And about ten minutes into the presentation, the CIO got up and walked out. So you tend to not wanna have that when you're selling. Right? He walked back in five minutes later with about six other people, and he said, you know what?
Based on what I had previously heard about Domo, I thought you were just another effing biz tool. He didn't say effing. We're in the Northeast. So I thought you were just another effing biz tool. He goes, now I get it.
I see what you guys are doing. I needed to bring more of my organization to to see what goes on. So a very lengthy conversation about the platform, what it does, all those kinds of things. He literally turned to us and said, alright, you're an Oracle guy. He turned to me and said, you're an Oracle guy.
How would you architect us with HANA and Oracle OBIEE and Exalytics? Since we we drew it all on the board, They the CIO went from being our biggest antagonist to our biggest advocate. Two weeks later, we so we had already loaded their data. And two weeks later, we got on a touch point call with them, and he said, we've been able to merge data from so many systems. He said, we've been trying to do this in Oracle BI for over five years, and we did it we did it in Domo yesterday.
And so that CIO at when we did the deal, economic headwinds, the the that company shut down a number of stores, and they announced in their earnings call that they were gonna shut down a bunch more. They turned to the chief operating officer and the CIO and said, which store should we shut down? And the CIO said, I gotta buy Domo to be able to tell you. So so, you know, I'm able to resist the economic headwinds as well. It's a it's it's truly it's a land and expand, but it's a different kind of land and expand.
It's a platform land and expand. So instead of going into one department, we're now at the CIO, and we're already continuing to expand within that organization. So I think it's a great story. Kind of staying on that land and expand, You know, we had a we had a customer who's a a big Einstein user in the in the Salesforce world. Very, very similar conversation.
We're going down the road with them. And about two weeks to go at the end of our year, they their CIO announced a major restructuring freeze on all spending. You know, you guys all know the drill. And in a typical software world, I've you know, in all my time at Oracle, I'd see those all the time. Right?
And those deals never they they die and never come back. Our sponsoring executives stood in front of the entire management board and said, last year, I was the only guy who made my number. And the reason I made my number is because I used Domo to run my business. If you guys truly wanna do this restructuring reorganization, you gotta deploy Domo across the entire executive team, and I'll put my job on the line. Because c a CEO saw it, CFO saw it, said, you alright.
Here on. Let's go. And they're now deploying Domo as part of their reorganization and transformation. So you start to see we're changing. We're moving up the food chain.
We're going broader. Continue as I said, I'll give you another quick example. Just some of the folks we're hiring. We we had we had a a rep start last Monday. And, you know, when you're when you're when you bring somebody in he's somebody from my network.
When you bring somebody in and you start getting phone calls from other people, you never know what you're gonna hear. Right? And I've I've already heard this rep drove a a a deal strategy call, and he's already owning it. Yesterday, that rep so now this is day eight for this rep. Yesterday, this rep gave a presentation to a customer, and one of our solution executives who solution consultants who's been here since the beginning of Domo turned to him and said, I'm calling foul here.
There's no way you started last week. You gave that presentation. You've hit all the customer points. The customer is very complementary. So that whole thing about ramping up, getting to speed, being able to address the volume and articulate the platform is really the big piece of the transformation.
Your turn next, buddy.
Hi, everybody. My name is Ian Sikul. I'm responsible for the European organization. I've been with Domo for just under three years. A bit about my background, I've been working in cloud technologies for probably thirteen, fourteen years from from the early days and, worked with organizations such as Adobe prior
to
working for Omniture. And then my last four and a half years was at Oracle following the acquisition of another smaller cloud company. So I'm pretty familiar with the small startup mentality and how you build and grow as well as the, multilevel super corporates that are out there. The European organization had great success over the last three years. It's been going really well for us.
We have been focusing the same as the other guys really on enterprise and value. That's really where we've seen a lot of the success come from, which is actually looking for specific use cases where there's a a business problem that they haven't been able to solve, and Domo is able to help them with that. And then we can show the value to that, which then obviously brings additional opportunities within inside those businesses as well. And we're seeing good strong use cases in digital marketing, which is a classic because of the complexity of the market, but also in supply chain and also in forecasting planning. And there are really three key areas where we're really seeing a great deal of traction in our enterprise clients, where they've been struggling with not just the volume of data, but being able to do something with that data and also utilize that data for other purposes as well.
So the reference we have up on here is actually a market research company. It's one that's largest in Germany. It's the fourth largest in the world. And we had recognized from a previous deal that we had taken from a different organization that they had value in the data that they held and that they were able to sell that to their clients to be able to pay for the infrastructure. And Domo Everywhere is a perfect model for this, where we offer some really cool functionality to enable not just the delivery of information but also interactivity with that as well.
So once we saw that use case, we decided there's going be more people who have data who could use that. So market research was a natural starting place for us. So we engaged with this organization, and they were having the classic challenge of digital transformation inside their own organization. They were experiencing challenges with their ability to put all the information together. This is point of sale information, so it's a lot of data, and it comes in a very strange format as well from all different providers.
And they had a program ongoing to build out their new digital format. And as part of that, we started to work with the team. We found the business owner. We demonstrated the value of how JoMo can bring speed and agility to this, and we landed a pilot. The pilot went incredibly well.
As to Jim's point and also Jeff's, the the ability once Domo's in to show return and value quickly is just immense. And from there, we build additional sponsorship. We then start to build out our network inside the organizations. We found a receptive ish CIO in the organization because they're trying to build this. But again, the platform and the way for us to integrate with their existing infrastructure and their existing architecture and then to be able to build out a program and able to have a very nice deal in the last part of Q4.
The beauty of that success is that momentum breeds success. So once you find a value proposition inside these organizations, maybe it isn't supply chain, the beauty is that then you can start to talk to the marketing or the finance or to the other departments because you then become a trusted adviser as opposed to just the platform. And what we're starting to see from local areas to real interest. Everywhere is receiving phenomenal traction. It really is something that people are struggling with, the ability to distribute data and to be able to still control, manage, secure, and authenticate whilst governance is a key there.
But then also with the new data science releases as well, the ability for somebody to actually look at a set of data whilst it's inside our platform or while we're collaborating with other platforms and just analyzing the data to see true value. And the one of the examples is forecasting accuracy for an organization, a big consumer product group. They had a challenge with their forecasting, and we increased that productivity by 10%, which means there's a net increase in the amount of stock that they have to promote or provide to the stores. So that gives us a great use case that we can build more value propositions to go out and talk to other organized like automotive, where you have a lot of dealers and you want to report to dealers. And they're usually very traditional manual processes where you go with sheets of paper, you take pictures, you go back to the central office, and then you upload them.
With Domo, we created an app. It's on their iPad. They go to the dealership. They take a picture. They do their Net Promoter Scores.
They do their reviews. They click submit. It writes back automatically to their systems, and everybody's happy. So that's not only optimizing the process. It also means that organization can now do it more frequently as well, which means they can put more governance and more control.
So just great traction. And the final part for me is a great deal of interest and activity on our application framework as well and the ability for us to, again, build on that, the complexity that we hide from organizations and put on these discrete niche applications that really solve specific business pains to specific people, and there's plenty of opportunity for us in that area as well to continue with. Tim?
Thank you, Ian.
Paul? Afternoon, everyone. My name is Paul Harropin. I run Asia Pacific and Japan based in Sydney when I'm there. I've been here just over four years.
So I was the first person working out of a coffee shop in Sydney as we're building the organization. We now have people across five countries and customers in many more from Australia, Indonesia, Malaysia, Singapore, Japan and China. We've found that across that base, small, medium and some of the largest corporations in the world all have a very similar problem, which is lots of information but no way to actually distribute that to decision makers in a time frame that allows them to use that data to change the course of the business. They normally pick it up six weeks later, by which point it's just a data point, and they can't really do too much with it. I chose this customer example for a couple of reasons.
One, it's government. And two, we engage pretty effectively with the CIO and IT. So we were lucky enough that one of our great salespeople is actually the Minister for Finance in the largest state government in Australia. He shows everyone Domo. He runs the Department of Finance with Domo and is a great advocate on LinkedIn as well.
