Good day, ladies and gentlemen, and welcome to Domo Second Quarter Fiscal Year 2020 Earnings Conference Call. [Operator Instructions]. As a reminder, this conference call is being recorded. With that, I would now like introduce Peter Lowry, Domo's Vice President of Investor Relations. Sir, you may begin.

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 our safe harbor statement and then on to the call.

Hello, everyone. Our press release was issued after market closed and is 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 a 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 recent 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?

Thank you, Julie. Hello, everyone. Thanks for joining us on our Q2 fiscal year 2020 earnings call. For today's call, I'll cover 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 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. 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 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 still transformational and so widespread that it cuts across a significant number of functions. This requires us to cross many checkpoints along the way, which affects the length of the sales cycle. I'll 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,…

Thank you, Josh. I'll begin with our second quarter performance, followed by our third quarter and fiscal 2020 full year guidance. As Josh mentioned, the overweighting of our efforts on large deals with large customers resulted in a decreased productivity from our enterprise reps. And there was insufficient new customer activity to compensate for those efforts. Our enterprise customer count is now over 460. In response, we're applying more resources towards acquiring new customers and at the same time reallocating some of our large enterprise sales resources towards smaller enterprise customers. We've historically experienced good productivity from our corporate reps, and we have seen that some of the same go-to-market motion that is working for the corporate segment has also worked for the smaller enterprise customers. We expect this to help our total new business and also help our new logo account. I'd like to highlight that the 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. As a reminder, we have historically defined enterprise as customers with revenues greater than $1 billion, and revenue and corporate is everything less than that. In addition, we continue to target hiring more quota-carrying reps but have now directed those efforts in favor of the corporate business given how productive they continue to be even in the phase 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…

[Operator Instructions]. Our first question comes from Sanjit Singh with Morgan Stanley.

I wanted to go and ask a couple of questions on go-to-market strategy. So coming out of IPO, I think the message that we were all hearing is that we need to move upmarket to larger enterprise customers. And 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, well, we need to go toggle back to commercial, which what I thought was part of the issue coming out of the IPO. So I'm just trying to understand what the right go-to-market strategy is for the product that you have because it seems like it's going back and forth.

Yes. So with the -- we certainly have been able to keep customers happy in both segments. And in the enterprise, 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 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 are saying is we've got to -- we probably overindexed 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, it's 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, gross retention, is very similar to our enterprise business. It doesn't have -- they don't have as much upsell potential as 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 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. 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…

Got it. And then maybe for Bruce, the gross retention rates, it sounds like they're improving if they're overall at 90%. So I'm trying to put that improvement in gross retention in context with the decelerating billings growth. Billings growth was growing right around plus or minus 30% for most of your last year, and now we're down to below 10% by Q2, and yet gross retention is up. Can you sort of connect the dots for me there? Is it just new business that's declining negative? I just want to get -- understand what the dynamics between the renewal portfolio and the new businesses.

Yes. I mean, well, first of all, the high renewal rate across the board, including what we characterized as corporate approaching 90% we think is a very healthy sign of the business, a very healthy sign of how much we've developed the platform, how our customers use it across the board, across every segment, across any kind of customer size. So that's really, we think, a very positive sign and a great foundation to kind of -- continue to kind of grow our footprint within these businesses. But yes, the -- it's the new business is where we've come up short of where we wanted to be, and that's why we are -- have all of these initiatives that really focus on accelerating the adoption of -- really accelerating the new business and particularly getting new customers on board with the #1 priority, given what we just said actually, the #1 priority, getting new enterprise customers on board. So we want to make sure we are indicating that we are really deemphasizing enterprise opportunity. It's still there. We're just being a little bit more precise in how we're segmenting it and how we're going after it and taking some of the learnings that we found of the smaller company and applying it to smaller enterprises, but they're still enterprises. And I'll say what happened this quarter is we're so strong at the largest enterprises in the world. We're so unique in our ability to solve problems that frankly are insolvable. It's very hard to not pursue those because it's so unique. The problem is, as we found out is, they're just extremely complex institutions, and we have a requirement here to growing nevertheless. And so we will continue to pursue those. They will be transformational as we announce them. They will help us across every segment. But first things first. Let's get more new customers. Let's get new business accelerating. Those customers, we're still attacking them, but we're going to be a little bit more discreet in how we're targeting these segments so that we can still achieve that but have high growth across the board at the same time.

