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

Welcome, everybody. Glad you could join us today. I hope everybody's had a good opportunity to meet with our customers, partners and everybody else who's here. I think you'll all find the energy of this event is really just fantastic. It's something we look forward to all year. It's just -- it's a huge shot in the arm for us, for our customers, for everybody that's involved with the event. So it's just wonderful to have our investors and analysts be able to come and be a part of that. Welcome, everybody that's here in person. For those of you who aren't here in person, I'm Tod Crane, CFO of Domo. Excited to cover a number of different topics today. We've got Josh James, our CEO; RJ Tracy, our CRO and Chris Willis, our Chief Design Officer, here with us. All of us will be covered on a few different things. But where it's a smaller group, we'd love it to be conversational. We'd love to -- discussion. And our esteemed Board member's here, David Jolley, new member of the Board; Dan Strong and Daniel. So, very, very excited to have them be able to attend with us.

2 members of the Audit Committee. So be careful what you say. They will audit you so hard and so fast.

And then, of course, Peter Lowry, our Head of Investor Relations, and a huge shout out to Peter for arranging all of this and having all be very organized and there are a lot of logistics that go into this as well. So definitely thankful for his contributions there. So anyway, with that, I think we can go ahead and dive in, and we'll have Josh kick it off. And I think what we'll do Josh kick it off, and then we'll probably kind of move into a Q&A while we have Josh's time. As you can imagine, he gets pulled a million different directions during the [indiscernible]. So we'll have him go. We'll do some Q&A with Josh, and then we'll continue on the agenda.

Great. Yes. So I thought I'd start off just highlighting some of the things that we've been really focused on. We're pretty close to the earnings call. So that's always topical. But internally at the office -- these are the things that we're talking about. This is the slide that we shared internally. It's similar to the one we had last year. We updated it to -- last year was about product-led growth, and that's really about adoption. But we really want -- as we made some progress there, trying to get the company to really focus around what are the things that we can do. We tested out a bunch of -- we have several different groups that are testing different ways to interact with the customers that drive the usage of consumption that drive down those credits, whether it's different use cases or approaches. Actually, RJ, why don't you mention a few of those things that we're doing with the use cases and with [indiscernible]?

Yes. So on the base?

Yes.

So these packages offer lots of different services that basically allow us to go in and help people things like AI readiness. As you've seen some of The Agent Catalyst that was announced. A lot of that starts with being able to get your data ready in the first place. So we have this AI readiness product in Domo, but a lot of customers need help getting started. So it could be that. It could be helping them optimize pipelines or design and architecture. So especially as we play with these multiple clouds, being able to architect pipelines in an efficient manner. So it's lots of different components of Domo, but it's about education, it's about creating power users. It's about driving adoption across all the different products that we -- that we have as well as helping people adopt additional tech they're not using today. So we might recognize it there's in our integration with ETL, but they haven't quite used our workflow engine. So we'll go in and we'll help them find opportunities to use workflow to automate processes.

Thanks. Yes. So that's adoption. And we're going to -- there's probably going to be some more disruption to the way that we approach the market in terms of the types of employees that we have. We started out with the traditional account managers. I think they're becoming less relevant because it's important that, a, customers call and they feel like they're talking to someone that's smarter than them about the product and more technical than them if they're technical. So we probably need to swap those -- that role for someone that's more technical. And then AI, obviously, you saw -- did any of you see the opening session, a couple of you? Yes, one more. Yes... But obviously, we're talking about AI, AI, AI, AI. Pretty much every session has an AI component to it. It's been really fun to see customer interest in it because we've helped people organize their data and present their data, display their data, share their data. The real value, and I know this, the real value comes from the things that happen after that actually. And so it's been hard for customers to figure out how to do that, whether it's building an application, building a data product. But AI agents, we have all the components. We've been building them for years, in some cases, over a decade. And you add all those components together and you actually can build these agents. So this Agent Catalyst that we launched, we think, is going to be transformative for our business. As a data point, hot off the press. So when I shared agentcatalyst.ai with the audience, there's about 500 customers in attendance. We've already had 200 customers sign up for a free agent request. So that is extremely exciting. I mean I would have been happy with 30 -- 30 to 50, but currently there's 200 in the first hour. So I think that's going to help drive the need for our platform. And in the few one-on-ones that I've already had today, we're seeing that resonate pretty loudly with customers. That's exciting. Third piece is multiyear contracts. We talked about this on the earnings call, tried to lay it out. We'll probably, in a quarter, share some -- share even more data with you. I think there's a time and a place to share things. And when the stock is moving and the revenue is growing, we have more receptive audience. So I don't want to waste it right now. But we think that's going to be some great tailwinds for us. And it literally is just math. And so with the success that we're having adopting those customer contracts, if you want to look into the data and look at what we said, there's enough morsels there. You can go and draw some of your own conclusions. But with the fact that we were able to get that by only addressing 6 months of renewals, when it takes about 18 months of renewals to get to the whole customer base, and we've already delivered over 2% to 3% from a retention perspective -- gross retention perspective, it tells you how much additional upside is there. And we're not even good at it yet. So I think even once the 18 months runs, we're still going to improve the way we approach people. So that's, I think, a really exciting component. Again, we're not growing revenue yet in historical financials the way we want to. But that's certainly going to be a driver because as you all know and as we think about constantly when you're on the operating side, you're a $300 million company and you add 2% to the gross retention, you set a $6 million [indiscernible] you don't have to go out and sell with a CAC [indiscernible] may not be exactly where you want it to be given where the macro is. So keeping that high profit margin dollars there by just improving things with nothing other than incentives to the sales organization around long-term contracts is a very inexpensive way to drive the business. So we're really focused on that this year. And then lastly, the ecosystem, and you've heard us talk about that for a year. We are seeing success. We are seeing lots of signs of success. It's just a question of when that's going to impact the numbers in a meaningful way, even though just last week or just on Monday, we had [ ESF ] yesterday or 2 days ago and [indiscernible] was updating us on the impact that some of those CDWs are already having in our pipe. So I think it's coming sooner rather than later. So those are the strategic initiatives we're focused on. And yes, we'll open it up for questions from you guys for 10 to 15 minutes, and then I'll be out.

Okay. So thank you, Josh and the whole team for putting out such a live at the keynote this morning. Obviously, Josh, would love for you to like jump out that blazer. I was hoping like..

I was open to isn't it?

But Josh, maybe I'll start with you first, right? I love how you set the beam on Gen AI. It's a beam on every executive mind, taking out on lunch, just cutting jobs. And you guys are addressing this head-on, unlike other peers they -- that doesn't try to avoid this question, right?

If I may interrupt before your get to your question. That's something that I saw in these follow-ups that I've been having today already. We had a customer here that was telling us they're trying to use -- think of all the big tech names. They're trying to use a couple of them to create AI, and they did figure out how to piece it together, but it's cumbersome, it's not real time. It's moving data all over the place. And like if we could do that, we didn't realize we could do that in Domo. We want to do that in Domo. We want to have a follow-up meeting about this immediately because if we can do this in Domo, then all the other agents that you're talking about, we need to build in Domo as well. And we're already approved from a security perspective to do things in Domo. So I think there's just going to be a lot of upside for us there. I don't think -- we probably should have had some more confidence about it. I don't think that we realized there's, was it Jeff Bezos? I saw something, I think, last night.

Perfect [indiscernible].

