Domo, Inc. (DOMO) Earnings Call Transcript & Summary

Hello, everyone, and welcome to the financial analyst and investor session of Domopalooza. I know you all have an opportunity to watch the main session as well as some of the breakouts. It was rich with customer testimonials, product announcements and insight as to how we believe our modern BI platform will change the dynamics of the market. It has been recorded and still available for you to watch you if you have not had a chance to see it. Before we get to the agenda, I'll let you view the forward-looking statement disclosure because among other things, we plan to provide forward-looking statements. And we just need to remind everyone that actual results may differ from what we discuss. Now having done that, let me briefly review the agenda. We'll start off with Josh James to give an overview of the business and the momentum and some of the findings from this event. We'll then go to Ian and John to cover our go-to-market progress, followed by Daren and Catherine to provide some information about product updates and recent product announcements and where some of our high-impact and high-performing areas have been and where we think they will be. And then we will conclude with the financial discussion that I'll cover, and then we'll be open up for Q&A. [Operator Instructions] And at the end, we will accumulate them and read them out and then answer them. So with that as an introduction, now let me turn it over to Josh.

All right. Thanks, Bruce. Good to be here with all of you, guys. Appreciate the time and learning more about us and also the feedback that you're constantly giving to us. We appreciate it. I don't mean that [indiscernible], but yes, it's always helpful. So it's been -- it's always an interesting time right now for us with Domopalooza as our second virtual one. Not the biggest fan of virtual, but I think we've gotten good at it. We got the feedback that we get. Our customers loved it, had over 10,000 people registered and participate. We had some -- just in the breakout sessions alone, we had over 7,000 participants. And I had some sessions with close to 1,000 people on it. So that's something we wouldn't be able to do if it was purely in person, get 1,000 people in a breakout room, but certainly excited about it. Excited about the theme of modern BI for all. I think the definition of BI has changed enough over the years that world came embracing that term. I still not -- yes, there's still not a term to describe all of the things that we do, but I think as we see the apps and solutions that provide more and more over the years, it will become more apparent. But I definitely love the three things that we talked about, data agility, data literacy and then also intelligent action, some of the great examples that we heard about with our customers. I think one of the things that was exciting was talking about on the data, for instance, on the data agility. Just the connectors alone with so many customers will start off using 3 or 4 things, next thing you know, they've got hundreds of different data points. We have 1 customer, a CPG company that has over 40,000 data sources coming to Domo daily. Emerson, talking to them about the IoT solution that we've sold to them and that they're using very successfully. They have -- not that they're using all of them, but just when you think about the amount of data, over 1 billion rows of data that are generated from their equipment every -- it's like every 6 seconds. I need a coffee -- an ice machine alone generates millions of impressions a day just from an ice machine. I guess it's like 600 data points every 6 seconds, something like that. So it's been fun seeing all the different data points. I think one of the ones I was most excited about was the conversation that I had with the Fortune 100 COO and CFO. And we showed him the -- they're a customer of ours. We're continuing to work with them. And he knows how we work with them and say, "Hey, I want you guys come in and expand my mind a little bit. Show me how you use it. I want to see how Bruce uses it. I won't see how Ian uses it. Talk to me about supply chain." So we went in and we showed him everything. And we talked to him about -- he asked about alerts, "Can you set alerts on this?" We said, "Yes. Absolutely, you can set alerts." And he told how a lot of our customers are setting alert if something changes by 2% or by 5%. And we said, if you set up to 5%, the people that work for you are probably going to set their threshold to get them a little at 3%. So by the time it triggers a 5% change in data, there you have the answer for why it's changing. And as we were showing this to him, he said -- he looked at us and he says, "Well, first of all, he said, stop selling past the sale, I'm sold." And then he said, "If someone brought this to me in my organization and showed me all of this data that you guys have, and I have this from my company. I would look at that person and think to myself, that's the next CFO." And so I thought that was a pretty powerful statement in describing still how starved the executives are in getting data realtime in their fingertips in a way that works -- the way we think the world should work. You get an alert, right? You get a notification. I mean someone makes a comment on a picture of yours, you get a notification, but your business decreases by 5% day over day, and you got to wait for someone to call you or look for an e-mail. So I think that highlights that in a really unique way. And then the last thing that I'd say that I'll leave you with, and then we can get -- I think the customer examples that Catherine and Daren are going to share, I'm really excited for you to hear about those. And I think I want to focus on -- leaving much time as possible to focus on those and for Q&A. I think Bruce has got some exciting comments for you as well. And hopefully, Ian and John do a fair job. But the thing that I'll leave you with is when I was talking with Mohammed Aaser from McKinsey, the last question that we asked them, we said, "What would you recommend to our customers? What's the advice you give to them?" And this is a man that goes and consults with the companies in the world and helps every -- the partners at McKinsey, think about their data strategy for each of their clients. And he says, "Make sure that all of your customers know whether they are data analysts or they're a manager of a business. If they're just a nontechnical consumer, make sure that they're the change agent." That's my recommendation. And we certainly believe that we are a change agent for our customers. And then after watching everything, he sent me a text and said -- this is yesterday after the Domopalooza, he texted me. He actually said, he's like, "That's it. It's clear to me. You are the Apple of data." And I think that's a really cool way to sum it up from a person from that kind of luminary. When you think about BI leverage at cloud scale in record time, you know what the platform that we have, is it BI, is it all these applications or the Apple of data and appreciate that kind of stamp from that kind of luminary. So appreciate the time. And with that, we'll go to the next spot on the agenda.

Good morning, good afternoon, everybody. Thank you for joining us. My name is John Mellor. I'm here with Ian Tickle. I run the strategy and the marketing team. And Ian, I'll let you introduce yourself. I'm sure everybody knows you, but...

Hi, everybody. Ian Tickle, Chief Revenue Officer, and pleased to spend some time with you today.

