From Unicorn to Unicorpse: Domo’s Valuation Slashed Ahead of IPO - Sramana Mitra

From Unicorn to Unicorpse: Domo’s Valuation Slashed Ahead of IPO - Sramana Mitra


Startup / Leaders 833 Views 0

Posted on Monday, Jun 25th 2018

Knowledge analytics firm Domo has lately filed to go public on the NASDAQ beneath the ticker DOMO. As a personal firm it had raised near $700 million and was valued at over $2 billion, qualifying it as a Billion Dollar Unicorn. However its current submitting for the IPO now values it at $510 million. 

Domo’s Choices

Utah-based Domo was based in 2010 by Omniture co-founder Josh James. The thought for Domo got here out of his frustration in accessing related enterprise knowledge from a number of sources. Immediately, Domo provides a unified intuitive platform that permits all staff to entry real-time knowledge and insights and take motion from their smartphone. It simplifies enterprise determination making by leveraging synthetic intelligence, machine studying, correlations, alerts and indices.

Its multi-tenant structure permits all customers to have entry to the identical model on the similar time on any gadget, with all updates and performance deployed to its complete buyer base. This permits organizations to make use of Domo for complicated analytics processing that can't be accomplished in spreadsheets or conventional enterprise intelligence, knowledge discovery, knowledge analytics, or knowledge visualizations instruments.

As of April 30, 2018, Domo had over 1,500 organizations as clients, together with 385 enterprise clients with over $1 billion in income. Enterprise clients accounted for 46% income. As of January 31, 2018, roughly 1,500 of our customers within the previous 90 days have been C-level executives, of which over 400 have been CEOs.

It operates on a subscription-based mannequin. Its primary mannequin is accessible at no cost for a yr and permits entry to five customers to research as much as 5 million rows of knowledge. After a yr, the customers have to select from its menu of three pricing tiers starting from $83 per consumer per 30 days to $190 per consumer per 30 days. The very best tier subscription comes with options akin to the power to research as much as 2 billion rows of knowledge, superior governance and safety, HIPAA Compliance functionality, consulting from licensed companions, and premium help.

Domo’s Financials

For the yr ended January 31, 2018 , its income grew 46% to $108.5 million, internet loss narrowed to $176.6 million from $183.1 million a yr in the past, and had unfavourable money circulate from operations of $148.7 million. For the three months ended April 30, 2018 , its income grew 32% to $31.9 million and internet loss narrowed to $45.5 million from $48 million. As of April 30, 2018, it had an amassed deficit of $803.three million and money and money equivalents of $71.9 million with no quantities obtainable to attract beneath its credit score facility.

Its quarterly subscription internet income retention fee was 101%, 107%, 107%, 111% and 105% for every of the quarters in the course of the fiscal yr ended January 31, 2018 and the three months ended April 30, 2018, respectively.

Its rivals embrace giant software program corporations corresponding to Microsoft, Oracle, SAP, and IBM; enterprise analytics software program corporations resembling Tableau, Qlik, Looker, Sisense, and Tibco; and SaaS-based merchandise or cloud-based analytics suppliers reminiscent of and Infor.

Domo was extensively criticised following its preliminary submitting early this month which confirmed instances of self coping with corporations affiliated with Founder CEO James, together with an plane leasing firm, an area restaurant, and an inside design firm. In an updated filing, the corporate says that it has now terminated these preparations.

Domo had raised $690 million from buyers together with Andreessen Horowitz, Benchmark, Ben Horowitz, Bezos Expeditions, BlackRock, BYU Cougar Capital, Capital Group, Credit score Suisse, Dan Rose, David Lee, Dragoneer Funding Group, Constancy Investments, Founders Fund, Frank Wilder, GGV Capital, Glynn Capital Administration, Greylock Companions, Hiroshi Mikitani, HWVP, Hummer Winblad Enterprise Companions, IVP, Jeff Bezos, Jeff Kearl, John Pestana, Lars Dalgaard, Marc Benioff, Mark Gorenberg, Mercato Companions, Meritech Capital Companions, Morgan Stanley, Paul Sagan, Pelion Enterprise Companions, Ronald Conway, Salesforce Ventures, SharesPost Funding Administration, SV Angel, TPG Progress, Transmedia Capital, T. Rowe Worth, Viking Enterprise Administration, WPP, and Zetta Enterprise Companions. Its final spherical of funding was held in April 2017 when it raised $100 million at a valuation of $2.3 billion.

In 2015, Domo had reported bookings of $100 million with revenues doubling each year. You'd assume that it might presently be trending at revenues of $400 million however the IPO submitting is an eye fixed opener. With revenues of $108.5 million, Domo was overvalued as a personal firm. It now plans to boost $189 million by providing 9.2 million shares at a worth vary of $19 to $22 a share, valuing it at about at a extra practical $510 million. The losses are staggering, and the quantity of funding raised can also be exorbitant. Its competitor Tableau reported revenues of $877 million in 2017 and is buying and selling at a valuation of $eight.5 billion.

This phase is part within the collection : From Unicorn to Unicorpse