No, we -- I saw something that said -- I think it was Jeff Bezos, but you think the risks are too great and you think the upside is too small. And I think as we're thinking through our business, it's kind of hard to imagine that we're in as good of a position as we are with AI. But every time we talk to a customer that's in the middle of it, they're like, you guys, what you're doing is way better and everybody that's out there that's doing stuff. And again, think of all the big tech names, we're more of the thorough solution that's available right now. And like when RJ was up there and showed here's 4 solutions that literally have been built in the last 2 weeks. I heard that in my follow-up meetings as well. We did -- one guy said we did with you guys in 3 weeks that something we've been trying to do for 6 months with other tech vendors. So yes it's -- that's something that we're going to lean into, not just with what you heard today, but we have several more announcements planned over the coming months because we can build these agents so fast -- we need to -- like you said, people don't know where to start. And every executive wants to do something, but they don't know where to start. So if we can say, think about Smartsheets, think about ServiceNow, here's 100 of them. And we've made all these, but like, let's package them up and sell them instead of just here's a platform, let's help you understand how to do it. That will lead to so many additional conversations. So we think there's a real opportunity there.

And for those people on the call, like this is [indiscernible] Fitzgerald. Sorry, I forgot to introduce myself. I guess the question, Josh, becomes like how does Domo hedge against this Gen AI risk, right? Is Agent Catalyst the real deal to do this? Is that the approach?

Yes. I mean I think there's 2 pieces to it. So from a opportunity perspective, we definitely don't see it as something that's going to cannibalize us because we're doing everything we can internally to cannibalize the way that we built our products. So things that you used to have to click 25 times in order to build, now there's DomoGPT and you can literally just say, build a dashboard that does this and says this and boom it's done. Connect this data, boom it's done. So we're doing everything we can to cannibalize the historical ways that we've done things. And because of that, I think it puts us in a great position. Because, again, if you want to go build an agent, you can't -- it's not like you just go and say, build some code and build an agent. No. You have to have all those pieces that we talked about. You have to have EGL. You have to have a way to display it. You have to have governance. You have to have these components that, by the way, we've already built. You have to have a workflow engine. You have to have ability for a human to go to prove things. We've done all that. So I think that's the first piece. And then the second piece is, to your point, these offerings, we think can actually be something that drives a lot of consumption of Domo. And by the way, it only works if you have all those components and need a platform to do it. And we've got 1,500 people, 1,500 customers here that -- that's exactly what they already use us for. They just don't have that final piece. So if we can help them unlock even more value from all the work they've already done, that's a huge win for our customers and us and the consumption model.

The strategic focus to switch the consumption model, right, because they're saying, look, Gen AI is going to eliminate. That's fair, right? We've seen the news, right? We can't hide from it, right? Because it's consumption-based and machines are run in the world, consumption model, do you think the consumption model will drive more upside than the [indiscernible]?

Absolutely because people try stuff. And so if your product works, then you're betting on your product and you're betting on the fact that they're going to get a taste, they're going to like it and they're going to do a lot more with it. And we've seen that -- I think when Concentrix was on stage, that's one of the things that they alluded to. And last night when I was talking, he told me about many, many instances where people in their company are saying, "Hey, we're thinking about buying this from software A and software vendor B. And like how much is it? It's $500,000. We're going to go buy 800 licenses." I think I can do that for Domo and Domo for you. Give me a couple of weeks and they literally go build it in a couple of weeks. We might only get $14,000 for that, but it's awesome. Like we can do 50 of those. It's so sticky though, right? And then Concentrix is also exciting because it's top to bottom, giant enterprise, top to bottom. We didn't have a lot of those historically. So seeing those and then we talk to U.S. Bank, 1/3 of their business, and they're really influential. We're trying to do everything we can to make sure that we're connected at the CIO level and that it's an approved established product, and we're seeing that with AI. That's the thing that I keep on hearing from customers is we're surprised that we got this approved, but it was already approved from the CIO to put the data where it is with Domo. So because we already approved all the governance that you already have in place that we were allowed to leverage AI as well. It's great.

Josh, I've -- we've talked to a ton of customers. And like I said here and I told you last year that Domo is the company that has the biggest difference between valuation and like what customers say and so many people say are sticky and are evangelical, but it's not in the numbers. And I guess like at this point, what things outside of pipeline, and I get the pipeline is bigger and I get these partners, but like can you give us examples to say that consumption is working? And we're almost 2 years into this. Can you point and say like here's what we're seeing that shows that like we think we're going to accelerate out of this.

Yes. I think one of the first big points is our net retention or gross retention for our consumption cohort is much higher than it is for our seat. And the disconnect between what customers are saying and then the growth or the lack thereof really comes down to the retention. There was just a much bigger hole at the bottom of the bucket than there was historically and a lot of that had to do with customers where we didn't have -- we weren't on stable footing. And we talked about that at the earnings call as well. We used to go look at our top 50 customers, and we sit there at the end of the earnings. Would be ready for the earnings call, all right, how many at risk do we have on this list? Like 8 of them, 9 of them. And now it's down to like 1 or 2, which is pretty healthy.

I mean, I guess like at this point, you're above 50%, you're 60% on the consumption model, like you see...

We're almost 70%.

So almost 70% now. Like by year-end, you think you'll get to 90%. That's kind of what my math suggests to. And like do you guys have a ton of confidence in the acceleration? Or is it like still TBD?

No, we have a ton of confidence in it. It's I think which quarter?

Yes. I mean...

That's the question. For me, that's the question. And we also alluded to that as well. I think by the end of Q2, we're going to have a much better idea about our pipeline. We're also have a much better idea about these consumption cohorts that had a chance to go through a renewal process, right? Because you've got to go through a whole year or if it's a 2-year deal, you got to go through a whole 2 years before you actually really understand. Our sample size is getting big enough that we're confident in it. But every quarter, that's going to be informed. So I think we're going to have updates at the end of Q2 and at the end of Q3. And we know there's going to be some acceleration in Q3, Q4 from a revenue perspective. We don't know how much, but we know there's going to be some acceleration. And importantly, I think we're also going to be able to look at the because of the multiyear deals and because of the consumption cohort that has a higher gross revenue retention, we'll be able to look and say, okay, not only can we tell you a little bit more about Q3, Q4, but we think there's a new bar on a new floor on gross retention. And I could see us giving insights into what that number is going to be for next year halfway through this year.

Sorry, I just have one more but -- or nobody else has a ton. So when I look at this business, you guys were a fast grower above 20% for a long time. And I know that Domo can do so many different things. I also know the environment is competitive and competitors offer all kinds of stuff. But the math is super easy to run through and say, hey, if you're at 90% consumption, here's consumption retention. Here's what I think new business sales have been in the last 12 months and here's what I think. So I can get that math. Like in this environment that's a tougher macro and if things don't get worse, if things don't get better, do you think Domo is a double-digit growth business? Or is it something lower?

No, it's double digit for sure. I'll be shocked if we're not north of 10% next year. Shocked. So yes, in this environment, with the current numbers that we have, we don't need anything to change. We just need some more time to go by.

I'll ask another one. So we -- you guys as this business grows, what kind of investments do you need to make incrementally? Or do you guys feel like because the other observation I'll make is that we're not like Silicon Valley West Coast investor guys, like we care about cash flow and things like that. And we definitely don't have a problem with where you're at now, but you guys have debt that's growing at a super high rate. It's plus the interest. And like do you think that you expect to show a lot of leverage? Or do you think that as this business grows, you need to invest in it to drive this growth?

I think there's definitely a lot of leverage. We're investing quite a bit into R&D that isn't going to drive the next 12 months of revenue growth. So we still actually have a pretty substantial amount on the P&L that allows us to invest while maintaining cash flow positivity. And we are actually paying, that debt is not growing. We are paying a big chunk of the interest down. I think $13 million, $14 million a year in interest. Right. We are cash flowing that as well.

Yes, we're paying 8% cash and 5%... I know... Very well, yes.

So yes. So I think but no, we're going to continue to generate cash. We're not trying to generate a ton of cash right now. But I think as you see growth come back, there's going to your point, there will absolutely be leverage in the model.

