Domo, Inc. · NASDAQ:DOMO
Domo — Domopalooza 2020
48 slides from Domo's conference presentation, May 2020
Slide 1: Domopalooza Live and On-Demand
Slide 2: Empowering Machine Learning: Solving the Forecasting Dilemma
EMPOWERING MACHINE LEARNING SOLVING THE FORECASTING DILEMMA Tom Stanek & Jonathan Prantner 2
Slide 3: Tom Stanek and Jonathan Prantner
Tom Stanek Jonathan Prantner President Chief Analytics Officer 3
Slide 4: Leading applied AI and data science company from Ann Arbor, MI
Leading applied artificial intelligence and data science company from Ann Arbor, MI Services and solutions • Leading Domo implementation and consulting firm • Custom artificial intelligence kick-start program • RXA Studio • Media Optimization • Voice of Customer • Workforce Optimization Over 70 diff
Slide 5: FORDDIRECT Club [=
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Slide 6: 3 Key Takeaways
3 KEY TAKEAWAYS Solve Provide Domo 6
Slide 7: The Forecasting Dilemma
The Forecasting Dilemma Now what?
Slide 8: We need to know what our sales will be next quarter
WE NEED TO KNOW WHAT ARE SALES WILL BE NEXT QUARTER 8
Slide 9: Sales are forecasted to be below budget
SALES ARE FORECASTED TO BE BELOW BUDGET... 9
Slide 10: …Why?
…WHY? 10
Slide 11: …And how can we change them?
…AND HOW CAN WE CHANGE THEM? 11
Slide 12: Sales Decomposition
Sales Decomposition A Primer
Slide 13: What is a sales decomposition
WHAT IS A SALES DECOMPOSITION Market Mix Models decompose sales Volume Decomposition Due-to Analysis 13
Slide 14: Marketing mix forecasting
MARKETING MIX FORECASTING Forecasting Sales using: • Sales • Inventory • Pricing • Marketing • External Influences 14
Slide 15: Use a prediction model to decompose sales
USE A PREDICTION MODEL TO DECOMPOSE SALES 15
Slide 16: Use a prediction model to decompose sales
USE A PREDICTION MODEL TO DECOMPOSE SALES Predict with the overall model Isolate each variable – Set the variable equal to zero – Predict with the reduced model – Calculate difference Scale each component to the total GET THE CODE AT: https://rxa.io/Domo 16
Slide 17: Deploying in Domo
DEPLOYING IN DOMO A) RXA MODEL_DECOMP # CANCEL J save |» | < @ RuUNeRevEW 10KROWLIMIT v — 1% + 3 @ « Q DATASETS v | Oi -O>— | es Ss + + = = bal join Data 1 set Column type RXA.SALES FORE| Select Columns RScript1 Select Columns 2 RScript2 Input Dataset Output Dataset CASTING.DATA.P +f REP_FINAL_11_20
Slide 18: Due to analysis
DUE TO ANALYSIS $40K im $30K i $20K 4 $10K ie © “Brand Health External Seasonality Capacity Staff Units Pricing cRM Digital Social WV Summary Forces Category
Slide 19: Domo gets the right information into decision makers' hands
DOMO GETS THE RIGHT INFORMATION INTO THE DECSION MAKERS HANDS 19
Slide 20: Marketing manager: what matters to them
MARKETING MANAGER What Matters to Them: • Media Performance • Optimization • Web Traffic • ROI • Sales 20
Slide 21: Marketing manager: what they can control
MARKETING MANAGER What They Can Control: • Budgets • Schedules • Mix • Strategy 21
Slide 22: Marketing manager view
MARKETING MANAGER VIEW esr iaie “all?
