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

Welcome, everyone, to our analyst/investor session. We intentionally wanted this to be very intimate. And to just hold this to a few people that were kind of willing to make the trip. We have opened it up. So we've got a listen-only line so that we're not encumbered by the FD rules. We can sort of talk openly and so it's, in essence, broadcast, probably got a couple of listeners in on the line. But thank you for being here. So I think I've met each one of you, but I'm the CFO, Pete is our VP of IR. I'm sure everybody knows and he's not going to do that. I know that's your big, a big thing, but we're going to pass on there. So we've got a couple of other members of our executive staff here as well as Daren. Daren who's one of our Board members, who's with us today. So like I said, we intentionally want this to be fairly informal dialogue. So if you've got questions, please feel free to interrupt. What we've done is sort of prepared a bit of an overview so that will give you some perspective, but not just from Pete and I, you hear enough from us. So we've got Jeff Skousen, who's our Chief Revenue Officer. Alexis is here as an observer. And [indiscernible]. And so I think we -- our plan is to start off and have Jeff kind of share some perspective with you on fiscal '25 from a high-level perspective. And then we've actually got a client with us. And I'll let Jeff introduce him. After that, we're going to have RJ Tracy join us. And he is -- I'm not sure what his title is, but he's over all things consumption and partners. And those are 2 key areas for us. So -- so he's deep into both of those. And I thought it would be helpful just to give you sort of an overview of those 2 areas. I know, Derek, you had some questions about consumption. So I thought he can help some of that. We'll talk a little bit about what our plan is from a partner ecosystem partner standpoint. And then Josh is finishing up another session, we'll begin to kind of wind things up and we'll do a Q&A with him and get you out free, right? And we'll go to [indiscernible] so if you -- the others of you want to stick up a little bit. But with that, Jeff? Your perspective.

Thank you, David. I think everybody is pretty familiar with the Domo platform at this point, and we don't need to go through a lot of that. We do see you, Ryan. I've been in this role for about the last year. But I've been at Domo since the very beginning. So I have a good perspective and a feel for all things Domo and kind of our journey here. And this past year, it's all about setting some of the foundational elements for growth in the company, primarily focused on consumption, consumption model, getting that right. This has been something that I felt like and seen that we've needed to get to and done a lot of research, talked to a lot of my peers and the consumption model is just -- it's the model that people are going to. It makes sense because -- it opens up the platform. It allows -- we'll get into some of the details of what it is, but we've got to get back to growth. And that's my goal is to get this company back to growth and back to where we think we should be. And I think strategic direction and the main things that have laid out to the team this past year are key to that growth. And it really falls into 4 categories, and I might have you advance to the next slide here, just we can kind of talk about those. The first one really helps instigate or complete the rest of the strategies. This consumption model allows us to [indiscernible] which we implement through a freemium model. It allows us to partner, and I'll go into each of these in a little more detail. And then the last component is kind of the AI step, that's the big buzz and everybody is talking about it. But -- as it relates to consumption, think about a partnership where you want -- a lot of our customers use our Domo Everywhere product, which is the ability for them to get their customers' information that's important for the service they're providing. And in the past, we're like, okay, we'll charge you x amount of dollars to get access to that. And they're like, "Well, I don't even have my customer yet". And so it's kind of been the start and stop with a freemium model, and a consumption model that actually allows us to give them an instance or give them Domo in the simplest form and allows them to use that and get familiar with it at a low cost point until they start seeing the value and then they can jump into it. And so -- when you look at how consumption drives the benefit to each of these other areas that are strategic initiatives for us this year, it's really the key to it. And we had to go through like 3 or 4 iterations this past year to get it right and to really figure out what we wanted to do. Now there's lots of different consumption models out there. Snowflake has a compute consumption model, and we're not that. We are more like the Omniture model where they prepay for a certain amount of credits and those credits are burned down through different actions that they do through the platform, whether it's ETL or whether it's data flows or whatever they're doing. And then once those credits are burned down, we have the opportunity to sell them more credits. And throughout the year, our job now as a sales organization as a support organization is to help them identify new use cases, which burn down those credits, so we can have a conversation earlier than later, right? So that's kind of the model now. So I'm not -- my team is not selling a different product anymore. They're actually selling use cases in areas where these credits are burned down.

Let me just clarify, [indiscernible], to make sure that you're clear on -- and others as well. But -- so we sell a minimum number of consumption credits a year. So let's say, it's 100,000 -- maybe the 120,000 consumption credits for a particular customer, then they either use it or lose it by the end of that year. And so that gives us the ability to recognize that revenue ratably over that annual period. So we still have that predictability built into the model. And then as Jim says, if they start getting on a trajectory where they're going to burn through all those credits, then we can tell them, we either send you an overage bill, which is going to be x dollars per unit or we can move you into a higher minimum usage contract. We will give you better unit pricing and -- but move you up like when you can see that you're going to burn through those. I mean a lot of them we're 6 months into it, they're under trajectory, where they're going to clearly exceed unless they do something dramatic. They're going to exceed their usage. And so that becomes then the motion for kind of upselling, if you will.

Yes. And like it is, it's not a new system for us. We did this back at Omniture and it worked great. There was a different metric. It was page views, and we had to do all kinds of crazy things with sampling page use for like the big eBay and stuff. So -- this is -- credits are burned down in a little way, and people really fit because they have Snowflake and AWS and all their big hyperscalers that have a consumption type model. And so we fall right in line with how they're used to buying. One thing that's very unique and RJ is going to touch on this a little bit more when we talk about what's -- when we talk about our consumption model and partnering, like I said, Snowflake has a compute model and ours is different from that. They set up their sales teams get paid in arrears and all kind of stuff. We haven't had to really redo the whole sales team and how they get paid and everything because of the way that we're doing this. So we've had experience with it and it's worth, and it's just a little different in terms of the metric. I think some people have asked, why do freemium. We've been really good over the years, and I ran the corporate business for a lot of years where you go invest in digital spend on the web and LinkedIn and you buy all the digital space up and that drives leads. And so we collect those leads and we convert them. And that's really been our model that have been really great at. The problem is a little bit there is scaling is tough because at some point, you hit an inflection point where the more you spend, you don't get the same return. And we've run into that a couple of times in my tenure here at Domo. And so we need -- we need -- our best customers are those that have used Domo in the past and have gone to different companies and then they buy Domo again, we've heard stories on stage today where somebody -- one of the panelists that bought Domo 4 or 5 times and [indiscernible] as a CFO. The more people that can use Domo and see the full capabilities of Domo, the more leads we're going to get, the better leads we're going to get. So this freemium model allows us for a very small credit amount each month to allow people to use the platform and to get the full benefit of it. And then they're going to eat those credits up really quickly and need to come to us. So it actually generates more leads for my sales team to go and close, takes a little bit to get going, but once that gets going, then you're going to have qualified leads because people -- I mean I have several examples where customers came in and said, we're definitely not paying you $50,000 for this. The rep says, okay, let me put you in the freemium and it's kind of like, hey, here's an easy way to kick up a POC, they go help them get the value out of it. They come back a couple of weeks later and like, oh, I see it, and we've signed up those contracts. So it's just -- it's a way to help us help people along their path with Domo until they can see the full value of it. And [indiscernible] you guys have all heard it. I mean I think it forces Domo as a company too to get better at this experience that's -- I don't want to have to go spend all kinds of dollars on the low end to get customers. They should be able to do that on their own, and then I can focus on customers are a little bigger and more mature. I'm just going to talk a lot more about the year of the ecosystem or our ecosystem, but this is what we've kind of defined as are the ecosystem we put -- and like I said, I've been through this 3 or 4 times where we said, hey, partners are important to us, you probably are saying what's different this year. What's different this year is that we have Josh paying attention to it, first and foremost, 100%. We have the right executives running the right strategies in place and if you were to talk to Snowflake and Databricks and our other partners that we're working with, they would say there's a complete difference in how we're approaching that this year. Last month, we've gone to 9 different Snowflake data for breakfast meetings, and we're meeting their customers and we're getting introduced or meeting their sales teams and we're figuring out how to enable [indiscernible] vice versa and things. So we've never done that kind of stuff before.