Josh, can you talk about the sales force composition now in terms of the size of it, the maturity, the productivity? And then also perhaps as part of the same question, you mentioned that traditional account manager might be less relevant. I was hoping you could elaborate on that.

Yes. We have a variety of account managers, some of them more technical than others and the more technical ones are having a bigger impact on the customers right now, helping them understand different use cases, helping them connect different data sources, helping them build AI agents. And so I think that profile is going to be a better profile for us going forward. There's still need for project managers and then some of our bigger customers there is still need for relationship management. You can see that profile changing over time. And then in terms of the sales composition, you want talk about that?

Yes. So we've got about 100 direct sellers right now. In North America, we've split the team into reps that own customer accounts and then reps that own new logo. Both of those teams, we're adding reps to right now as we're starting to see pipeline increase from some of the partner activity. So we're making sure that we're staying ahead of that. We've got a team of ADMs as well that help drive leads pipeline for the reps. Daniel, would you mind sharing your thoughts on how you think about the business as an investor and as a Board member? Curious if Daniel was at BlackRock for a long time and managed $100 billion there and now has his own fund, but he's been involved in the story for a long time. And yes, I think it's always interesting to hear his take.

Yes. I think you guys have already touched on a number of things that are important. The valuation obviously is pretty compelling in terms of what the downside risk looks like versus the upside from a simple math perspective. We also talked about the fact that a number of indicators, but we can't say yet how far we're going to go, it feels like we've perhaps passed the inflection point in a positive way for a lot of important things. I'm going to put RJ on the spot for a [indiscernible] rep productivity, which I was mentioning before we started this. I think that's one of the best signs I see currently that can help us get line of sight how good things could be in the future. We've got a couple of quarters now of improving results there. So RJ, you're talking...

Yes. I can speak to that. RJ mentioned we're leaning in on hiring on both of those, the new logo and the customer account teams. And the reason we feel good about starting to lean in on the hiring there is the rep productivity. One of our main goals is to not only get back to growth, but do it efficiently and stay cash flow positive, control our own destiny, expand growth and expand margins simultaneously, right? I'm confident we can walk and chew gum at the same time with the scale of revenue that we have. But the level of rep productivity we're seeing right now is getting close to kind of where we were back in when we were growing at 20% to 30%. So seeing that level of rep productivity is really, really encouraging. And I'm excited to be able to lean in and put a little more capacity in the system. And we'll obviously be monitoring that closely to make sure that productivity holds as we add capacity in, but it's a fantastic place to be.

Part of that has been close rates, close rates have actually increased, which I think is really reflective of the ecosystem strategy and the fact that we're not fighting by ourselves anymore. There's other people around the table that are helping us out. Which goes back to the question that Alex was saying investments right. RJ was talking about 100 direct sales right now, right? Obviously, I've heard of floors that's going heavy with Snowflake, right? How much more capacity RJ, do you think [indiscernible].

That's a great question. We're going to add it as we see pipeline being built. So we're watching it every day. We report on all the pipeline being generated from partners, and we're monitoring the close rates all the way through the sales cycle. So we'll make sure that we stay ahead of the hiring so that we're building capacity at the rate that we're generating leads. So we don't lose efficiency along the way, but we also don't get in a spot where we have more leads than reps.

Do you think there's any like -- at this point, you talked to all your customers and migrated a lot to consumption model, which, by the way, like I think it makes so much sense and lowers the bar to getting Domo in the organization and props to you guys for all the changes you made because I think they've been fantastic. Are there large renewals that you guys are worried about anymore? Are there any ones that you -- as you look over the next 12 months and you say, hey, we can see that they're not using us very much. We know that like right now, it's a tough environment to sell anything. Are there big things you guys are worried about?

I'd say we're worried 80% less than we've been worried historically, just based on the number of big customers on that top 50 lists that used to be there that got fixed or turned out. But the ones that are remaining are happy and using. And ironically, we've always had customers that were using us. That's not -- users have never been an issue. It's -- we were in an organization and we only had one department. And there was someone else that had 2 and someone else had 3 and some else had 1 and new CIO comes in and we didn't have the right relationship. So unfortunately, we didn't go to a consumption model years and years ago because consumption fixes it also because you're not paying for seats. So I mean it used to happen to us all the time. And now we're watching it. We're sitting down with customers and they're like, " Yes, actually, we just got rid of this software vendor. We got rid of that software vendor. We got rid of this. Only 14 people are using that, but we were paying $100,000 for it. And now you guys are doing it for us." So the fact that they're not paying for seats dramatically changes how they perceive us as well.

[indiscernible].

I mean it's 50 different vendors when we're in there. There's certainly any visualization engines, Teradatas of the world, Microsoft products, Tableau products. But then also, they might have a little -- some software from a commission software company that is helping create a report that 8 people are looking at, and they spend $100,000 on it, and they can't get rid of it because the CFO looks at it. And they come in and build it in a couple of days and they're like, "Oh, we don't need that vendor anymore." And that just increases our stickiness. So we got great margins. We're getting paid for what we need to get paid for. Maybe someday, if we have the pricing power, we'll be able to increase it even more. But we feel like we have a great model. The most important thing we've been trying to figure out how to increase retention. So having more sticky places and more people in an organization, pretty different dynamic than where we were up until 1.5 years ago, when we were still 10%, 20% consumption. We did that really in the last 21 months, we've gone from 5% to almost 70%. So it's dramatically different.

And Josh, can you comment on [indiscernible].

Yes. Mark has been with the company for a long time. He has managed a lot of different things. He loves operational excellence. He likes making sure a lot of things -- a lot of Ts are crossed, a lot of Is are dotted. And then there's projects that we have that are cross-departmental, like adoption is a great one. And how do you take what each group is doing and find the best practices. It's hard to find someone that's respected by everyone in the organization so they can cross-departmental, he has proven that over the years that everyone knows he's on their side, he's trying to help out. And so he's got a team that's just going to be focused on that operational excellence and the biggest projects that we're working.

I know he's not in the room, but I know he's been with the firm for 10 years and also [indiscernible] what do you expect of him the first [indiscernible].

More operational rigor and more confidence internally that when we decide that we're going to do something as an organization, it's going to happen. And a partner that everyone can lean on in order to accomplish kind of the big hairy tasks that, again, are cross-departmental because those are always hard because you've got pockets of people doing different things and not talking. And again, he's got a great relationship with everybody. So we think he's set up for success.

We've spoken about attendance being up here year-over-year. Are you finding a lot of that is the different use cases under consumption, the companies are sending more people? Or is this like relationship with the CDWs driving more excitement? I don't [indiscernible].

I think it's vastly misunderstood how much our customers really do rely on us and that we are their standard. Alex mentioned that he's talked to a lot of people where that is the case. But we've had this -- we've kind of had this external narrative because we had some financial metrics that told a story that it was hard to argue against that story because it was a big streaming story. It was a pocket of our business that was susceptible. It wasn't the whole business. We've churned through that. And I think what you're seeing this year and what's exciting, what's really exciting for me going to the opening reception last night, everyone is talking about all the plans that they have and that -- and most of it was just around workflows. Workflow is a big topic. But workflows is one of the components of AI, right? You need to -- you're processing through something, but then you want to have an action that takes place. And that's by definition of workflow, and that's how you make these AI agents. A lot of people thinking about that. And so again, also I thought Concentrix, I think Ankit said it really well when he's going around internally in the organization, trying to tell everybody, don't think about this like BI. Think about so what? What can you do with it? And he feels like there's a great platform here to build these apps. U.S. Bank talked about the apps they're building, right? Talking about the apps with AI, NBA and looking at what they're doing just to figure out how to stream things internally based on AI telling them which game is going to be seen the most. And that's based on real-time information about records and about what's getting talked about in social sentiment. That's really cool stuff. So that's the kind of stuff that we're hearing from customers. And then we have to go and make sense of it when we talk about the financials. So again, hopefully, we're out of that muck here soon. There's some double-digit growth numbers, and then we'll be able to have more of a receptive audience about the whys.