Yes. We're going to spend a little bit of time. And just I'll give you an update on some of the go-to-market processes that we're going through and how we've evolved over the last year and then give it to Ian, and he can talk about some of the -- in the field on The Street and how things are happening. We're -- as Josh said, we're really coming off of a high Domopalooza. It is a ton of work. Nobody is going to minimize that, but it's also an opportunity to get a ton of energy bounced back to you from the market and from our customers. The things that we've heard from customers, the deep engagement that we had with them, it's really a shot in the arm. And I think the team is pretty excited about it. So maybe talk to us a bit about the journey that we've been on. Last year was really -- it was a lot about 3 things. I mean it was positioning and messaging for the company. It was focusing on the core audiences we want to sell to. And third, just working really closely with Ian and the sales team to get them the right material so that they could get introduced into these conversations and then accelerate the conversations. So on the first one, on the messaging for the business, we started out last year dialing in the value proposition of Domo, which we state as BI leverage cloud scale in record time. And those 3 parts of that value proposition, each really brain through last year. I mean the concept of leverage is something that our customers think a lot about. I mean they had to modernize their BI systems, but they didn't want to replace their BI system. They wanted to leverage the investments that they've made and our proposition of being able to come in and take advantage of your investments in your enterprise data warehouse, it's all of the data and the processes that you've got in place and just make them better, that really worked. And then I think the record time, if there was ever a time when the industry just didn't have time to wait, it was last year. And we hear this consistently from our customers. It's about speed, get me to value very, very quickly. So that message has resonated really well, and you see the theme for Domopalooza, modern BI for all, helps us capture the breadth, the vastness of what Domo delivers to customers. So that's really was the first point. How do we -- just kind of evolve the messaging and positioning for the business. And then secondly, is the audience that we're targeting and we started last year with a real push on line of business going into the leaders in finance and then marketing and in product. And that worked well, and we've evolved that to now really embrace IT and the data and analytics teams because we're seeing these teams operate in maybe a hub-and-spoke method in some organizations. In others, you've got embedded IT and data analytics teams right inside the lines of business. And focusing on the message to IT as well as lines of business helps us deliver the leverage message, which IT and the data and analytics teams really, really love. But then the real business value comes through pushing this out to lines of business, where Domo shines with its user interface and just ability to get data on any device in any location. And then the third part, and then I'll hand it over to Ian, just working closely with Ian and his team. He's brought an exceptional operational rigor, and we've done our best to keep up with that group and try to deliver them leads and deliver them content that they can use in the selling process and help get reps as productive as possible and get new reps ramped up, and that's our job. Ian is our biggest customer. So with that, Ian, maybe turn it over to you.

Yes. Great. Thanks, John. Really appreciate it. And the first thing I would say is absolutely the bit that's been so super exciting with the last 12 months and last 18 has been the relationship with John and the way that we've been changing the way that we're perceived in the market, not only from a brand, but also from an execution standpoint. Because one of the things that's easy, I'd say easy for John to come up with new messaging, but for John to come up new messaging that then resonates to then really works with the brand. And we do a lot of work, John and I, on looking at the metrics in Domo ourselves about trialing new messages, trialing new content, see what resonates across what use case, what persona, and it's been fun. You're actually looking at that [ new gen ] Domo to drive marketing campaign effectiveness, looking at mid-funnel analysis and how do we work there. So I think there's probably a couple of the main drivers for the growth last year. One is definitely the go to market. It's made a massive difference to us. The changes that we've made over the past several months and years has really worked for us. The message is clearer. I think people understand it more, but also we've done a lot more work on educating the sales force and also the supporting functions on the clarity of what we can deliver and how we offer super value to our customers. And that intelligent action is really important for us because the bit that we focus on a lot with everything that we execute on is the value to the actual and use it to the customer. And we have some stunning technology, and Daren and Catherine will show you some of that later on. But the ability to take that technology and drive it into business value is really important for us. And then, of course, we have seen the environment change. We've definitely seen the fact that people are remote and they need access to information, and they need access quicker, quicker than they've ever needed it before. And one of the beauties of the Domo solution isn't just the way that we could enable and execute quickly is the return on investment and how quickly customers can see the platform and how we deliver the usability that they just haven't had before. And that just gets exciting, right? That -- what happens is the sales team get excited by -- we know we've got a technology partner in Catherine, Adam and Daren, who are going to back us up and give us the portfolio that we need, which means we can go to customers and talk to them about how well we're driving and the traction that value people are experiencing. So that's exciting. The third thing is really that the markets' starting to really see who we are and what we do, and Gartner have moved us from the niche provider to the Challenger quadrant. And that's a big thing for us because what happens is it gives us the confidence as well to say, "Hey, this -- we knew the vision was right, and now we're starting to resonate with the market, and they're starting to see where we need to go," and that really helps us. But it's not just Gartner. We're seeing it from Ventana, from Forrester, from Constellation. Yes, it's like all of the analysts are now starting to understand who we are as well. So that's super exciting for us as well. The bit that probably I ask John to comment on this as well, we've done a lot of work on sales and marketing efficiency. And this is why we're super excited about next year as well because we've taken some great steps with the sales organization to make sure that we bring people on board, so we're hiring heavily at the moment, and that's going really well. We completely rebuilt very early on our onboarding process. So we've changed the work that we do there to make sure that we ramp the reps quicker, and we give them opportunities quicker to convert. We focus on process efficiency so that we can move things through the funnel quickly. And just -- John, just a quick comment from you. I think our mid-funnel execution as well where we've really spent a lot of time on not just leading the universe of lead, but also must have got a prospect, how we market to them and drive value there as well.

Yes. I think there's a big investment in that mid-funnel content. I -- just look at Domopalooza, and if you get a chance to at least watch the keynote, you really should because it's wonderful. I'm a little biased, but I think it's really good. But what you'll see is a really rich set of content that happens in the keynote, but then all of the roundtable discussions and these workshops that we did. And in a virtual event, you're able to a little bit more easily hit a broad swath of audience. And this sort of highlights -- I just -- I made a note about a couple of the workshops that we were in yesterday. And I'll mention these two because they kind of showed the 2 ends of the spectrum. The one was the art of -- enterprise level data architecture and [indiscernible] session. [indiscernible] you've got operational foundations of action-based dashboards with over 600 people. So you've got data architecture and pipelines and dashboards and everything in between. So we're building a really rich set of content that we can now help customers, the prospects, do their evaluation more quickly through the mid-part of the funnel. It's an exciting project because the customer love and the customer engagement is just so strong. I mean there's great stuff to work with.

Yes. Yes. No, it has been great. And then we take that and we work with that, and we look at the changes that we made through our partner network as well and the traction that we're seeing with the partners. We've done some great, great work, making sure that we have enablement sorted there as well. And I'm presenting at the partner network later on, and we have a lot of people now interested in who we are and what we do. We hired a new head of partnerships as well, which we're super excited about. Vita Shannon, she comes from KPMG, and prior to that, she used to work with IBM. Great experience on both sides of the funnel, if you like, about who to work with and how to target and she's bringing some great focus as well. And I think that's pretty why we're so excited about next year is really, if we look at some of the use cases that we sold for in the previous year, we truly delivered business value, and we've delivered it quicker than we've ever delivered before. We've had a great new logo year. We've got a great upsell to existing customers as well. And we're seeing more and more use cases come to us from our existing clients because they recognize that we are delivering where people haven't been able to deliver before. And with the platform that we have and the way that we're opening it up, and Catherine and Daren will talk about this, it just means they're getting even more interesting and more inbound traction about where we are and what we're trying to achieve and who we're trying to work with. And we just have some real good fun, right? We enjoy the competition. We enjoy going to market. We've got a bit of a spring in our step. So I might say, it's a little bit of swagger, but as an organization, we recognize that the BI leverage that cloud is going in record time works. It definitely works. And the BI leverage part where we can work with whatever infrastructure they have at this point in time means that we can focus on business value. And that's really where Josh is so right that the intelligent action is the key. Data literacy is important. Data agility is important. And unless you get somebody doing something with it, it doesn't make any difference, right, because it's just another thing. So one of the things we've been so excited about was some great wins in the states that we worked on, and we've upsold to center to more portfolio and more offerings. We had some superb wins in the retail sector. And you think about retail sector, it's been hit hard. But what happened when they were hit hard, they needed to see quick reporting and quick analysis so they could pivot and turn. And if you look at the young keynote, I think as well with regards to how they use data and how they pivot it was fantastic. So we're happy with the way we're executing. We're happy with the efficiencies. We're super excited with the team and the way that they work and the way that they executed. John and I are continuing to drive and push. We push each other. It's always part of the fun of looking at how do we drive further execution levels. But at the heart of everything, it's -- John and I just want to be more efficient at providing more opportunities, moving through the funnel quickly and making sure we execute across them. And we're having a great time doing it. And it's really great to see some of these client use cases be presented for us at Palooza. So with that, I think we're probably going to pass to Catherine to actually take you through some of the great announcements that we made at Palooza. And she'll say very quickly on -- or publicly development -- thank you so much [indiscernible] to be able to sell this platform.