But one of the departments there, the Department of Transport, through their Trains division, was having a lot of challenges. We're using IBM's Cognos. The business were becoming frustrated that it was taking up to two months to get information, a lot of political pressure within there as well. So we got an introduction both to the line of business and the CIO at the same time. The CIO cottoned on very quickly, like Ian's example, to the value we could bring, but most importantly, the time to value because they've been trying to do something for, you know, at least two years, if not more.
So they paid us to come in and do a proof of value. We were able within four weeks to show them a very structured pilot that hit many of the things that they were trying to show the business and had been spending so much time trying to do. They then signed up Phase one, which was a three year piece of business over $800,000 And we're well into that, not just on our own, but with one of our partners, Deloitte, well. And that's progressing extremely well. The customer is very happy.
The line of business is engaged and also has started another project on their own that they wanted to do separately to IT, but all using exactly the same platform. So we got through all of those concerns that you would think comes up with government, which is particularly data security and governance. And across our region, we have the three areas that are particularly focused on things like that: banking, telco and government. And we have large examples of some of the world's largest in each of those verticals across our region. Thank you.
Bruce, I'll just take one comment, which is we wanted to really kind of highlight some of the deals getting done, size and magnitude, both in Jeff's business globally and particularly in enterprise. And realize that as our team sees this happen, they're like, we hadn't really gone up to enough customers and said, let's have this enterprise wide conversation. And so that is something that after Domapalooza, after the way we're launching Power the Platform, we got a lot of work to do in front of us to go help everybody see how to migrate from a point solution to wall to wall Domo. So thank you. Back to you, Bruce.
All
right. Thanks, everybody. Well, we're going we have a Q and A section at the end, so we'll just hold our questions until then. So let me keep this moving. Let me introduce Jay Hegler, who's our chief strategy officer.
So these guys did such a great job. They told half my story. So I won't have to be as verbose as I once was. And really, everything that we do is built right on top of that platform. So following me is gonna be the product team, and they're gonna go into greater depth about about the platform itself.
But I just wanted to ground everybody in everything I'm gonna talk about now with all the different additional products that we're working on and put out in market. It really is predicated on the fact that your data's in the platform, and you're leveraging all the tools of the platform. So I wanted to be concise and expose you to three things that I think are really unique about Domo and the offerings that we have out today. So the first is Domo Everywhere. And two years ago at Domapalooza, we launched this new product family.
And really what it was, it was our first foray into distributing all of your data that you have inside of Domo externally. The first product we launched was Embed. We have a couple different flavors of that, where you have authenticated or public. A year later, so this past September, we launched something we called Domo Publish. And Publish, at its root, is basically the ability for Domo to provide our customers with monetization as a service.
And what we mean by that, and this is what Ian was talking about, is when you have the data in Domo and then you have all this rich data that your customers are asking for or they want to interact with it. Domo's turned into the platform somewhat of a data exchange, where we help to connect customer and customers of customers to share their data. And we have many, many, many examples of that. So just since the time of launch, which was in September, this has been one of our fastest adopted products that we have out there. And what's really unique about this is we actually have customers that are building entire business models off of that, which is a super unique capability for a company like Domo.
The second is data science. And we spent a lot of time this morning, as you all saw in the keynote, on data science with artificial intelligence and machine learning. Our spin on that is so unique. And I realize here I got a bunch of build slides on this. What I like so much about our story of data science is we're trying to democratize data science.
We're not trying to be the one rich tool that the small number of PhDs that are out there in the world that they consume and live in and breathe in every day. They've got their own set of tooling that they're comfortable with that helps power their day to day life. We want to help them make them more successful in the organization. There's such a global shortage of PhDs out there that if you've got the PhD or PhDs in your environment, your office, we want them to be able to build these models, train these models, but then also have data sets that continue to refresh and update when the data does that they can build data sets off of that then go to visualization through all of their company. And that's unique value proposition.
So it's enabling the data scientists. One functionalities of that we have today, which is to support custom scripts, and what the team talked about today with the ability to support Jupyter Notebooks and SageMaker integration, what we've now done is we have the ability for a customer to build and train these models, really sophisticated models that could take weeks, months, or years to create, and to run those as managed code in the Domo platform. So just think about that. How different of an environment can you operate in now where you don't have to run this outside of Domo, which people could do on an R stack, and then take it and then bring it into Domo, rather just execute that inside of Domo. And then the SageMaker integration, what's super unique about that and the future of the machine learning that Amazon has really doubled down on is the fact that now, after you've got those models created, Domo's going to help you take advantage of those.
It's a really unique capability there. And the final is apps. So I'm sure you guys didn't miss the App Attack. You might have saw a few things with that. So no jokes on the App Attack.
So what's that? Oh, they didn't see that. Okay, App Attack. Let's see here. Quick recap.
People on stilts, cannons. Oh, okay, lots of stuff like that. What we like to talk about with the apps is data doesn't have to look
like data. So you don't
have to have a dashboard, a chart. That's not necessarily super interesting to the masses. For people that dig in data all day long, it's really interesting to them. But you're not always there, the author of that, to be able to explain what the data is telling you. So the idea of apps is to really take the information that could live in hundreds of data sources and make it meaningful for the end user, put it in a way that speaks your language, and it's something that's very easily intuitive and easy to use and interactive.
The final one is our customers have been telling us they love our platform, but they also like the ability to solve specific problems. So some of the apps that you've seen released in the last number of months are a media suite, a retail suite. We launched a marketing suite today. And there's some more stuff that's going to happen tomorrow. And really, what these suites are are these applications that sit inside the suites.
They're really aimed at solving a specific business problem. We wire up the data. We understand your processes. And then you can have all of a sudden, now, rather than having just raw data, you've got a sophisticated application that you can look at to help run and manage your business. I raced through that on purpose here because I wanted to invite somebody up.
So Randy Bach, why don't you come up here? So Josh told a story this morning about one of the customers he met at the reception last night. And this is not a plant. This is just a cool story. So we want get Randy up here.
So Randy was telling us a story about how his organization has used Domo, how it's really changed their business. And so I just wanted to ask bring them up here and ask them a few questions because I thought you all would find this educational. So Randy, thanks for joining us. Tell us a little bit about Boyd Group.
So Boyd Group is a Canadian based company started in Winnipeg, Manitoba. It is the now grown to be the largest publicly traded automotive collision repair business in North America. We've got currently, I believe the location count as of yesterday was about 630 locations, between, The US and Canada, and that number, changes literally every day. I get emails every day that we've just added another 20 locations, 18 locations. The business' direction is to double the size of our business to be over a $2,000,000,000 company by 2020, and we are going to hit that target.
So very aggressive growth strategy. And that's really kinda where where Domo kinda really came in for us. We couldn't manage. We were managing our business using Google Sheets. We had an access database running.
It was it was really a house of cards, and we needed a better strategy. So we adopted Domo three years ago, and we've got to a point now with Domo that that some really, really cool things are starting to happen. One of the the stories that I was I was telling last night was we wanted a GM dashboard. We wanted our GMs to be able to really quickly see where their issues were every single day. Prior to having a dashboard, they had to go into the management system, and they were pulling approximately 10 to 15 reports every day.
They pull those reports. They look at the numbers, try and decipher what to do with them. So I said, I can build a dashboard. When the new dashboard layout came was released, it gave us the flexibility to really make it not only look good, but function exactly the way we wanted it to. I made the mistake of releasing it, over the weekend, And it was supposed to be a limited release market by market.
I got up to go to the airport on Monday morning to come here. And from the time I left my house till I got to the airport, I had over a 100 requests to give security access to the PDP that was applied to it. I then had to go while I was on the plane, put a title, a subtitle on it to say, please stop clicking on all these cards requesting access. And I woke up yesterday morning to over a 150 more requests in my email asking for re for access to the to the card. Because I'm here, I actually had to pull it back down until I can get back home and I can manage it.