Can you give us examples of like the use cases that are driving? Because you guys do so much. And I know that when I talk, nobody uses you that I talk to or very few people use you for ETL. That's something that big you guys harp on is like this is a core capability that we have. And I think one of the challenges that occur, I know you guys have a longer sales cycle than some companies and like have you guys found use cases where you can go and say like go to every restaurant and say like, hey, here's something that we can save you money and implement for that? So like what are the use cases that are driving incremental adoption over the last 12 months? Are there consistencies where you can say like, hey, these are the problems we're solving for customers and like really accelerating the go-to-market?

Yes. I think we -- ETL is actually -- it drives a bunch of revenue for us. The -- I mean the -- I'll talk about one of the use cases, RJ can then probably answer this better. But certainly, one of the use cases for half of our customer base, right? Half of our customer base is sub-$1 billion in revenue. That use case is pretty much the same across every customer, which is top to bottom, CEO to everyone in the organization, all their analytics, all their data, all their connectors, all their ETL, all their data warehouse, all in one spot. And now we're building all these agents on top of it to help them get more value and drive more usage and increase the revenue that we're getting from them. So I think that's something that's transfer -- across our entire customer base, which has been really interesting. But RJ, you're probably the best person in the company at how you pitch things. So talk about the use cases that work, what resonates, what doesn't.

Well, and I would say, too, part of the reason why you hear people aren't using us for ETL is because prior to the ecosystem, if you wanted to use our ETL, you had to use everything. You had to use our connectors, you had to use ETL, you had to use our back end, had to be our visuals, had to be -- everything was fully contained. So what consumption and ecosystems allowed us to do is break that apart. Everyone in general has thought of us as a visual layer. Our sales cycle sometimes is a little longer because people are saying, "Hey, we need your visuals and then we spend a couple of weeks walking them through and say, well, you need to place the store the data and you need to place the ETL it." And then all of a sudden, we're expanding that use case. So I would say almost every customer that uses Domo uses our ETL engine. It's a very significant part of our platform. Customers love it. What we're doing with [indiscernible] ecosystem is we're shifting that mindset to say, if you want just ETL, you can use us there. If you want just connectors, you can use us there and it can be on top of your data foundation. And you can bring in other tech that complements it or you can expand that offering. And that's where consumption is so beautiful is customer might say, I need you for connectors, that's all I need. But now they've got access to everything. So you pull data in as a connector and you're like, I was going to go ETL it through this ETL tool, but I'm already here. I don't want to have to log out of Domo, go log back into this new system, redo the ETL, go back into Domo, pull new data in, and we see customers starting to migrate. As far as use cases go, yes, we've got tons of repeatable use cases that we see. Our reps try to focus on really helping customers to -- we focus on 3 main things, which is increasing revenue, reducing costs and mitigating risk. And we do that across every department. So it's not necessarily that we're trying to say, oh, we did this one thing in marketing really well. All of our marketing customers want to reduce their cost to acquire customers. They want to improve efficiencies, something to spend money. They want a bigger return. They want to create pipelines that they can understand their ideal customer profile and how they can convert more of those and how they can fill them, and we help with that whole customer journey and most of the customers. And then you get the niche use cases like some of these AI use cases we're starting to see where how they're looking at, man, how can I automate some of these actions? And we're seeing that across some of the examples that you saw today. And I think you're going to see that expand, as fast as AI is improving, you're going to see those use cases get better and better.

Any soft metrics, RJ, give us on the AI path rates like out of 10 customers or 10 customers, I should say, how much -- how many of those 10 or 100 customers are going to ask for AI?

Are going to ask for it?

Yes.

We have 200 today. [indiscernible].

AI is going to be a big part of the conversation. It hasn't been historically. But we have -- I think the last data I saw we have over 500 customers that are using AI right now in their implementation. Our DomoGPT has certainly been a big component, thousands and thousands and thousands of users of that. So they like how fast it is in building things that they might not have thought about before instead of having to go through the whole historical creative dashboard process and write a bunch of code. They want GPT. It must been nice as well.

[indiscernible] I know you're going big on Snowflake. I was wondering, does it make sense to -- I know the answer is we are talking to other CDWs as well. But does it make sense to like [indiscernible] the relationships like, let's say, with the Databricks, Oracle, et cetera, to the same level of Snowflake.

For sure. That's in process. That's absolutely happening. It's not -- it just needs more time. But we already -- the relationship we have with Snowflake, will be the same relationship that we have with Databricks, will be the same relationship that we have with GCP, the same relationship that we have with Oracle.

I guess when we [indiscernible] say, hey, Databricks is another...

It is right now. We have these all the time.

The partner that you saw on stage today, [ Coantec ] that built the FleetOps, [indiscernible] AI, they are an exclusive Databrick partner that's also a venture backed by Databricks. They did get permission from Databricks to partner with us. And we are their only technology partner this year. They've scrapped every other tech partner, all the other ETL tools, visual layers, integration layers. In fact, their CTO said they did an evaluation and they said, we look at all the tech and, it's right, they all play right about here. Then there's this big gap and then here's where Domo plays. And they said, we can't go to business with any other vendor. And just last week, they sent us 3 leads.

If we can maybe [indiscernible] partnership. Obviously, Snowflake being [indiscernible]. How do you think about maybe learnings from building out with Snowflake as you did that you're applying going forward [indiscernible].

Yes. So it's a lot of the same strategy, right? All these clouds -- I mean, Databricks is a lake house architecture. But at the end of the day, people use the technologies very similarly. So we're -- from a technology standpoint, we're going to market with them the same way, Snowflake, Databricks. There's some unique opportunity for us to partner with a few of these as well. As an example, Oracle has NetSuite. NetSuite is trying to push a cloud, but they want something more turnkey. Well, Domo already provides a turnkey back-end solution. So we potentially could sit that on top of NetSuite's, they call it NSAW, and go to market with them to provide a turnkey solution to smaller businesses that aren't going to manage a warehouse. But outside of that, the strategy is really the same. It's about we do something really well and they do something really well, and it's a really good marriage in all of these different vendors for us to partner together.

About growth opportunities. Okay. We talked about Snowflake, the CDW, the [indiscernible], right? I call that 1 bucket, let's just say. [indiscernible] workflow has good potential. And then the third thing you announced today, Josh, was, [indiscernible] right? Out of these 3 things, if you have to say near term, midterm, long-term opportunities, which is your bread and butter?

Well, bread and butter is just doing what we've been doing, just fix retention and it will be double-digit growth. CDW layers on top of that. And that's going to be an immediate opportunity for us for sure. We've been investing there for a long time. It's -- our relationship with those other vendors besides Snowflake is pretty similar already. We're a little more advanced just on the sales relationship with Snowflake with the number of sales leaders and sales managers and sales reps. But in terms of technology, not dissimilar. We're very far along with -- we've had customers that have pulled us into GCP a long time ago. We've had customers that have pulled us into Oracle. We have a bunch of NetSuite customers. So the technologies work, it's more just figuring out the go-to-market component. So we're going to have meaningful relationships. We know in all 4 of those vendors at least.

How about the other 2 Workflow, Agent Catalyst -- and anything I missed?

No, I think the other piece is Domo Everywhere. And that's a big part of our ecosystem as well. We talk to [indiscernible] on stage. And it was another conversation I was having with [ Citrix ] . They have a bunch of AI agents, and they're really big AI agents that they put a bunch of consulting around it, but there's an opportunity there for us to partner with them, to help them, to give them the platform for all the other agents that we have to then go and go build for their customers. And then it's -- I've had 3 one-on-ones last night and this morning already with customers, and every single one of them has a Domo Everywhere opportunity. So taking that data and then sharing it out to their franchisees or to their customers is -- is something that a lot of times customers aren't necessarily aware of because their use case was internal data, internal BI. And then they recognize, well, if we could just do this and provide this to our customers, that would be really cool, but they think they need a lot of additional functionality. And they do, and we have it and they don't necessarily know about that. So helping to educate our customers there is something we've been getting a lot more leads from over the last [6 months] as well.