I'll say the other key that unlocks it is consumption. Until we were on consumption, the model is conflicted. When we were selling seats and they were selling consumption, those models conflicted. And so now that we're on consumption and that unlocks each one of these other things, but it's key in the ecosystem as well.

Yes, and I would say there's some technology things that have happened. There was always a little bit of a conflict when we go to Snowflake and say, hey, we'd like to partner with you. However, customers would say, well, where am I going to put my data? [indiscernible] reps would say, we could put it in Domo and it's cheaper. Like that just blows everything up right there. And so do some training and efforts were like, no, put it in Snowflake, doesn't matter. You're not going to be penalized as a rep for putting it there. You're going to make actually more money. We put some incentives in place where you can make more money if you do that. So just a different approach to making it real for our customers and partners. You in their marketplace -- they have a marketplace -- so can you buy through their marketplace. Yes. And you can also -- with AWS and Snowflake, if customers have commitments for burn down spend, you can purchase through their marketplace Domo, and it will actually count toward their burn down. They're already contracted to that stuff, so it makes it kind of a no-brainer for customers. And corporate space, a lot of people that don't have the back-end databases and stuff. So we can still be that complete platform for them, and that's fine, but we're actually going to -- as you work in the $100 million to $300 million companies, like they're starting to think about these things. I mean obviously, Domo's there -- we have [indiscernible] and things and so we're going to be a good referral partner for Snowflake. Snowflake is really good at building -- they have the IT relationships. They don't have the business relationships. Domo has all the business relationships. We don't have the IT relationship. So it's kind of a perfect marriage there where we can cross-pollinate and they want to get to the real use cases, business use cases [indiscernible] we've done a really good job with that how we verticalize the teams there.

You guys have, I'm sure, heard from them, they said -- this is the year of the business users for them. And so it's just a good -- I mean, for us to be focused on partners when they're trying to lean in on business users, and that's where our strength is. That's a [indiscernible]. So this is RJ Tracy. He's our SVP of our partner. And as I hired him, maybe -- maybe 8 months after we got going.

He was still in high school at that time.

So RJ has been with us the entire time and probably had more customer conversations than anybody at Domo and has really led the charge on consumption and now partners. So we were just kind of -- the partner thing. If there's any questions that you have for RJ as it relates to consumption or partner that I haven't already talked about, I'm sure he would be happy to answer any of those questions. I don't know if you have any prepared remarks.

Just coming in cold. Yes, just to maybe allow you to set it up. We just talked a little bit about consumption. But maybe -- I know you've got a slide on partners like how we think about the partners that might be helpful just to frame up for this group.

Perfect. So I'm really excited about what we've done on the ecosystem. We're still early on, but we really sat down this last year and thought about what are all the different types of partners we want, where should we be partnering? And we believe that every partner that we would ever want to partner with or want to partner with us really fits into these 4 main categories. And it starts on the technology partners. Domo has always done really well getting into the line of business and line of business though doesn't really care where the deal is, but IT does. So our technology partners allow us to unhook our back end and then let customers choose where the data is going to live. So you think about Snowflake, for example, you'll hear tomorrow on main stage that now our integration layer, our ETL visuals and everything can actually be completely unhooked from Domo's back end and can sit directly on top of the customer's Snowflake. And now we would compete against more [indiscernible], and we would do data integration, and we would be the visual layer for those companies as well. And they could pick and choose, they could say we only want your ETL, where we only want your integration and our consumption model allows us to still monetize deals the same way we do today, whether it sits on Snowflake, Databricks, Domo. So it doesn't hurt our ability to go sell into those accounts. And I think this is going to be game changing for us with the IT departments who really are building a strategy around a different data warehouse technology. The other thing in the technology partners, I think, is interesting is we'll see a lot of companies where departmentally, they might let departments make decisions for where they want their data to live or you might have companies that are global. And so they might have countries that require the data to live in country. So one country is using Databricks and one is using Snowflake and Domo can sit on top of all of those clouds and create a unified experience across ETL, integration and visual. So I could be looking at the dashboard where the data is staying in Databricks here, and it's staying in Snowflake here, but I can collectively see all the metrics together. So I think that's really interesting.

And so why would a Snowflake -- why would Domo make sense for Databricks or Snowflake or whatever, like comment on that.

So Snowflake and Databricks, so Snowflake's 2 biggest initiatives this year are new logo deals and which they call Capital One and then getting into the line of business. But you can imagine if you go into a marketer and you start talking with them about, hey, we're going to help you lower your acquisition cost of new customers or we're going to help you increase the lifetime value of a customer, then they show a database, and the marketer is like what, like they don't listen to a presentation [indiscernible]. And so they don't have anything to show. They have no way to show you what the outcomes. They want to talk about outcomes, but you got to go back to the -- what I said earlier, which is the line of business doesn't care what the deal is. So you've got to have a compelling reason why you want to put your data in Snowflake. And Domo is a perfect partner where they could showcase the value and the outcomes that a customer could have and the power that putting that data in Snowflake could bring and so they don't have a dance partner. They don't have BI today. They don't have an integration tool. They only have very few connectors and their connectors are very, very limited. They don't have an ETL tool. So when we've gone in and worked with Snowflake, their reps have said, I've never been able to get data in Snowflake this fast. This is incredible. And so they're looking at us is like you can help us expedite our sales cycle. We have something we can showcase in the line of business. They want to use our lab studio to be able to build some solutions to take out to the market and show customers they can do with data. Because the platform is powerful, and you have to have that data to make it happen, but you also then need to help bridge that gap for a business. And Domo does really well in that line. Databricks is the same way. So they've already both told us some of the solutions we're building for like Shopify and other vendors. But if we want that in our listing in our marketplace. We want Shopify solution built by Domo powered by Snowflake and Databricks has said the exact same thing. So we're getting some really good demand there for use case type solutions and [indiscernible].