And then I'll just add, I think we saw that with -- in the prepared remarks, we talked about one of the deals that slipped last quarter. It was already signed this quarter that was almost a 7-figure annual deal. So as enterprise deals work, they just -- so far, they haven't worked on our time line. But they're there, and they work and are successful. The second thing is, especially in the corporate business, we've done this with decreasing marketing expense pretty meaningfully. And so we weren't sure exactly how that was going to play out. But you look at the numbers with corporate in particular and with meaningful decreasing marketing expense, they're -- they figured out how to still perform. And Jeff Skousen and his team, they've done a great job continuing to execute there. 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. So that's out there as a tailwind, we think. But seeing the performance with the lower marketing spend is also really encouraging, and that's why we're looking what they're doing and reallocating some of the investment to the lower end of the enterprise space, which we think is going to behave very similar to the corporate space. And then the other thing I really want to touch on, I mentioned it in the prepared remarks, but I don't think I can overstate how excited we are and how encouraged we are, and this is brand-new data literally as of a week ago. And that is -- you mentioned the IPO. When we were going public, and gosh, even a few years before we've gone public,…

And our next question comes from Bhavan Suri with William Blair & Company.

I guess I just want to touch first, Josh, maybe for you, was it -- has there been any change, especially in the larger businesses on the competitive environment, is sort of the, hey, I can use Glue and Snowflake and Red Shift and other things combination potentially slowing things down? Is it that Looker is out there with Google or Tableau? So any of just maybe impacting anything at all, do you see? And when you look at your analysis of sort of what's happening in the enterprise from the delays or the slowdown or the longer sales cycle?

It definitely impacted last quarter. It seems like it was a onetime impact. It's because all those acquisitions happen at the same time. And so it kind of threw a bunch of just questions into the air for most of our deals. And you hear about the reps that needed to have a call just to address the Google-Looker combination. And other customers that were in a Google shop, but they were a big Salesforce shop, and they just want to understand, like what does this mean relative to Tableau or Tableau and MuleSoft. But like we said a few times, we're not losing deals because of that, but we did have to have phone calls. And once kind of the dust settled, it didn't seem like it is causing any deals to be lost. And we're better at the messaging now, and it's not brand-new news. So other executives that our customers aren't asking the CIO or the business leader who's buying our product, what about this deal that I just read about? But it did cause some confusion out there certainly. What it does seem to be doing and you're -- you threw some names out there, combinations of different things, some of those folks were partners with the Tableaus and Lookers of the world, who aren't interested in being partners with them anymore, at least not the same way. And that's created some real opportunities for us. And as we get into those opportunities, we found that not only did we not have a partnership with someone who we wanted to have a partnership with, but it may have been affecting us more negatively than we have realized before that. So we also said in the call that we expect some announcements coming out over the next few months. We have partnerships that are signed and working out details of announcements and that kind of thing, where we feel like they're going to have a really positive impact on our ability to be successful out there in the marketplace. So it definitely cause some confusion temporarily. It doesn't seem like it's had any kind of material negative impact for the long haul. And to the contrary, it actually seems like it's going to help us because our ecosystem is strengthening, and we're getting more people in our corner.