I mean we saw it from other software companies like if you go with a premium package, right, which is the Domo Everywhere. That's the whole entire [indiscernible] Is there any metrics -- soft metrics you could give us, right, uplift instead of using our cards, right? If I'm a Domo Everywhere customer, what percentage is it right now? Like what's the ambition?

Yes. Yes. So Domo Everywhere is it folds in under our consumption pricing model. So as customers are sharing that data out with their customers, it's driving credit usage, it's driving revenue for us via that method. So there's not a discrete package they have to buy to build that, it just folds in under their credit model. So if they're going to do -- have a big Domo Everywhere use case, they've got to buy more credits. And if they -- if that takes off like wildfire, then that's going to cause them to be in a position where they're going to need to get into a bigger contract and [indiscernible].

And as an example, we have someone that spoke today that came from a Domo Everywhere customer and that they received data from one of our customers. They like the data experience because they get the Domo experience, but it was only for one component of data and then we get introduced to them because we know who they are. And we have a customer that was on stage today that's paying us 7 figures a year that came from Domo Everywhere from another customer. So that is something that you can [ rinse ] repeat. It's impacting, I would guess, about 30% of our revenue are from Domo Everywhere customers, customers that have Domo Everywhere as a part of their installation, and that makes them so much more sticky because now they're sharing that data with their customers, with their partners. And again, that's much harder to rip out, right? You don't want to change your -- it's one thing to change your -- employee experience, it's another thing to change your customer experience or your vendor experience. So it's definitely an important part of our business. And it's very similar to what we do. It's just kind of a little different flavor. So it's not like we spend a lot of extra time and R&D on it. It's just kind of a slight tweak.

I mean we heard loud and clear like, Josh, obviously, it's definitely more sticky retention rate is higher with Domo Everywhere. How about unit economics, right? Can you comment on that?

Yes. I mean it's -- for the customers that are coming in through Domo Everywhere. So Domo just to clarify for everybody, Domo Everywhere is our embedded analytics, right? The ability for our customers to embed analytics for their customers. That's what we mean when we talk about Domo Everywhere. And that ability to embed is included in our consumption model. But the unit economics are fantastic. I mean, as we were just talking about, as customers get a taste of Domo via Domo Everywhere because they're getting served it from like Harvard Business today, they were talking about how their learners have a portal where they can log in and see how their company is utilizing that -- those assets and those simulations, et cetera. As those companies get a taste of it and get hands-on experience with Domo and see the vision, then it's really easy for them to be like, hey, I want some -- I want to use this in my company. And the acquisition cost is almost nothing for us to bring that customer on board. So from a unit economic standpoint, fantastic for the customers.

[indiscernible]

Yes. So it can be at RJ next and then Chris and then me [indiscernible].

I want to go back to the gross retention. What's in your control that can get it from 85% to 90%?

If we have somebody on a 3-year deal after 12 months, they're going to renew somewhere in the 97% to 99%. If they're on a 1-year deal, they're going to renew closer to 80%. So a dramatic difference in retention rates if they're in a multiyear deal. Same thing, after 24 months, they're going to renew 99%, 98%. If they're in a 2-year deal, then they would have only renewed at 80%, maybe less. So that has a big impact and as we do more 3-year deals, 4-year deals, even 5-year deals, and then again, it's just back because we can go and see what percentage of our business is going to be up for renewal. So that RPO number is actually going to be a really important number.

And we even provided some guidance for this year that we see a 200 basis point improvement in gross retention coming this year based on that math and more to come. But that's not that 6 months of effort to drive that 200 basis point improvement. And as we continue to focus on that, it goes up from there.

Yes. Hopefully, if we're successful this year doing that again, that will be an extra 4 to 5 percentage points, and we'll be looking at a floor of 90 this year.

Which would imply that CRPO will start to outpace that 5% to 6%, right, that you're increasing your GRR, your billings and CRPO should be relative?

That's right. That's right. Yes. And we provided color around we see accelerating billings growth this year, and you're going to see CRPO be kind of a leading indicator for that.

That's the long term when that matters, right, 38%?

They both matter. Yes. They both mean different things, right? The long term is showing those, hey, we're doing a really good job getting our customers into multiyear contracts, which is going to have a great impact on gross retention. And then from a current RPO standpoint, that's going to be more of a signal of like, yes, the billings growth, like it's coming, it's happening. So they kind of tell -- they're complementary to each other, but they tell 2 different stories.

All right. I think we've got Mr. RJ up next. So I'll hand that over to you and you can put through your input.

Right. Sounds good. So I think one of the important things to just call out with the ecosystem is there's definitely an important strategy behind what we're doing. As I mentioned earlier, when Domo was built, when I started at Domo 12 years ago, data warehousing was on-prem. It was a multiyear project. It was multi-millions of dollars, and it had like an 85% fill rate but most people couldn't get their data warehouses really off the ground. People were cubing their data. So when we started, there wasn't really warehousing that was available that we could go play with. So we built up the entire stack really out of necessity, like Josh's vision from day 1 has been, let's allow people to get data that helps them run their business they can take action on so they can control the outcomes. So we built up the stack. Well, now separation of storage to compute. You're starting to see companies much, much smaller able to afford warehousing. Even departments are buying their own warehouses or own installs of Databricks or GCP for different use cases. So you might have a company that standardized on Snowflake, but their marketing department is just going to put the Google Analytics data in BigQuery. And we're seeing that more and more. And so when we started, it was really easy for us to go in and go in these deals where it was like I can go spend millions of dollars trying to put all this together or I can just do it in Domo, and I can start really small. But now the landscape has changed because now you can get $10,000 worth of Snowflake or $10,000 BigQuery, just throw Google Analytics in it or just throw your ERP data in it, and you're off to the races. And as part of that, because we had the whole stack, we never built up an ecosystem, we didn't have to. You look at all the competitors. So as we go through this, right, we've built on top of different clouds now. So now our technology can sit on all these clouds. But what's really happening is -- you look at all these competitors. So in the connector library, you look at like a Fivetran or Denodo or a Stitch, well, they have to sit on something. They don't have a back end. So they built out partners because that was the only way they could sell. Then you get into your ETL tool, same thing. You've got to have a data warehouse or something for these technologies to sit on top of or to get data from. So same thing with the visual layer. Sigma only works on Snowflake and Databricks. You have to have one of those systems and the data has got to already be there. So part of our strategy has been, let's move to consumption. Let's separate out our tech so that we can charge for it independently. So let people know that we do ETL, we do connectors. We're not just a visual layer. And let's give customers the choice to be able to spend $10,000 on Snowflake and have GCP and let's do the things that we do well and let's sit around these warehouses because there's a reason why companies are buying these warehouses. We've never really provided the warehouse functionality. And so let's go play in these pockets that we now we've been competing against for the last 7 or 8 years. And part of the challenge has been that our reps will go into a deal and they'll say, "Hey, who else are you looking at? " The customer thinks at introduction that we're just a visual layer. So they'll say, Oh, we're looking at Sigma. And then our rep thinks we're competing against Sigma the whole time. What they don't realize is that it's the warehouse rep, the SI that's in here, it's the ETL rep that's in there. It's a connector rep and it's a Sigma rep. And all of them are promoting each other in this account and they're all telling them, "oh, don't go to Domo, don't go to Domo." So that's a big change that we're making. Now we're starting every conversation off with, hey, tell me about your architecture. We typically sit around your warehouse. What are you guys -- what are you investing in? And we'll have customers say, well, we're looking at Snowflake. Oh, perfect. Have you met your Snowflake rep yet? Let me introduce you. Or if they already have met that rep, we reach out to that rep. We're all mapped and crossing. We can see every customer that they have. We've mapped to prospects. We know who they're working with. So now our rep reaches out and says, Hey, I'm selling to this customer. It sounds like you're looking at Snowflake, we'd love to partner with you. The Snowflake rep says, Man, we'd love to have you in, that's great. Then we go to the SI that we got a relationship with and we bring them in. And now that rep because we're working with them first isn't promoting Sigma. They're not promoting Fivetran. They're not promoting Matillion, they're promoting Domo. It's one of the reasons you're seeing our close rate go up is because we're now embracing the ecosystem, and it's bringing us into the conversation where historically, we've sold directly to the line of business, and we've sold into these underserved business units. Now we're going in with the blessing of IT. And not only can we help them on the IT side, but we can actually help the business side as well, which is a place that all these warehouses have struggled. So I went to a Databricks partner conference a few months back. And the question was asked at the conference, hey, how can partners help Databricks? And one of their sales executives stood up and said, whoever can help us get into the line of business is going to win. And I'm over here going, we can help you. We can help you because we do it so well. It's what we've done. And Snowflake reps and SEs will tell us that they'll go into a deal and they're in IT, but they go to the marketing person and they say, Hey, put your data in Snowflake and imagine what you could do with it, and they pull Snowflake and it's a database. And Snowflake, Databricks, there are vendors that are independent...

