Domo's Earnings Call: Contradictions in Macro Impact, Sales Productivity, and Gross Margins

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Operating Leverage and Revenue Growth:
- Domo, Inc. exceeded guidance on billings, revenue, and non-GAAP EPS in Q1, also generating positive adjusted free cash flow.
- This reflected a durable, trusted relationship with customers and a substantial increase in sales efficiency.
- The company achieved a positive operating margin in a Q1 for the first time and expects to exit FY '26 at 5% billings growth and 5% operating margin.

Subscription Revenue and Retention:
- Subscription total contract value (TCV) was up 69% year-over-year, and long-term subscription RPO was up 61% year-over-year.
- Gross retention improved to 86%, with year-over-year net retention at 94%.
- The increase in RPO growth and retention rates was driven by customer satisfaction and successful adoption of AI-driven solutions.

Ecosystem and Partnership Success:
- The number of deals moving from the top to later stages in the pipeline from CDW partners increased by more than 200%.
- This growth is attributed to strong relationships with CDWs and system integrators, expanding market reach and customer acquisition.

AI Agent Adoption and Product Demand:
- Over 200 customers signed up for the free Agent Catalyst service at Domopalooza, demonstrating high demand for AI solutions.
- The success of the AI Catalyst launch and customer adoption of AI agents contributed to increased product usage and consumption.