Got it. That's helpful color. I guess I want to touch one other. When sort of Germ -- Dean came onboard, and sort of the idea of not ripping out the entire implementation at a large customer, a large, big Fortune 500, but saying, okay, we're not going to get -- rip them out right away, but we're going to sit and show them we could connect really quickly and do pieces of that architecture they can't fully flesh out themselves. I guess when you look at that strategy, do you think that strategy isn't working out? Or do you think that strategy is something that's going to take time to play out? Obviously, in the sort of commercial side, it's simpler because in many ways, you don't have the complexity of this historical legacy infrastructure. How should we think about sort of that idea and that approach? And if maybe that's not the right way to do about it, I don't know. I'm just wondering how you guys are sort of thinking about that or if that continues at least for the enterprise, while deemphasizing, it's still continuing to be the way to go after that market?

That's the right question for sure. I mean you go and you look at these different accounts and some of the magic is when we can walk in and the customer does have a data element they want to connect to and we can literally in the conference room right then and there connect, and they're looking at data that would have taken them weeks to be able to get access to any other way, and it does have an impact. I think one of the challenges that we've had here, and this isn't -- this hasn't been a secret, we've said it. We've been trying to figure it out. But if you went and looked at our top customers, go look at our top 20 customers, it wasn't 20 case studies that were similar. It's 20 different case studies. So go in and figure out how to find what are some stories that we can tell and repeat, what can we make repeatable, rinse and repeat, what can we make more cost-effective. And so we've been really trying to get through that binary repeatable sales play, and we feel like we were in a good position. We have the assets. We have customers that are starting to do the same things. We have apps where now we can go in and be prescriptive to customers if they're interested in sales analytics and ops or marketing analytics and ops or finance and operations and -- but we didn't go in to those enterprises and lead with that. And it's been frustrating for us because many executives in our company will go on sales calls and will either lead the sales call and shame on us or the rep will be leading the sales call and you get halfway through it…

And our next question comes from Brad Zelnick with Credit Suisse.

This is Syed on for Brad. Josh, we came away from last quarter thinking the Looker and Tableau acquisitions are validation of your model and architecture, and we're even optimistic that some of the disruption in the near term could actually be an opportunity for you to gain share material -- can you actually give us some insight why are you seeing issues with closing large enterprise deals? And is this geographically concentrated? Is this vertically concentrated? And to what extent is just the overall environment getting tougher for what you sell?

No, the overall environment is not getting tougher for what we sell. I think those -- like we talked about, the enterprise deals, it's -- they just didn't close when we wanted them to close. We still think that many of them are going to close, but they just pushed. And that -- all those acquisitions taking place at the same time in a matter of weeks didn't help in terms of having a clean environment and definitely caused some questions and conversations that needed to be had. But I do think that over the midterm, over the short term even, over the next few quarters, it is going to be a positive impact for us because not everyone feels the same about Google as they might have felt about Looker independently. And I'm sure Google can get some business because they have Looker as well for some people that are hard-core Google. But there is just a lot more pieces to the ecosystem and a lot more people that were partners with Looker and partners with Tableau that don't feel strongly about Google and Salesforce. And so I think there's a real opportunity for us to jump in there, and we're already seeing that. We've already seen transactions with new partners that we've signed over the last quarter where we're influencing deals for them. They're influencing deals for us. And we think there is a lot more of that to come.

And I guess one more question for Bruce. You said that more customers were signing multiyear deals. Can you give us an idea on why is this happening? And is the Salesforce being incentivized for longer duration deals right now?

Well, I think it match nicely to the experience our customers are having with the platform. It's making -- it's much more strategic use cases that we have now at any size customer than we've ever had. And when that's pretty clear and our customer is committed, it also means on the front end, the customers are pretty much committing to the platform because they're using it at a much more strategic way, and I contrast that with maybe 3 years ago when it's just a reporting tool just replacing spreadsheets. But now that it helps them run their business, it helps them save time and money. It helps give them insight. And we're collectively as an organization getting much, much better at having these kinds of conversations with customers, and then we're also much, much better at delivering it on the back end and the product, of course, keeps getting better and better, customers are just willing to sign up to multiyear deals. And we're finding that at every size customer, even at the small companies, which we find again very interesting because more companies don't tend to do that. Yes, there is an incentive for our reps to do that. No -- probably even less so than what we've seen it had in the prior years. Less so, but we're still seeing an increase in the multiyear deals. So I think it's more driven by the way our customers are using the product and how we're talking to them about the use than it is about any kind of incentive plan. And we think it's going to continue, and we also think there's still upside to retention rates just because as companies use our products more strategically, they're going to keep it longer as well.