You thesis is because you work with Snowflake, Databricks, they bring to a CTO, CIO of the world, right? Why do help those guys [indiscernible] right? CDW help bring to the lines of business [indiscernible] they already got help from the top, right?

Yes. But the challenge is that if you look at a warehouse, so if you talk to Forrester, Gartner, any of the big analysts out there, they will tell you that most companies only have about 20% to 40% of their data in a warehouse. So think about the data you guys use, Spreadsheets that you have or you go buy a software application that's not quite in the warehouse. Or you've got Google Analytics and it's like, well, we're not going to put that. It's too expensive, just throw in BigQuery, it's way cheaper. Google has a deal for us. And we see that all over the place inside of an organization. So they don't have that data together. And what happens is the business users then take this really nice curated data from IT, they pull it down into RBI or Tableau, a desktop tool and all the governance and security is gone. They can manipulate it, they change it, they share it with people they shouldn't. They take it with them when they leave the company. We fix that because now, again, you don't pay for licenses. So when you buy Domo, you can, with permissions, open up and say, well, yes, let these users, these departments have access to the connector library. If you buy another competing tool, they only bought 5 licenses. It's not going anywhere else. So that's why you see all the shadow IT in companies where -- and we're in -- I mean, we're in deals all the time. I was on site with a company last week. I was on with the site with another company 2 weeks ago. Both of these companies have hundreds of thousands of users I'd like to share data out. And they have come to us saying, we've got pockets of Alteryx, but we can't govern it because it's on these desktops.

Yes. [indiscernible].

We need some somewhere to place this data that we can let people self-serve, but we can govern and control it. And Domo is uniquely positioned there. And if you have pockets of GCP, you have pockets of Databricks, you have pockets of Snowflake. In Domo, we need -- you can bring all that and then you get to choose. When a connector is run, where does it place the data? When you're running ETL, where are you running that compute? Where are you visualizing it from? So you now can bring all those systems together. And when you're looking at a dashboard, that data could live in 4 different warehouses and the end users would never know what it looks like a seamless experience because we brought it all together. And we're uniquely positioned to do that. Nobody else that I'm aware of can do -- can help serve IT and the lines of business at the same time and give self-service with governance. So -- as you can see, here, we can handle all the components. So you brought up earlier, [indiscernible] hey, they only need to sign a contract with you, Snowflake and a vendor. I mean I can tell you, even with just 3 of us in a deal, I've watched us sit on paper, the customers, our red lines are done and we sit on it for 3 weeks because Snowflake is not done or the SI is not done. Well, now you add in there 2 or 3 additional vendors to do that, and it can delay deals by months. So the reps, even the SIs have told us, we love that we can just go get this done, and we're not waiting on 4 other people to get paper done, to do POCs. It's just really seamless. So to answer your question, I think it's 2 simple things. I mean, there's more, but 2 big ones are we streamline the sales cycle and we drive data into their platform, which drives revenue for them.

That's ... [indiscernible].

And think about it, you go on to Snowflake. Let's say that Snowflake takes Domo into a deal and we go into the finance department. Well, guess what, if there's 1,000 people in that company, all 1,000 people get access to the financial metrics that are important to them right from day 1. If you take a Tableau into the deal, number one, you're bringing in your competitor. So you probably don't really want them in there. You don't want Looker in there. You really don't want Power BI in there, not really. So that's the first thing. But the second thing is that company bought 30 licenses. So in order for that SI to expand, in order for Snowflake to expand, they need licenses to go first. So they're waiting on other technology vendors to sell product before they can expand use cases. And with Domo, they have no worry about expansion. Everybody gets a license from day 1. If you want to turn something on for somebody, it might only cost you $5 to try this out or test this out, but it's all available. All licenses, all access is completely included in Domo.

Who's your counterpart in Snowflake?

So I've worked -- we have executive relationships. So Josh and I have been on site with [ Sridhar ]. We actually -- he's recently leaving, but we've been on site and met with Sunny, their CIO. We've got relationships. Their CRO is changing as well right now. They have actually a little bit of -- quite a bit of turnover there. It sounds like Sridhar is shaking some things up, but we also have worked with [ Tarek ], who heads up one of their technology partnerships. We've got relationships with people on our partner side. And then we're also mapped to over 20 Snowflake sales teams as well. So -- and then I think the 20 is primarily their new acquisition, right, acquiring new logos, and we're starting to get in with the acquisition teams as well. So that's kind of another frontier that we're just -- that's right. We just put 2 reps over to start working with their existing customer base. So all this has been net new acquisition.

Sorry, to clarify, so those 20 teams are go-to-market new logo generators. You guys still haven't been with like legacy Snow customers that are making year-over-year changes?

We just started that path, and we've been in discussions with them on some Alteryx. They're seeing like Alteryx, SaaS, a couple of other Informatic even where they've had a hard time getting to the cloud. They're not really driving a lot of compute for Snowflake and a lot of customers are trying to figure out how to replace them right now. So we're also working with them on some strategies on how we can be the company that can come in and help them move that spend to the cloud and manage the government. So -- and this just kind of tells the story of Snowflake is really good in IT, so Databricks, Google, all the different cloud vendors. Actually, they sell to, that's the primary buyer. We've typically gone into the line of business. It's a really good marriage. We complement each other. We let them have the compute and then we do all the things that we do well. And we also -- I touched on this a little bit, -- there's also an opportunity for us, and we've been in discussions with Snowflake and some other vendors to OEM their technology behind the scenes. So today, Domo customers have signed up, get a Domo back end, right? If they sign up and they're going to use Snowflake, then we let Snowflake be the back end or Google or whoever. But there's also discussions where they have a program that's opening up where we could actually OEM. So let's say we go into a marketing department. And that marketing department, their IT group has Snowflake but won't let them in it. And they want a place to put the data, they want to do more analytics. We could potentially OEM a Snowflake back end for them. And the rep that owns that account, Snowflake would still get paid, so they would still introduce us. And that's where these current customers come into play really big for Domo is it's a gateway for us that we could help them get into the line of business where lines of business don't have to manage the warehouse. It's fully managed with Domo OEMs. So it makes it really simple. But then the IT side buys in because it's on the same technology that they put their warehouse.

That in placement?

So we have current customers on an OEM Snowflake back end today.

You guys will?