What about GCP or Redshift.

All 8 major clouds. So you've got Snowflake, Databricks, GCP, Amazon, Redshift, you've got Azure, you've got Dremio, you've got even IBM and Oracle have reached out to us recently and said, hey, we hear you guys are partnering. So Oracle is like we want you guys to be the engine that drives NetSuite data into our cloud because they don't have a great way for customers to get it there easily. And so -- and then they want to look at other solutions they built and it could be as [indiscernible], I think. And so it could be that product as well and other products that they have purchased and owned.

So yes, so Oracle, it's interesting. Oracle knows that we use NetSuite, and it's tightly integrated with Domo. We really run our business on Domo, obviously. And actually, all the NetSuite folks, the executives at NetSuite, all use Domo. We can see that they're in it every day. And so yes, it was interesting that Oracle actually though reached out to us and said, hey, you want to partner with you guys on this. I think it's -- we've just not been really open in the same way that we are today. Today, we've built the right technology to integrate on the back end and the consumption model. And so I think when we look at the partners out there -- sorry, I'm still in a little bit [indiscernible] Domo, you look at who our sponsors are for Domo and who's it, Snowflake is here. And so they're paying to play and they're kind of [indiscernible] saying that, hey, we want to move, we want to be fast with you guys.

And it's cool because like Alteryx has been a huge Snowflake partner, but they moved the data out. And so the Snowflake reps don't like it, lose compute. And so we've already had a bunch of them reach out and say, half these customers that need to replace Alteryx, we'd love to bring Domo [indiscernible].

I think the other thing is significant is a Snowflake rep. Of course, the business has to make a decision with all of their partners. And so they have to go out and build relationships with [indiscernible] to complete a solution that makes sense for their customers. And with Domo, we can actually be that one -- that one partner that brings it all in and they don't have to go and manage multiple relationships and getting 5 deals to get one-deal contract done, right? They could [indiscernible] us and themselves and simplify that sales process. That's the feedback we've heard from the reps [indiscernible] because right now, I'm quarterbacking 5 vendors to do what just you and I could do together. So our app partners, we're going out -- our new no-code low-code app solution allows us to build really cool solutions on marketplaces. And customers that use Shopify and Jira and Zendesk and NetSuite and Salesforce and all these different tech companies don't want to have to build everything from the ground up. And so we're going to build solutions that allow you to have -- and Shopify is like one of the first ones we're building. Have a curated experience with ETL, so in 5 minutes, you can have not only a dashboard that gives you analytics that you can't get out of Shopify, but also the ability to embed a scanner right into your solutions. So people on retail floors or people in warehouses can scan products. It will also have predictive analytics built right into it. You need using some of our new universal models. So we can show you out of the box. We can take your historical data and show you what you're likely to sell and the new chat experience all built into it as well. So you can ask your data questions. And we're going to build marketplace solutions. And it's cool because Databricks and Snowflake again have asked us to put those solutions on their marketplace because the -- that's their goal. They want to get into the line of business and get that line of business data that they don't have today. And that includes finding partners to contribute to the app store and to build solutions and to monetize them on Domo's marketplace. And so we're opening up that to allow partners to come in and build solutions that they can take out to customers. Data Partners is our third category. And this is our Domo Everywhere solution. So today, we have a bunch of tech companies or other companies that use Domo as a way to deliver reports out to their customers. So you think about there's a company called D2L, they are an LMS system. And they have 500 to 600 customers today that we are the reporting engine for that LMS. And one of the challenges we've had with that program is, one is it's expensive to deliver to everybody. So D2L has probably 1,500 customers, but only 1/3 of them are getting this experience because they have to pay for it. And the other thing is that those customers constantly reach back out to us and say, hey, I want to do my own thing. I want to pull on my own data. I want to do my own ETL. And we don't have a path for them. So what we're doing is we're converting this into a channel. We're making it a lot more affordable for customers to reporting out to their customers and give every single customer a full Domo experience on that data, so for D2L would be on all of their LMS data. And then as those customers want to do more, they want to connect it and join it up with their CRM or with their financial system or their HR system or they want to do their own ETL or they want predictive analytics on it. There's a little floating button they can hit and it will create a freemium experience for them, which will generate a lead for our sales team. And these are already customers been trained on Domo, they know Domo, they use it everyday. And we're now able to convert that into a channel. So we have a small company. We have several that we're working with, but one example is a small company called [indiscernible]. And they are starting to roll this out to every company. They've got about 700 customers, and we've already had 4 generate leads for us and one will probably close in the next 2 weeks. And we've got a couple behind them when user -- a lot of their customers are big customers like T-Mobile and other customers like that. So it allows us to turn all of these customer customers into a channel and monetize them. So we're excited about that.

Are they not revenue as they stand unless you get a lead and then that drives incremental revenue. But like the existing relationship doesn't have any revenue component?

Yes, we charge the parent company or the one that's pushing the data out to them. And at some point, they are just like we're not willing to pay for like everything that they want. So we'll provide a limited layer. And -- but those units below their customers are saying, hey, we want more. We want more. And so there really hasn't been a solution to -- for us to go direct to them or they could reach out to us. But at this point, yes, they will each have their own instance that they'll get a minimal number of monthly credits just enough to kind of give them the flavor and then we see exactly what they're doing with it, how they want to use it [indiscernible] we can reach out and it will be a lot easier to go from that freemium model up to a paid subscription. And they do -- the parent company does pay, but we've made it way more affordable so that it's a no-brainer for them. And then they have options, they can still buy it like they do today. But if they want, they can go down this channel route and every customer we put this in front of 100% of them and says, this makes way more sense. We would like this because it gives their customers a full Domo experience. They can build their own content, and a lot of their customers want to leverage advanced analytics. They don't want a solution that's just out of the box that they can't touch. So this has been really well received with the customers we've put in so far. And then channel partners. We're being real strategic about a lot of our system integrators. So we just think [indiscernible] largest SI partners. And not largest in terms of company size, but in volume of deals that they do every year and implement. And we're going after their top 3. So we're really closing deals with like [indiscernible]. These are some of the Snowflake's their top 3 SI vendors. We're doing the same thing with Databricks. So it's not enough for us to go in and partner with Snowflake. We want Snowflake to be pushing us. We want our Domo rep to be selling us. And then when they involve an implementation partner, we want that partner to also say, oh yes, we partner with them. And so we're working on a motion where we're triangulating and making sure that everyone in that deal that's going to be involved is signed up with the partner agreement with Domo and that we're enabling them and that we're making sure that we're putting our best foot forward. We're also doing the same thing with the app partners. So with Shopify, we're going after their top 3 Shopify implementers and saying, hey, we got this really cool solution, let's partner together and take this out to all these customers that you implement and let's build a partnership where it's mutually beneficial. So we're trying to be really strategic and develop channel partners that are going to bring Domo into deals and we'll bring them into deals and that there's some mutual benefits.

