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
Executive
Joshua G. James

largest companies in the world. And we believe this will become more self evident to the market as the number of these successes grow and become more public.

That said, the kind of impact we have is so transformational and so widespread that it cuts across a significant number of functions. This requires us to cross many check points along the way, which affects the length of the sales cycle. I bring this up, because Q2 was definitely impacted by our pursuit of larger enterprise transactions, many of which were -- many of which we were not able to get to the final point of closure. Although historically, our international business has helped carry the day, this quarter was similarly impacted, particularly Asia-Pac, not including Japan.

Lastly, we spoke on our Q1 earnings call about announced acquisitions offering proof of the value in our space. Those acquisitions led to many customer conversations, which extended the sales process. That said, we didn't lose a single deal because of the acquisitions and I'll talk about this more in a minute. While it's true that we're more excited than ever about our pipeline, we were over focused in pursuing larger enterprise transactions, which had an impact on Q2 billings and new logos. However, early in Q3, we've already closed one of these customers an almost seven figure annual deal with a large aftermarket automotive retailer. That said, the timing of larger enterprise closings has been hard to predict.

We're making significant moves in favor of landing new customers more quickly to keep a healthy pace of new opportunities and to grow new business, while the larger transactions develop. Let me summarize the most important moves we're making. First, everyone knows, and you've recounted back to us that our offering in space have been difficult to explain. It's also been the number one complaint from our reps. As the recent round of acquisitions have brought more attention and structure to our space, and how people describe it and think about it, it's created an opportunity to simplify our message.

After talking to the leaders of many of the largest, largest SaaS companies also and testing messages on how to define our space about what we do, particularly how we fit into digital transformation and the major cloud platforms, we've come up with a better way to describe our product that seems to be resonating well. We've also very recently found that customers who've used our products, while in our sales pipeline buy it at a significantly higher rate than those who haven't. So we are expanding our focus on self-service proof of concepts, so more users can experience our product firsthand. And we believe that will result in landing more new customers.

Second or I guess third, John Mellor, is now on-board as our Chief Strategy Officer. And is one of the most talented people with whom I had worked at Omniture for over seven years, and whom I've been recruiting to Domo every