- Domo, a $US2.28 billion data analytics startup, has filed to go public.
- It’s not profitable, according to the filings: In 2017, it posted an overall loss of $US176.6 million on revenues of $US108.5 million.
- The filing says that it needs additional cash by August or else it could face a major restructuring – explaining the timing of the IPO.
Domo, the Utah-based data analytics startup last valued at $US2.28 billion, filed for its long-awaited IPO on Friday.
The filing reveals that the company generated $US108.5 million in revenue in 2017 – but recorded an overall net loss of $US176.6 million. That’s still better than 2016, when Domo posted a net loss of $US183.1 million on revenues of $US74.5 million. All told, the filing says, Domo has accumulated a deficit of $US803.3 million as of the end of April.
The document also makes it clear why Domo is choosing to go public now. It had $US72 million in the bank as of the end of April, says the filing, with no more credit on which to draw. Without the additional capital from an IPO, Domo will have to take drastic measures, the company says.
“If other equity or debt financing is not available by August 2018, management will then begin to implement plans to significantly reduce operating expenses,” writes Domo in its filing.
The company, which proposes to list shares using the “DOMO” ticker, is a “controlled company,” which means that CEO and founder Josh James controls the majority of the votes for all corporate matters thanks to a special dual class stock structure.
Domo rose to prominence in 2015, when it came out of so-called “stealth mode” with a $US2 billion valuation. All told, Domo has raised $US730 million in venture funding, with financial backing from Silicon Valley heavy hitters including BlackRock, Greylock and Benchmark.
However, in 2016, Domo insiders told Business Insider that some of the company’s offerings were still somewhat immature at that point, and that the company tended toward hyping its offerings, as many startups often do.
Domo’s filing does not specify how much money it intends to raise in the IPO and the valuation it seeks to list at.