Thanks for coming, everybody. I'm Derrick Wood, Senior Analyst covering the enterprise Software sector. And with us today, we have Tod Crane, CFO of Domo. Tod, thanks for coming. Absolutely. Thanks for having us, Derrick. Let's start with your stock has made a very big move over the last few days. Some pretty exciting things to talk about, especially with regards to your pipeline. Let's just talk, let's start with the highlights of Q1 and kind of what you're seeing in the macro. Yeah, so Q1, very, very happy that we exceeded our guidance on billings, revenue, EPS. Kind of up and down the board, good solid beat on all the metrics there. Some of the other metrics we've been really pleased with are RPO, our subscription RPO in particular, up 24% year- over- year, accelerated from 14% last quarter. Of that, the current RPO was up 5%, which is notable. Our current RPO is a pretty good indicator of kind of where your revenue growth is headed over time. We are really pleased to see that bump up into the mid-single digits. Net retention was up sequentially for the third quarter in a row. ARR ticked up sequentially for the first time in a while. Rep productivity up 60% year- over- year. That's, of course, a really good one from the CFO perspective, seeing the Salesforce be productive, being able to do more with less, being able to get the growth going in the right direction while also expanding margins. That's what we want to see. Wow, a lot of goodness. It seems like the macro is not having any impact on sales cycles, demand, in any material way. Yeah, I mean, it feels like it's just been steady. It feels like it's been consistent. We continue to see a little bit higher scrutiny from CFOs and other people in the deal process more than it was four or five years ago. It has been pretty steady state. I have seen our sales team do a really good job adapting to kind of this new normal. We are finding ways to navigate through that. That CRPO number, 5%, I think it was flat the quarter before. That is a nice, decent bump. Was that any more color around kind of how that backlog really impacted? Yeah, I think the main factor there is improving gross retention. Long term, we obviously want our gross retention 90% or higher. But we've had four quarters in a row at 85% or higher, 86% this last quarter versus 85% is kind of what we guided to, what we expected. Nice to see that coming higher in effect. Improving gross retention is helping the current RPO. The other thing is, as we've focused on multi-year contracts and grown overall RPO, just extending out those contract terms, that's going to benefit your current RPO as well. Why? I mean, so there's clearly customers, I mean, when you look at the current versus total, customers are committing to longer contracts. Yes. Why is that happening? Yeah, I mean, it's a testament. It's one thing internally to focus on, yeah, we want to do more multi-year deals. You can slide a piece of paper across the table. At the end of the day, the customer has to put pen to paper and sign that deal. They're only going to do that if they view this purchase and they view this product as a long-term bet. If they're viewing this as a platform that they can really build around long term in their company. I think more than anything, I think the growth in RPO is a testament to the strength of the customer relationships we have and the way they're viewing our platform as an opportunity to, one, ROI, they get from our platform, but an opportunity over time to consolidate workloads and consolidate use cases onto our platform. There were some one-timeys in the quarter, I think, that you guys called out. I mean, now that you're in a consumption model, there's overage dynamics. And then there can be some lumpiness on the professional services side. Unpack kind of what you saw, kind of how that impacted and why in Q1. Yeah, so we had a good services quarter, had some bigger projects get delivered in the quarter, which contributed to a higher services revenue result. On the subscription side, we did mention there was a little bit of overage impact from consumption, nothing huge, but it's there. That's not something that we're including in our guidance. It's a little bit unpredictable. We don't have a ton of history with it yet. Overall, I mean, all the core metrics of the business, the underlying core metrics, net retention ticking up, ARR ticking up, current RPO ticking up, all those things are pointing to all the needles are pointing in the right direction for subscription revenue going forward. Yeah. Kind of what causes overage now that we got to think about that as part of the model? Yeah, so the way we prefer to handle the overages is to sit down with the customer and say, "Hey, great news. You're using our product. You're clearly getting a lot of value out of it. Let's talk about what the go-forward looks like. Let's get you into a higher volume tier. Let's get you a better price per credit and get you into a long-term deal and really establish this partnership with you." Occasionally, customers say, "Hey, I can't commit to more spend until we get into the next budget year. Just send me the overage. I'll pay it. We'll deal with it later." We do have that kind of as the happens much less often than us working out an upsell deal. Yeah. Okay. I think the big news was, I mean, the CRPO, net revenue retention, all going in the right direction. The big news was the guidance for Q4 this year and the decision to guide for Q4 next year on kind of billings and margins. Yep. What gave you guys the confidence to come out, especially on that top line side of things, to come out with those kind of medium, longer term? Yeah. Yeah, I mean, really, it's the strength in the pipeline and specifically the pipeline