Yes. Thank you.

Thank you. Thank you, Ian and John. Yes. So we're going to go over to some highlights of product announcements. And to really frame this, we thought we would review the 3 pillars that you've heard us reference: data agility, literacy and intelligent action. So in a nutshell, right, when we think about data agility, we are talking about connecting to that data fabric, leveraging existing investments, unifying the catalog and really getting an access to all of that data and doing it at speed. And when we talk about literacy, we're then saying, it's not enough to just get the data. We want to be able to gain insight and knowledge and understanding from that data. And that's really about empowering, empowering an entire organization. So those insights aren't just confined to those who may know SQL or be able to access that data, right? And then as Ian just referenced, intelligent action is really the key, right? Once you have that data agility and literacy, then being able to take action with that data. And a couple of things go into that, automation, ease of use, having unique visualization that really tell your data story and prompts the right action. So the announcements that we're going to share are highlights from these 3 pillars. The other thing I want to call out is just that speed, as was mentioned throughout, is really critical to us. That speed to insight, query speed, be to distribute analytic content, sustaining that speed at enterprise scale, that's just something that really is part of our DNA, and it forms a lot of what we do. And you'll see that present throughout the customer examples that we share. So first up, I'm going to hand it over to Daren to talk about the multi-cloud data fabric announcement.

Yes. Thanks, Catherine. So we're really excited about this capability to have Domo for Snowflake and then quickly following up Domo for Redshift. And in a similar pattern, you can also envision Domo for BigQuery, Domo for Azure SQL, et cetera. And keep in mind, we see this as a fantastic for our new logo growth. And some of the initial feedback that we have on the vision [ list ] from our customer advisory board and CIOs includes quotes like, "This is the future." We get CIOs like -- look at this and say, "Yes, this is exactly the future." It really resonates with CIOs and technology and BI leaders. And to get -- dive deeper in this, this allows them to leverage their substantial investments that they've made in Redshift or Snowflake and unlock the full power of the Domo platform. And when we talk about unlocking the full power of the Domo platform, we're not just talking about a simple integration, which you'll see a lot of -- there's a lot of them out there. A lot of vendors will do a simple integration that would just merely allow you to query existing data that's in the Snowflake or the Redshift. And an example, this one customer, I would say, was blown away at how this integration made it so easy to bring data into their Snowflake environment. Using Domo's world-class connection library, they could easily walk through, configure an automatic pipeline that would then move data from one of their SaaS providers systems directly into Snowflake. But it goes beyond even bringing data into Snowflake and all of the power of Domo's transformation technology can now run entirely in the customer Snowflake or Redshift environment. So all -- and all these enriched derivative data sets, the data engineering teams are building and the power that Domo has in those pipelines, also ends up landing in their Snowflake and the Redshift environments. So if we look -- and if got it without this integration, in most organizations, we see only a select few have access to their Snowflake or Redshift environments. For example, just getting a new table trade in Snowflake or Redshift and then hydrating that with new external data is normally a fairly complex process that requires a lot of data engineering and IT. With Domo's integration, IT departments can just safely grant this access to business decision-makers and users in Domo, and thereby, a lot tremendous additional value. It's a huge unblocker for CIOs. Let's go to the next one. Next one I want to touch on is our advancements in data science. We continue to bring to market powerful data science capabilities for the Domo platform. This includes features that automatically employ AI algorithms, like under the covers that automatically happens for our users. One of those is like our key driver analysis. It's like a virtual analyst that's always running in the background. This engine uses AI to automatically run these complex analysis on your data, and then it presents those insights in a simple, easy-to-understand narratives that highlights key insights for you. It basically gives our customers an expert guy, kind of, to walk into their data. But then it also includes -- we love data scientists, and we understand how complex their jobs are. And so we have features that really arm data scientists like our Jupyter Notebook's integration. And the data scientists across the world, they love Jupyter Notebooks. And with this integration, they can immediately leverage the entire Domo platform with Jupyter. Really Jupyter ends up standing on the shoulders of this massively powerful adrenaline data platform. That's a good way to think about how this works. And then a significant challenge that data scientists have is moving from this mode where they're doing model development, where they're training their data, building these models. And then when they get into a point -- now they want to to move those into production. Well, with our integration, these advancements allow customers to leverage any element in the Jupyter Notebook. They can use it as a reusable data recipe inside of Domo's transformation suite. Very, very powerful. We have the what-if analysis. We're introducing this very powerful and flexible application that can perform complex what-if analysis. And then the fix-it feature. It employs machine learning to identify hygiene concerns with your data and suggests automatic fix this up. You just can click and say, "Yes, you have to apply those fixes." It's another huge timesaver for data scientists that too often spend many, many hours addressing data hygiene issues. I'll pass it back to Catherine.

Thanks, Daren. We also wanted to highlight a few key announcements that we made in data literacy as well as intelligent actions. So on the data literacy front, we continue to provide analysis capabilities, and our customers love being able to get additional tooling that helps them really not only find those insights that they may not be aware about. So for example, with -- [ naturally with query ], be able to ask questions of the system and surface cards. Or if the card doesn't exist, the system can automatically suggest and create what they should look at. But also just the capabilities for business users to increasingly be able to understand their data without having to be SQL experts. And so for example, our data set views and analyzer function of major global CPG company is really using this to empower business users throughout the organization to be able to answer their own questions and do pretty advanced operations, but without having to know all the technical ins and outs with SQL. And in addition to that, really unlocking those analysts who do have more of a technical bend who want to create very bespoke customized experiences for their business. We have this code engine capability, which really allows you to augment the Domo platform and add additional capabilities, pull in data. It runs time and really tell your data story. Next up, we also wanted to highlight DDX Bricks. This was a big announcement we made in intelligent action. And this is really about taking that next step with embracing the ecosystem and enabling customers to tell their data stories with custom digitalization. We've always had the capability for customers to do this through our very robust app platform, but now we've made it in just a few clicks so that customers can leverage existing library visualization and then pull them in seamlessly into their data story in Domo. And what's wonderful and valuable to customers about this is that it fully leverages the entire Domo platform, so the robust data connections, transformation and management as well as our instantaneous mobile availability and full functionality there. So we have so many customers that are very excited about this feature because of what it's going to unlock for them. And then the last highlight I wanted to call out in intelligent action is Domo Everywhere. Domo Everywhere is something where we see the power of the Domo platform is still compelling that we have a high demand from major customers who want to take that full platform and make it available to their partners and their customers. And what we're recognizing is that customers need the full package, not just a chart with some basic interactive ability. Many customers, they don't necessarily -- they may not have [ dead shop ] or they may choose to leverage Domo's full platform that we have built out and is scalable. And we are finding this to be a huge differentiator. One example is a large ERP customer who has built their entire software offering on this Domo Everywhere platform. Their data integration, transformation, interface or power it entirely with the Domo Everywhere capabilities. Another customer example scale is a major gaming platform, which Daren is going to talk about.