Really cool thing. One of the things that we saw today is the new dynamic PDP. That's gonna allow me to just turn it on and roll it out right across the entire company right away, and I'm not going
to have to worry about it anymore.
So that was that's kind of a one cool story. The other one I wanted to talk about because everybody talks about marketing and sales and all the kind of really neat things that Domo can do. Domo did one thing for us as an organization that we've never been able to do, and we didn't even think we would ever be able to do it. And everybody knows how complex cars are today with the autonomous, you know, the lane keeping assist and all that kind of stuff out there. To give you an idea, like the July Dreamliner has probably got about 80,000 lines of computer code that run it.
Any one of a a 2019 fully loaded car has got about 120,000 lines of code in it. So the complexity of cars right now is amazing. And the liability that comes with us fixing those cars is incredible. And the training that the technicians need to take and stuff. And so we're at such high risk of having the wrong people fixing the wrong cars that we needed a way to figure out, you know, what are we going to do about it?
Well, Domo allowed us to take our HR database, pull it in that has all of our technician and location training and certification levels in it. I can cross reference that now to repair order data. So if a location creates a repair order, says we're gonna fix that Tesla, and that location is not certified to repair Teslas, an alert immediately goes out to senior level management, market, regional, and our COO of the company, saying they've just created an RO for a car they should not be fixing. So and then it goes one step further now. Maybe they are certified to fix that Tesla, but maybe not everybody in that store is certified to fix that Tesla.
So as soon as I bring that car in and I assign it to a technician that is not qualified to work on that car, the same alert pattern will go out again to the same level of people saying they are giving that car to the wrong employee. So we are now using Domo as an insurance policy in essence. It's our protection from fixing cars that we shouldn't be and by people that shouldn't be fixing them. And that was something that, six months ago, we didn't even think that we were going to be able to that it was going to be possible.
Very cool. What's next? What are going do next?
Probably the one of the things that we've been talking about is actually automating our parts purchasing. So we're now bringing in our estimate line item detail. And so now we're looking at a way to be able to configure basically an alert of some sort that is going to send an e mail automatically to our to the manufacturer, the vendor for that vehicle and supply them the parts list so that we can eliminate the need for human interaction and actually going through and ordering the parts. That way, we can control who they're being ordered from and the timing of when they're being ordered.
Very cool. Yes.
Well, great. Well, thanks, Randy. We really appreciate it.
Not a problem. Thank you for having Yes.
Thank you. Guess what? We are 100% of plan right now. Time plan.
Thank you, Randy.
So let me introduce you to the technology group. So Catherine, Darren, Adam is here too. Adam, you weren't on the slide, but I'll turn it over to you guys.
Thank you. Welcome. Thank you so much. Thank you for letting us come and share with you a little bit about how we think about the architecture, the product and this platform that we've really built over the years. You saw Josh probably referenced it or maybe not, actually.
So Josh referenced this this morning, the architecture diagram. We've really built seven major components into this platform, and we'll walk through each of these at a high level. But one of the things that Darren and I, from the beginning, always talked about was the importance of helping IT departments and helping business users really future proof when we look at tech stacks and tech decisions. One thing we know is that there will always be new technology. There are new start ups.
Are new database techs. We love it. We geek out on it. But that's something that we plan on, and we count on it. And so over the years, throughout our careers, we've realized if you embrace that and plan for it, then your technical strategy actually is very open.
And that's really what drives a lot of what we did here.
Day one, we started talking about this is an open platform.
It's an
open data platform. It's been a key tenant for sure.
So we built these seven different components, and they're very tightly integrated with each other, absolutely. But as Darren mentioned, they're very open. And the idea is that we know that customers have existing investments. We plan on that. And so Domo plays well with those investments, and it really allows for adaptability to an organizational an organization's priorities.
So we've had large retailer customer who came and said, we don't need the connect piece right now. We actually just need to connect into our massive data warehouse directly into Adrenalin, and that was great. That's how they got started. A year after that, they came and said, hey. Now we need those connect pieces for additional functionality.
But that flexibility is something that we're really proud of and that we always try and push for because the point is to support the business. It's not necessarily always about having, quote, unquote, the perfect tech. Right? Perfect is done.
And I I can't tell you how many times I've been in meetings with our largest customers who who say almost all of them will say some version of, believe me, we have one of everything. And and one of them yeah. And and, actually, one of them, we've been kinda one of the largest. They started out conversation about, we have at least two of everything. Mhmm.
But they they soon find out that, yeah, we we play well with the investments that you have made.
So these different components that, you know, you've just we certainly have a very robust data pipeline. We talk a lot about the Connect framework, integration cloud. This is the capability to connect to data wherever it is. That's also one of our tenants that Adomo really is designed to adapt to your business. So you have data on premise.
You have data that needs to sit behind a firewall. You have data in the cloud. We're gonna connect to all of that, because, again, the objective is to get speed and agility for your organization. Adrenaline, this is one of our secret sauce elements, fast query, highly scalable
Yeah.
Massively parallel. Fusion.
Let me just touch on a little bit on the Adrenaline one.
It's Yeah.
The these customers that do say they'll start out by saying we have one of everything. You know, they they do often have a big investment in in something like HANA or Teradata. They go through it. And and and, yeah, we certainly can leverage that highly through this path. But it's it's remarkable how often they say, wow.
We still we couldn't we can't do it. We're trying to do a Teradata we can't do. And so they do choose versus this. They'll choose often to to put some of their most strategic datasets here.
So Yeah. I talking to a customer last time who's here from a very large multinational company, and his comment to me was because your your question might ask me, we hear what they're saying is, well, then why are people talking about all of these things? Why isn't this automatically working? It's really the magic dome was it's that high integration. I can talk about and this customer last time has explained that to me in great detail saying, look.
We bought and what he said was we bought a toy for everything. We bought a piece to do every one of the things that's on the on there, but we could never put them together. We could never actually get the Domo to come out with all our individual pieces until we put Domo on top of it all.
Yeah. So we see customers doing that mixing and matching, you know, as well in the fusion area. This is where we're really cleansing, refining, and combining data. And so, of course, we have built in capabilities, but you saw us announce today integration with SageMaker, with Jupiter. This this idea of embracing the ecosystem is really what, a lot of our customers love from a CIO technology strategy perspective.
And I would also add that, you know, that Fusion box, there's a lot more there than it's just apparent, especially when we sometimes maybe the next slide, right, shows some of the yeah. Mhmm. Yeah. It does. You can build these data pipelines, and Magic has a very nice graphical interface for building these pipelines.
But there's a bunch of other technology in there too. And and when you heard know, Vincent L'Oreal, Josh asked him, how many datasets? You know? And he said, I need to ask my team, but it's dozens of of tens of thousands or of thousands. Yeah.
And and I think it's it's over 40,000. I know that. And they're using this fusion technology to do that, and that's something that I would say, and they they all they tried to do it with other technologies. I can't imagine trying to build a data pipeline with with, you know, Informatica where you're gonna try to bring in 40,000 datasets. They have different schemas, and you're gonna try to put the law into one.
That would be such a challenging job to do. So And
it's what customers love, right, is the ability to kind of take existing in investments. And because Domo's so pluggable, they're able to actually continue on accelerate
Yeah.
Point Yeah. Things that they maybe had a hard time doing before. Governance is central to everything we do. It has to be, obviously. And what that really does is help, the, really, the crossing points between data, people, and content.
That's foundational to what we do. Down here, you see as well, there's productivity opportunities because we have all the people connected and explore. And this is what most people think of when they when they think of Domo initially is that visualization and that user experience. We've always held very, firm that the you know, from the beginning, Josh said I wanna be able to run my business from my phone. And so that is very strategic strategic and significant to us from a a product development perspective.
You need speed on the phone. Things can't take a long time. Yeah. So a lot of what informs what we do technically is that we know that's kind of the end game. We want a prompt action.
I'm guessing tomorrow in our product session when when the when the audience sees more of what we're gonna be able to show that they go, I think they're gonna get a lot you're gonna see a lot of cheering
from that session
when we show that.
Continue to push the envelope there.
Love that.