that's coming in from the ecosystem. As you know, we've been working really hard on adding kind of a whole new layer to our go-to-market approach. Two, three years ago, it was clear that companies like Snowflake and Databricks were becoming kind of this new center of gravity in the data space. We were being viewed as competitive to them rather than complementary. Now that we're shifting our approach, we've re-architected our product to work seamlessly with their products. We're able to go-to-market jointly with them. We've implemented these overlay teams on our partner team that are out there interfacing specifically with Snowflake. That's kind of the biggest one that we've been working with. The lead flow from them, the pipeline that we're seeing from them on a number of metrics, the pipeline from ecosystem was up over 200% in Q1 versus Q4. The trajectory is really, really strong and healthy. As we look at that, the way that and we're monitoring that week by week as we see those leads come in and deals progress through the pipeline. We're seeing bigger deals. We're seeing deals close faster. The strength of the pipeline and also the strength in the core business that we're seeing, the efficiency we're seeing out of our reps, that's giving us confidence that we can lean in and hire some reps. All that combines to us feeling comfortable guiding to the five and five for Q4 this year and 10 and 10 for Q4 next year. Wow. 200% sequential growth in pipeline from the ecosystem? That's right. Wow. From the ecosystem. Now, is that kind of higher volume or is that like some chunky, larger deals or a combination? It's pretty in line with what we've had previously. Not a massive shift, like slightly bigger deals, but nothing drastically different from the average deal size we've experienced in the past. It's not one or two big deals. It's a nice steady stream of deals that are kind of in line with what we've done in the past. Okay. I guess just kind of double-clicking on that, kind of putting some numbers around it, I think at the analyst day this year, you talked about 20 Snowflake go-to-market teams that are now, what are they doing? They're now kind of involved with co-selling with Domo or co-selling with Domo reps? Put some numbers around that. Yeah, so we've got a team of reps that their whole job is to get out there in the field and be involved with the Snowflake teams, to be attending their QBRs, going on site with customers with them, just really getting deeply embedded in their process. The way I think about these partner relationships, it really comes down to three things. It's the relationship. It's the education and the enablement. We've been working for a year plus on building those really strong relationships. I feel like we're getting to a good spot there. The education is still a big part of it too. We've got to help them understand how our product works with their product, why it's easier to sell Snowflake plus Domo or Databricks plus Domo rather than Databricks plus Fivetran, Matillion, five or six other tools that you have to kind of cobble together to create the same experience that you get with their CDW and our product. Working through that education process and then, of course, enabling them and helping them understand the possibilities there. Just constantly making more and more progress there. We're getting in with more and more teams. The teams that we had talked about were on the new logo acquisition side of the house. We're now working more with their expansion teams as well. We're getting brought into more and more expansion deals for them, which is exciting. That's a whole other kind of frontier within their company that we are starting to get into. Wow. The message has worked pretty well, I guess. Yeah. Yeah, it's resonating really well. That idea of like, oh, you're working with these ETL vendors. You're working with these BI vendors. You can work just with one. Are you being brought, are you seeing use cases where you're being deployed for both the ETL engine and the BI kind of front end? Absolutely. Absolutely. That is a huge selling point of this whole arrangement is, hey, you need to hydrate your data warehouse. We have 1,000 connectors. You need to be able to join, combine, cleanse that data and get it into a nice clean format to put into your data warehouse. We can do that as well. On the front end, the ability to create agentic workflows, to create custom applications, to create whatever kind of front end visual experience that you want, we can facilitate all that in one stop, all under one roof. It saves a lot of time and effort. They do not have to go integrate five different systems. They do not have to have different system admins or IT owns this one and this other group owns this other tool. It is just a lot more streamlined. It makes for a quicker sales process. Frankly, one of the things they're seeing with them plus us is a really strong competitor to Microsoft. They don't like Microsoft. Microsoft's been a competitor for us. When we can join forces, it gives us much better, puts us on much better footing to compete against the likes of Microsoft. Yeah. So, okay. Is the competitive landscape, I mean, it had been tough competing against like Power BI and Tableau. I mean, is this giving you kind of better win rates because you're being positioned a little differently? It's absolutely helping our win rates. We're seeing Tableau a little bit less. Microsoft is still there a lot of the time. Our win rates are definitely going up as we partnered with Databricks, Snowflake, et cetera, because we can go in with a joint plan. They've got contacts in the company that we don't have. We have contacts they don't have. Typically, they're really strong with the