Domo, Inc. (DOMO) Q4 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call highlights record high revenue, strong operating margin, and positive EPS, indicating robust financial performance. The Q&A reveals positive analyst sentiment, emphasizing improved retention rates, strategic partnerships, and successful adoption of the consumption model. Despite flat GAAP revenue, the strong financial metrics and optimistic guidance suggest a positive market reaction. With no market cap data, the sentiment aligns with a strong positive outlook.
Key Financial Performance
Quarterly Billings $111.2 million, representing 8% year-over-year growth. This was driven by higher retention, accelerating adoption of the consumption model, and expanding partner ecosystem activity.
Gross Retention Rate Over 88%, marking the highest level in 12 quarters. This improvement reflects the strength of customer relationships and the progress made on moving to a consumption pricing model, expanding ecosystem partnerships, and landing more multiyear contracts.
Net Retention Rate Over 96%, a year-over-year improvement of over 4 percentage points. This marks the sixth straight quarter of sequential improvement, driven by the retention profile of customers on the consumption model.
ARR Net Retention for Consumption Model Customers 111% in Q4, highlighting the value customers are getting from the consumption model.
Operating Margin Over 10% for the quarter, contributing to the highest full-year operating margin in company history at over 6%. This reflects disciplined execution and efficiency improvements.
EPS (Earnings Per Share) $0.03 for the quarter, the best ever EPS result for the company, marking the third consecutive quarter of positive EPS.
Adjusted Free Cash Flow Near breakeven for the full year, an improvement of over $12 million from the prior year, representing the best ever full-year cash flow result.
Current Subscription RPO $227 million, a 1% year-over-year growth, reflecting the strength of customer relationships and multiyear contracts.
Total Subscription RPO $437.9 million, an 8% year-over-year growth, highlighting the prevalence of multiyear contracts and the longest average contract duration in company history.
Total Revenue $79.6 million, above the high end of the guidance range.
Gross Margin 78.2%, an improvement of over 2 percentage points year-over-year, driven by increased consumption revenue.
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Operating Highlights
AI-powered App Catalyst: Allows customers to create production-ready governed applications using natural language, enhancing scalability and integration with existing data platforms.
Agent Catalyst: Enables agentic workflows in a single system, moving from analysis to automated action without disconnected tools.
AI-driven innovations: Examples include AI-powered vendor onboarding, product sign-off workflows, invoice processing, and more, showcasing real-world applications of AI in various industries.
AI adoption: Domo's platform is increasingly recognized for its AI capabilities, with 70% of customer calls discussing AI integration.
Industry recognition: Domo received accolades from Dresner Advisory Services and ISG for its leadership in AI and analytics.
Record quarterly billings: Achieved $111.2 million in Q4, an 8% year-over-year growth, marking the highest in 3 years.
Gross retention rate: Improved to over 88%, the highest in 12 quarters, driven by multiyear contracts and a shift to a consumption pricing model.
Operating margin: Reached a record high of 10% in Q4, contributing to the best full-year operating margin in company history.
Shift to consumption-based model: 84% of annual recurring revenue now comes from consumption pricing, moving away from traditional seat-based models.
AI-first platform positioning: Domo is positioning itself as a modern AI-first data platform, emphasizing its long-term vision and architecture designed for AI.
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Risk or Challenges
Macroeconomic Factors: The company acknowledges risks related to macroeconomic factors that could impact its business, as mentioned in the forward-looking statements.
Regulatory Compliance: Potential challenges in adhering to regulatory requirements, as highlighted in the safe harbor statement.
Strategic Alternatives Evaluation: The ongoing evaluation of strategic alternatives introduces uncertainty and could impact operational focus and decision-making.
Flat Revenue Growth: The company expects GAAP revenue to remain relatively flat in the upcoming fiscal year, which could limit financial growth opportunities.
Dependence on AI Adoption: The company's growth strategy heavily relies on the adoption of AI by customers, which may not materialize as expected.
Transition to Consumption-Based Model: While the transition to a consumption-based model has shown benefits, it may pose risks related to customer retention and revenue predictability.
Internal AI Integration: The company's reliance on AI for internal productivity improvements could face challenges if the technology does not perform as expected or if adoption is slower than anticipated.
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Guidance & Outlook
Revenue: GAAP revenue is expected to remain relatively flat for the upcoming fiscal year.
Non-GAAP EPS: Modest improvement in non-GAAP EPS is anticipated for the upcoming fiscal year.
Adjusted Free Cash Flow: Positive adjusted free cash flow is expected for the upcoming fiscal year.
Gross Margin: Gross margin is expected to improve over the long term as more consumption revenue is driven.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:Can you talk about what you're seeing in the competitive environment and any changes in win rates versus competitors?