I think an interesting thing to call out here as well is Domo everywhere. Not only have our customers loved using the visualizations and insights within their own organization, but you heard Jeff mention it earlier today. They naturally have come and said, we want to use this with our own customers, with our partners, with vendors. And so that's there's a huge pull there from the market.
Yes. I think I don't think we could understate the opportunity that Domo Everywhere actually represents from several different perspectives. One is, obviously, the customer who gets into Domo and really starts leveraging the platform, they get all the value inside their business, and they really start you heard the customer stories today. It really just starts taking off. What Domo Everywhere allows them to really start considering is how to do that outside the walls of their business, out to their vendors, out to their own customers and really extend the power of their data and really turn it into a monetized asset.
And, you know, we have several customers really doing that at scale now. And the interesting thing to me about a couple things that, make it really, really sticky and really defensible is a lot of times that it within an organization, especially in, you know, sort of the mid cap area, it actually unlocks a lot more available budget and money to be spent on Domo because you also get part of their r and d budget because they productize what they do with Domo into their own portals and their own products and things like that. And you also become part of their experience. They touch customers or touch their customers, touch their vendors, and work on their partnerships. And that's just incredibly defensively.
It's very hard to replace those relationships when when we make them. And so Yeah. Domo requires us.
And and the the step of going from Domo for your internal use to to, you know, going and doing embed publisher white label is a small step. It's not something they don't have to go build a bunch of code, write a bunch of code. So it it it's remarkably easy for them to do. And and you'll see, think we have two customers on stage tomorrow that will talk about their their their usage of that.
So And what a lot as we've talked to, other heads of engineering and technology at our customers, what they say is, hey. By leveraging this functionality, they can use their own r and d teams to focus on what uniquely and strategically differentiates them. Yeah. They're not in the business of building pipelines or analytics.
Doing their own in product analytics, that kind of stuff. Yeah.
So they love the idea of, hey. We already have our data in Domo anyway. You guys can provide that, and we can actually go, and, you know, move on our strategic imperatives. So a lot of value there and opportunity across all of these components. We have Mr.
Roboto. You saw us talk a little bit about it this morning. That's an ongoing area of heavy investment and emphasis. And really, this is, of course, about leveraging machine learning. But interestingly as well, because we have behavioral data, knowing what users are clicking on, what employees are clicking on, what they're viewing, what they're sharing, it really informs what's of value to the individual.
And that is what you saw manifest a little bit today, and did you know that we can personalize what we show you because we've got all of this data that we can learn from. And then the App Store, which Jay talks to you about apps and the impact there. You know, this visual is really us emphasizing that the Domo platform, certainly, we have those seven samurai, but we have a ton of other components that we had to build into that platform in either in order to make it work. And so making those available as a service
is key. And we're and we're really excited about you know, you saw the apps in the in the what what what did it
call it?
DevTac. Yeah. Yes. Yeah. All of those apps were built, and all of the apps, basically, that are out there, the thousands that are out there were built with our prior to our new, enhancements to our app platform and SDK, which I I I we had some classes Monday and Tuesday, I believe.
And I wasn't at the classes, but two of the people that were teaching the classes on how to build Domo apps and the new functionality that's added to the platform, they told me that they were like, people in this were cheering about these things that they were showing. So, so we're really excited about that too. We're excited about taking it to the next level, what people can do with the RF platform.
Yeah. So continued investment here and emphasis on the developer ecosystem, partners, customers being able to develop their own custom solutions extending and expanding on top of that Domo platform. And then I think, you know, ultimately, what we're really to reiterate again, no matter what architecture or existing investments that the CIO or IT team have made, our view and philosophy from a product and engineering organization's perspective is that it blends really well, that we can augment and extend whatever they have. And that combination of what they've invested in as well as the Domo technology can, they can build applications and leverage solutions, best practices very easily off of that investment.
So
I'll jump to the financial part. When we went public, dollars 75,000,000 of R and D spend, dollars 100,000,000 of revenue, roughly a little bit more. That seemed like a high number. Is. It takes a while to grow into it.
We also said the product is built. We don't need to build anymore. But this team is just delivering functionality after functionality after functionality. That's basically changing the game in this whole space. And the space, from our point of view, is just getting bigger because we're just doing more across the whole landscape of technology and big data and how you use data.
And with the theme of why don't we really transform the way businesses are run? We seem to really be delivering on that point. So we want to keep the investment high, and we have. And we've let it drift down a little bit just we could do that a little bit and really contribute to cash flow from operations. But when you hear the team speak, kind of have to ask, like, do I really want to, like, pull that back much more than this?
And I think the answer is no. And what I think you're getting a feeling for is the go to market team is kind of intersecting
in a
way that we've never seen before, where they can really truly appreciate from because of their background and what they're seeing happen to customers, it's intersecting pretty well so that we will get the full benefit of this investment and continued investment. And that kind of sets up the just one slide on financials. My philosophy is, hey, if the stock's working, don't say anything. When it's not, that's when I'm on the road. But I do want to just reiterate some of the points that we made on the earnings call.
This is the year of accelerating new ACV. It's been challenging, frankly, the last few years, particularly in North America. So we've had such a good international team. It's good you got to introduce the Ian and Paul. We've invested in them.
They've done well. The U. S. Was a challenge for a whole bunch of reasons. I don't need to really repeat it.
But this I think we have the team now that really gets the play, understands the value of the platform, starting to lean into the market in a very aggressive way. So we really do believe that we're going to see an acceleration of new ACV. And what kind of drives that is in The U. S, we really haven't done much with reps at all. We've actually decreased.
And even as a company, I'll just say roughly a little bit over 100 in the past, and we brought it down into the 80s, a little bit over 110 down to the 80s before we started building it back up. And we're at a point right now where we want to add 30% to the base of reps. And we think it will work. We think we have the management structure to do that. We have the training in place to do that, which is new.
And I'll even say, as much as optimistic as we feel now, there's still a lot to do. So we want to try not to get over our skis here on overpromising what the new what the acceleration means. So let's don't get over our skis. It means it's accelerating, not nearly where we think we want it to be, but it's moving in the right direction and it's setting up maybe a good part of the a strong finish to the year, but certainly some nice momentum into next year. We have to ramp them.
So we're still hiring them, and we have to ramp them. That takes time. Once you ramp them, they have to build pipe too. And they have longer sales cycles, and you might get the impression some of the size of deals are getting larger, so those take some time. So but and that's an element of it.
Leveraging leadership, you kind of got a taste of it, some of the things we're doing, training, onboarding, changing the profile a little bit of the reps, certainly the new ones we brought in. Identified those few that don't quite fit the platform play, but most do. Most get it. You know, when we show them how we're doing it, they get it. So we have a good foundation to start with, and then we're adding talent that just comes with a different perspective, a perspective that we think fully appreciates the power of the platform and what can take place, a group that's actually extremely comfortable walking to the office of the CIO as a rep and explaining why this is good for them, as a rep.
And that's kind of new. And that's still developing, but those are the kind of people that we're bringing in. And at least from a model point of view, we had a lot of sales productivity last year that kind of carried the day. We aren't counting on it this year. Minimal productivity from a model point of view.
Different groups have different expectations, but on average, not much. That kind of derisks the plan. So this year's growth is really based on get the reps on board. And I think, well, at the appropriate time, in an FD compliant kind of setting, we'll tell you how we're doing and how it's going. So accelerating the ICV, one major point.
Renewal stream. Well, one of the I mean, for those that are SaaS experts, which I think everybody here are experts, if you have challenged new ACV in one year, like last year, it just puts a drag on renewal ACV this year. So that's why, again, we want to be very careful about the growth rates we advertise. So what we want to do is if we accelerate this year, that really sets up growth and renewal streaming next year. And then if we have even more acceleration, then that kind of that really can be a good build up to having a good next year.
But we don't want to expect too much expectation, again, not get over our skis this year. By the way, I got over my skis on Sunday and I planted I face planted. I reminded myself why you don't do that. And everybody that was skiing with me thought it was funny. There's like three guys in the room here.