CIO. We're more line of business. If you go talk to anyone on the sales team at Snowflake, Databricks, or these other CDWs, their directive is you need to get in with line of business, line of business, line of business. We can help them accomplish that. Where we've been weak in the past is the CIO doesn't know who Domo is. What's this tool that marketing's using over here? I haven't heard of it. We should get rid of that. If we can come in the front door hand in hand with these CDWs and we're blessed by the CIO, we're part of a blessed global data strategy, that's a completely different situation. That was going to be my next question, but you already answered. That's good. I'm sure a lot of CIOs are like, we haven't heard of Domo. Now you're getting kind of in the door and getting recognition. Sounds like a pretty good synergy. Where are we with traction with Databricks as another partner to target? Yeah, definitely earlier in the process than we are with Snowflake, but definitely it's a big focus for us. I think the next big step there is we're going to have kind of a really strong V2 of our integration with them done in mid-July. I think once we have that done, that's going to give us more that we can go talk to them about and say, hey, we just redid another version of the integration. These are the additional things we can do. That's going to accelerate that partnership as well. Getting a team stood up as well. We've got the overlay team for Snowflake. We've got the beginnings of an overlay team for Databricks, but we need to continue to expand that and build that out as well. Yeah. Okay. Really nice to see all this come together. We've been hearing about the strategy for a while. I mean, as you look at the pipeline, are sales cycles similar to kind of your core sales cycles or anything quicker or longer? No, it's pretty similar. In some cases, it's quicker. I'd say on average, it's in line, maybe slightly faster than what we're seeing or what we've been seeing. It's, yeah, directionally about the same. Yeah. Okay. I guess the other big initiative has been around the consumption pricing model. I mean, have you got over 70% of the base now or of ARR on consumption? Kind of where do you think this goes? You get close to 90, 100? What happens to those that do not actually? Yeah. I mean, we're seeing it approach 90% by the end of this year, just the run rate we're on and the progress we're seeing there. Really, we've been working on the consumption thing for a little less than two years. To go less than two years ago from kind of a pilot group to now 70% of our ARR, it's a pretty heroic effort to get to that level so quickly. The trends we're seeing there are just super, super encouraging. I mean, the fact that we're able to unleash the entire platform for them and they don't have any, there's no aspect of the product they don't have access to, especially in this world today where agentic AI is just top of mind for everybody. For these consumption customers to have the ability to go in and access our workflow capability, our AI/ML capability, all the advanced features that we used to have to do separate sales cycles for and they'd have to go to procurement and get permission to be able to go buy, they could just go in there and access those now. It is really opening the door for us to go in and help them adopt and get them set up with some agentic AI workflows that are actually driving meaningful impact in their business, which is creating a much stronger foundation and lending itself to these higher retention rates that we're seeing with that group. Yeah. I mean, it was a few quarters ago where you gave some quantification on that. I don't think you've given anything new recently. Like the NRR profile of a consumption customer is this versus legacy. I mean, it's a lot higher, right? Yeah. The last update we gave Q4 for the full year of FY 2025, it was over 90% gross retention and over 100% net retention for the consumption cohort. We're continuing to see that cohort be considerably higher than our seat-based customers. I think as we get closer to 90%, it's essentially our whole business. Really, the metric that matters is our consolidated NRR, consolidated gross retention. It made more sense to us to kind of keep focusing on those with just a little bit of side color on what's going on with the consumption cohort. The trends are definitely there. How do we think about then just the monetization and the revenue model if you're not tied to seats anymore and there's kind of, I think, unlimited access to users? What is the grounded pricing component and how do you drive expansion in that? Yeah. It is all based on credits. The customers buy a package of credits upfront that they burn down through the year. They do not carry over, or if it is a multi-year, obviously over the course of the contract. The way that we are expanding is, for example, I will use like an agentic workflow as an example. To set up a kind of end-to-end agentic workflow, there is a connector that is running, probably multiple connectors actually. They are getting at different data sources in the company. You have got ETL workloads that are running to combine and cleanse and join that data. You have got a workflow itself that is running through a process where it is bringing that data in. It is saying, if this, then that, go update this over here. Go talk to this system over here. Those are all consuming credits. When a connector runs, it consumes a credit. When an ETL runs, it consumes a credit. When a workflow runs, it consumes a credit. These workflows are actually really kind of triggering four or five things in our product that all consume credit. That is how we kind of monetize that additional usage. Yeah, the more