After four years of silent running, Utah-based data management startup Domo is coming out of nowhere with a $US2 billion valuation, based on its $US100 million revenue run rate.
Today, Domo announces the official launch of its product and the news of a $US200 million Series D round of financing led by BlackRock — bringing it up to $US450 million in total funding, and making it the latest member of the so-called Unicorn Club of startups valued at over $US1 billion.
And the founder thinks that valuation is cheap: “I think our investors got the deal of the century,” says Domo founder and CEO Josh James.
It may sound weird for a company with 1,000 customers to be in “stealth mode,” but for the last four years, each of those customers — including shipping giant DHL and accounting software provider Sage — had to call Domo directly to set up data integrations. In fact, Domo’s been sitting on the marketing material going live today for as long as 18 months, James says.
This was all to avoid tipping off any prospective competitors. It was a lot of work, James says, but the payoff was worth it. “We don’t really have a competitor yet.”
James might sound cocky, but it’s only because he’s done this before — Prior to founding Domo, James started data analytics company Omniture, where he became the youngest-ever CEO of a publicly traded company before it was bought by Adobe for $US1.8 billion in 2009.
The Domo platform takes data from literally everywhere (From Salesforce to Instagram), James says, pushing it all into one place and giving real-time updates. If a sales rep wants to see how many likes a post got on Facebook from a certain territory in Nebraska, James says Domo is the place.
Similarly, if a marketing person isn’t generating enough leads, the algorithm can flag it and indicate that it’s time to pick up the pace if they’re going to make quota. There’s even a chat functionality for people in the business to talk to each other about the data.
James describes Domo as “five startups in one”: Domo connects with data sources (one startup), cleans up and prepares the data for analysis (two more), visualise the data, and run analysis on it.
“There’s never been a platform as sophisticated as ours,” James says.
Now that Domo can take the lid off what it’s been working on, James says the company can really kick into high gear. Currently, the product is extremely sticky, James says, with an average of $US50,000 from each customer and 150% revenue retention (which means customers who spend on Domo end up spending more and more over time).
James says that Domo is aiming to multiply its $US100 million run rate by as much as 5 times in the short term.
Chat app and fellow unicorn Slack is rumoured to be raising money at the same $US2 billion valuation as Domo, for comparison. And last we heard, Slack was adding $US1 million to its own run rate every 11 days.
Other investors in this round included Capital Group, Glynn Capital, and previous investor GGV Capital.
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