AAA Domo makes $100m IPO move

Domo makes $100m IPO move

Domo, a US-based business optimisation software provider backed by enterprise software developer Salesforce and marketing firm WPP, filed for a $100m initial public offering on Friday.

The company, which was most recently valued at $2.3bn, had filed confidentially at the end of February. It has not yet revealed any pricing.

Founded in 2010, Domo has developed a customisable cloud-based platform for enterprises to manage their data across cloud and on-premise applications and make better business decisions.

The company has raised nearly $700m in funding to date, most recently securing $100m in series D2 funding led by BlackRock in May 2017. The series D2 round also featured unnamed family offices and other undisclosed backers.

Domo emerged from stealth in 2015 with $200m in series D funding provided by BlackRock, Capital Group, Glynn Capital and GGV Capital. Financial services firm Credit Suisse joined unnamed additional investors to add $130m to the series D round in 2016.

Salesforce had participated in a $125m round in 2014 alongside GGV, TPG Growth, Dragoneer Investment Group, Fidelity Investments, Morgan Stanley Investment Management, T. Rowe Price, Viking Global Investors, Greylock Partners, Institutional Venture Partners and Mercato Partners.

WPP was one of the investors in Domo’s $10m angel round in 2011 alongside venture capital firms Hummer Winblad Venture Partners and Andreessen Horowitz as well as assorted private investors.

Domo’s filing reveals the company had accumulated a deficit of more than $803m as of the end of April. The company suffered a net loss of more than $176m in 2017, slightly down from more than $183m in 2016.

The IPO is an attempt to secure additional capital, Domo noted in its filing. Although it has $72m remaining in its account as of the end of April, the company will have to significantly reduce operating expenses by August if no equity or debt financing can be secured.

Institutional Venture Partners currently owns a 12.9% stake, with Benchmark holding 12% and BlackRock owning 10.8%. GGV owns a 6.7% stake.

Joshua James, founder and chief executive of Domo, owns 91.7% of voting rights thanks to a dual class stock structure.

Morgan Stanley, Allen and Company, Credit Suisse, UBS Investment Bank, William Blair, JMP Securities and Cowen are acting as underwriters for the offering.

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