connectors, the more data, and even the more users because they're querying this more. That's all tied to consumption. That's right. That's right. When you flipped customers over from per seat to consumption, I think was there much of an uplift or I think you kind of made it kind of neutral on the revenue side initially, and then you kind of want to see growth in consumption? That's right. That's right. Yeah. I mean, early on, we had some good uplift there. Customers that were really excited to have access to new features of product. As we get further into the customer base, it's more flat. We're seeing within a relatively short period of time, less than a year, the trajectory of that credit usage is really ticking up and allowing us to go in and say, hey, again, good news. You're using the heck out of the product. Let's get you into a contract that's going to get you set up for success for the long term. Okay. You mentioned AI agents, Agentic AI. Everyone's talking about that. What's your story there in terms of how you're driving product to market to support AI agents? Yeah, absolutely. At Domo palooza, we announced our Agent Catalyst platform, which is really kind of a combination of different pieces of the platform that we've been working on and building for years. In a lot of ways, we were built for this moment. We have all the connectors. We have the ETL. We have the governance. We have the security. We have all the things, all the ingredients you need to create an agentic workflow. We have. Packaging that up, saying, hey, we have Agent Catalyst. It allows you to quickly build agents. In fact, we had a customer that recently emailed us and said, hey, I was participating in one of your webinars. We have a 10-part webinar series about AI agents. They said, I created an agent in 37 minutes. They were just blown away that they were able to create a meaningful agent in 37 minutes. We are seeing stories like that across our customer base where they are able to get to that value really, really quickly. It is really just combining the things that we have been working on for years and helping people understand how to use it together to create. Now, these agents, is this like natural language querying of your data and being able to ask any question about your data? Or are these packaged or you can build your own, like, I want a marketing agent to go automate this marketing process? I am just wondering, is it more from the IT side or more from like an operational kind of line of business side? It's definitely line of business. We do have the ability to interact with your data using a natural language interface. That's part of it. When we talk about these agentic workflows, it's kind of a separate category of AI functionality. It is line of business. It's them orchestrating a series of events where it's, hey, hey agent, you're a CFO. You're reviewing the forecast. Go look for anything that looks out of line. Look for any anomalies. Come back and tell me what you find. It's going out. It's accessing that data. It's coming back, reporting what it finds. It could be updating a form. It could be updating another system. It could be sending emails. It could be sending alerts, those kind of things. It's much more line of business focused, like very tangible use case focused is what we're seeing. What's interesting about this development, there's some narratives out there. There's going to be one or two big winners. There's going to be people who win and who lose in this AI market. I've also heard people say there's really three buckets of true AI use cases that are really going to drive value. What we're seeing is with this ability to create agents quickly, there are a ton of smaller use cases out there that are very meaningful to our customers where they're able to quickly get that value and deploy those agents in a meaningful way. I think there's just a lot of greenfield out there, a lot of opportunity for people to take part in that growth. You're taking the approach of you could go build quickly as opposed to like, here's your marketing agent or here's your pre-packaged. That's right. Yeah. That's right. We do have some pre-packaged agents just to get the juices flowing. For example, at Domop alooza, in one of our general sessions, we announced and said, hey, we will help you build your first agent for free. Here's a link. Go sign up. We had over 200 customers sign up immediately saying, yes, please come help me build an agent. We are working through that list right now. The use cases that we are helping people implement are super, super interesting. The modernization strategy is same as the core consumption-based. That's right. Yeah. I'll stop for a sec to see if there's any questions in the audience. Okay. Wanted to move to how to think about costs and investment and growth. To get to your five and five and 10 and 10, I think it incorporates OpEx being pretty flat here through this year and I think even into next year. How do you dial up growth with keeping costs flat? Yeah. It's just a constant cycle of making sure we have the right resources in the right places. We're also looking heavily at AI and how can we replace certain jobs with AI. We've seen a lot of success there where we've been able to streamline jobs. We've been able to get a lot more leverage out of our existing resources by empowering them with AI tools to help them do their job a lot faster. That's certainly part of it. I think as well, again, going back to the rep productivity, as we see that rep productivity climb, you're able to do a lot more with a smaller cost envelope. As we lean in and get back to hiring more reps, we're focusing on reps that have experience in the ecosystem. That's something that's changed in just the last two, three