That was funny. Other thing we have going on in the renewal stream is we are getting to larger companies that have much greater prospects to upsell and expand. And that's good because the expansion revenues there, which is, in the end, less costly and the renewal rates, the grocery renewal rates are higher. I do contrast that with a few years ago, where just smaller companies that they just don't expand and they just churn more just by the nature of the beast. So these are two big inputs into like how we're thinking about the renewal stream as a revenue driver.
And then lastly, of course, we have to continue to make progress toward improving cash flow. And we want sequential progress each quarter this year. We think we're set up well-to-do it, so that's why we don't mind making the commitment. And we can do it with we're increasing reps, but we are not we're doing everything we can to not increase sales and marketing costs as a whole. We have what happens as you're going more outbound, more direct, more enterprise, where corporates go into larger accounts, that is becoming more high touch, more field enablement, less raw marketing spend.
So taking some of the marketing bucket and we're moving it over to sales, but it doesn't mean that we have to or it means we can do that and not increase costs not increase total costs. We are, as a whole, very helpful to just let the personnel costs trail the top line. And you can do that for a while. We're still doing it. It really helped us last year.
It set up this year really well. We're still doing that. There's some pain in the business, I'll tell you that. People need bodies to get work done. We're making them drag, and that can't go on forever.
But it's been very helpful the last few quarters. We're kind of keeping it that way now. But it is a nice down payment. If you can pull that off long enough, it's a nice down payment on the BERD. And then we still think we can scale in other areas.
The same engineering team that's building product also put some of their talent on optimizing the data center cost, AWS cost, finding other platforms, using our own data centers. These costs just keep going flat, sometimes down, even though the user count is going up dramatically. So all these are big contributors to how we feel confident in making the statement, yes, we're going to really make some progress on cash flow from operations. We call it adjusted just because of the SPP, the onetime item, and get to a by the end of the year, a non scary zone, right, just a zone where we all see that we haven't put ourselves in harm's way. Anything could happen in the economy, we have not put ourselves in harm's way.
And then we decide at the end of the year what's the slope of the curve to get to positive. And that's a function of how fast we want to grow. I suspect we will want to grow fast. I suspect our investor base will appreciate that as long as we are reasonably responsible and respectful of the bottom line. But too early to make the call right now, okay?
So that's it for the key financial themes. And with that, are ahead of plan and want to make sure we were made ourselves available for Q and A with the whole kind of management team here available to answer any question you have. And frankly, the tougher, the better. Don't mind the tough ones. So I'll leave it to the audience to kind of go ahead and make the answer question.
We should probably hand the mic. We have like 40 or 50 online, so we probably need a hey, Kimberly. Hey, Ms. Kimberly. Kimberly, maybe you can be the can you help with the mics?
Just the question that the person asking the question. Thanks.
I have two questions. Maybe the first one for Bruce, just following up on the key financial themes since it's still up there. And this is Jen Lowe from UBS. You mentioned sort of that the plan this year isn't reliant on significant improvements in sales productivity. I know in the past, there's been some discussions productivity levels were versus what you view as sort of normal or best in class within the industry.
Do you feel like you're at that point? Or is it if it happens from here, that's great? Or I guess I'm just trying to understand, do you think that, that lack of implicit productivity improvement is because you're where you want to be? Or it's just not in the model?
Yes. So it's it got from a danger zone to actually not a bad place across the board on average with upside. So on the enterprise, we can I think there's plenty of upside? The one part that we came in hot on and hot in a good way is the commercial business and corporate business did really well. They're like over normal they're certainly over SMB quotas that you'd normally find in any other business.
They're over it. If we can just bank on that, great. We're not banking on it continuing just to play it safe and to keep in line with market metrics. At the same time, the market metric and at the same time, the market metrics said that could slide back, and we kind of provided for that. At the same time, I think the market metrics for enterprise show there's still room.
But on average, just modest increases across the board to play it safe. And I hope all the training, all the new reps, going after office of CIO, really articulating the power of the platform that it is a platform that's different from anything else, I hope that really does kick in a little bit of productivity kind of contribution, but we don't count on it on the base plan.
And then my other question was maybe more for the product oriented people. And there were a lot of product announcements today, some of the things around managing permissions based on different profiles, the Digital three sixty offering. I'd just be curious to get a breakdown of what sort of added into the core product versus something that's monetizable on a stand alone basis or an upsell type opportunity?
So you're talking pricing and packaging kind of on that stuff, right?
You got to
get a mic. Well, she's asking about real product, real new features, like what's going into, like, scalability and privacy on the one hand versus, I don't know, net new things you can go literally go sell. What's the split? What's the time split? How should they think about where the R and D money is going?
Yes. So a lot of it this is Josh. I'll answer. A lot of it is monetizable. I think when you look at I remember back at Amateur, and you start realizing that at first, in software as a service, everything the pitch the actual pitch was it's software as a service, so all upgrades are free.
And then we got five, six years into that, and we're like, all we're doing is increasing our costs. So there's a disincentive to give customers good product here. And the market since then has obviously changed. And so now as we put more effort into R and D, we absolutely want to monetize those things. Every once in while, it be something.
It depends on what's happening in the market. If everyone is now offering that, then you maybe include that. You take those pieces and you package them up. But yes, the intention for most of the stuff that you'll see us announce is that we can monetize it. Functionality that makes things work a little bit better, enterprise, scale, security, governance, that stuff that's included that makes the product work more effectively for our big enterprise customers.
And then even on some of the scale we do now make decent money from, We have some of our largest customers that exceeded data charges that they and us ever thought they would hit, and they're exceeding them. And we have customers who are making a lot more money from the amount of data that we're processing than we do from the original platform fee or for the user fees. So that will be a component that we make money off of. The way we think about it is platform fees and then user fees, data charges and then extra functionality, like, for instance, data science and then apps. So those are the ways that we're going to monetize the products that we have.
Go ahead. We have a mic.
Have forty, fifty people online.
Derek Wood at Cowen. I have a two part question on sales, go to market and then one on product. So on sales, Bruce, it sounds like you're on a net basis, the headcount was down year on year. But on a gross basis, it was maybe down even more, meaning that we heard that you moved some reps out of Corporate HQ and more in region. So it does sound like there is kind of a new freshman class of reps that came in.
I'm just curious what the expectation is on ramp to productivity and how long that takes. And then another question on go to market is around now that you're embracing the CIO, have you seen any change in the sales cycle? Or do you anticipate any change?
I think it's a really important question. I'm glad you bring it up in terms of the ramping reps and what that number got down to. And Bruce mentioned it got down to the 80s. It's not anything that we've really had conversations with people about yet. I think it is an important conversation because it demonstrates how much we took out and then started replacing some of that in different areas.
Like we moved some of it more international. We moved some nonperformers out and said, as we brought in Jim and Dean, let's go get some folks from their network, replace them, and then still net added reps. So there's actually a good chunk of a freshman class that isn't gonna affect this year that much. So it's hard to talk about it a lot because it's not really reflected in the numbers. We're investing in something we're obviously not getting any value out of yet, but it's definitely us laying the groundwork for we've said it numerous times since we've been a public company and on the roadshow, we're not playing for the kind of growth numbers that anyone's talking about.
And that's starting that groundwork to put us in position for that. I don't remember the second question.
If sales cycles are different now that you're embracing the CIO and earlier in the process.
You want to take that, Dean?
Yes. So I think what's happening is the time to kind of land the initial customer could be elongated by a month or so if we've got to go through a much bigger CIO council. It's when we're going from 100 seat deals to, you know, 5,000, 10,000 seat deals that we're going through a very, very engaged and rigorous process with the CIOs. That may take another two to three months to go through, and it depends how engaged you were with them before, but the payoff's been pretty substantial when you saw those deals earlier.
And we've got the short term numbers, and we've got the longer term numbers and, you know, trying to reconcile when we see enough that is predictable and we can really rely on, and we can lean into this a little bit more in terms of what we're communicating to all of you. But the CIO, for instance, just last night, I was talking to a customer. I mean, the one that is are they still in here? Customer came in and spoke. They take off.