Slide 23: Marketing manager view
MARKETING MANAGER VIEW A) ‘40K | o Forces Category
Slide 24: Marketing manager view
MARKETING MANAGER VIEW A) $40K C4 L Category
Slide 25: Marketing manager view
MARKETING MANAGER VIEW 25
Slide 26: Marketing manager view
MARKETING MANAGER VIEW A) ‘40K C4 $0 Forces Category
Slide 27: Marketing manager view
MARKETING MANAGER VIEW A) ‘40K | $208 i, $20 i $10 $0 BrandHeath Externsl Seasonality Gapacly—=Saf—=SsUnts==Scng=—=SCRM=SC(igtal oc Sime Forces Category
Slide 28: Marketing manager view
MARKETING MANAGER VIEW $220K $200K $0 - : a = 2020-Jan 2020-Feb sales -$100K 2019Jan 2019-Feb 2019-Mar 2019-Apr 2019-May 2019Jun 2019Jul_2019-Aug 2019-Sep2019-Cct_ 2019-Nov 2019-Dec Month Inventory I Marketing Marketing Baseline
Slide 29: Production manager: what matters to them
PRODUCTION MANAGER What Matters to Them: • Inventory • Costs • Workforce • Demand • Sales 29
Slide 30: Production manager: what they can control
PRODUCTION MANAGER What They Can Control: • Inventory • Suppliers • Production Calendar 30
Slide 31: Production manager view
PRODUCTION MANAGER VIEW 31
Slide 32: Production manager view
PRODUCTION MANAGER VIEW A) ‘40K LI C4 $0 Forces Category
Slide 33: Production manager view
PRODUCTION MANAGER VIEW A) ‘40K | $0 Forces Category
Slide 34: Production manager view
PRODUCTION MANAGER VIEW . Y . d 60K . iN 2019-Q4 2020-91 Production Staffing Levels 2018-91 2018-92 2018-Q3 2018-94 2019-1 2019-Q2 2019-93 Quarter units staff Open Recs
Slide 35: External Influences
External Influences
Slide 36: Why control data
WHY CONTROL DATA Accounts for external pressures Improves forecast Provides context 36
Slide 37: Simple with Domo
SIMPLE WITH DOMO < BACK TO CONNECTORS Ready Signal- Publisher REAPYSIGNAL Ready Signal Curated Control Data Ready Signal Control Data Connector OVERVIEW FAQ REVIEWS d right in your Do Included in the app pole For more setup help please read the po guide © Additional details
Slide 38: External pressures
EXTERNAL PRESSURES Unemployment Interest rates Construction Weather Consumer Confidence 38
Slide 39: Improves forecast
IMPROVES FORECAST Without Proper Control Data With Ready Signal Control Data Control data can significantly improve accuracy of models, but is often underutilized based on required effort and knowledge. 39
Slide 40: Does a 60-degree day mean fewer motorcycle sales?
DOES A 60-DEGREE DAY MEAN FEWER MOTORCYCLE SALES? 40
Slide 41: Production manager view
PRODUCTION MANAGER VIEW 43
Slide 42: Production manager view
PRODUCTION MANAGER VIEW 44
Slide 43: Executive team: what matters to them
EXECUTIVE TEAM What Matters to Them: • Sales • Profitability • Growth 45
Slide 44: Executive team: what they can control
EXECUTIVE TEAM What They Can Control: • Strategy • Resources • Budgets • Competitive Positioning 46
Slide 45: Executive team view
EXECUTIVE TEAM VIEW Sales Dietibition Ducts Anais Cre ore a Ya oon ne PROFTABLTY ‘Yolume Derbi someon T = a2 rorecasc card Economic Facecast $2.6MM Forecasted . st Revenue i ie $2.4MM Sales Budget | | | | | ; a 43% Gross Margin ” ‘ <3 31% Market Share oe ea oF 4
Slide 46: Executive team view
EXECUTIVE TEAM VIEW PROFITABILTY F~ Market share Q2 Forecast Card Economic Forecast is by Monat $2.6MM Forecasted : Revenue 7 7 $2.4MM Sales Budget | l | | il i 43% Gross Margin 31% Market Share
Slide 47: 3 Key Takeaways
3 KEY TAKEAWAYS Solve Provide Domo 49
Slide 48: Thank you
THANK YOU & join us at our virtual booth!