And we’ve got a bunch of customers now where we’ve got a big enough sample size that we have an ability to really go in and make sure things are priced appropriately. And what we’re seeing is customers that might have churned otherwise jump on that. customers that we’re going to just renew and have it be a flat renewal when they switch over to compute, but they’re increasing their relationships with us. And then when it comes to adoption, there’s no friction when it comes to adoption anymore inside the organization. And the most beautiful thing about Domo is we put the data in the customer’s hands where they can use it and how they can use it. So if we remove that roadblock because we’re only charging for compute, who knows what can happen with this place.
We got it to 30% growth the quarter before I left. There’s been a bunch of macro things that have happened since then, but we can definitely get back there. You throw a compute on top of it, and I like the prospects for the long term.
Operator: And we’ll take our next question now from Sanjit Singh at Morgan Stanley.
Sanjit Singh : We’ll come back to Josh. I wanted to talk a little bit about some of the retention patterns you saw in Q4? And I get, look, it’s a tough environment out there. New business is hard to come by, particularly now. I was a little bit surprised to see the degradation in the gross retention rates and particularly around even though like analytics and real-time intelligence has been a high priority in this area is like supply chain issues and whatnot. So I’m a little surprised that the gross retention rates come down to the extent that they did. Any patterns there in terms of market segments, industries, or anything else that you want to sort of talk about that I can provide more context on why we’re seeing the churn that we are in Q4.
JoshJames : Yes. Great question. I’m glad you brought it up, actually, because I think there’s some interesting color there. If you recall, a few years ago, we were kind of saving our bacon with some code deals. And unbelievably, we renewed those deals in year 2. And in year 3, we’ve seen massive declines in those COVID contracts. Thankfully, the team has done an amazing job at building those relationships and saving a bunch of the relationships, but just a big decline in the amount that we were getting paid for those contracts. I think if you take that out, then the renewal rates were right back where we would want them to be. So it’s just kind of — it was just kind of a onetime thing with COVID. And going forward, we’ll see with how the macro plays out.
sometimes those relationships are at risk, but we hope that we can keep those numbers right around the 89%, 90% renewal rate. And with Mark now responsible for customer service for client services and that group really getting aligned and really focused on adoption with the additions. The other additions that we have on the management team with people like Mohammed, I think there’s some real opportunity to drive those numbers even further, but it’s just the macro that we’re going to have to balance. But I do think Q4 really had a lot to do with those with renewals.
Sanjit Singh : That’s super helpful context. I really appreciate that, Josh. As my follow-up question, and I apologize if you guys had sort of addressed this in the beginning part of your script, I joined a little bit late. But I think the difference between today and when you were last CEO, Josh, is that the focus on efficiency and profitability is orders of magnitude higher? Any sort of look at some of your peers in sort of similar market cap similar growth profiles. We’re talking about expanding their margins 1,000, 1,500 basis points over the next 12 months and some of them even more than that. And so I wanted to get — I mean you mentioned like growth being like job number one. And I think there’s probably some low-hanging fruit there to accelerate that growth. But how do you think about the profitability margin expansion side of the equation over this year and the following year?
