Domo, a US-based business optimisation platform developer that counts corporates Salesforce and WPP as investors, set the terms of its initial public offering yesterday.
The company plans to issue 9.2 million shares on the Nasdaq Global Market priced between $19 and $22 per share. It would raise $202m if it floated at the top of its range.
Domo has built a cloud software platform that gathers a wide range of internal company data, enabling it to be accessed by employees and executives no matter where they are. It made a net loss of approximately $177m in 2017 despite increasing revenue 46% to more than $108m.
The company has raised almost $700m since it was founded in 2010, with WPP investing in a $10m round in 2011 together with venture capital firms Hummer Winblad Venture Partners and Andreessen Horowitz.
Other early investors in Domo include Bezos Expeditions, Founders Fund, Sorenson Capital, Benchmark Capital, SV Angel and angel investors Aneel Bhusri, David Duffield, Marc Benioff and Lars Darlgaard.
Salesforce first invested as part of a $125m round in 2014 that included GGV Capital, TPG Growth, Dragoneer Investment Group, Fidelity Investments, Morgan Stanley Investment Management, T. Rowe Price, Viking Global Investors, Greylock Partners, Institutional Venture Partners (IVP) and Mercato Partners, valuing Domo at $825m.
GGV, BlackRock, Capital Group and Glynn Capital added $200m in a 2015 series D round that was boosted by $130m from financial services group Credit Suisse and unnamed others the next year. BlackRock led a $100m series D2 round in May 2017.
Domo founder and CEO Joshua G. James owns more than 3.26 million class A shares in Domo giving him more than 91% voting power, with the other investors holding class B shares.
None of the corporates own a substantial stake in the company. IVP holds about 1.6 million shares, equating to 12.9% of the class B shares. Other notable class B shareholders include Benchmark (12%), BlackRock (10.8%) and GGV (6.7%).
Morgan Stanley, Allen & Company, Credit Suisse Securities (USA), UBS Securities, William Blair, JMP Securities and Cowen and Company are the underwriters for the IPO. They will have the option to buy another 1.38 million shares, which could lift its size to almost $233m.