I had a quick question just on the pricing for it. When you fold data with the new model out of Snowflake. Are you -- and you guys obviously get paid for the analytics component of that, that you guys integrate? You also like charge for some type of ETL because you're pulling it out of there? Or is it like -- and the more standardized it is, like I guess, if it's Snowflake don't have to transform it as much.

You have to transform it. But it just stays in Snowflake. So today, all the data has to come into Domo for us to do anything with it really. We can visualize it if it's not, which was that federated model. Now you could say, hey, I'm using Snowflake, I just want Domo help me get data into Snowflake and I want to use your ETL tool. So a Snowflake customer might look at like Matillion or Alteryx or something else to do that ETL because you still need to transform it once it's there, and now Domo can be that ETL and we pushed the sequel down, so Snowflake is doing 100% of that compute. On Domo's side, we've made our credit rate cheaper if you bring Snowflake to the table or you bring Databricks to the table because we're not having to do anything with the cost, so our cost is lower. And that also motivates customers to lean into the partnership and to buy Snowflake [indiscernible]. Does that answer your question?

So it's not like double -- that I get double charged?

Yes, problem in the past is they'd pay us replicating the data and Snowflake. And now you can just pay Snowflake for the compute and us for our ETL and connectors, which is how all the other vendors work. So if you buy Matillion, you got to buy there, you pay for their ETL, you pay for the compute on Snowflake and the same.

You guys at the partners at the sales kickoff for Snowflake, so you can kind of get some training of how to sell Snowflake or how to sell Domo?

Yes. So we're actually working right now with their teams to do a competition with their SEs and get -- we're going to start in a couple of verticals, and we're going to start training their SEs, so the partner teams agreed to put us in front of those teams and they want to do competition. You see you can build a cool Domo's app. And their thought process behind it is -- if our goals to get in the line of business, and I can get 100 SEs building the coolest solution for retail and financial services, that's just going to help us to go into those accounts and get into the line. Because Snowflake suffers from the opposite problem we have, which is they go get IT, but IT is dumping the data for the business out to an S3 bucket. And because they don't want the business user driving up their compute. And so Domo provides us the best of both worlds there, where we sell in the line of business, we can help them see outcomes, but we also now can support the IT side. So they haven't had a great way to penetrate that line of business, and there is a ton of data that's in the line of business, it's [indiscernible].

So what's the real use case you guys are pushing? Is it like -- is it visualization, analytics reporting? Is it creating new analytic apps that are kind of greenfield, like what is the...

Yes. So I'd say integration in ETL are the first. So most people find Snowflake are technical and that they care about immediately is getting data in and transforming it and get ready [indiscernible]. And then on the second side, it's the visual layer, and that's what the business line of business is going to care about is -- how can I get access to data, how can I control outcomes. How do I get information surface to me that's valuable. And that's where the 2 of us can complement each other.

Can you -- what was the -- you said Snowflake's problem is that they...

They have a hard time penetrating the line of business.

But you said they sell the IT and the IT dumps the...

Yes. So on-site with Snowflake about a month ago. And they said, yes, what happens is we sell into IT, IT then takes the data results and they dump it into an S3 bucket and let the business access to there. And then we can get a relationship with them, and we're not getting that compute. We need a way. We need to convince them to put that data into Snowflake, to keep it in Snowflake. And then let the line of business bring in all their shadow IT data, their spreadsheets and so they're struggling with how do we get that? And from Domo's perspective, we have Snowflake customers, and we can see what they're pulling from Snowflake, and we can see all the data that it's not in Snowflake [indiscernible].

So I'm going to risk a good [indiscernible].

It's storage for Amazon, it's Amazon storage, so it's kind of a -- so if you use Snowflake, your storage is usually in S3 for most of their customer base.

So once they put it there, so then IT, [indiscernible] controlled somewhat.

They're just not letting the line of business use Snowflake to put their data in or to access their data. So they're dumping it into S3 and then you can access it here and then go use your desktop analytical tool. But then that.

End up with fragmented.

Once all that is compute. Ideally, we want 100% of the data to live there.

Right now, so Snowflake look at you guys as like a valuable ETL engine to use, right? So that's interesting.

And connectors. We have more connectors than anybody. I mean, Fivetran is probably one of the closest and I think they just announced 500, and we're over 1,000 connectors.

They do what -- how many deals a quarter, Snowflake?

Well, I mean, just like phData, I mean, Snowflake does like 800 deals a quarter.

And they're going to grab Matillion, or they're going to find somebody to do that ETL work for them?

Because their reps know what drives compute, if they can get more data in. So we're helping accomplish exactly what they want us to accomplish.

And you said Fivetran has 500?

I think around 500 is what they announced and Domo has over 1,000.

Yes. So today, so Snowflake will bring in Fivetran to do the ingestion, they'll bring in Matillion do the ETL, they'll bring in Tableau maybe to do the visualization and somebody else to do some analytics on top of that. So literally, Snowflake sales exec has to have 4 or 5 different parties at the table to get a deal done. And they just said that creates friction. Anytime there's that many parties in the deal, it creates friction. And so if we -- if they could reduce that to one other party, it can provide all those elements, it just reduces friction in their process.

And the implementation partners have actually said the exact same thing. Like we were on with 20 [indiscernible], we were taking their architects to a training Domo. And they said, yes, it's a really big pain point for us. So we bring in Sigma or Tableau or Denodo or Matillion, and they said, simplifying that process for us would be amazing. So.

That's taking down a lot of competitors.

It's actually -- I'm not saying too much here, but in my mind, I mean, we should have been competing against Matillion and all these vendors a long time ago. I mean our ETL tool is not new. We've had it for a long time. It's very mature. Our connectors are mature. The problem is that our pricing model, we always charge on a per seat license, everybody only thought we did visuals. In fact, we'd have customers that a new CTO would come in and they would say, oh, we're going to scrap Domo because we have Tableau. And we get on the phone with them and I'd say, hey, help me understand where are you planning on in putting your data. Help me understand how you're going to ETL and [indiscernible] going to buy Amazon or Google and we're going to -- and I'd say you realized Domo provides this. No, I have no clue. They own the technology of the company and they had no clue we're doing this because we charge per seat and when you look at Domo, you just [indiscernible]. And we try to climb all of that cost into a seat prices, elevated seat price compared to our competitors. So we were always overpriced, but we had so much more. So the reps all day were like, no, let me show you all the technology built into this. And then in the enterprise, they're like, well, we already have 4 of those and 3 of those and 2 of those. So we don't need -- so it was really, really hard and now it helps to be a lot more modular so that they can plug in the things that we can do really well, leverage what they've already invested in, and it's just a much better go-to-market model. And everything can be market rate.

I know it's kind of new, but how much success have you seen? Because it seems like that sales is actually kind of a different sell [indiscernible] when I speak to customers, most of the customers I speak to are visualization users and the ETL use cases sound more like the IT sales like Snowflake and the relationship that they have. Are you seeing that? Or are you seeing like customers use both? Or are you having to convince those business users that have this great use case of reporting, hey, we actually do this too, and they're the buyers.