Yes. Yes. Thanks, Catherine. This is a great example. This game company built this app using Domo Everywhere to share usage data of their games back with the developers who develop those games. So this is a massive IoT data streaming from these gaming consoles. So it's coming -- they're coming in as users are playing their games. And so now thousands of developers have this direct, well-governed access to game analytics to help them build better gains, and they're constantly improving and releasing new versions of their games. And this customer has stated multiple times that in their opinion, there simply is not any other vendor to come close to providing the solution that meets their massive scale and distribution needs. Let's go to the next one. The next example we have for us is the large enterprise that uses sales forecasting app that's been built using powerful predictive AI algorithms that constantly looks at their sales, their sales velocity and all their pipeline metrics to forecast sales performance. Next. The next one we have is a large CPG company that's built this app that measures global brand performance, and it does this by aggregating its cross-platform, all the social media data, aggregate that in, does this realtime comparison against their competitors, always looking at themselves relative to competition, and it does this for an excess of 200 brands. And then the last example, the national home automation provider. They have a very large door-to-door sales force. And now with this app, it runs native on their mobile devices. They now have this visibility to their commission attainment, and they can see it on an hourly basis. And what's been really a game changer for this particular case is that this app also allows their sales leaders, they have the flexibility to create and drive these realtime incentive programs to those field sales teams has really, really been impactful for their sales performance. That's the last example. You're on mute, Bruce.

Thanks, Daren. You think I would have learned by now. That wraps up the product discussion. I will move on to the financial discussion. Let me start it off by saying that we feel pretty good about our performance in fiscal year '21 and particularly by capping it off with the strong Q4. The customer endorsements, our product enhancements and our go-to-market improvements that we covered with you already provide us with a strong foundation to continue our financial performance. With that in mind, we'd like to share with you our intermediate growth target, which is to exceed $500 million in billings by the end of our fiscal year 2025, which is 4 years from now. That implies sustained 20%-plus growth. What I plan to do now is just provide some insight into the drivers that got us to this point and allowed us to grow at this rate in fiscal year '21, and then provide further insight into what our goals are with respect to the same set of drivers going forward. One of the most fundamental drivers has been our ARR growth as it is the engine for billings growth and cash flow generation. Last year, our ARR growth accelerated to 25% from 17% in fiscal year '20 and ended with ARR of over $200 million. We look at -- if we look at any of our other recurring revenue growth metrics, they were also above 20%. We have been focused on growing new ARR for some time and have been adjusting our comp plans and continue to adjust our growth plans in favor of new ARR. At the same time, we have been and continue to be focused on improved renewal rates, which also contributes to ARR growth. So now let me review some of the other drivers of our growth during our recent past and then provide some insight on how -- what our view is as to what we can do and what we can target to continue to improve on those growth drivers. First, our sales productivity improved remarkably in fiscal year '21. Our new ACV per rep increased from under $800,000 in fiscal year '20 to over $900,000 in fiscal year '21. This a reflection of better sales execution and an improved position in the market. Our focus going forward is to at least maintain these levels of productivity and ideally increase them, but specifically, add 20% more reps each year. That is a reasonably achievable goal. I mean the challenge, however, is just getting good talent in a hot technology employment market, but our recent success has given us an edge in being able to attract and to retain good talent. The other challenge, as we brought up in our earnings call is maintaining that productivity level as we embark on growing our sales head count. In the short run, we plan for some decline of productivity. But in the long run, we want to maintain it. Our renewal rates have improved 88% last year from 83% in fiscal year '18 as we become more strategic to our customers, have more use cases, more solution selling and wider adoption and usage at our customers. Going forward, we know our renewal rates have been around 90% in some quarters, and we're seeking to achieve consistently above 90%. And we think that we can even extend that and get that to 92% over time. Given our growing renewal base, this could drive a few percentage points of incremental growth. And the power of the platform is why we win deals. And really, the underpinning to almost all the drive -- all the drivers that we're discussing today, but it also allowed us to build solutions to provide new revenue streams, including: Domo Everywhere, which extends the power of the Domo platform to our customers and our partners; new intelligent apps and applying data science to drive new insights to our customers. Going forward, we want to further enhance the offerings we develop. We want to develop new sources of revenue as we continue to develop our partner ecosystem. We want that partner group to also use the platform to develop their own revenue streams.

Hey, Bruce?

Yes.

I'll chime in here as well. I think one of the other things that's really interesting here on the -- your targeting 20% plus. These apps and these solutions really are fascinating because we're already doing that. It's just really a matter of focusing on them and packaging them. And it was highlighted no more for me than when I was having that conversation with Yum! Brands. And we're talking to the Yum! Brands and talking to Cameron, and he's a great customer of ours, and he said he was in a technology review conversation. They were talking about DNI solutions. And a different part of the organization was getting ready to pay them big chunk of change, 7-figure deal for a DNI solution. And he said, "Wait, what -- describe it to me." And I was, connect to some data, connect to some Oracle data, connect to some work data, pull that data out, make it realtime and have that be presented in a way that we can communicate to our organization. And he said, "I'm pretty sure I can do this," and he did it in 2 weeks. So as we see these customers that are building solutions on top of our platform, there's so much opportunity there for us to say, "Okay, well, what is the best DNI solution?" Because if you were going to go take a DNI product to market, for instance, 90% of what you would need, we've already done all the infrastructure. It's just that last little piece of making sure that it's focused, and it's relevant to that space. So there's a ton of opportunity for us there on that north of 20%. And I think like Bruce said, when you look at the crisis command center that we built for state governments, and we do that over the weekend, the platform is extremely powerful. And when I was talking to Mohammed Aaser there, and he said, "You're the Apple of data," and you think about that. The opportunity is not in -- you don't sell phones by talking about the phone. You sell phones by talking about the apps. And you don't sell Microsoft Windows because you talk about the features of Windows. You sell Windows because of all the apps. And we're just getting to that spot. And it took a lot of work to get us here, but we did -- we built the phone. We are the Apple of data. Bruce?