And our next question comes from Pat Walravens with JMP Securities.

This is Joe Goodwin on for Pat. Just a quick question from us. Given the message is tough right now, should you really be cutting back on marketing spending? And then I have a follow-up.

Should we be cutting back on marketing spending? No. I think we're still encouraged by the opportunity that's there for us. Hopefully, this will be -- this is a kind of 1 quarter here. We're going to be cautious about what we do. But we feel like we've been cutting the marketing expense back and getting -- becoming as efficient as possible, and we're definitely continuing to refine and reroute and look for the most efficient ways to spend that money as possible. But with the sales plays that we have coming, that shouldn't increase marketing expense. With the opportunity -- I think the real opportunity, though, is what I talked about, not worrying so much about the top of the funnel, but once they're in the funnel, what can we do to convert them more effectively? And that's that data that's new instead of when you look at the whole conversion funnel, obviously, our customer acquisition costs have been higher than industry average. But if you look at the segment of customers that are in a POC where they're using the product, that segment of customers and that conversion funnel converts higher than industry averages. So we need to do everything we can to focus on that, and that's where the focus is going to be over the next few months certainly in a very meaningful and massive way internally.

Understood. And then what is the new way of explaining what you do? Where are you -- where do you guys say you fit into this digital transformation of these companies?

Yes. So we're still refining it, and we're rolling it out and kind of make sure that everyone is aware of it, it will be reflective on our website, et cetera. But the quick message is everybody's out there looking for digital transformation. Everyone is talking about it. Everyone is trying to figure out what's my digital relationship with my customer, with my employee and how can I get digital productivity increases. And everyone gets that a part of that is going to be with the cloud. But CIOs look around and you go talk to thousands of CIOs, and they're saying, I'm looking around, I've got hundreds of different cloud platforms. And I know I need to use the cloud because it's more efficient, it's more scalable, it's easier to manage. But I got 100-plus different cloud vendors in here, so I want to get that down to a handful of cloud platforms. And so you're seeing people standardize on companies like Office 365 and Salesforce and Workday and ServiceNow, Adobe Marketing Cloud. But then you look at those platforms, which one of those platforms helps you make money off of all the data that you have in your organization? Which one of those platforms gets data in every employees' hands? Well, there isn't one. And that's what we do. And we do it 3 ways. We do it by doing 3 things, I should say. First, we help you connect and transform your data. And a lot of people probably recognize MuleSoft. You know about that acquisition. But we built this from the ground up, have over 1,000 connectors, and we built it with the next step in mind. So then you take that data, and we don't care where you put it. You can put it in…

And our next question comes from Derrick Wood with Cowen and Company.

First question. So you guys have been through a full quarter of the change in the pricing strategy. Do you think that's been disruptive? Maybe can you just talk about the puts and takes and how that rollout has gone from an internal standpoint and just an external customer reception? And do you think that's the right way pricing strategy for the corporate segment?

Yes, it is the right pricing strategy. I mean a big part of what we're trying to do there is get the product into multiple hands. So it's been -- we were tentative at first because you don't want to go and disrupt the business and screw up pipeline, et cetera. But we've been able to roll it out in a meaningful way with enough customers that we know that it's working, and it's helping us get, in some cases, larger deals than we were getting before. In almost all cases, at least what we were getting before. But in addition to that, we have a lot more users using the product because as we discovered also in the POCs, the more people are using the product, the higher the retention is going to be, the more likely they're going to buy the product, the more likely they're going to buy more product down the road. And that's the real thing that we were trying to accomplish when it comes to pricing, which is just getting higher adoption rates and having more opportunity to sell additional products down the road and increasing the pace that we can get upsells.

