Domo (NASDAQ:DOMO) executives highlighted record billings, improving retention, and a milestone year in its shift to consumption pricing during the company’s fourth quarter fiscal 2026 earnings call. Management also emphasized growing customer interest in AI and “agentic” workflows as a driver of product adoption and partner-led sales activity.
Record billings and improved retention
Founder and CEO Josh James said the company delivered “record quarterly billings” of $111.2 million, up 8% year over year and above the company’s guidance. CFO Todd Crane added that full-year billings totaled $318.7 million, up 3% from the prior year and representing Domo’s “first full year billings growth since fiscal 2023.”
Management repeatedly linked those trends to the company’s consumption model. James noted that customers who started on consumption contracts—representing over $24 million in ARR—posted 111% net revenue retention in Q4.
Profitability metrics and cash flow
On profitability, Domo reported what management said were company highs. James said Q4 operating margin was “over 10%,” and Crane specified a record-high 10% operating margin for the quarter, contributing to the highest full-year operating margin in company history at over 6%.
Crane said the quarter produced non-GAAP net income of $1.2 million and non-GAAP diluted EPS of $0.03 based on 44.4 million diluted weighted average shares outstanding. He added that it was the third consecutive quarter of positive EPS and the strongest full-year EPS in the company’s history.
For cash flow, Crane said adjusted free cash flow for the full year was near breakeven, improving by more than $12 million from the prior year and marking Domo’s “best ever” full-year cash flow result.
Consumption transition and revenue dynamics
Crane said Domo ended fiscal 2026 with 84% of annual recurring revenue on consumption pricing, calling the transition from a seat-based model a “monumental effort.” With most ARR now on consumption, Crane said the company will no longer provide regular updates on that metric.
In Q&A, management addressed why it expects GAAP revenue to remain “relatively flat” even as billings and retention improved. Crane said consumption contracts are recognized evenly over the contract period, making revenue more of a “lagging indicator” that “roughly follows the trend in the previous year billings” with a delay.
Crane also reported recurring revenue backlog metrics, saying current subscription RPO grew 1% year over year to $227 million, while total subscription RPO rose 8% to $437.9 million. He attributed the increase to multi-year contracts and said Domo had the “longest average contract duration we’ve ever seen.” Total revenue for the quarter came in at $79.6 million, above the high end of guidance, with gross margin of 78.2%, up more than two percentage points year over year.
AI positioning, product focus, and customer deployments
James spent much of his prepared remarks positioning Domo as an “AI-first data platform,” arguing the company is increasingly being used as an “operational layer” powering data products and AI-driven workflows. He said the topic of AI now comes up on “nearly 70%” of calls with current and prospective customers.
James highlighted Domo’s AI service layer and “Agent Catalyst” for agentic workflows, and he singled out “App Catalyst,” an AI-powered app builder intended to help customers create governed applications using natural language prompts. He contrasted the approach with tools focused on code generation, saying App Catalyst is designed to be secure and scalable and to connect directly to customers’ existing data platforms “without duplication.”
To illustrate adoption, James provided a list of customer examples involving AI-driven workflows, including vendor onboarding automation, invoice processing, report generation, operational scheduling, contract intelligence, and user provisioning. He also described one instance where a representative built a pro-code app over a weekend for a large customer, which he said led to broader rollout and attention up to the customer’s CIO and CEO.
Partner ecosystem momentum, sales cycles, and outlook
In response to questions about competition and win rates, James emphasized enterprise demand for governed, secure AI solutions and said Domo’s ecosystem relationships had strengthened over the prior six months. He cited a joint engagement involving Snowflake where a customer sought faster delivery of an agentic solution and Domo worked with Snowflake to develop it on Domo’s platform.
Management also discussed sales cycle dynamics. Crane said some deals that elongated in the prior quarter closed early in Q4 and contributed to the billings outperformance. Chief Revenue Officer RJ (identified on the call as “RJ here, our CRO”) said partner-sourced new logo deals can take longer because customers often purchase both a warehouse solution and Domo, but he added that introductions into partners’ existing customer bases “seem to happen quite a bit faster.”
RJ also said Q4 was one of Domo’s largest quarters for customers using partner marketplace funds to purchase Domo, describing scenarios where what might have been a one-year renewal turned into “three-year renewals with upsells” after aligning with customers’ broader data strategies through partners.
Looking forward, Crane said that because Domo is evaluating strategic alternatives, the company will not provide specific guidance. However, he offered “high-level color,” stating expectations for relatively flat GAAP revenue, modest improvement in non-GAAP EPS, and positive adjusted free cash flow in the upcoming fiscal year.
About Domo (NASDAQ:DOMO)
Domo, Inc (NASDAQ: DOMO) is a cloud-based software company that specializes in business intelligence and data analytics. The company’s flagship product, the Domo Business Cloud, provides organizations with an end-to-end platform to integrate, visualize and analyze data from a wide array of sources. By unifying disparate data feeds into interactive dashboards and custom applications, Domo enables real-time insights that inform decision-making across all levels of an enterprise.
Founded in 2010 by Josh James, Domo is headquartered in American Fork, Utah, and operates offices across North America, Europe and Asia Pacific.