Yes. Thanks, Josh. We're also pleased that the analyst community is beginning to recognize where we stand in the market. As an example, Gartner recently put us into the Challenger section of the Magic Quadrant. Many of our other competitors move backwards on the Magic Quadrant. We moved up more than anyone. Going forward, we see continuing to improve our position in the Magic Quadrant, and we also feel we can make progress with all the other analysts to cover our space. This will continue to be a tailwind for our efforts to grow as it makes us a safer and more acceptable choice particularly with those that buy infrastructure and tend to rely on those reports more often. And our growth has been aided by adding marquee customers. We have over 20 customers with ARR of over $1 million, up [ 10% ] versus a year ago. We have talked about some of these, but they include Fortune 5 to Fortune 500 customers that went through very rigorous POCs or proof of concepts and often has a high-quality consultants involved. These deals help us increase our brand awareness, market presence and should help drive further growth. They also influence the office of the CIO of other large brands. Going forward, the referenceability of the ones we now have will help us grow this number to [ 50 ] by fiscal year '25. We have quite a few already on deck that are just below 1 million annually, and our largest customers could be multiples of what they are today. This is another result of having a powerful platform that has generated dozens of use cases within some of these organizations, which has caused widespread proliferation of users.

Yes. And I would add here, it has always felt like the classic tipping point. We built this great product, this platform that provides this leverage, this BI leverage, which really is a great way to describe what we do. We have the full set. You don't have to use. This great BI leverage, oh, is it multi-cloud? Great. We do that, too. And we're seeing customers -- I mean this is a crazy metric to me. We doubled the number of customers paying us over $1 million in a year. And it took us 9 years to get the first 10 because in 1 year, we get the second 10. And the amounts that people are paying us as well, as that increases, and we've got a deal in the pipeline right now, it's several million dollars a year. And it's early on. It's like you started out a couple of hundred thousand bucks and all of a sudden, it goes to $7 million a year. As those types of deals start to happen, it changes everything because every rep in the company knows that those deals can be done. And we have referenceable customers with those kind of brands and it's just a natural progression of a relationship. But then in the future, your relationships start at that size or instead of taking 5 years to get to that size, they move there in a year. Because when you sit down and you talk to the CIO and when you talk with the CDO, when you're referencing what the analysts are out there saying, it just changes -- it fast forwards the conversation in ways that you really can't and you really struggle at the beginning of a company's life cycle, but when you get to this spot, it feels like it's ready to blow.

Great. On the next one on partners, we're very happy with our partner contribution fiscal year '21. We closed over $10 million in new business with deals that involve our partners. So we're looking for an even greater contribution, specifically, business that is purely sourced by partners. In fiscal '21, this was less than 5% of our new business. But as you know, we recently made new investments in talent to further pursue the avenue, this avenue growth. And we've had some recent announcements with Snowflake and AWS and others. And we want to continue to add to that list. We think it can be a 15% contributor to new business over time, which would be a significant tailwind to our growth. The market is becoming more aware of Domo. One indicator of our increased brand awareness is our organic lead generation. These are prospects that reach out to us through organic search versus us contacting them. Our sales accepted leads to organic search was up 29% fiscal year '21. A driver within the driver is, we are now experiencing a nice contribution of new business where the buyer has been a former user at previous company. I participated in a Domopalooza then on Tuesday night, where there were -- where 2 other participants declared themselves as three-time buyers of Domo. And they share the experience with prospects at the seam event, making the prospect feel extremely comfortable moving forward with their purchase of Domo. We just want to have this continue to stay on this trend, and it will certainly contribute to our future growth. Another growth driver has been our increased customer base and our increased customer satisfaction, which also drives our future upsells. We ended fiscal year '21 with over 2000 customers, up from over 1,800 in fiscal year '20. And at the same time, our Net Promoter Score continues to improve. That was most recently above 20. We believe we can continue to make NPS progress, continue to grow the customer base. And given each of our customers has significant long-term potential, we can drive growth with total customer count at 3,000 or better over this time frame. Fiscal year '21 was an incredible year in terms of doing more with less. We significantly reduced our expenses, including sales and marketing expenses while delivering strong top line results, particularly in recurring revenue metrics. And as a result, our sales and marketing efficiency, defined as increasing subscription revenue, the [ bottom of ] Our total sales and marketing spend, has increased 44% from fiscal year '19 to fiscal year '21. And other measures of sales and marketing efficiency have increased even more. We're in a good spot where if we have further increases in efficiency, it drives more growth, but we can hit our growth objectives with only minimal increases in efficiency at this point. And then you heard about how we're talking about messaging to be much more IT friendly. I mean one of our newer sales place is going directly at the BI analysts, and we've seen 100% increase in the number of deals where a primary buyer was the BI analyst. We're also seeing much more CIO and IT involvement and backing, resulting in some of our larger deals over the past year. We believe this adds to our TAM and is additive to what we bring to our core target market to business users. We want to continue to be friendly to these groups by focusing on how they get more leverage out of the BI infrastructure by using Domo. And in fact, at this event, we provided many proof points of how our customers can get BI leverage at cloud scale in record time. In summary, I would say that we have a line of sight as to what we need to do against the $500 million goal, and we feel we're in a good position to achieve it. We do have -- we believe we have a channel in place to make it happen. We have the market and position to make it happen, and we have the modern BI platform that stands on par from anything else in the market to make it happen. And with that, I'll go ahead and open up to Q&A. [Operator Instructions] And then we will accumulate them and read them out and provide answers. And I am looking to some of these right now.

So we have some business wants and some technical ones. So whether it's -- I'll move to the product technical ones and we'll alternate between the two. Here's the first one. Congratulations on the new integration with Redshift. How many of your customers are using your data everywhere and related data-sharing solutions today? How do you see that evolving as customers increasingly leverage the Snowflake and Redshift integrations and as you integrate with additional data warehousing providers? So I'll turn that up to the technical team.

Yes. So I can start and then Daren, of course, chime in. The integration with Redshift is definitely key for us. As you saw as well, we have integration with Snowflake. We will continue to integrate with other providers because really, the strategy is leverage. It's leverage existing investments and enabling customers to do that. As Josh mentioned, we do have capabilities, but if you've invested we want the -- and we want you to be able to get to the value from those investments and really seamlessly integrating that with those providers is really key. So Daren, I don't know if you have anything to add there as well.

Yes. And I think there was a question there also with Domo Everywhere. And really Domo Everywhere without -- with everything in the Domo platform, if you're a Snowflake customer or a Redshift customer, you inherit all the power of the platform now on that Redshift. So your ability to then publish and leverage Domo Everywhere, if you're a Redshift customer, you gain that instantly. So it's definitely additive to build everywhere business.