Yes, it's an education. So on the business side, they come to us -- they would come to us in previous [indiscernible] just for visuals. And there was this huge education that we would go through, which was like, okay, if you want to get this end result, you have to first get access to your data. So what are you planning on doing? How are you going to get access? And tell me how you're going to manipulate the data and how you're going to create data pipelines and we spend a ton of time educating space there, where now because it's modular companies can come in and just buy the pieces that they need and the components they need, this all cycle, definitely, we don't have to try to sell the whole [indiscernible]. We can sell just the pieces. But Alteryx actually competes in that line of business. So I actually hired an Alteryx rep a few years ago, and he said, we got to the same customers you do. We don't go after Informatica and [indiscernible] IT -- we go after the marketer or the CRO, who's not getting everything they need from IT, and so they're having to buy technology to fill the gaps. IT is providing them 40% of their reporting the needs, and they're now wanting us to go get everything else. And so -- and we still see that across our standard Domo deals. We still see customers that are buying us because they're not getting what they need from their BI department or from IT.

You agree with this. So I was talking to one of the partners when everyone was having lunch, and I asked this one is not Snowflake. I asked where does Domo fit? And she said, when there's complexity and size, millions and millions of roads, main thing is Domo is a single platform, you don't have to buy anything else. If you have complexity, you want to price scale. And interesting, right, because it's a little off message. I mean Josh will probably be excited about it because that sounds like a really big deal.

So I would say when you're selling to line of business, they don't care what the data stored. And so if we can solve that complexity for them, it's a huge advantage to Domo. That's why we've won so many deals. But when you get in with IT, they do care. And long term, that company is going to grow, even if they're a smaller company, eventually, they're going to grow and their IT strategies become more mature. We want to be part of that. So I think we'd rather let them invest in the technology that allows them to grow into a data warehouse or -- yes, for line of business, for sure, that's where we played. So these partners, that's where they play in the last several years is in those line of business conversations.

One of the examples you gave was another construction company. It wasn't the one that you talked about this morning. It was a different construction company that also was collecting all kinds of safety data and just figuring out things like what do people get, what are they doing when they get it? What are the sites where they're getting [indiscernible], and they push out a little educational content, make sure you [indiscernible]? So -- but so it was a big company, right? And so why did it -- why in that use case, where they sort of go all in with Domo instead of going piece by piece?

Which pieces you should go all in on, which pieces. When we started, there wasn't an ecosystem, right? There were -- it hadn't -- like online marketing back in the day. It's like okay, are there going to be 70 different categories of vendors? Or is it to kind of get down to 4 or 5. What's 4 or 5 -- and I don't think at the beginning whether analytics should have been [indiscernible] but same thing here, it wasn't clear what the vendor categories would be. Now it's becoming very clear like hyperscalers is a [indiscernible] and it's a category that we can't own or should be owned with all of the things that we do. And someone's now doing it well enough that we don't need to do it. And we need to clean up our architecture so that we don't have any conflict with hyperscalers, but we always did. We have got conflicts. We have customers going like, well, if we take that out of Snowflake and move it into Domo, it might be a little bit cheaper. That's the end of that relationship forever. And so we said, all right, we got to fix this. But I actually think there's going to be a shift. I was just in a meeting with the customer and they said, it's one of our big retailers. And they said, we've been using Domo forever. There's a 7-figure customer annually with Domo. And they just made a decision internally to use Snowflake as their big data warehouse. And he said, in fact, we just brought a new CIO on. They saw the stuff that we're doing with Domo and they were so excited. And we picked the data warehouse. The CIO said, they picked it based off of who had a good relationship with Domo. And so we're starting to see our ability to affect, it was like maybe we need to introduce more people to Snowflake that are in our product right now because that will really get the attention to Snowflake, it could really give the attention to Databricks. And we definitely could have brought that. That's why I highlighted with Sony, the example I have it on stage with Sony. There are a lot of examples where these big companies are like, all right, just think longer structured, nonstructured somewhere. We've got to have governance around that. We can't have it in 50 different places. Sony has 20 different instances in play stations, 20 different instances of [indiscernible]. And there will always be that. And those instances aren't shared by the different departments because the people that create games in this studio in a hypersensitive area are never going to -- they don't want to have any ability for anyone else to potentially log into something and see that data because of their contracts with EA, et cetera. So there's always going to be a world where we have all these hyperscalers and data warehouses that sit on their knee, we sit on top of all of that. And then like I said, 10x, then we help you leverage all that corporate data and help you extend it out, take action, automate the action and then apply AI in a secure government transparent way. So I think that -- I think we're actually finding the ecosystem is finally starting to settle down to where there is going to be a gap in a need, and it is going to be a category that customers start to look on. So I think from that perspective [indiscernible].

We've heard of this Capstone, remember when you kind of came out with Capstone a few years ago, but so there's a bit of a green light going on that like -- the licensing strategy didn't really work with kind of pulling some of the different pieces of the platform apart and being able to kind of piece it in other areas. But now with consumption pricing, that takes away that friction. Is that -- I mean, and really helps unlock that strategy? Is that -- it sounds like that's a key piece.

Yes, absolutely. It's not just about the financial mechanism. It just changes the relationship with the customer. It changes the way that they think about it. I was in another meeting that I was talking about the -- started using us for tax strategy, trying to get real-time data, trying to get rid of lots of transactions every single day and they want to get real-time data to their VP of tax. They weren't getting it. And originally, they signed a relationship with us that was based on seats. And so of course, they couldn't get a green light from anybody else besides the people that were in the tax group, and they switched it over to consumption, same pricing, switched to consumption and now throughout the finance organization to start to spread and now the CFO saying, hey, this is great. I don't have any other real time information like this. Can we do this for a bunch of other things. And that's exactly what we want. But before [indiscernible].

Can you talk about [indiscernible] KPIs that we're super supportive shareholders like we're really encouraged every time I speak to customers, your customers are like [indiscernible], which is great. And even when I've talked to customers that have like been forced for whatever reason to move away from Domo, they kind of do it like whether we -- someone said kicking and screaming to me. But like the financials, and I hate to [indiscernible] back to the financials, like what KPIs do you measure that will show you that you're having success. Like can you share anything with us? Like once the customers switch to consumption like here's what we see or here's what we're hoping to find because like, quite frankly, I'm a little stunned that the financials that we see is the analyst or investor community are so different from what I hear from customers and like the opportunity you're striking is massive. And that example you just gave is like it sounds like they're going to double consumption but that's just not what we see.