I just met them last night at 11:30, you know, and I thought, this is awesome. I mean, obviously, he was awesome. I wasn't here for it, but I talked to him last night. That's what's out there. That's what we're talking to all day, every day.
I talked to another customer last night, literally looking at hundreds of billions of dollars of transactions, zero visibility, zero visibility across the entire executive team into those transactions, except for once a month, including on days like Black Friday, zero visibility. They start using Domo, and we're talking about hundreds of billions of transactions a year, trillions of dollars in value, and now they're able to see that every hour during Black Friday. The CEO the CEO is logging in. And so that's great, and it's exciting. But then to the play where we need the sales team to make sure that we're getting in front of every CIO, I could point out every single one of these sales leaders in an example where they didn't get us in front of a CIO and all we had to do was ask.
It just wasn't our move, but it's becoming our move. And last night, with that gigantic customer that I was talking to, they said they were talking about their VP of or their sorry, their President of Technology, who is their CIO. And I just asked the customer, I would love to come and meet with your CIO and President of Technology. They said, Oh, yes, anytime, come by. And then I looked at the rep, I'm like, Really?
How many times have we said this, and we're still not doing it yet? So I think there's a ton of upside in that because that play will work. We've seen it work. Everyone here has seen it work. We just haven't really we just haven't really product systematized that, you know, that move yet in our organization.
So there's upside from that. Yes. Yes, that's exactly right. Just two hours ago, having a conversation with a brand that everyone here would love us to talk about, and we've got really good traction there. We got a deal just in the last few quarters, and it's grown really well.
They love us. They've had Bruce out to talk to their CFO. And talking to someone that managed a good chunk of the relationship on their side. And he mentioned the CIO and how at some point, they're going to show the CIO how they're using it. And I said, well, can we come on-site?
And I'll bring my CTO, and we'd love to come and meet you with your CIO. Oh, yeah. His assistant's really great. We can schedule that anytime you want in
the next couple of weeks. What? Where's Gowalski?
Jim, get your guys to make this move. So there's a lot of upside. There's a lot of upside in that.
The other question was on product pricing, and it was briefly mentioned you guys are experimenting with different pricing.
Can you Is that on is that on mic? Yes. Will you say that again, please? Dan, it's working now.
On the questions on product change and pricing for the product. And I mean, it sounds like you're doing some experimentation, but to what degree is that changing? And maybe walk us through a little bit more detail, that'd be helpful.
Sure. Yes. It's definitely going to change. We're taking our time to try to have it not be any kind of negative impact. We've been we've probably had 20 discussions at the sales management layer.
I've read in Bruce. Bruce, pay attention to this because there's potentially downside if we screw it up. But I think everyone's kind of worried about their pipeline, make sure we don't do anything that has any kind of downside. But there's a tremendous amount of upside. And what that is basically is sometimes we'll have a customer, they're a great customer, and let's say they're paying us $05,000,000 a year, and their business has a little hiccup.
Not a big hiccup, just a little hiccup. And we get a phone call, and this happened to Paul Harropin, and they said, so if we cut our users in half, do the other half of the users get the exact same experience that we already have? And he had the answer, yeah. They do because we charge per seat. And that's typically where the value is, but the problem is we've built this great product, and I've said this numerous times, but we built this great product every single product we have ever had.
And that the leaders that were up here talking, every single one we've ever had has in mind that everybody in the company will be using it. And then we go out and have, like, an adoption prevention department, I. E, sales, go and charge per seat. And so, you know, I had multiple sales leaders experimenting with different things and moving to a platform. You know, Paul and Jeff, especially since day one because Jeff would be the customer, and they don't they don't have a lot of users.
He's like, but I can still make a lot of money off these guys. I want to charge a platform fee. So we're going to move to platform fees, and there'll be multiple platform levels. And platform one will include this much functionality, then two, that much, three, that much or that much. It will be similar other software companies that you see chart based on platforms.
If you want functionality over here and even though you're not using the rest of it, guess what, you got to move to platform three. And it's the same thing. When I'm looking at when Domo was small and someone says, well, we got to upgrade to the highest level that Salesforce has. We got to pay for that that platform. Why?
We have, like, 50 reps on it. Who cares? Like, I don't need that. Yeah. But we need the API connections.
And if we want that, we got to get this level. And I just accept it. Like, it's what it is. So I watch myself and how we buy things, and that's what we're moving to is here's the platform fee and then drop the user pricing dramatically because we have a firm belief, and we've seen it in the numbers, you get over 50 users and retention increases significantly. And so we want to get over 50 users as quickly as possible versus you might have somebody like Cisco call us and say, we only need 10 users to start with.
And so it's really hard to construct a contract that Cisco is more than happy to pay for, a. B, you don't have anybody in the organization pulling you along because every new license is a new purchase order. So getting that user license down to you got to buy a couple of 100 at a time. There's no deal that we do with less than, let's say, a couple 100 users, period. And then we go and make money on the other things that happen when you get a lot more users, which you make money on data, you make money on apps, you make money on the custom apps that have they're custom just in the sense that we might charge 50 or $100,000 to do the skin, but then we're still going charge $100,000 a year for access to that software that is just comes right out of our code base.
And then solutions like the IoT solution. So that's where the pricing is shifting. Timing over the next, I'd say, one to two quarters. We're experimenting with it already pretty heavily. In the back.
Thanks. Thomas McGannan from Whetstone. Two quick questions. The first, the integration platform as a service, could you talk about like how you see that market opportunity? I mean, I think we've heard from some commentators that like Domo has more or less a MuleSoft within it.
And so how do you guys see that market? How do you see that opportunity? How does that maybe change the conversation that you have with your customers like kind of on a day one?
Yes. And Jay, will you take that? And before you answer, also to make sure we recognize we've got our new Board member, Karin Clark, here in the back. So thanks for joining us,
So on the comment about Integration Cloud, everything you said spot on. It's an additional entry point for us. So when people gave us the comparison of MuleSoft, right, we have more connectors than anybody out there. We have the ability to stitch together data to provide these complicated datasets. We now have bidirectional data flows so we can write back to data source.
All of those provide us with such unique capability that you're a Domo customer, you recognize all this unique functionality. You can now purchase Integration Cloud. Or if you just want that part of us, it's a great place to get started. Come in, connect the data and understand the value of Domo altogether.
And then a financial question. So you guys are talking about increasing the number of reps by 30%, and you're seeing some numbers that tell you that that's a good spend. I think that when outside investors look at your sales and marketing line item, there's a lot there. And I think that maybe if you could break down, give us some visibility into that sales and marketing line to kind of highlight for us like what is really being spent on sales And what is it that you're seeing there that tells you that we're getting to a point where this is where we want to put more money into it?
Well, let me work backwards. On the more money into it, as you go enterprise, larger companies, you definitely need the feet on the street. So that's point one. Point two is the productivity moved up to a level where we feel very comfortable hiring them. Like we hire them and they get to that productivity level, it's a high ROI investment.
So we're we those two, we just we check the box that we're hiring for sure. And historically, out of sales and marketing spend, was not much different than fifty-fifty sales and marketing. It's just how we went to market. It's how we kept going to market. And if you step back and look at what do the big companies do and they get more the platform companies, they get more field oriented, more high touch.
And the split goes more 75% in favor of sales, 25% marketing, sometimes even less. I mean, SuccessFactors, we may be at 15%. It's like 80 five-fifteen percent. Extremely, extremely high touch, very sales driven, and it worked. So we kind of know so the split, certainly, we know we have room to just turn the knob one way into the other.
And then the other is, at the end of the day, because we have so much upsell potential, we firmly believe we should be able to spend $1 in sales and marketing and get $1 in new recurring revenue at the end of the day. We aren't forcing that discipline upon us anytime soon, but directionally, that ought to be the ending answer. It's market, and you could even argue that we can do better than market given what we have. And so out of 120,000,000 or $130,000,000 in sales and marketing, we aren't even close to that yet. So I know we got that going for us, too.