A year ago that we put customers on just to test out. And now we're in discussions on this new pilot that they've opened up to -- because the most important thing is making sure the rep that owns the end customer gets paid. So that's something that Snowflake has been rolling out the pilot program just a couple of months ago.

Appreciate that. And some good consumption metrics here, too. One thing I just want to highlight on consumption, it's pretty amazing actually. You think about Concentrix on stage, they're talking about how they already -- within 12 months, they have 25,000 users and fully expect to be at 75,000 users by the end of this year. Like that is incredible. You look a lot of those other tools we had on the screen there, the Matillion, the 5 Trans, these where you buy 500 licenses or 1,000. It's not 75,000. It's not 100,000. And while we're not on a seat-based model, you've got 75,000 people in the product, like it's just the kind of demand as they get a taste of it and see what it's doing to impact their business. They're going to want more data in there. They're going to be demanding that their BI team and their analytics team and IT team are putting more data in there for them to use. So it is going to translate into consumption revenue for us. And not to mention the fact that you are incredibly sticky at that point, right? So some of the churn we've been seeing, as we mentioned earlier, we were on stable footing. It was a seat-based contract. We were in a narrow small part of the company, hadn't been able to break out of that. We weren't part of the global IT strategy, the global data strategy. And we're still working -- been working through those weak accounts and those have been turning out. But we're replacing those with customers like Concentrix, who started on consumption on day 1, and you can see that night and day difference in terms of [indiscernible]. Yes, inception.

I'll just add to this, too. I know RJ has touched on it, too. But the SIs, I mean, it's really hard to overstate the importance of these SIs, especially the people like Coantec, who's a dedicated Databricks implementer and Hakkoda a dedicated Snowflake implementer. As we meet with these people, I mean these are some of the smartest people in the entire world at implementing these products. And when they sit down and actually take the time to evaluate our technology and see how it wraps around that warehouse, like they are like this -- I mean one of these partners came to us and said, we evaluate you and probably 10 other products, and it was you and no one else. Like your technology was head and shoulders above these other products that we're looking at. And they see the vision of a simplified process where they can deploy solutions so much faster. We demoed a few on stage today that were done in less than 2 weeks. For them, I mean, that's where they know they have to go. They have to be able to quickly implement and get value with their customers and do it in a way where the customer is getting a ton of [indiscernible]

Like a thesis, right? [indiscernible] to ask more broadly like why is Domo do it much faster and more efficient?

I think -- and I'll let RJ answer this, too. But I think in large part, it's because all of those areas of functionality are under the same roof. They don't have to log in and out of multiple tools to do all that. And the SI doesn't have to go implement like 4 different things. I mean from the SI's perspective, they want their customer to have a seamless experience end-to-end, and we provide that. So I don't know, RJ, do you want to add any?

Okay. Chris, I know we're getting close to Chris, I'll just introduce Chris quickly. Chris is one of our thought leaders on AI and a number of other things. He's been with the company really from close to day 1, right? Years.

I thought RJ was like 10 years [indiscernible].

But we want to have Chris here today just to give us some quick thoughts on AI and where he sees that going. And so Chris I'd love to have you share some thoughts.

Yes. I love to. I just want to make sure I'm serving all of you well probably a little unusual to have some of my position sort of in. I know numbers -- by the way, I worked on Wall Street for a bit. I have a business degree, along with some other things. But to Tod's point, I think the things I can maybe illuminate on are why we're doing what we're doing, why -- it's a long journey, right? And there's this idea of almost like read this interesting essay about the fidelity [indiscernible] right? It's like true believers, everybody. And I think if you look at sort of the evolution of things, as the world was kind of moving into these different sort of technological eras, now into the AI era, we've been steadily kind of building that platform to solve the bigger problem. And I think Josh said it at one point, if there's a certain problem that you're thinking about, you can't stop thinking about [indiscernible] and that's really what we do. I think all of the stuff we're talking about, obviously, it has to have the fundamentals. It has to work, right? It has to connect. It has a great product market fit. And we've built the capability. And that capability, I think you're seeing is fungible, right? It's able to morph and fit very well with changing demand or different trends in the marketplace. And then AI comes along and all of a sudden, we're not pivoting. It's plugging really, really well. In fact, it's doing several things. I think if we were very close-minded about this, if we weren't thinking about capability and adaptability, we would have just put AI and agent technologies as another item in that left-hand column. And it's important because we don't think that way. And what you're getting from, I think, sensing in the room with a lot of people is what do we do now? Where do we start? Are we already too far behind? Well, the platform and the way we think about AI and the [indiscernible] is it's a shift. I think the same things we're doing, but it's reducing the complexity. So you talk about like one of the challenges with the platform is it's hard to sell because there's a lot of stuff right? -- as you're marching along, adding all of that capability, but you're also adding value. But at some point, the complexity is starting to challenge that. Well, now all of a sudden, we have an ability to create, let's say, goal-oriented experiences versus tasked experiences, less dashboards answers. We do that. The ability to create -- you were talking to, which I thought was great, like the kind of scale that we have 5,000 people. Well, in the past, it would have been a lot of people to maintain customized experiences, dashboards, dashboards within dashboards. -- cards within cards, right? Apps within apps, it goes on and on and on. Well, all of a sudden, we have the tools to be able to create truly personalized experiences, which is you were away for 2 weeks, and we know you care about this, we know this is your role, and we know the status of like what's in the business. Here's what you should touch upon. When it comes to sort of the agents and what you saw, just to echo what you said about some of the partners, I worked directly with some of those partners [indiscernible] it was interesting to see how just going through the process of taking an idea, putting it into action on the platform really changed, I think, their expectations. Like there's this certain expectation of what is possible and seeing the power of an integrated ecosystem that allows you to inherit all of the good performance and the components. And on top of that, I think customers are starting to see the importance of that integrated ecosystem along with like the need for greater observability because it was great when you get like to your point, you might have 500 people on Informatica and Fivetran, I don't know how many might have on Snowflake, but your CEO is Snowflake. They're looking into the data products that have been created, the experience been created. Well, now all of a sudden, I think next -- where the puck is kind of going in this case is that integrated platform becomes more and more critical. The observability of your data quality becomes more critical. You're going to want to be able to say, it's not just a dashboard that's not loaded. It's like this workflow. You need to put a hold on this automation. Well, as you guys have talked, you can go build all of that stuff outside of Domo, and that's fine. But you're essentially going to create the same problem with [indiscernible]. Where is the data going? Why is it so complicated? Why can't I share it? I'm in the business of trying to maintain? How do I integrate it with this other thing that's adjacent to it. And Josh talked about being a few one-on-ones. I just got one before I got here. And it was interesting to see how companies are starting to see opportunity in this long tail of problems that were not possibly solved by technology, no matter how lone. So I think that's pretty interesting because these large language models that need technologies require hands of servers and then you had to learn Python and Kubernetes, cluster and stuff like that, we wouldn't be having. But all of a sudden, you're able to solve problems that were only a short time ago [ interable ] I just I [indiscernible]. That's very different. These agents are great at planning tools. Domo is the most sophisticated data toolkit on the planet. We can leverage that I think were very difficult required a lot of things that didn't scale. And so that's why we people show like live conferences anymore. I was shocked. I think that's great. There was just elbow room only last night. As someone who's worked in design and building applications, I don't really pay attention to what people tell me. I pay attention to what they [indiscernible].

Chris, on that topic, I think you spoke at the CS conference back in 2020, and you did a great job. But one of the things I remember is, hey, we've got this new partnership with Snowflake. And so I guess here we sit 4.5 years later, and we're talking about the Snowflake partnership, which is not to say I don't think it's going to be a great thing, but why hasn't it delivered to date what we thought it was going to do back then? Presumably, part of it is that they perceived you as a competitor. But what else can again, why is this time different?