Yes. Unfortunately, we're not seeing it yet. Thank you for supporting us and definitely agree with it. We're seeing lots of great things. I think that's why the team is excited because we are hearing the same things and we don't lose it. Thank heaven, we need to be back here in person. It's -- it's -- I was in another meeting with a customer, and there's 5 or 6 of us in there, 4 Domo people, 2 customers. And all of a sudden, in the middle of the conversation, they [indiscernible] they're like, yes, it's really cool. Remember after that session, you started to talk everywhere and how we can distribute all the data that we have out to all our vendors. We really need to do that, replace [indiscernible]. And then there was -- they started talking about AI and how their CIO is talking about AI a lot, but they were having solutions and how [indiscernible] would definitely be the solution because while the government [indiscernible] so lots of great things going on. The data that we look at for sure, how quickly are we moving customers to consumption. So that's the biggest metric that we're probably paying attention to in addition to retention. Retention is much -- you get to see that data. It doesn't tell the whole story. We -- there's things that are still -- have been happening and are still happening from the economy changing 18 months ago, and it's still just things are just happening because of that from -- when people said, I think I shared one story, but it was the most market story that I heard, someone was like, yes, I got an $8 billion tech budget, CEO is hoping to make it 6. So I'm shooting stuff, we'll see what happens. I got to get rid of $2 billion. And that's -- there's still some byproducts of that are out there and -- but we look at how we can [indiscernible] our customers switching over to consumption. It was an important -- really important to us that we got every new customer. So hitting above 90% last quarter was extremely important metric. Now we need to go to all the renewals. We didn't really roll out all the trading to all of our -- all of our CSMs and our sales executives really until over the last month, the last few weeks that we finally finished that right [indiscernible]. So I think we've done that. And I think you'll see sometime in the next quarter or 2, we will go and communicate to Jeff no more. We're not doing any more renewals, period. I don't care what happens, no more renewals if they're not consumption. We're not there yet. But we need to get to that spot like we were able to do with all the new relationships -- but it is -- I think it will naturally work itself through, but that's another metric that we're looking at. What percentage of the renewals are getting to consumption. We're still -- still pretty nascent in the efforts, right? Right now, it's like [indiscernible]. But we haven't done things like, oh, you want to use AI, [indiscernible] available on consumption. Oh, you want to use the new app builder. Yes, that's available, except on consumption. So now every single feature that comes out, we're putting it through the -- you have to justify the reason to not make it available anywhere except consumption. So we just have a million reasons to try to get everyone over to consumption. I think once that happens, then the financials will absolutely match. And hopefully, we start to see signs of that soon.

I'll just say, obviously, one more thing on that. I met with a ton of customers even at Domopalooza. And they said, hey, how's consumption going for you. They're like don't love it. Don't like that we're being forced to, I say tell me why. And a lot of how they structured architected Domo to this point, we've just said, put everything you in there, it doesn't matter, just throw it all in there, right? And so they have piles and piles of data that they're storing that does nothing for them. And so when a rep or CSM goes to them and says, hey, we're getting to move you to consumption. Your cost is going to go from 200,000 to 9 million because you have 9 million credits, they are like that's not going to work for me. And what RJ and I have learned through this process is that -- usually 75% of that is data that they could clean up or that it's not usable or whatever. And so [indiscernible] helping our customers through this and being smart about it. Once they get to the steady state, and they're like, oh, yes, once we really just use the data that's really important to us that we're refreshing every 15 minutes, then it makes a lot of sense for us. So it's just this education that takes some time with our existing customers where the new customers, we could just explain and it's easy, and they're off and running. So that's the step. [indiscernible]. It's finance. It's like if you think about it right -- we are all these customers that are not on consumption. We have all the data charges. We're paying for all those things right now. You know what our gross margins are. We have plenty of room. So they don't need to change. The problem is with lack of education until the education happens. So you might have a CSM that's mid-level CSM. [indiscernible] conversation with the customer and they think that their bill is going to go up. No, that's not the case. [indiscernible] go up. We can take your old stuff and we like you don't have to pay for the old stuff, you're going to pay for the new stuff. We just had everybody really trained on it. So we're highly encouraged by our [indiscernible].

So you have to have more custom pricing then because if you're like, well, discussion all this data, we're going to [indiscernible].

No, just first no. It's more just like whatever you're doing, whatever you're paying us, lock that in.

That's the past. We'll lock that in going forward.

You're paying us $200,000 and you've got 200 billion [indiscernible] data, 200 billion rows of data. Here's our pricing. Now going forward, you're going to start paying for these billions of rows of data a little bit more expensively. But you can -- we'll lock you in for the next 2 years, 3 years. You've got plenty of time to think about it, plenty of time to clean it up, and that gives some comfort. So it's like you're going to consumption, but you take on a path there through an ELA. So like, hey, you got ELA, he's got some caps. They're like, oh, okay. And I got a couple of years to you, okay, I can do that.

We're not forcing them to go through like their own optimization.

In the meantime, they're focusing up to all of their users -- and so way more people are getting value out of it and we open up the platform for them, so they get -- they can check out data sets and test that. They can do AI stuff and they can do other things that they weren't able to do before because it was sitting behind feature switches. And so it takes us a lot of problems that way. I know we just have 5 minutes. We do have a customer here that has a pretty awesome story. I don't know if anybody is interested in hearing Branden. I mean told a little bit on stage there, but he is a customer that I mean I love Branden's background because he's an entrepreneur, he ran big sales organizations, and now is the COO of Medius, but his story about how he was on [indiscernible] model and why he chose Domo over Power BI and Tableau and these other things, some of the -- some of the friction that he faced inside of his organization from IT who were saying, hey, we wanted to standardize on Tableau or Power BI or whatever. And so he had the vision to kind of help them off of that. I just thought it would be interesting for him to take 4 to 5 minutes and talk through that. You guys are all wanting to hear that. And I know you've got -- so if you need to leave sensitive to that, that's fine.