That means it's it's moving the things around. It's switching from sales you know, from marketing to sales. It's getting it's getting more field enablement, more sales tools, you know, running the CIO play. And the one thing we don't really talk a lot about is we've got to get the partner ecosystem going. Like with Frank, it doesn't happen overnight, but if you meet some of the crowd here, they are partners and they are thrilled, and we just need to replicate that in a big way and make it part of our DNA.
But we just know there's so much to work with. We can actually we can make this move and it will work. And the backstop is good sales leadership just makes just happens. They know how to hire reps even though the reps to go get right now. And so we're kind of making this change with with a lot of confidence that it's going work.
Some of the historical context is, at this point, interesting because we're starting to perform better. So I think it informs at least what's going on, maybe makes it make a little more sense. We were getting some data that, that marketing spend was working. That's why we were doing it. We didn't think it wasn't working and keep doing it.
Was some data that we were getting that suggested that it was working. And every time we would find a piece of data that was working, we think we had a controlled experiment, we go lean into it and then find out, oh, it wasn't a controlled experiment, and it was really bad. And it was bad at scale because we also had this huge hole because of how much we were spending in R and D. Only way to get out of that is get out of it fast and get out it in a hurry. And so mistakes are big mistakes, and that was a big mistake.
But the other piece that we had that compounded it just from a dollar spent perspective, not compounding the problem because I think this helped fix potentially what could become a bigger problem is our reps weren't making money. And so we had to create an artificial comp plan to make sure we didn't lose our really good reps. And so we look at that, and then towards the end of that period where I remember there was one day I was going lose five reps in a week, and there were five really good reps. They got together and been talking, and that was that. You know, scared the heck out of me.
So we went and we adjusted, but that's an adjustment that lasts throughout that year. By the end of the year, everyone's selling. Now they're confident they can make money, but you've got that expense base for that year. So going into the next year, you know you can lower it because you know they're selling more now, and you know that they're going to hit their OTE based on the targets you're giving them. So it's been that kind of stuff that we've had to work with, and that's what gave us a lot of confidence we were going to see those productivity increases, whether it was in the amount of commissions that we were paying per dollar or whether it was in the amount of marketing spend that we were spending per dollar because we found a bunch of stuff that wasn't effective.
But there were some pieces in there that were effective. And so this year, like Bruce said, it's not that we're immediately cutting, but it's directionally definitely where we're heading. And we're finding pieces in there that are performing much higher than we need to perform. And then now it's just a matter of trying to replicate that. And hopefully, it's just soft landing and we get that magic number of one.
Hello, my name is Jason Adams. I'm a homebuilder. Josh, got to meet you three years ago at the Domopalooza. And I have unique distinction. I'm a customer first, certified partner second, and now thanks to the IPO and a stockholder third.
I'm a very happy customer. We're using it. Very happy stockholder to have a chance to invest in the company, but the partner program has been a failure for us financially. And so the question I have is around that and I've been a customer of other enterprise companies and had other partners. So are you guys considering like bringing the partner more in financially?
And what I mean by that is the incentives for partners right now like a one time thank you, either in our services or like a sign up fee. Would you consider some sort of like a recurring revenue for partners to be and stay involved in deals? And I say this not knowing what you know, but I hear last year, partners have been influential at factor of 3x success rate to regular salespeople. This year, heard 4x. And I've seen it for myself.
I've seen Domo sales reps struggle in our industry how to sell Domo. So I've sat on a bunch of calls with homebuilders, construction people. This is Domo. Let me translate this for you. But fundamentally, financially, it's failing.
So is that a consideration in your partner plan?
Yes. I think the way that we we're going to see a lot of differences by the end of this year in how we go to market with partners. So we're having a lot of internal conversations about finally actually getting our arms around what it means, looking at our international partners, looking at the big SIs, looking at the smaller SIs, looking at our installation partners, looking at our technology partners. In that smaller SI group are some of the vertical SIs where we would categorize you and understanding, a, what is that's going on, that's the first thing we had to do. We're just kind of in the middle of So yes, we're not very good at this.
We've said it a few times. But by the end of this year, we're going to make sure that we have a good plan. And we've brought on resources so that next year, we can really make it the year of the partner, the year of the ecosystem. So in terms of how we financially structure that, yes, we're open to looking at anything. If recurring revenue is what floats your boat, then there's a group of folks that, that's what's interesting to them, then that's something that's really interesting.
Our experience has been most of the SIs want to be able to figure out how to go in and not only sell the installation, but sell a whole bunch of other services on top of that. And that's where the majority of our conversations have been. But we'd love to explore what you need and see if there's a group of folks like you as well that we can go and try to be more market friendly.
The turnover has probably been a tough point. We've probably had eight different reps assigned to us in the last year. Partner reps are it's changed about eight different times. And so there's been some, I know, some change in how that's managed. But, I know as a as a business owner, referrals are wonderful things.
And I think my heart as a Domo partner is just the fact that I love to refer people, but I gotta justify to my wife that I'm making money at it. And I gotta make sure I lose money on vacation. So I'll leave you with that.
Alright. You
know, I I think I I think Josh really summed it up. We're in the middle of assessing all these different levels in the the vertical partner, what I would say is if there was a way for you to incorporate and build an app that you thought was yours that you could put in our App Store, that's a way for you to monetize so you could make intros. We could joint sell, and then your app sits on top of the platform. That's the first thing that came to mind is given your vertical partner.
Yes. We'll definitely be getting together a better program and reaching out. And like I said, we had five different people doing five different things, and we're now all getting in the same room and understand what's happened so we can create a plan and a strategy.
Yeah. I said it was okay to ask tough questions, but that was too tough. So you went overboard.
It wasn't
tough. It was just really personal. No.
It's appropriate. We know. We know. We we we definitely know where you're coming from.
No questions from Dockyard. What's up?
Is Jen Lowe again, UBS. This is another sort of technology question, but I know there's a lot of discussion when showing that big slide with all the different logos of different players and different parts of the stack that Domo provides. And there was some discussion of the optionality for enterprises in particular to coexist with some existing technology versus displacement. And I'm just curious if there's any areas where one of those modes is more common than the other. I think there was a brief reference to the example sitting around Teradata.
Just where are you seeing displacement? Where are you seeing coexistence? And does it look different depending on which of those little areas of that chart you're living in?
Yes. And I don't see Darren, Catherine, you can Catherine, Adam, you guys can pipe in as well. But I mean, we there are some pieces up there that really you don't have to have all your information or you don't have to have just one vendor. I think Snowflake, Teradata, AWS, we have a lot of customers that have all of those. But the reason for showing that slide is sometimes there's a perception when we show the slide without showing that, that, oh, you're going make them put everything under one roof and there's going be vendor lock in, and it's the exact opposite.
And for me, what's interesting is we will start we really don't care what you have. We'll work with it, and we can integrate with it. And like Jay just mentioned about Integration Cloud, we can bring data from anything, whether it's behind your firewall or not. And what is interesting though is to see with that approach what that journey ends up looking like because we do have customers that will come in and say that the way they're running it is everything is going to Teradata and then they'll give us summary tables, and that's going to be just some dashboarding for their executive team, and that's going to be the relationship. And what happens is we get in and the executives looking at that, and then they want to click, and they can't click because it's a summary table coming out of Teradata, and they didn't give us all of the streaming information.
And they end up giving us more information out of Teradata. And then well, that's only going in and getting batched once a day. And so I don't know if this is the most up to date because I'm getting this information, but it's actually not as up to date if I went and looked at the source record. So now I want to go to record the source record. That journey is typical.
And that particular area of that sheet, there's others where, for instance, mobile apps. They may have an app that they have 10 people, 10 engineers that are keeping the app up to date and working. And they built it four years ago and invested $10,000,000 into it. And then look at our framework, they're like, we could spend $100,000 here once in development and then a $100,000 a year, and this thing will work, it's gonna be a lot better than that. And it's gonna be easy to iterate, and they'll make the shift.
So it's there's a there's a good ebb and flow. Do wanna add something, Catherine?
Say, the the displacement that we see is really
Mike. A story
Oh, sorry. There I am.
