Domo Inc (NASDAQ:DOMO) Q2 2020 Earnings Conference Call - Final Transcript
Sep 05, 2019 • 05:00 pm ET
Thank you. [Operator Instructions] Our first question comes from Sanjit Singh with Morgan Stanley. Your line is now open.
Hi. Thank you for taking the questions. I wanted to go and ask a couple questions on go-to-market strategy. So coming out of IPO, I think the message that we are all hearing is that, we need to move upmarket to larger enterprise customers. And, you know, thus far in the first half of the year, it seems like that's going below plan, sales cycles are longer, some issues, some confusion on the competitive environment. And so what I'm hearing today is, while we need to go toggle back to commercial, which what I thought was part of the issue, you know, coming out of the IPO. So I'm just trying to understand what the right go-to-market strategy is for the products that you have because it seems like it's going back and forth.
Joshua G. James
Yes. So we certainly have been able to keep customers happy in both segments. And in the enterprise, you know, this quarter in particular, especially the bigger deals that we have in our pipeline. We've talked about our pipeline and there's real customers there, we didn't lose any of those deals. They mostly just, you know, are taking longer than what we had hoped for. But we have proof points in those segments where we have very happy customers that are growing and expanding their business with us. We've been trying to figure out how to effectively and efficiently find those new logos at a pace that makes sense and is predictable.
But it's a good business for us. And what we're saying is, you know, we've got -- we probably over indexed on how fast we were trying to grow that enterprise. And at the same time, with our corporate business, which Bruce and I both mentioned, is more enterprise like. I think we've done ourselves a little bit of a disservice by drawing the definition where we've drawn it. We have customers there that new deals are about $50,000 a year. The retention -- growth retention is very similar to our enterprise business. It doesn't have -- they don't have as much upsell potential as the enterprise business, which is partly why we're interested in enterprise. And also the more enterprise customers you have, the more complex your product gets in, in terms of complex, but the more breadth you get to your product and more you're able to solve all the needs that are out there in the marketplace.
But I think what we're saying right now is, we're going to take a chunk of those reps and have them focus on the lower end of the enterprise space. And we'll still have some out there, that are out there hunting the big -- the really big logos and continuing to do what we've been doing. But we're going to take the extra resources and the new heads, and really focus them on the businesses