Great. Thanks, team. I'll go to a business one. ACV per rep, greater than $900,000, where do you think best-in-class productivity is across your peer set? And how much higher could this go with consistent tight execution? First of all, I would say that in order to achieve the 20% growth, we can do that just by hiring 20% more reps, so it may not move anywhere, frankly, for us to achieve the goal. But having said that, that does not mean there's not upside to the productivity levels. No, the $900,000 per rep is not best-in-class. As time progresses and your customer base grows and your product set and suite expand, likewise, the quotas of your reps can increase and what you expect from each of them can increase. I mean it's not unusual to see quotas go from $1 million to $1.2 million to $1.5 million to $1.8 million. And we already have production and quotas for those that are selling into the installed base, close to 2 million, and they can go higher. So there is an incredible amount of upside, I would say, with respect to what we can expect in terms of productivity. We're just taking a one step at a time. We want to continue to increase the productivity. We want to get more yield out of the sales spend, but there's a lot of room above this $900,000. So if we were to have productivity increases on top of being able to increase the sales force by 20%, then yes, that provides upside to our 20% targeted growth. I'll go to product. Hey, since you gave your name, I'll even include it. Hey, Andrew from [indiscernible] at Cowen. Thanks for being on. Could you tell us more about the opportunity you see with the new Redshift integration and how you plan to leverage your strong relationship with AWS? Well, I guess, it's go to market, too. So we can cover both sides of that.

Yes. I'll make one comment about that. You can imagine Redshift and really Snowflake, they're very, in a very similar way, they -- their revenue comes from driving compute to those platforms. So more and more -- the more data they get into a Redshift environment, the more queries that hit it, the more compute that hits it. So we see for sure that the AWS now sees Domo in quite a different light, and our ability to taking existing Redshift deployment and really drive more data to Redshift, really drive more compute at Redshift. So I think certainly, we see some great things better from AWS.

Yes. I mean on the next question that drives the improved retention. This is something that -- it wasn't the main focus for quite some time. Yes, it's -- it was make sure the product is right, make sure that we have -- figure out how to grow this thing. And you try to just do the basics. And so we kind of went from low 80s to close to 90, 90 in some quarters. And we think that, that can be the long-term sustainable number. Like Bruce mentioned in that slide show, I mean, we're modeling less than that. If we get over 90, which is certainly where everyone's comped, then we have a really nice uptick, and we think that's certainly possible. The types of things that you do are just reaching out to customers earlier, looking for correlations in their behavior that lead to higher retention. One of the ones that we found early on, if they had more than 50 users, then retention goes through the roof. If you have longer than a 12-month contract, you have a 24-month contract or a 36-month contract, retention goes through the roof. So we think we're also getting a lot better at making those initial 1-year deals successful as well. But it's just looking at those types of things. And then I'll answer one more. Goal is 20% growth with reasonable consumers upside. In those growth drivers, where do we see the most potential to outperform what you outlined here? And I would say, first, I think Bruce did a great job of outlining. I love that slide that he put together. And I would think that it's going to be hard not to get north of 30%. That's what I think. I think you look at 20% -- north of 20%, it just feels like that's in the back, and it's going to be hard to not do better than that with all the things that we are cooking with whatever it was 12, 13 things on there. We don't need more than 1 or 2 of those to go well. You look at the savings -- the performance per rep at $900,000. That's pretty awesome already. And it does like this upside, but we don't need to need upside. We just hire more reps. That's our model, a tried and proven model that works. And if we get more upside and we hire more reps, there's just so many ways to finally catapult ourself into the next level of growth, and I'm excited about that. All right, Bruce?

Let's move to one that covers competitiveness, competitive environment. [ Tableau ] and Power BI, you seem to have loved Power BI to try to target the cloud data warehouse market, too. How do you differentiate, particularly with the new multi-cloud strategy you just announced?

Yes. I'd say the biggest thing is we don't really see ourselves competing head-to-head with Tableau and Power BI. We get into these accounts because there's a solution that we're providing. And more often than not, there's something that they need to accomplish that no one else can to accomplish for them whether it's through scale, whether it's through being mobile first. It's having data that's successful to sell many more people in the organization. Eventually, it gets competitive when we've got 2 or 3 departments, and they've got 2 or 3 departments in the organization. And I think we're just getting a lot better at those kind of conversations. We weren't first, but it's bringing the CIO at the right time. And then when it comes to the data architecture and your infrastructure, I want to have those conversations, it being on the concept of a relationship. I want to build on, like, look, we play with whatever it [ being kept ] with BI leverage. So if you've got another data lake strategy, great. If you've got some other competitors in here and one of your department has a couple of analysts that are using it, great. We will just come in and do what you need us to do. And over time, it's going to play out the right way. That's been our approach.

Josh, just in your keynote yesterday, I think there's an interesting data point. When you're talking to Cameron at Yum! Brands, I mean he pointed out in the discussion, I've got one of everything. What I have is a business issue, which is speed of getting data to people in a usable format. I think his question was, how do you make people use it? And he said, "You know what, we don't -- I don't have to make them use it. We make it available in a good format, and they pull it." And I also think Emerson example was good. And they talked about how they're shifting their mindset and how they're selling to customers. They -- an intelligent action and these apps were really a driver there. And he [indiscernible]. One of their big customers is a convenience store chain. And this convenience store chain sells cells coffee, and they were getting a lot of complaints about warm coffee because they put these big thermoses of coffee out on the counter. And it was unclear what the temp was, how long they've been out there. And so the community store came to Emerson and said, "Can you make any caps that will go on to these thermoses and tell me the temperature?" which sounds like a reasonable app. But then the Emerson folks, they're taking it to the next level and said, "Great. I can do that, but what are you going to do with that data? How are you going to build an app to send that alert to the right person in the store on that shift to add it to their task list to make it usable?" And that -- it just -- it's a mindset of data collection. Yes, it's hard, but it's not the last mile in business value, and that's where the customer mind shift is going. And it's really where Domo shines above any of these competitors.

Great point.

Okay. Back to a business line. How much of the 20% sustainable growth is predicated on uptake from new products versus the existing offering? I would say, not much, if any. I think the products that we already have in the market, the platform, Domo Everywhere, intelligent apps, data science is plenty to sell over the next 4 years. But having said that, we have a platform that we know will generate more products. And we fully intend to sell them and capitalize on the strength we have in the market.

Yes. I'd echo that, Bruce. I'd say what we have gets us to 30 or 40 as we start figuring out some of these new apps that you're going to see us -- we're going to launch apps this year that we've been working on for years that are in full-blown beta. And when we launch those and as we launch other solutions, I think that's how you take it above that. And it might get crazy, but we already did all the work, building the platform and building all of these relationships. And we haven't been in to upsell or cross-sell, I should say, than anything. The only thing we've been doing is upsell, expanding the contract, getting more users, doing more data, adding a little feature. Now that we get to go in and start cross-selling, I think there's a ton of upside of that.

Pulling over to Ian here. Can you provide some specific metrics about the improvement in sales efficiency, particularly those that you track internally? What are the next steps to improving efficiency at least per quota-carrying rep? And where do you see these metrics trending through in the long term?