Yes. So Branden Jenkins, Chief Operating Officer of Medius. Medius briefly is a spend management platform [indiscernible] automation, procurement. We are on track to hit probably $200 million in CRR this year, mainly through organic, a little bit of inorganic growth. I came on with a few other executives in the last 2 years [indiscernible]. We have big growth ambitions, [indiscernible] categories wide open for a big TAM. And Domo plays a big part of that story. I was introduced to Domo through NetSuite. I was an executive at NetSuite, Oracle for about 9 years. I was the General Manager Global Retail, ran strategy for a few years, various projects as well at Oracle. Came into NetSuite through an acquisition. I was the CEO of a retail management solution. It's also SaaS, sold it to NetSuite back in 2012. So I have a good perspective on technology, being kind of founder startup of a SaaS company a while back, been running category [indiscernible] NetSuite, I learned a lot there. But Domo played an interesting role at NetSuite solving our go-to-market, really bringing together the marketing and sales and figuring out what works, making sure the pipeline was there. And that was the challenge I was faced with at Medius. When I came to Medius, it was growth at all costs. The PE firm was more than happy to throw money at every single technology they thought would help us sell on Wednesdays versus Tuesdays. And that's a problem. We had data in many different systems, siloed as a hairball and I reflected back to how we solved this in NetSuite, so that's what we need to do. That said, we had significant investments in Azure, Power BI. The business ran on that. Our platform execution that we see for our customers is Azure and Power BI as well. And we spent a lot of time trying to make that work. It's been a better part of 1.5 years, growing money at trying to get our corporate data or internal systems optimize. A good example is I brought -- finally hit in, brought on a consultant, a good-sized consultant that solved these problems before. I spent $500,000 of them to tell me that to spend another $1.5 million to put in data warehouse, put Snowflake and put Tableau and do this, do that. And the $1.5 million extra dollars wasn't as scary. It was the fact that it was going to take another year to [indiscernible] and like we don't have time. We're on a growth path. We have ambitions. And so I said, like, let's look at Domo. I told my team because they were fighting me like, no, we've got to [indiscernible]. They didn't know anything really about Domo. I said, like, if Domo can show to us that they can solve this problem that we've been trying to solve for a while. And it's really just bringing together all this go-to-market data so we can figure out how to do it in a cost-efficient way and grow in a profitable way. We're going with it, right? Like sure. We did a POC with the sales team and called them up and told them the problem. They said, look, hey, Branden, let's just prove it to you that we can do it. So they did a free proof-of-concept. Within a couple of weeks, they solved like our biggest problem that we were trying to solve and then like the rest is history. I mean so that to me just capsulates what Domo is about. Within weeks of signing the agreement, we started getting value out of the platform. And then it's -- I'm a -- I'm a big believer in bite small and chew fast like just get value continuously. That's been the journey we've been on since. So we went live June -- excuse me, July, August of last year. So months in. On the standard model. So we started on the standard model. Like this is a time back to Josh's point, I told my organization you're going to get $1 million out of our staff. And we actually did get $1 million out of our infrastructure -- our staffing. Take it out. Yes. We took out a lot of tools, go-to-market tools, various things. And then I come to my team and say, we need a new tool. Like we thought it was crazy. But interesting enough, Domo plays a critical role in this consolidation story. Like it actually allowed us to continue to consolidate and save money through platforms and people. I mean I had an army of people doing Power BI work, right, that I don't need anymore because like moving about Domo at the [indiscernible] so -- but I was intentional on signing up with the -- at the time, the consumption model was newer. And I've been doing this for a long time. I was like, okay, that's newer. We'll just go with this, signed up for a handful of users because I just -- I don't want to overspend. And sales team was great at not pressuring an overspend kind of commitment. And that proved to be very beneficial as a month in, I think it was 2 months in, I was like, you know what, like we solved this problem. And now all these other users want to get at Domo and the consumption model we revisited. And it took a moment to understand it. It's not that complex. I actually think it's a beautiful model, things I'm starting to put into our business as we sell our B2B software. And it's changed the conversation internally. So not only were we able to then just deploy it to many, many more users in our go-to-market. We have a few hundred. We were able to start to take advantage of all the good stuff that we don't have, right? Like when you look at AI, when you look at the machine learning, when we look at the other types of functionality, that would have been a procurement process. Would have been an IT conversation. Would have been a project. Our teams can do this like it's like, let's test like is there ROI here. Let's try. Yes, there's ROI, let's go. Like the best of Domo is already there, and we just got to go use it. And we have the credits. And like in my world, it's like, great, we'll buy more credits. Actually, we started to buy more credits because we prove to ourselves the ROI is there. So we've been on that model ever since. Since then, we got a new CFO, and she's like, I love this. Like we're never going to use Power BI. That sucks. I need something like Domo. So now we're rolling out Domo into finance organization.

What were the -- what was that first big, really hard problem that you had hard time solving?

Yes. So many go-to-market systems, you have Salesforce, all these transactions, Salesforce, Marketo, we have sales forecasting planning system, many of Google Analytics and outreach, all these things that give you insights about the [indiscernible]. And the biggest levers in our business is volume, value and velocity [indiscernible]. But to get an understanding of that, you actually have to bring it all together and cohort it in a fashion where it makes sense, like our users can actually understand and take action. All these systems alone and Salesforce is best-in-class, Outreach is best-in-class. All the things are best-in class alone, but to bring it together, you have to have a data warehouse, you have to have a visualization tool. And the traditional methods of throwing things like Power BI or overengineering a data warehouse, is this like that's old, like that's months and years of work and like we don't have that.

So what do you view it that it can replace Power BI. Would you [indiscernible]?

So we replaced -- I mean, Power BI was the biggest piece. That was a big disruption. Power BI. The need for Azure and Fabric, like we moved on to Fabric and Fabric [indiscernible]. I mean honestly, what is just like [indiscernible] that we didn't need. And so those went away. We had other like ad hoc kind of reporting tools, Excel plug-ins, things like that, that we've used. I mean it's solvent kind of consolidated from that. But then we had other go-to-market kind of add-ons with Salesforce or kind of point solutions that was trying to solve some of this funnel analysis, some of this customer life cycle analysis that just we were able to get rid of because it all came together with the [indiscernible] that we built.

And then it sounds like you have kind of new greenfield things you can do with the 2 that maybe you weren't doing?

Well, we've definitely got a stronger handle on our funnel go-to-market data value on velocity. And the next big lever in our business, a big lever in our business is really the expansion opportunity with our customers. And my first focus was like get an optimal landing of customers, landing the customers is the first part. But then now we're working to take all of our customers' production data and bring that forward into the tools of Domo. Now we're still early in that. We have Databricks as well as a layer in between our customers' data and bring it forward. And we're a global company. A lot of our customers are in Europe. So we have a lot of GDPR compliance things that we got to work through. But we see Domo being the ultimate place that our users are actioning the white space opportunities for expansion and delivering more to consumers. So that's what I'm excited [indiscernible].

Another 10, 15 minutes for just general questions because [indiscernible].

I was talking to Snowflake partner who said definitely validated like there's something really different than going on now than in the past. Anything to kind of call out in terms of on the technology side because I'm talking about like we're almost done with this new connector or I don't know if it's [indiscernible] copy capabilities or what it is that -- from a technology perspective.