Okay. So that's still the plan going forward.

Yes, sure.

And second question, can you give us a sense of where you are in terms of your sales rep hiring goals and kind of what we should expect for the rest of the year? 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?

Sure. Well, we're still firm believers that you have to have feet on the street, so we're continuing to hire them. We are allocating more towards the smaller enterprise and corporate, and that's because we think we can get traction so much quicker. We will also see enterprise as we see fit, but the same pace of hiring that we have been doing, and we're going to continue to do that because we really do think that we can turn that into productive salespeople quickly and start contributing to growth the sooner we get them on board. On sales cycles, the corporate has been in the -- really the 50- to 60-day range. So very fast. A lot of business that we get there comes in the quarter, again, pointing to the math works better if you put the math -- the short-term math works better if you put some resources there sooner rather than later. And the early indications are that it also works in the smaller enterprises. So that's where -- and that's one of the reasons why we're focusing there as well. And as we've also found out, it doesn't have to be a very large customer to get a very large deal. I mean we can get $300,000, $400,000 or $500,000 deals out of the corporate segment. We don't know that we can get the $10 million deal out of them, that we get out of the mega enterprise. Again, that's very attractive to us because we can do what nobody else can do, so why don't we just build a portfolio that's very balanced here that derisks every segment, that gives us a better shot at getting growth short term and long term. And that's kind of what the play is right now.

And our next question comes from Jennifer Lowe with UBS.

Great. Maybe just the first question from me is looking at sort of the conservative or the down tick in spending on marketing, it seems like that was more focused around the corporate business, which also seems to be the better-performing business. But is there a chance that, that could have been in any way responsible for the challenges that you saw in the enterprise side? It seems like there are other challenges there, too. But is there any sort of risk that the constraint on sales and marketing expenditures is also contributing to some of the challenges you saw in the quarter?

Well, on the -- no, we don't think so. The biggest deals in the enterprise just happened to be with current customers. That's why we're still confident they will close. That's why we have a lot of visibility into them, and we know it's not competitive. It's more internal operations. So it certainly could not have affected that. Our basic observation and assessment is we focused on a lot of these very interesting opportunities with current customers just because they were large and significant -- had significant impacts on these customers, so we focus on it. And we -- the other side of the coin is with more resources put there, it's less put on going after kind of new business. So it's less a function of the marketing spend and more a function of the focus. Having said that, what we are doing is we are putting the focus back on it. So less -- if we can run plays right at the enterprise with simpler messaging, with very, very tight focus, very focused effort that we think every rep can actually learn from and do and take 1,800 use cases and bring it down to 4 just for now to get new customers, we think that's the right approach. It will require some marketing spending to do so. We think we have enough. That doesn't have to change substantially, but I think the focus is what will really yield great results, not so much upping or downing the spending.

Okay. And then just to circle back on the guide, when we're going through and looking at the billings guidance, it seems to imply a pretty sharp drop-off on new deal activity. And I know on the prepared remarks, you said it assumes no change to the conditions that you saw in this quarter. But I guess when we parse through what exactly that means, is the assumption that some of these pushed-out deals land in Q3 but you see sort of similar pushout -- or sorry, land but some other things get pushed out further or -- and so it sort of nets? Or is it just everything keeps pushing indefinitely? Can you just be a bit more specific around what exactly you mean by current conditions persist?

Yes, but let me start with a general comment. Unlike you guys, you give me one data point, and I extrapolate. So I'm extrapolating. I'm saying what I'm seeing right this minute, it exists forever, and that's the guidance. And that's totally probably unrealistic but I think extremely prudent. And what that means is because the big deal is going to close, they aren't going to close. That's not realistic, but that's kind of the way the guidance is. And the way we saw conversions kind of work in the pipeline, they're going to happen again, which I think is probably a little bit unrealistic, but I think it's safe for the moment. So that's what we're saying. We're just saying that the rest of our future is what we just saw from a guidance point of view. And that's why I made the comment, please don't overread that to mean anything more about the business other than I'm extrapolating one data point out a long way, and I'm just being very clear to you that's what I'm doing. And we certainly don't want it to play out that way by any means, but that's what we think we should do right now.

