Domo, the US-based business management platform developer backed by marketing group WPP and customer relationship management software provider Salesforce, has gone public in a $193m initial public offering.
The offering consisted of 9.2 million shares on the Nasdaq Global Market priced at $21.00 each, towards the upper end of the $19 to $22 range set earlier this month. If the underwriters take up an option to buy up to 1.38 million more shares, the size of the IPO could rise to $222m.
Founded in 2010, Domo has developed a cloud-based platform that incorporates detailed data from every part of a business while securely connecting to each of its systems, enabling executives to run it, or employees to perform work, from their mobile devices.
The company increased its revenue 31% year-on-year to $31.9m in the first quarter of 2018 while narrowing net losses slightly from $48m to $45.5m. It had raised almost $700m in funding prior to the offering.
Domo received $10m from WPP, Hummer Winblad Venture Partners and Andreessen Horowitz in 2011, adding to earlier funding from Bezos Expeditions, Founders Fund, Sorenson Capital, Benchmark Capital, SV Angel and various angel investors.
Salesforce’s first investment came in a $125m series C round in 2014 that was closed at an $825m valuation.
GGV Capital, Institutional Venture Partners (IVP), TPG Growth, Dragoneer Investment Group, Fidelity Investments, Morgan Stanley Investment Management, T. Rowe Price, Viking Global Investors, Greylock Partners and Mercato Partners also took part in the 2014 round.
The company secured $200m in a 2015 series D round backed by GGV, BlackRock, Capital Group and Glynn Capital before raising $130m from investors including financial services firm Credit Suisse in 2016, and $100m in a BlackRock-led series D2 round in May 2017.
Founder and CEO Joshua G. James owns all 3.26 million of Domo’s class A shares, equating to 85.8% voting power after the offering.
None of the corporates own 5% or more of the company’s class B shares, its largest investors being IVP (7.4% post-IPO, down from 12.9%), Benchmark (6.9%), BlackRock (6.2%) and GGV (3.8%).
Domo’s stock opened at $23.39 on its first day of trading last Friday and closed at $23.75 yesterday having briefly reached a peak of $28.86, giving it a market capitalisation of approximately $593m. Its last funding round valued it at more than $2bn.
Morgan Stanley, Allen & Company, Credit Suisse Securities (USA) and UBS Securities are the joint book-running managers for the IPO while Cowen and Company, JMP Securities and William Blair & Company are co-managers.