Domo, Inc. (NASDAQ:DOMO) Q4 2023 Earnings Call Transcript

I don’t know, I wasn’t here specifically, but that’s the reports. We definitely are seeing success in the corporate business. And I think we’ve placed the right amount of investments there. So I think when you look at throughout this year, there’s an opportunity to really accelerate through the year. Now that’s all conditioned upon the macro. But all things being equal, it looks like we should have some real upside to what we did last year just based on the sales capacity the alignment of the sales organization in terms of where they’re focused. And then also those metrics that I pointed out again, enterprise is a great business for us. It will always be a great business for us. It will be a big business for us. Our biggest customers are are renewing and upgrading and upselling.

And I think if you look at a year where growth was anemic for most software companies, it was difficult compared to the previous year. But yet we had a 30% increase in the number of customers that are paying us over $1 million. And then the band between $500 million and $1 million, we had a 30% increase in those number of customers as well. So that’s pretty exciting to see the commitment that we’re getting from our customers. And that, coupled with the longer contracts, I think it’s a really good sign that we can be successful there for a while.

Derrick Wood: Got it. If I could squeeze one more. I mean it was great to hear that kind of vision around the technology, Josh and and how you aim to kind of transform the market a bit more. Anything to highlight on kind of pricing or packaging changes with regards to the platform? Or is it too early to talk about that?

JoshJames : Yes. No, I think it’s actually one thing that you’ll hear us talk about a lot over the coming years. And that is the opportunity to package and price this in a way that makes sense for customers and how they’re becoming accustomed to purchasing out there. When we started the company, there really — it was too complicated to charge anything other than per seat. We just — it was too complicated of a platform to do anything other than that. And over the last — it’s really been a 4- or 5-year initiative of trying to figure out how can we normalize all the different fruit and the fruit basket that we’re selling to our customers, how can we normalize each each 1 of those to a metric that we can come up with a compute compute metric, so that we can go to customers and charge them for consumption.

And instead of having the customers have all of these road bucks internally, every time they want to add a seat, any time the new department wants to add a seat, then they’ve got their IT partner in that department that’s shutting things down, that are setting these down, the CFOs that are setting things down. Whereas when you go to a compete model that’s more like Snowflake, AWS, there’s just a lot less friction because you know it’s based on real usage. And even though you’d hope the user pricing would be a proxy for usage, it’s just — it’s so much easier for companies to put blockades up based on user pricing. So I think there’s a real opportunity for us now. We have had a ton of progress the last several years, including the most this last year with pricing things in a compute model.