[Operator Instructions]. Our next question comes from Jack Andrews with Needham & Company.

Josh, I want to kind of ask you, I guess, where do you think you are in terms of finding, call it, a killer app or a killer use case for Domo? I mean do you think it's more on the platform side? Do you think it could be vertical use cases? I mean is there enough sort of customer behavior that you're starting to coalesce around some particular themes that would drive towards this repeatable sales process?

Yes. I think we're pretty close with the -- and that's why we're starting to run these sales plays. I don't feel like we're guessing with sales plays. We're looking at information from customers. We're seeing similar behaviors. And not only are we seeing similar behaviors, we're seeing similar solutions that we're offering up to them that fulfill their needs. And when we started seeing the similars -- similarities in the solutions that we were providing to them, that's when we started saying, okay, here's something that we can go and be a little bit more prescriptive about, and we can walk into a customer and instead of them guiding us, we can say, hey, we can guide you here. You guys wanted to do something in marketing analytics, here's exactly what you should do. This will get to 90% of the way there. And then you can -- it's a platform. It can do anything you want after that, but that gets you started. And once these customers get started on Domo, then they seem to take on a life of their own. We just have a heck of a time figuring out that initial starting point. So I feel like we do -- we are getting close to identifying what those killer apps can be. And not only that, we have the muscle memory that's getting developed now and emotions that we can go through with John leading that team, with all the sales leaders being on board with some things that we brought to market recently also for not just sales plays but also some overlay teams associated -- and some specialized teams associated with things like data science, like Domo Everywhere, we've been having a tremendous amount of success. And so we've been running these experiments. We've been finding solutions that are working. And now it's productizing and operationalizing that process, and it feels really close, and I haven't said that before. It does feel really close.

Great. Well, I appreciate your comments there. Just as a follow-up, you talked about expanding focus on self-service capabilities. I was wondering what sort of use cases do you envision falling out of that initiative.

Yes. So what I mean by that is just being able to do a bunch of POCs. We are a little over two years ago kind of created our first premium product. And we were proud of the fact that basically over that next year, we finally got to the point where someone can go to our website and they can sign up for Domo and do a free trial, and they don't have to talk to anybody, and they could connect and put in billions of rows of data and connect to 50 different data sources and build out these cards and add all these users. They can do it all on their own. It is self-service. And I guess the reason that we're calling out that word is when we do a bunch more POCs, it doesn't necessarily mean that we're going to have a ton of manhours associated with each one of those. It's just building the processes around that very first call you have with the customer. Okay. I'm glad you're interested. I'd like to get you in touch with our sales executive, Julie. And when you get on the phone with Julie, she'll take your call, but you need to be prepared to jump into a POC after that because that's part of the interaction that you're going to have with us. It's all about the POC here. We can talk to you through in the face, but you're not going to understand till you use the product. So setting it up that way in the very first call with an ADM. And then Julie gets on the phone, and she's like, yes, we'll come on site, but we need to make sure that we're identifying who's going to help us out with this POC, who internally on your side is going to do the POC, the self-service POC. We'll be here to guide you and hold your hand and get you -- we'll take up the training wheels at the appropriate time, but we're going to make sure that everyone is geared towards thinking about those POCs because we just found out that we have a multiple better conversion rate when you do a POC and actively use it compared to when you don't do a POC at all or you barely use it. So that's just data we didn't have. We thought it might be like a 25% increase if you do a POC. It's dramatically different than that. And so we need to be very focused on that as a company.

Thank you. I'm not showing any further questions at this time. This concludes today's question-and-answer session. Ladies and gentlemen, thank you for participating in today's conference. This does conclude today's program, and you may all disconnect. Everyone, have a wonderful day.