Earnings Intelligence - DOMO's issues on growth
Published Date: 2019/09/07
Using Earnings Intelligence as a service, business executives can analyze the breadth and depth on earnings call transcripts for insights. The following reviews issues facing DOMO:
Reconciling between Growth and Billing
"Although we were 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."
“it's the new business is where we've come up short of where we wanted to be”
POC comes late
“And then you take them into aPOC because, guess what, if we get you into a POC, we're going to close you higher than average -- industry average for anybody in the conversion funnel. So that's dramatically different than where we were 3 months ago. I wish we had figured that out 2 years ago, 5 years ago. But we have figured it out, and we're really excited about seeing what it does to our business. “
Distribution of sales effort based on size
"But I think what we're saying right now is we're going to take a chunk of those reps and have them focused on the lower end of the enterprise space and also 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 in that $1 billion to $5 billion revenue range where we've seen corporate reps that are pounding the phones, that are managing their pipes and looking at the numbers and looking at leads and contacts."
New sales force takes time to ramp up
“And so in addition to a lot of new reps that we've talked about hiring this year, remember they're all still new. They haven't really had an opportunity to completely cure yet and get through the full ramp”
In favor of smaller accounts with big tickets for smaller sales cycle
“we continue to target hiring more quota-carrying reps but have now directed those efforts in favor of the corporate usiness given”
“new deal sizes of our corporate business have been averaging over $50,000, and the gross renewal rate has been approaching 90%, a metric many software companies equate with the enterprise category”
“the more enterprise customers you have, the more complex your product gets in terms of complex. But the more breadth you get to your product, the more you're able to solve all the needs that are out there in the marketplace”
“technology needs and ability to drive value, we have found that customers under $1 billion are less complex in regards to buying processes”
"And I guess can you remind us what a sales cycle looks like in a corporate customer versus what it is with an enterprise opportunity."
"We are allocating more towards the smaller enterprise and corporate, and that's because we think we can get traction so much quicker."
"On sales cycles, the corporate has been in the -- really the 50- to 60-day range."
"I mean we can get $300,000, $400,000 or $500,000 deals out of the corporate segment."