years. We've kind of got a much bigger talent pool. We can go access people that have been at Fivetran, Matillion, Snowflake, Databricks, et cetera, that really understand the landscape and hit the ground running. The ramp times we're seeing are a lot shorter than they have been in the past as well for the reps. Looking at making sure the right people in the right places, looking at AI, we're seeing a lot of good productivity on the sales team. Of course, there's this whole package of supporting roles that go around the sales team that if you can get by with fewer reps there, you can get by with fewer supporting roles as well. That helps. Yeah, I mean, $300 million business, there's a lot you can do with a $300 million cost envelope. You can shift things around and do a lot with that to get the growth while still keeping costs flat. It sounds like you guys are talking about starting to kind of hire a bit more aggressively on the sales side because of what you're seeing in the productivity trends. That's right. Yeah. It's a good sign. I mean, give us a little history on that. Had it been kind of flat to down in the last year and now you're looking at dialing it back? Yeah. Yeah. I mean, if you go back a couple of years ago, the trend on the productivity was not what we wanted to see. It was pretty clear we had pockets in the sales team that just weren't the right fit, weren't the right background. We have a group of sales reps that we feel really good about right now. We're going to lean in. We're seeing success, like I mentioned, hiring reps with a certain background and a certain level of experience in our ecosystem, hiring the right people with the right background. As we have more and more of these leads coming in from the ecosystem, that's also giving us confidence. It's one thing to see the productivity, but you also have to have the lead flow to support bringing in a new rep where you know you're going to be able to feed them. We are looking at that and kind of planning, trying to stay just one step ahead of that lead flow as well. As that continues to grow, again, it gives us more confidence to bring more people in. On the gross margin side, I think, I mean, there's been a little bit of pressure as you kind of shifted to this consumption model. Are we kind of at more normalized levels here or how to think about? Yeah. We see that stabilizing kind of at its current level in the near term. In the longer term, we think we see it going up. We were around 85% on the subscription margin in the past, around 82%, 81.5% to 82% right now. Over the long run, the consumption model should tie the revenue more closely to our costs. The more our customers are querying data and driving that compute in the systems that support our product, the revenue should be going up in tandem with that. Yeah. Okay. What are your thoughts on the Informatica acquisition? Yeah. I I mean, it's interesting. We've seen this before. Salesforce obviously acquired MuleSoft and Tableau and now Informatica. All companies that are in our space and companies that we've run into competitively, since they acquired Tableau, we've seen Tableau a little bit less. We expect that we'll probably see something. We will see less of Informatica in deals. I think it creates opportunities for us. I mean, and then from a valuation perspective, on the day that acquisition was announced, which I think was Tuesday this week, our stock was up 13%. I think it was just a they weren't a super high-growth company. They got a 5x multiple. We're still sub two, sub 2x multiple. As people look at our company and understand, we're not going to be rule of zero forever. We're five and five, 10 and 10. I think overall, it helps us both from a competitive standpoint and from a valuation standpoint. Even may help you with your Snowflake partnership too. Yeah, absolutely. Absolutely. We're almost out of time. But just to kind of make sure we're covering the bases on the macro side, I mean, you do have some public sector revenue. You do have a decent amount from retail, which from DOGE to tariffs, been concerned verticals. Doesn't sound like you're seeing any. When you look at those verticals, how are you feeling about those? Yeah. If you look at our customer base, it kind of mirrors the distribution of GDP with maybe a slightly heavier weighting on tech. Other than that, it kind of mirrors GDP. That gives us a nice diversified kind of customer base to work with. From a federal perspective, we do not have any federal exposure. We do not have any federal contracts. That has not been an issue for us. On the tariff thing, kind of just around the edges, we have had a couple of customers mention things, customers that are in the manufacturing space. We have had them say, approach us about some concerns there, but nothing significant, nothing that is making us feel like there is a fundamental shift that would cause us to have to alter our guidance or alter the way we are approaching the business. Okay. And lastly, I mean, Snowflake's conference is next week. You guys are going to be there. Yes, we will. What kind of opportunity does that event yield for you guys? Yeah. It goes back to the relationships and the education part of it where forge new relationships, make sure every rep, Snowflake rep that's there knows who we are, knows what we do. It's just another opportunity to really expand that reach and that educational effort that we're in the middle of with them. Helping them understand how we can help them sell more, help them sell faster, help them get to line of business. If we can come away with. New prospects, right? Yeah. New prospects, of course. 100%. Okay. All right. Anybody else? No? Okay. Thank you. Yeah. Thanks, sir. Appreciate it. Appreciate it.