Yes. Great question. Without going into specific conversion rates and things, there are several things that we're really focused on that drove the productivity gains. So I'm very heavy into participation, productivity and efficiency, which is basically how many reps have I got who are contributing, how much are they contributing, and how much is the cost of contribution for that? So that's something that I drive constantly. Then look at the product activity per head, how much is a ramp head versus a ramp in head delivery for us? And where can we see that increase and how we can make that work quicker, how can we sell quicker and sell higher and sell for more? A lot of work on -- in conversion stage. So looking at the stages that we have the conversion rates that we see, increasing them from the lead sort all the way through the process to where we actually close the [indiscernible] fund. We have a true opportunity forecast accuracy on -- very heavy on by driving a different level of forecast cadence. So we do a lot of weekly forecast now that we're also a monthly forecast to Josh that then helps us with the quota. We have a lot more accountability over the way that we deliver that forecast as well from making sure people do what they say they're going to do. And then John and I do a lot of work, as you mentioned earlier on, on pipeline reviews. So we spent a lot of time in the data looking at pipeline, lead source and conversion by lead source as well so that John and I can quickly rotate if we see that there's a lead source that's executing more efficiently than another lead source as well. So a wide range but something that we definitely track on a constant basis. And to Josh's point earlier on, I love alerts. So a quick example would be, in a traditional BI world, I'd have to run a report to fund my pipelines down. That doesn't help me because my pipeline is down a little. I was like I'm in trouble then because it's happened. What I can do, we don't know is, we've got all of the leading indicators that actually create my pipeline so I can look at the open rates of the e-mail campaigns. I can look at the website traffic. I can look at the conversion rates at stages. I can look at the conversion rates of all my reps and my managers and have a global view. So if something happens, it perhaps tells me, if it goes outside the tolerance that I'm happy with or John's happy with. If we see a tolerant alert, then John and I can jump on it and get to the symptom and make sure that we don't lose the pipeline as we typically would do in a normal organization. So it's actually a great example of John and I using Domo to drive action.

Thanks, Ian. There's two that bring in data science. I'll read them book first, okay? One is, can you talk a bit more about data science use cases? Is this something you're going to target further? Or were the new product announcements you gave more about tackling and below-hanging fruit? That's the first question. The second is, can you provide some more detail about your long-term expectations for the evolution of the data science product suite? And how do you balance R&D investments into tools for data scientists versus nontechnical business users? Because we have a good technical team, they will remember every word about those questions and be able to answer it appropriately.

I'll start off. Same feeling. As you mentioned, right, there are definitely data scientists that use the product, and they leverage a lot of the tooling that Daren mentioned as well as the nontechnical business users want to increase and meet become -- whether it is becoming a citizen data scientist, right, or being able to just leverage the power of data science in their workflows and in how they're able to more effectively do their job. This is a continued area of investment for us. We think it's one of the advantages to having all of this data in the platform that the data science is only so good as the data that you feed into it. And so having that breadth and access to not only the data in existing systems, that customers want to connect to, but also being able to see activity. What are people looking at in the Domo platform, what is most popular, what's really trending gives you another level of insight. And so we leverage data science that way as well. But certainly, very, very strong area of focus for us. Daren, I don't know if you want to chime in as well.

Yes. I'd just say, yes, I'd add to that. This ability to stand on the shoulders of the Domo data platform and then employees data science technologies. And we will continue to make an open environment and leveraging solutions like SageMaker and like Jupyter Notebooks, not only empowering data scientists, but then the tech that we build in automatically to features so that every user gets to take advantage of AI and machine learning. That's continued to be an investment.

Yes. And it's been fascinating as well from a sales perspective. I'll let you just finish talking to Fred Foos, who's the manager of Global Business Intelligence at Universal Music Group. He's got some fascinating stories about machine learning and data science and Domo and how they look at all the social media platforms now to look at trends to find out what music artist is resonating or isn't resonating and then starting to promote those artist more based on the feedback they're getting from the reporting that they're seeing from Domo. So Foos was saying, for example, over the last 12 months, that with TikTok just coming from nowhere and all of the different elements you can use and then making that to the Spotify information about playlist, they're using that to then start to predict the people who they think you're going to want to listen to and promoting that as well, which for a music artist is obviously massive. But also for a music company is a tremendous use case on using data science and machine learning.

All right. Thanks. Josh, I know you'll have an opinion on this one. Have you seen the cover dashboard relationship lead to broader transformation opportunities within fed, state and local?

Yes. That was really interesting kind of whole experience for us where we jumped in, provided a solution, didn't have a lot of competition because of what we were able to bring together so quickly. And then as soon as we signed it, we're like, all right, we need to make sure that we're doing everything we can to turn us into a long-term retainable, renewable relationship expandable. And that's what's done. We haven't really -- I don't think -- did we renew all of those yet, Bruce? There's still one that -- we have a verbal but no signature.

Yes. 2 per share, including upsells and contract extensions and 1 kind of in process.

Well, we have a conversation with one of these places that we had an expansion. We have another conversation today about everything the state is doing in its entirety to understand all the places that we could potentially help them. And that's being sought out from them because they like working with our platform so much. So definitely leads to a lot of upside, which got included in a couple of federal deals as well that we're helping pitch on. So yes, it's been a great relationship for us, and it was a really nice way to be able to break into the government sector for us.

And there's two that touched upon the $1 million customers and making job leads also and you can all add color. One is, going from 7- to 20-some figure customers is amazing. Why did that reflect this past year? And what can you do to keep that momentum going? And that's first. And I'm going to read the second. Bruce, I think you touched upon your largest customers being well over the $1 million level. When you look at their largest customers, what is the right way to think about potential spend as data volumes grow? How much of the $500 million in billings target would come from the $51 million customers?

Yes. So I mean we have customers that are paying us close to $5 million. So when you talk about size of customers today, 2, 3, 4, 5, that's not uncommon for us now. And not only that, but those deals grew over 5, 6 years. Whereas, now, we're seeing some pop up in there that through in 2 years or started off with a multimillion-dollar deal, and that just didn't happen before. So I think that's -- to my point earlier, just that there's going to be a tipping point, and that tipping point is coming. I don't know when it's going to be. When the market starts to understand, wait, you don't have Domo to do that? What are we doing here? But I think there's going to be a tipping point when it comes to that. And in terms of what percentage of our billings target of $500 million to come from $1 million-plus customers, I think the reason that we have so many that are bumping up over $1 million, it was just a slow burn. We have a couple of thousand customers. And half of them could pay us millions of dollars. And there's some that are smaller, that shouldn't be paying us $1 million, but we help them run their entire business. And they're paying us worth of $1 million. So it really is a really big market for us. Just if you look at our own customer base, and that's definitely a big component of why I'm excited. When you look at the relationships that we have and what we're doing for these customers, the visibility that we're starting to get and then now the referenceability of other people that are similar in size that have already been down that next stage and the next path, enables Ian to kick that deal from $0.5 million to $3 million. Whereas, if you don't have anybody paying you $3 million or $5 million, it's really difficult to get the first person to do it. Ian, you probably have some stuff to add?

Yes. I think you covered a lot of it, Josh, which is generally...

I show up, and I get a certain bigger deal on Ian as [indiscernible].