Yes, that's exactly right. I mean I was involved in the first Amazon deal we did as a partner. And we got into the deal and 2 weeks into it, the Amazon rep called me up. It was one of my reps that I was running at the time because the customer told them we don't need AWS. And the problem is they had the right mentality to go partner, they didn't have the right technical strategy. The difference is that we have now removed our back end and consumption pricing is different. If we would have partnered back then, we had no way to monetize anything except for licenses. Well, if you can go get downloads, unlimited ETL connectors, workflows and everything and buy one license and get unlimited everything for that, and then I'm just going to go buy Tableau, we would have been cut out of the conversation. So we had to first migrate to consumption, allow us to make money on the products and things that we do well. And then we had to open up so that we don't have a back end anymore. So now we are promoting compute inside of these clouds instead of taking it. That's the difference.

It really feels like the consumption pricing model, so excited like from a design perspective, how would you care about it? Care about it because incentives matter. aligning the incentives with the product experience is crucial and that was always like some [indiscernible].

[indiscernible] What is the future [indiscernible] in terms of the design [indiscernible]

Yes. So a few points to talk about that. One, we care passionately about our customers and them being successful at all different levels. In fact, from my design team standpoint, you can go down to the building. They're there interviewing customers right now, like how is it going? You're doing? What's not working? We're always making improvements to the platform from a usability standpoint. There is an inherent challenge in that it is just wildly complicated future, right? One of the things I think is important of this AI unlock is that all enterprise software is characterized usually by burdens navigation. It just is it's more than one thing, right or usually several things, but it's also not designed to be used by everybody. This is what's changing. This is where I think, which is that agents allow us to create new kinds of experiences. They allow us to reduce the complexity, allow us to go from a very dual task-focused centric kind of experience to a very goal-focused. So you're going to start seeing AI agents show up in lots of different pieces for the creators, but help them do their work better. But then being able to create, start to see on stage today and you'll see tomorrow, allowing us to create customized agents for everybody and be very easy to create. So we builders. Difference there being agents are kind of more designed to do automation. The systems are designed [indiscernible] versus AI. Does that help?

And I'll give Chris a quick shout out, too. I mean I probably use 10 to 12 different enterprise software products on a weekly basis at least. And getting so used to the design and the ease of use within Domo, and it just feels nice to be in there, and that's a huge credit to Chris and his team. It's kind of brewing me on like any other software product. I like why does that look like that? All that's so clunky. Why do I have to click 5 times to get there? I just like Chris from day 1 has just done a fantastic job making sure our product is smooth, intuitive and will continue to be that way, especially as we enter into this Agentic AI era, like you just said, making that very approachable and easy for creators to leverage.

Yes. I think we're very excited about it because in many ways, I really appreciate that. I mean we all know the reality. There's a lot of work left to be done. But I would say from a person who's been working on design other start-ups and other enterprise software, it's sad to say, but it's true that everything I've ever done has been, right? Because it has to work for you, it has to work for you and it has to work for you, which means work really well for anyone ideally. I think that's starting to change. You're going to see that changing. That's going to happen faster. So there's new models and design patterns for that. And it's going to go well beyond the channel.

We're over time. Just 3 quick ones.

No, you're great. I think you've got until about 3:25, so we can go to about 3:25...

Like on the Databricks partnership as well as other things I saw like Oracle partnership [indiscernible] If you hire with -- for the Snowflake guys, right, a specialist, call it, the skill set is not the same, right? So the question I'm trying to get to is how much -- is it a different skill sets you're going to have to look for obviously because it's a different platform? And how does that impact the financials?

I mean I think my general philosophy is I think that where the market is going is I think that you're going to see reps long term that are more technical than they are today. I think customers get more value out of reps that are a little more technical. It doesn't mean that we're just going to go hire technical people only. They need to have both sides of the fence, both skill sets. But I'm always looking for reps that are smarter. We've got lots of reps from Snowflake and Databricks that have been reached out. We've got a rep that was at Domo a little while ago, was at Databricks for a while and wants to come back to Domo. We just hired back. So we're looking for those opportunities as well. But yes, we definitely are always going to look for reps that understand architecture and kind of can play in this new world that we're moving towards. Yes. And from a financial standpoint, I mean, again, I'll mention the scale of our revenue. I mean we'd love to be -- revenue to be much higher than where it is, but $300 million in revenue gives us a really nice base to work with where I've been calling this the year of threading the needle from a financial standpoint, like making sure we have the right resources in place to capitalize on these key opportunities, capitalize on AI and make sure we're doing adoption and make sure we capitalize on the ecosystem opportunities. But we've been able so far to find ways to put the right resources in the right places without putting ourselves in a major cash flow deficit. And as I look into our -- look ahead and look at our models, I feel like we can continue to do that. And not only that but expand margins modestly at the same time. So that's the goal, and I see a path to being able to do that. And RJ and his team has been great partners in terms of how do we make sure we're making the most of every dollar we bring into the company. And I think our sales rep productivity numbers, the traction we're seeing with leads and the pipeline from partner, that's all bearing out like we expect it to.

And second question is Snowflake OEM, right? So you spoke about Snowflake [indiscernible] what happens when [indiscernible] because in the last call, CEO of Snowflake talked about they do more work on [indiscernible] it's good that you're helping them [indiscernible] in this situation. What if they move more to the data ingestion side one day?

And just like, I mean, Amazon does it, Google does it, Microsoft does it. It doesn't stop us from partnering with them. I think that as much as Amazon, you can buy Amazon Glues for ETL. They have a library of connectors. I think -- in general, I think those companies care about their customer experience as well. And so I think we'll be able to play in those sandboxes and there's lots of different partners that are out there and one of them moves, not all of them are going to move. But even if they do, I think that what you'll find is that our connector library is extremely more robust than anybody is out there to take them a long time to go compete in the connector space.

You think best guess estimates, right? You guys have over 1,000 connectors, right?

Yes. Next closest is like 500, and they've been in business for years and years, and they're trying to grow their connector library, and it's just not as easy as people think it is. So -- but again, I think that there's -- we have a competitive advantage. Even if you have a couple of connectors in Snowflake, for example, you're probably not going to have them all there. And then you got to figure out where do you want to manage all your pipelines? Do you want to manage them in 4 different places? Or do you want to manage them in one place? And so I think there's -- people are willing to pay if they can have a better experience and they can manage things and location. But we also have other technologies that they can use us for as well. So...

And then my last question is when I was talking to customers, like it's probably like the mid and SMB side, things they're actually all in with Domo. These are customers that love your web analytics and obviously probably Josh plays a role [indiscernible] from the experience. For these customers, they actually want to go all in end-to-end with Domo, right? For these customers type, right, it's great that you bring back the strategy to play nicely with Snowflake, right? But for this particular couple of them I spoke with yesterday is, hey, we want to use end-to-end with data storage side, right? So how do you balance that like for those customers that? And the reason [indiscernible] Domo is so easy to use and so cheap. And that's the feedback.

Yes. So I think it's about customer choice. We're not forcing customers into a particular warehouse. We still have our back end. We could choose to start putting some of that back end more on Snowflake and some on Databricks, we could spread out so that we're protected and that we're going in on several different partnerships. But long term, what we're seeing is that those customers eventually somewhere in their data strategy eventually want to warehouse. We're just trying to make them aware that we can still be part of that strategy.

Got it. Okay. We've got about one more minute here. The last question. And I think from a finance standpoint, we've touched on a lot of the points I wanted to make, the improving productivity, RPO, multiyear contracts and that impact that it's having on the business, being focused on both growth and profitability and then the consumption, products we're making almost 70% of our ARR and consumption. So we've touched on a lot of the things that I kind of had as part of the finance section of this. But any final questions before we adjourn the meeting?

Okay. Thank you, guys. Wonderful. Thank you all for coming. Appreciate it.