Domo (DOMO) Status Update summary

Strategic initiatives and business model evolution

• Focus on product adoption, AI readiness, and driving usage through education and technical support.

• Shift from traditional account managers to more technical sales roles to better serve customers.

• Launched Agent Catalyst, with rapid customer uptake, signaling strong demand for AI-driven solutions.

• Transition to a consumption-based pricing model, now approaching 70% of ARR, with expectations to reach 90% by year-end.

• Multi-year contracts and improved retention rates are key levers for future growth and profitability.

Financial outlook and growth expectations

• Confident in achieving double-digit revenue growth next year, even in a stable macro environment.

• Gross retention for consumption cohorts is significantly higher than for seat-based contracts.

• Expecting a 200 basis point improvement in gross retention this year, with a goal to reach a 90% floor next year.

• Cash flow remains positive, with ongoing investments in R&D and sales capacity without major cash flow deficits.

• Leverage in the model is expected to increase as growth returns, with margin expansion targeted.

Ecosystem and partnership strategy

• Deepening partnerships with Snowflake, Databricks, Oracle, and GCP, aiming for parity in go-to-market and technology integration.

• Embedded analytics (Domo Everywhere) now accounts for about 30% of revenue, driving stickiness and higher retention.

• System integrators and cloud data warehouse partners are increasingly bringing Domo into deals, streamlining sales cycles and expanding reach.

• OEM relationships, such as with Snowflake, enable Domo to serve both IT and business users, enhancing governance and self-service.