And so it’s more focusing on adoption and trying to help those customers consume the credits, because when they do, they’re clearly and automatically getting value from it.
Max Michaelis: All right. Another one for me, maybe for you, Josh. So I’m not sure if I missed on the call here or in the prepared remarks, but we think about timelines, especially on AI. I know it’s early, you guys are hiring out engineers, but I mean, if we think about a timeline on when you could see the benefit from this investment in AI, what are you thinking?
Josh James: I mean, most of our conversations that we’re having with our customers right now are around AI. All of our current customers are interested in buying additional products and services and helping them manage the various AI investments that they’re looking at. So, like we said in the prepared remarks, it used to be democratizing data and now it’s really democratizing that intelligence. And it’s — there is — because AI is moving so fast, when you take an AI model, you want to apply it to data, but it can’t be just a run of the store. It has to be organized. It has to be a private LLM. It has to have governance around it. You need to have the lineage around what was created, what was queried, who was it distributed to.
And so you need to have a layer like Domo that allows you to understand that and govern that, manage that, distribute that. At the same time, what happens if that service that you were excited about last month is all of a sudden not very innovative and behind the times, and a brand new one comes out that is helping you, let’s say, optimize your pricing, and you want to be able to take advantage of that, and you need to switch from the old one to the new one. Now, how are you going to do that? Again, if you have a layer like Domo sitting on top of everything and that has view into the data that helps you organize and manage your data, let it sit wherever you want, let it stay in Snowflake, let it stay in Databricks, let it stay at AWS. We don’t care.
We just help you manage, govern it, control it and distribute it, and that’s where we’re seeing AI really bring the strengths and advantages that we have to the forefront. So it’s actually something that we’re doing right now. We have some great product announcements coming out of Domopalooza around AI. We’ve been making investments there for quite some time. We’ve been in predictive analytics, machine learning, which are both components of what AI is today. So we’ve been doing this for a long time and it’s actually great that now the market’s moving there, it’s really highlighting the distinct advantages that we have.
Max Michaelis: All right. Thanks, guys. And then last one for me, David, maybe for you. How should we be thinking about cash flow at the end of 2025 — fiscal year 2025?
David Jolley: Yeah. So we’re very committed to be free cash flow positive. So our plan has us achieving that, and the extent that we vary from that a little bit, we’ll take whatever actions we need to make sure that we are free cash flow positive. So that’s our plan going in here at the beginning of fiscal 2025…
Max Michaelis: All right. Thanks, guys.
David Jolley: And that’s what we expect to end up with.
Max Michaelis: Yeah. Okay. All right. Thank you.
Operator: And the next question comes from the line of Derrick Wood with TD Cowen. Please proceed with your question.
Cole Erskine: Great. Thanks, guys. This is Cole on for Derrick. David, one for you, maybe. Just looking at NRR [ph] down ticking again, sounds like the new investments in consumption and freemium could help that kind of run up over time. But as we think about it over the next couple of quarters, is this kind of the bottom here? Do you think that, looking at deals and potential down sales, it could go lower before it starts to accelerate?
David Jolley: Yeah. I mean, as we look at the plan that we’ve got in place for this next year, I mean, this should be sort of the low point. And the way to think about it, when you look at billings and either they’re flat or growing, there’s about a there’s about a two-quarter lag on that. So if we look back a couple of quarters ago, billings were flat. We’ve had a couple of very low single-digit billings gross. But that that should start to turn and as we add to billings, again, if we see an increase in billings, then that ARR is going to go up. So and that’s what we’ve got in the plan.
Cole Erskine: Great. Thanks. And then Josh, one for you would love an update on go to market, rep productivity, pipeline into the first quarter or second quarter here? That’d be great. Thanks.
Josh James: Yeah. Yeah. I mean, we’ve definitely seen since Q4 of a year ago, the macro headwinds definitely took place in terms of rep productivity, pipeline conversion and it definitely weakened throughout the year. I think it started to stabilize in Q4. So, again, to David’s last comment, hopefully we’ve hit the trough and we have hit the divot and we’re coming back out of it, but definitely still feel macro headwinds and we’ve optimized towards the most efficient sales executives that we have. So, we know we have people that can produce and we’re doing everything we can to optimize their ability to be successful. We’ve had some successes overseas and in different pockets as well. And I think the investments that we’ve made in AI and the investments that we’ve made converting this over to consumption, we’re going to start seeing some of those things start to affect our ability to be more successful.