Yes. It's dramatically different than what it was. It was -- one of the [indiscernible] was about Databricks. We're doing a lot of Databricks as well. And Fortune 50 company they've got a ton of data. They have adopted Databricks, and they are trying to use us to -- they were going to try to figure out a bunch of ways to figure out how to get data out of Databricks into Domo across all the different things that they were doing and then process that information and they get -- they were taking a bunch of steps and there were some delays, there was costs, they were not sure if it was going to be the right solution, but there wasn't another alternative. And they recently got in on the beta program or what we're doing with Databricks as well. And Databricks is about one month behind Snowflake, what we're doing on our side and Snowflake has been leaning in at the beginning [indiscernible] and now they're both leaning in, which is great and a few others. But yes, I think at the end of this, what happens is it really truly doesn't matter where your data is. Your experience using Domo. Domo, like I mentioned earlier, when we built this, there wasn't an established ecosystem. So our back end was [indiscernible] and then we said [indiscernible] kind of expensive and we won't be holding to another vendor, seems like a core part of [indiscernible]. And so we built this thing called [indiscernible] and it end up being 5 to 10x more cost-effective for small, medium-sized accounts. And -- but for the really big ones, Vertica was still more efficient. Well, then Snowflake and Databricks come along. And for the really big queries, they were definitely faster, but they were also really expensive. So let me start trying to figure out how to optimize those and we've got it down now where we basically can swap out Vertica, for Snowflake or for Databricks, but because we'd already built our whole back end to be either [indiscernible] or Vertica, changing that to Databricks is not a big architecture change. It was just more a philosophical change and then the work to do. And so we've done it now. And so now we have -- not only do we have Snowflake. We can have Snowflake running on Azure. We can have Snowflake running on AWS. We can have Snowflake in Ireland. We can have Databricks in Singapore. And the customers are or GCP getting exactly what we want. So it truly, truly is the same thing as if it was all native Domo, because native Domo always included a third-party data warehouse, hyperscaler. And now we're just making that third-party hyperscaler Databricks, Snowflake, GCP and anything else that you want it to be. So it's going to be -- it's going to change things for sure in the industry, for sure. If you're Snowflake and your Databricks, I mean the example that's not the [indiscernible], what do you do or the customer that I told you big retail that we have. They were already using Domo distribute information to [indiscernible] retailers. You can't replace that with Snowflake, you can just grow your data similar, but you still have to distributed. You have to have permission, you have to have governance. You have to have data lineage, you have to have the information and by the way, that's what AI is. You have to have all those things, where AI really scary. And if it is really good, then you need to have all those things to distribute it and put that power in somebody's hands. So we're actually really well set up. And that's why I think the hyperscalers are looking to us like we got to compete with Microsoft. And we need someone that does these things. And when we go to do a deal, we don't want to walk in there and this is the most powerful thing [indiscernible] shared this, but we don't want to walk in there and try to close a deal for Snowflake or for Databricks. And we bring our partners in, and we're trying to get 6 contracts with 6 vendors done at the same time. It's really what they're doing. Bringing in Fivetran, you're bringing in Tableau, you're bringing in Matillion. And then you've got a couple of other service providers around that, and then we've got Snowflake contracts. Or you just bring Domo and Snowflake and you are done. So Snowflake and Databricks are like -- this is actually pretty interesting and you guys [indiscernible] so let's go. So it's pretty exciting.

Does that materially change like the customer profile that you're landing these days now that you're essentially not paying for the whole package, but you can basically choose.

Yes. It is the conversation with the CEO of one of the companies that I mentioned, and we talked about what we're both good at. And they have -- I said you have -- he said what's your -- where is your gap? I said CIOs, we don't know CIOs. We need to know all of them. We need to have any customer, we have an account and not with a CIO and he said, I've got CIOs tell me out of every crack here. They're CIOs everywhere, but we can't get line of business, and we can't distribute it to all the users in the organization and we have the data by taking action on the data, which is where the value comes from, we can help them do that. Everyone's finally got the pitch, put your data in one spot, so you can control it, so you can go govern it, so it's secure -- that's the pitch. That's the hyperscaler pitch. The whole pitch, -- that's it. Where is the ROI in that. Like I know I need to do it, and I'll do it. I will pay for it because it's secure, and I can govern it. How do I distribute it, how do you take access on it? And like, so it resonates. And so did it really well. It's not reflected in financial statistics. It doesn't make a less exciting but get -- we could do it more, and then we looked at the numbers like [indiscernible] it should be better than this. And it will be, but it's just not there yet. But the second it starts going, man, it seems like -- it seems like it is going pretty fast. So there's a process for -- I mean, we talked about these partnerships. And there's a process like there was a technology interface that we needed to get right. So we got that, really close, then we're going to do some account mapping. And like you said, training salespeople on both sides, so they both get the deal. And that takes a little bit of time. So it won't happen like tomorrow, but it's going to happen.

[indiscernible] going to be a question I had is just when you guys look at your sales spend today, and I know that there's account reps and [indiscernible] like big fish hunters and all kinds of people in that sales number. As you kind of move this more partner-led sales channel more at the low end, more premium model or it's kind of self-serve and then upsell. Like does the makeup of what the sales spend is today? Does that change materially?

Yes. We value that every day, right? Every time we're thinking about should be hire a head, is it a sales head? Is it a marketing head? Is it a partner head? Is it a product development head? And they all compete for dollars. So the second we start seeing -- you saw our total footprint in terms of sales reps come down. We've got a dozen people in our [indiscernible] zero. So you reallocate it for sure in a place that we think is going to very efficiently bring us opportunities. One of the other -- this almost -- I had this almost so real experience talking with one of the CEOs and we are going through and I've known for a long time, and we're going through and talking about where we're at. And just to kind of that [indiscernible] how much opportunity there is for us and how still nascent the evolution of this space and this ecosystem, how it's all going to fit and eventually play out. It shows you how [indiscernible] it is because this is the CEO of these companies. And he said, yes, I can't really get any data here from the company. It's like Tableau and I'm so frustrated that I can't get data. Is this conversation happening? Like are you freaking kidding me and he goes, he's like, I finally got so fed up, I told my team just to start sending me an [indiscernible] e-mail 4:30 in the morning. Just send me an e-mail at 4:30 with the data I want. So I just get my daily day. I'm not messing around with Tableau anymore. [indiscernible] say I have to call people to do it. I get it. I can't change anything, it's a mess. And I was like [indiscernible] pull my phone, pull my app up, show him the data that I look at, show him the data that my board gets. And then I said, it's actually interesting. Sometimes I don't know where it goes. So -- let's go see I'm going to type in my CROs [indiscernible] into the app and pulls him up. Here's the cards that he looks at the most because first, we went to most viewed cards, and it's kind of funny that one of the most cards always the [indiscernible] surprise, surprise, in the organization. So I was like it was still -- I don't think Jeff is looking at the line. Let's go to Jeff, CRO, and it shows his most popular [indiscernible] and then his most recent. And on the most recent cards, it was like 3 minutes ago. So I clicked on 3 minutes ago, and you [indiscernible] 3 minutes ago and its remaining pipeline to close this quarter. I clicked on it, it comes up, flying all over the place. We'll dive in into it. He's like, how often you guys catch this stuff? [indiscernible] but it's so snappy like, yes, it's what we do. And he's like, and it just works on the phone. I'm like, I don't know how to not make it work on the phone. And then he is like maybe we should do a pilot with you guys. I am like excellent, we'll do real fast bro. It just shows you like it's still -- there's a lot of opportunity still really new. If that would [indiscernible] would have played out like this. I mean, gosh, 13 years ago, and I said, was going to be [indiscernible]. It's boring, but I guess I can get -- I'm boring, it's growing so fast. But we didn't do that. This is what we wanted to do. And now that we understand kind of how it's playing out and where the independent players are and where the big players are that by the way need us to compete with Microsoft. And there's no one really like us at scale. It's a pretty interesting spot to be. So god bless you, and we'll do it [indiscernible].

And with that, that's times up. That closes the formal part. So we're going to go ahead and cut the line now.