Oh, you
have one on?
The displacement that we see is a story over time. To Josh's point that a lot of what the CIOs love is they've got that immediate ability to get results quickly because they can connect in, get the value that they need from Domo, from the piece that they need for their objective that quarter, right, or that month. They love that agility. And then over time, we've had them come back and say, hey, I've taken down this number of licenses for this tool because they don't need it anymore. And, you know, that's just kind of a natural evolution for them.
But I think that resonates so well with them that they have this flexibility.
They don't have good point too because,
like, going back to Omniture Days, I've probably had 50 customers that have asked for full blown proposals on how to take everything that we have in the cloud and put it behind their firewall and run it as a managed service, and we'll give them five employees to manage it because we're not going to give them our code probably 50 times. Never once has anybody taken us up on it because they'll say, good. Thank you. You checked the box. I know this.
I'm going to put it in the drawer now, and we'll probably use it in six months. But in the meantime, let's meet the business needs, and then we're off and running.
All right, Josh.
I will respond to your request for a
softball question.
Well, you send me like eight text messages a month with questions to comment.
It's very evident from listening to the sessions today, there's a torrid pace of innovation around your platform. It's very impressive. What's even more impressive is for customers who know, who have brought Domo in and tried to use it the way that you've intended it to be used, the outcomes are phenomenal, they really speak for themselves. And so my question is just bridging between creating great outcomes for customers who have some very difficult data problems. Help us take both the customer base you have today and if we widen the aperture to large enterprises and midsized customers that you target in your sales and marketing efforts, how big can this thing be?
I mean, how do you define the TAM that you sit in today within your own customers? How do you define the TAM that you're going after? Is this BI? Is it bigger than BI?
What do you want to be when Domo really grows up?
Yes. So I think definitely bigger than VI. It's every time I've seen anybody do a thoughtful TAM analysis, it ends up in stupid numbers. I think it is a stupid number because, you know, you go in, whether it's someone like Vincent who spoke from L'Oreal and, you know, we got off stage and he's like, I wish I had a little more time to tell how horrible situation was before I found you guys. But if you think about that company, I mean, literally the second, third largest advertiser in the world, not getting data more than once a quarter most times.
A company that is their branding is not leading to any sales that are happening that they're managing. It's all managing out in their channel. And being able to measure the results of that effort, basically, all they've known is when they spend more money, they sell more product. And all of a sudden, they have the ability to tie in social and influence and e commerce data that they get from partners and then off line retail data they get from partners and being able to tie that together and hold a manager in Peru responsible for one specific product and how they're influencing that, they've just never had the ability to do that. So they've never had the ability to manage it.
And when he's talking about the CEO going to visit a country and finally understanding what's taking place there, which leads me right into Dave Layton, who spoke on from Layton Construction, and they go on to these $05,000,000,000 hospital project. And before they get out of their truck to walk into the job site, they actually know where to go and focus. When you think about that kind of value being delivered, it's obviously a lot bigger than BI. Then when you layer on top of that apps and you see customers like Vivint, who we talked about on their earnings call, don't know if I I was backstage talking to other people, but did they do the the App Attack today or no? Yeah.
So when you talk about, you know, the Vivint app, when that literally is that has nothing to do with traditional BI. It has nothing to do with traditional analytics. It doesn't have anything to do with big data. It's creating an application that no software company could ever get funded for if they said, we're gonna go and create an app that's distributable to every employee that's going to show their comp for a field sales team. Good luck getting backed for that.
But we could go and they could spend a chunk of money with us. We get a big recurring piece out of it. And the toward pace of innovation, I think that's really fascinating. And we kind of laugh at it as product leaders because it's no different than the pace that we were operating at before. Just no one saw what we were doing because we were trying to stitch the thing together to make sure that it worked at scale, and we were trying to build the architecture in a way that would allow us to rapidly be able to develop apps.
So that slide we have that has that triangle that has all these pieces in there, and seven of them turned yellow when we're doing the Marketing three sixty app. Well, the seven that turned yellow, we're just plugging together like Legos, putting an interface on top of it, and you've got a brand new product. So yes, it's a rapid pace of innovation that's finally being publicly known. But in terms of TAM, it's I don't know. I don't know the answer to it.
I just know it's a lot bigger than we're going run into for a long, long time.
Tyler Radke from Citi. So one of the slides you I think earlier in the presentation had kind of the examples of the large customers you signed. I think some were north of $1,000,000 or around $1,000,000 of ACV. And my question is, in those customers, how many of the modules are they actually using of kind of the seven of you know, the the the products that you showed? And because kind of the the implication of that is, you know, if if they're using or or have a a path to use kind of everything from data warehouse to, an ETL to a BI, I mean, that spend could conceivably grow multiples the size of where it is today.
So just where are we on that path? Or have you convinced them to use the Domo data warehouse, the Domo ETL As
question. Yes. And to the earlier comment I was making about marketing spend as well, one of the big challenges here is people are not looking for this. We're still evangelizing this in a big way. It takes a flywheel to show and help our customers that have been using our product for three years to understand everything that is what they were doing for them and how they and unless you're talking to the CIO, they still can't grok it.
So that's definitely been a challenge. The reason we did this is because we're building something to allow you to run your business, and that's what this takes. In terms of oh, now wait, what was your specific question?
How many do they use?
Oh, yes. So in terms of the big customers, we did look at our biggest customers, and we looked at apps. And we found that it was fairly penetrated in our biggest customers that they were using apps. We had one of our top five customers come up to us today, I guess, was texting our CTO and came up to me after the app attack and was upset that we didn't show his app because he said it was 10 times better than any of the apps that were shown. Like, sorry, wish we would have known.
But that's kind of the point we don't know what they're doing. What we do see is we looked at our top 20 customers, app penetration was high. It was mostly custom apps because we haven't had apps that we really were able to go and sell. But one really interesting metric that I read was none of them have one. If they have one, they have multiple apps.
Once they understand that they can create take all of these building blocks and then turn create a real a very specific experience for a part of their business. And then you look at the retention of people that have made apps, and it's through the roof. So that's something that we are seeing. It's just been happening with the customers building their own apps and us potentially helping them. It just hasn't been real coordinated, which is why we've kind of come to this, all right, we got to focus on apps much more than we have historically.
And then data science is brand new, IoT is brand new, all of the apps that we've put out brand new, Integration Cloud brand new. So we don't have a lot of penetration yet, but I'll refer back to the other comment that I made, and then I'll close it off. But the comment that I made about the data science. I mean we literally have a customer that has hired people like McKinsey to create an algorithm to take the data from the retailer to predict and create the order that they should go and put an inventory on
the retailer's shelf. And
they do it for hundreds upon hundreds of products. And they have to come up with a different a different answer for each geo. And I mean, it's just it's a cumbersome project that they would never do, that they would literally out hire somebody on the outside just to create one algorithm. They go inside our products, and we're not going to tell them the story yet, so we're telling it in a cumbersome way. But they go inside our products, and they bring in they write several new algorithms.
They bring in the algorithm they paid a bunch of money from an outside consultant for, And then right there, because all the data is already sitting there, because it's already in Domo. And they have, in literally a couple of hours, a $5,000,000 improvement. When that kind of stuff happens and we figure out how to package that a little bit more effectively and we figure out how to go and sell that more effectively, that's going to be a game changer. We just need to figure out how to do that. But the and again, that's why we the theme of this conference is the power of the platform.
You can't do that anywhere else if you haven't brought together your data from all your sources and put it in a system like ours, which doesn't really exist, the highly available the high availability, massive scale, where everything is already connected, that just does we don't know anybody that's doing that. So when we do it that way, it enables things like these apps and these data science things. And so I think your question is telling in terms of that's what we're excited about. That's why there is a
bunch of big upside.
We just need to figure out how to make that emotion that you've got some good muscle memory on it, and we can start to predict it.
All right. Well, I think that brings us to the conclusion. So I want to thank everybody for participating and thank the management team for spending time with everybody, and we look forward to continued dialogue with everybody here. And thanks for those that joined via the webcast. So signing off for now.