Domo Inc (NASDAQ:DOMO) Q2 2020 Earnings Conference Call - Final Transcript
Sep 05, 2019 • 05:00 pm ET
how productive they have continued to be, even in the face of a 29% year-over-year decrease in marketing spending. The corporate business also has a much shorter sales cycle and sales rep ramping history, which provides the ability to more immediately impact our short-term new business. Lastly, the CAC for our corporate business is lower than the enterprise business.
For our enterprise business, our focus is on improving their overall productivity by closing the larger transactions and by increasing the new logo accounts. As our base net revenue retention rate continues to be greater than 100%, we also continue to see more customers entering into multi-year contracts, with 49% of our customers now under multi-year contracts at the end of Q2, compared to 38% at the end of Q2 last year. This drove our remaining performance obligations or RPO to grow 28% compared to the same quarter last year. Remaining performance obligations includes billed and unbilled revenue under contract that is yet to be recognized.
Our Q2 revenue was $41.7 million, a year-over-year increase of 22%, subscription revenue grew 24% and represented 84% of total revenue. Year-over-year subscription revenue growth was driven primarily by new customers. International revenue represented 26% of total revenue, consistent with Q1.
Our subscription gross margin was 74.9% and up 4 percentage points 70.9% in Q2 of last year. We plan to get additional leverage out of our subscription cost of revenue over time as we continue to effectively manage our data center operations through finding efficiencies, better utilizing certain services, and continuing to optimize the Domo platform. We believe we can get subscription gross margins to over 80% over the long-term.
Including our services business, our total gross margin was 66.2%, a 240 basis point improvement compared to 63.8% gross margin in the second quarter of last year. We were able to deliver these results once again with a further decrease in operating expenses. In Q2, we were able to decrease operating expenses by 7% from last year, even though revenue increased by 22% year-over-year. The decrease came primarily from lower marketing and R&D costs. The net effect of increased revenue, while effectively managing costs allowed us to improve our operating margin by 44 percentage points from the same quarter last year. Our net loss was $26.4 million and net loss per share was $0.96. This is based on 27.4 million weighted average shares outstanding based against alluded.
Turning now to our balance sheet. As of July 31, we had cash, cash equivalents and short-term investments of approximately $134 million, an amount we believe is adequate to allow us to manage the business efficiently until we reach a cash flow positive position. Our net cash used in operations was $18.7 million, an improvement of $3.4 [Phonetic] million over the prior quarter and a 48% reduction compared to Q2 of the prior year.
Now to discuss what we expect in Q3 and fiscal '20. We expect Q3 billings of about $36.5 million. We now expect fiscal