Domo Inc (NASDAQ:DOMO) Q2 2020 Earnings Conference Call Transcript

Sep 05, 2019 • 05:00 pm ET

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Domo Inc (NASDAQ:DOMO) Q2 2020 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to Domo Second Quarter Fiscal Year 2020 Earnings Conference Call. [Operator Instructions]

With that, I would now like to introduce Peter Lowry, Domo's Vice President of Investor Relations. Sir, you may begin.

Executive
Peter Lowry

Okay. Good afternoon and welcome. On the call today, we have Josh James, our Founder and CEO; Bruce Felt, our CFO; and Julie Kehoe, our Chief Communications Officer. Julie will lead off with her safe harbor statement and then onto the call.

Executive
Julie Kehoe

Hello, everyone. Our press release was issued after market closed and its posted on the Investor Relations section of our website, where this call is also being webcast. Statements made on this call include forward-looking statements related to our business under federal securities laws, including statements about financial projections, the plans and expectations for our go-to-market strategy, and our financial condition.

These statements are subject to a variety of risks, uncertainties, and assumptions. For discussion of these risks and uncertainties, please refer to documents we filed with the SEC, in particular today's press release and our most recently filed annual report on Form 10-K and our most recently filed quarterly report on Form 10-Q. These documents contain and identify important risk factors and other information that may cause our actual results to differ materially from those contained in our forward-looking 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. Other than revenue, unless otherwise stated, we will be discussing our results of operations on a non-GAAP basis. These non-GAAP measures should be considered in addition to and not as a substitute for, or in isolation from GAAP results. Please refer to the tables in our earnings press release for a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP measure.

With that, let me hand it over to Josh. Josh?

Executive
Joshua G. James

Thank you, Julie. Hello, everyone. Thanks for joining us on our Q2 fiscal year 2020 earnings call. For today's call, [Indecipherable] two things. First, our quarterly results with an update on our continued refinement of our go-to-market plans; and second, some insights into how our customers are leveraging the power of our platform and advanced data solutions to transform their businesses.

Although we are looking for more growth, in Q2 we posted a 22% year-over-year increase in revenue, and a 9% year-over-year increase in billings. We delivered this growth, while decreasing sales and marketing expense year-over-year by 9%, and also decreasing overall operating expenses by 7%. We are once again able to make meaningful progress on reducing our cash burn coming in nearly $2 million ahead of our guidance, and about half of what it was a year ago. And we remain committed to achieving cash flow positive status with the cash on our balance sheet.

We continue to refine our go-to-market model to accelerate our new business. We are enthusiastic about the transformational impact our product is having on some of the