Domo Inc (NASDAQ:DOMO) Q3 2019 Earnings Conference Call - Final Transcript
Dec 06, 2018 • 05:00 pm ET
Good day, ladies and gentlemen, and welcome to Domo's Third Quarter Fiscal Year 2019 Earnings Conference Call. At this time all participants are in a listen-only mode. Later we will conduct the question-and-answer session and instructions will follow at that time. (Operator instructions) As a reminder, this call will be recorded.
I would now like to introduce your host for today's conference, Ms. Julie Kehoe, Domo's VP of Communications and Public Relations. You may begin.
Welcome, everyone. On the call today, we have Josh James, our Founder and CEO; and Bruce Felt, our CFO. Our press release was issued after the close of market and is posted on our IR website at www.domo.com/IR, where this call is being simultaneously webcast.
(Forward-looking Cautionary Statements)
In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of Domo's performance. Unless otherwise stated, we will be discussing results of operations data, other than revenue, on a non-GAAP basis. These non-GAAP measures, including our guidance for the fourth quarter and full year 2019 excludes stock-based compensation, amortization of intangible assets and reversal of the contingent liability.
These non-GAAP measures should be considered in addition to and not as a substitute for or an isolation from GAAP results. You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP results in our earnings press release and on the Investor Relations page of our website, where the webcast of the replay call will also be available until midnight Eastern Time on December 20, 2018.
With that, let me hand it over to Josh.
Thank you, Julie. Hello, everyone. It's good to be back with you again for our Q3 2019 earnings call, our second quarter as a public company. On today's call, I want you to take away three points: One, we executed very well in Q3, and as the results show, we expect that strong execution will continue into Q4 and into fiscal 2020; Two, demand for Domo's products and services continues to grow, and we have a very large multi-billion dollar market opportunity in front of us; And three, our business is fully funded and we're making clear and significant progress towards cash flow profitability, and we intend to make good on that promise we've been making since the IPO.
On my first point, strong execution. I am very pleased to report that we exceeded all of our Q3 financial targets, billings, revenue, net loss per share and operating cash flow, as the demand for our products remained solid, and our team performed extremely well. I want to thank all of the Domo team member for their enormous efforts and hard work in Q3.
This quarter, we saw a 29% year-over-year increase in billings, and year-over-year revenue growth of 30%, led by 34% growth in subscription revenue. We've talked about leverage in our model, and I'm particularly pleased that we achieved these billing and revenue levels while demonstrating significant improvement in sales and marketing