I think -- yes, somebody mentioned thereabout, is there low-hanging fruit? And I just say all is fruit, right? We're just going to go for what we can get. But I do think there's a lot here with the organizations where we're loving what we're doing, right? We enjoy the competitive nature of the market that we're in. We're showing a lot of innovative solutions. We've got use cases that others just can't talk about because we have this modern BI platform. And that means that we can go in -- I'm not sure if it's swagger or confidence, but we just go in thinking that we definitely have an opportunity to show true business value. And if we can show true business value and we can show intelligent action and people adopting the platform the way that they are, then we're in a great position to be able to show true return on investment and cost of ownership statistics. So we definitely enjoy having those conversations. And being frank, I feel like the -- actually, the Universal Music Group, just interesting use cases. Just being able to see interesting things we've done by really interesting things. So the sales team like it because it's interesting and development like it because it's got interesting ways that people use our platform that we've never seen before. So we definitely enjoying the opportunity to go and do these larger deals.

And I'll add, one, it's an impressive [indiscernible]. Two, we are -- nobody overweights it. It's very consistent between all of them and maybe it's like 15% of our total business. So we're very, very far from being a customer concentration. And maybe the third comment is it kind of crept up on us. They just buy more, they come back and buy more, find a use case, buy more. And some of it just kind of expands on a Domo. So we aren't overweighted in this, but it's really nice to point out the kind of growth we're seeing, particularly the kind of use cases that these large companies have said we could not have done what we needed to do with any other solution other than Domo. Okay. This one for -- here's one for me. How should we think about the difference between your fiscal 2022 revenue guidance of 15% year-over-year versus your targeted 4-year billings CAGR of 21%? What are some of the reasons for the difference between a few metrics over the next 12 months? And should we expect them to converge over time? First, part of it has to do with how we provide guidance. We provide guidance on what we know. We provide guidance on what we feel is highly confident on delivering. What we're providing for here is what we are playing for at a minimum. So even this year with the 15%, 16% billings guidance, we are at very comfortable giving that guidance to you, but we absolutely are playing for the 20%. And so yes, as the year develops and the years develop, there may be a movement of guidance higher as all these metrics that we are planning to achieve fall into place. Okay. Let's see. Oh, here's a good one for the group. What is -- what are the top 1 or 2 messages you want investors to take away from today, especially around things you think are not well understood? Well, I didn't plant that one because we don't have a quick answer to it. But...

Well, I got a quick answer to it. I mean the biggest thing that I think is totally underestimated, misunderstood, undervalued is our ability to provide solutions on top of our platform. And the recognition that: a, we can build them literally in a couple of days; b, that they're highly -- there's a huge competitive advantage and that because we don't have competition when we're selling those solutions. So I think those are the two things that, in regards to the apps, it's just totally undervalued and underappreciated by probably even us because when you get into a customer and you're working a deal and then they realize, oh my gosh, I can just do this myself, low-code, no code, I can build it. And then the $1 million deal that you're working on has only $100,000 app associated with it, but you won the whole thing because of the $100,000 app. And all you do that was just configure some stuff for a week, do a little bit on engineering services. I think that's dramatically undervalued by -- certainly by us and everybody else.

That's good. Well, we only have one more question. So this will be the final one. Is the 20% sustainable growth target consistent across geos, in APAC, U.S. and customer segments, commercial enterprising market? Separately, do you see vertical-focused apps as a new revenue source over time? Any particular [ revenue source ] that you're especially optimistic about?

Yes. On the verticals, definitely see an opportunity there, kind of just dovetailing of the last question that I answered. We look at what we're doing for retail. There's also horizontally focused apps. I mean I've been in online market in my entire career. And you look at what we have at Domo to manage our online marketing spend, and it's 10x better than anything we can get off-the-shelf because we bought everything off the shelf, and we developed a lot of the stuff that's off the shelf. So yes, I think there's an opportunity horizontally. There's an opportunity vertically. We just have to be really judicious and deliberate about how we do it. We might be a little bit of pray and spray, just kind of dipping our toe in the water in a bunch of different areas. But when we make a real deliberate investment in something, we just got to make sure -- and Bruce will keep us honest, be able to experiment a bunch, be able to follow our customers where they're taking us, be able to look at what we're doing to manage our own business that we know no one else can do because we know this space, we know what you can do with data. So in terms of the vertical and the other segments, huge opportunities there. As it goes to the target across different geos, I think either Bruce or Ian should answer that.

I'll take a first stab at it and then pass to Bruce. But one of the things that I was super excited and proud of last year was just the regional growth across all geos. We had really strong performance, and all the teams were delivering. So it just gives me the confidence that it wasn't -- we got it right in one particular market or one particular geo that it resonated across all of the company, and that sets that up beautifully.

The really cool nuances in those different geos, too, Ian. Like I know you're talking about it all the time, but you look at what Europe's doing, where Ian was running before, I mean really involved relationships with very complicated customers that really, in many cases, are the leading examples for the rest of our business. And then you look at Japan, I mean, gosh, you look at our top 25 customers in Japan, and I think it's the 25 largest companies in Japan, and that's an exaggeration, but not by much. And you look at the opportunity there, and I know that's what Ian's like, I've got to keep stressing this crew how to upsell the way that some of the pockets are up selling really well because great relationships, huge logos. So yes, and then now you're bringing Asia Pac back as well.

Yes. Absolutely. And I think that's, again, part of the excitement. And I don't know how to use it excited, but we are -- we're very excited because we've got this baseline of execution that's just delivering for us. And then with...

This is British excitement. We are, we're very excited. [indiscernible].

Yes. I think [indiscernible] Bruce. I'm toning it down just a little bit. [indiscernible].

What do you mean by that?

But the beauty is, if we have this baseline of execution and then we have pockets of excellence doing other things that I can then translate into other regions as well whilst keeping the baseline, that's what goodness is for.

We did have one more sneak in, and then we have a final statement. Do you have any new initiatives planned by your new head of partnerships? So Ian...

We're super excited with Vita. I think Vita comes we have a great experience of being able to work with -- yes, a level at KPMG and understanding how organization seems like that work whilst been in a software vendor, Oracle and IBM, and she's bringing a lot, a lot of focus and traction in that team as well. And what we have with the interesting stuff that we're launching at this point in time, it just gives us a great opportunity to go there. And we're building an enablement with her. We're building out the new partner program. John has got some dedicated messaging that he's working on for the partner side as well. So I think just if we were to look at governance and control, which I kind of like, is part of my remix, she's very, very strong on that as well. So we are very, very excited as to what she's going to be able to do for us.

Okay. And since we're 6 minutes ahead of plan, I would call that a success. And the last comment, the question in fact is a statement, thank you, team, for all the color. Great presentation. And so thank you for saying that. And I want to thank all the investors and analysts for joining us today. And again, I encourage you to look at some of the content that's now available from Domopalooza. It's quite extraordinary and just provide some more insight as to why we're fundamentally pretty bullish on the business. Again, thank you very much, and we look forward to seeing you in the future.

Thank you, everybody. Take care.

Bye-bye.