A:The biggest trend is customers focusing on AI and agentic opportunities, moving from 'vibe coding' to implementing secure, governed solutions. The company has improved relationships with ecosystem partners, leading to more introductions and joint solutions, such as a recent collaboration with Snowflake to develop a rapid solution for a customer.
Q:Where do you see gross retention and net revenue retention (NRR) going by the end of the year?
A:Encouraged by the net retention rate among consumption customers, the company expects upward trends driven by adoption efforts, partnerships with CDW, and multiyear contracts. These factors contribute to stickier implementations and improved retention.
Q:What differentiates your platform from competitors, and how does it address challenges in AI implementation?
A:The platform excels in time to value and serves as a central data hub, enabling rapid implementation of agentic solutions. Its comprehensive functionality, including workflow capabilities and integration with LLM models, sets it apart. Examples include a top customer adopting pro-code apps and agentic solutions, driving significant consumption growth.
Q:Are sales cycles still getting longer, and what are the dynamics around this trend?
A:Sales cycles have elongated for some deals due to involvement in global data conversations, but some deals are closing faster, especially with current customers of ecosystem partners. The company is refining its approach with partners, balancing new logo opportunities and existing customer introductions.
Q:Are customers using committed spend with partners to purchase Domo through marketplaces?
A:Yes, Q4 saw significant use of MCD funds for Domo purchases. This mechanism has turned potential 1-year renewals into 3-year renewals with upsells, integrating Domo into customers' overall data strategies and simplifying purchasing decisions.
Q:What drove the significant improvement in consumption customer net retention this quarter, and will this metric remain volatile?
A:Improvement is driven by expanded adoption efforts, technical support, and showcasing Agentic AI capabilities. The consumption model allows customers to explore premium functionalities without upfront commitments, leading to increased usage and retention. The company expects continued upside in this metric.
Q:Why is GAAP revenue expected to remain flat despite strong billings growth and improving retention?
A:Revenue recognition for consumption contracts is spread evenly over the contract period, making it a lagging indicator that follows previous year billings trends.
Q:Can you provide insights into the renewal cycle and usage trends for consumption model customers?
A:Net revenue retention for consumption customers is over 110%, indicating strong expansion. Usage metrics, including monthly active users and engagement with platform functionalities, show consistent growth, validating the consumption model's success.
Q:Review of Unclear Management Responses
A:No questions were identified where management avoided giving a direct answer or lacked clarity in their responses.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI agent
AI collaboration
AI reporting
Agentic AI
accuracy
ambition
analysis
application
approval
apps
audit trail
brand AI
code generation
compliance
confidence scoring
control
customer sentiment
delay
educator
file
grade
intelligence AI
interface
job
knowledge
platform adoption
production
provider AI
provisioning
quality
research
retailer
review
scale
system
technology provider
tool
visibility
workforce
DOMO Transcript
Transat A.T. Inc. (TRZ:CA) Q1 2026 Earnings Call Transcript
Positive3-10
The company demonstrated strong financial performance with a 5% revenue increase, significant EBITDA growth, and improved cash flows. Despite challenges, such as the impact of Hurricane Melissa and fuel price concerns, the management's strategic measures, including fuel surcharges and capacity adjustments, showcase adaptability. The upcoming loyalty program and strategic Board oversight further enhance growth prospects. While some uncertainties exist, like hedging specifics, the overall sentiment is positive due to improved financial health and strategic initiatives.
Domo, Inc. (DOMO) Q4 2026 Earnings Call Transcript
Positive3-10
The earnings call highlights record high revenue, strong operating margin, and positive EPS, indicating robust financial performance. The Q&A reveals positive analyst sentiment, emphasizing improved retention rates, strategic partnerships, and successful adoption of the consumption model. Despite flat GAAP revenue, the strong financial metrics and optimistic guidance suggest a positive market reaction. With no market cap data, the sentiment aligns with a strong positive outlook.
Domo, Inc. (DOMO) Q3 2026 Earnings Call Transcript
Positive12-4
The earnings call highlights a strong Q3 revenue close to guidance, a strategic focus on retention, and optimistic future projections with improved gross retention and net revenue retention. Despite a shortfall in Q3 billings due to longer sales cycles, the company shows confidence in Q4. The focus on AI and strategic partnerships adds a positive outlook. However, slight gross margin decline and lack of detailed future guidance are concerns, balancing the overall sentiment to positive.
Domo, Inc. (DOMO) Q2 2026 Earnings Call Transcript
Positive8-28
The earnings call reveals strong financial metrics, such as record operating margin and improved free cash flow, alongside positive developments in partnerships and consumption-based models. While guidance remains cautious, the raised full-year billings guidance and optimistic outlook on partnerships and new customer growth indicate a favorable market sentiment. Despite some management ambiguity, the overall strategic focus and financial health suggest a positive stock reaction.
DOMO Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
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No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
