Utah-based Domo files IPO lifeline in midst of fiscal strife

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  • ConservativeCommonTater West Valley City, UT
    June 6, 2018 9:47 a.m.

    Wow! This sounds like a great opportunity...to bail out someone with our own money.

    But, we are talking about Utah County where everyone fair in their dealings with their fellow man.

    Buying into a company that is sinking is akin to handing a man an anchor while treading water.

  • Malihini Northern, UT
    June 5, 2018 7:55 p.m.

    Looks like the editors shut down my previous comment....let me just say that it seems that Josh James' rock-style, big shot lifestyle seems to be catching up to him. If only he didn't drive away talent and could have actually attracted some solid talent around him that would be more focused on building an actual product rather than feeding Josh's ego, then perhaps they would be better off.

    There are some good people at Domo and it's a shame that they may end up paying a price for this but at the end of the day in the real IT world this vapor-ware combined with Josh the rock-star only gets you so far.

  • Impartial7 DRAPER, UT
    June 5, 2018 7:33 p.m.

    Anyone that invests in a company from Utah County, hasn't done their homework.

  • SP Salt Lake City, UT
    June 5, 2018 3:32 p.m.

    Domo is a real company with a real product. There are many happy customers in the Salt Lake area and beyond. And many sincere employees trying to build a good product.

    This is a tragedy. We have a local employer on the verge of bankruptcy or forced acquisition at a high discount. Even an acquisition would result in massive layoffs.

    It is time for them to stop the endless lunch buffets for employees, money-losing Domopalooza events, and non-productive billboards, and get down to the business of saving the company.

  • Johnny Triumph Salt Lake City, UT
    June 5, 2018 3:20 p.m.

    @theJester - I doubt they would be able to right the ship at this point. I think IPO is solely to try to pay off the VC investors and a handful of others holding higher class equity in the company. They brought me in for an interview (they solicited me, not me trying to get in there) and I quickly saw it was a mess. But again, this was probably 4-5 years ago and hopefully things have changed there since then. I feel badly for the employees, if I were an employee and such a poor statement was released concerning the financial health of the company I'd be looking for work immediately. Good luck to them, but I really doubt it's salvageable at this point...how do you fix a $100M/year burn rate while keeping the company functional? It's not the fact that the company is in the red still, lots of companies are never in the black, but the burn rate is horrific...$8.34M/month? I'd also question the integrity of the IPO funding bank, who recommended that IPO was the right option here? Nothing in any of this makes sense.

  • TheJester American Fork, UT
    June 5, 2018 1:34 p.m.

    @dbrbmw

    When the information in the media comes directly from the company's own SEC filings, I think you can safely assume it's accurate.

    As was mentioned by others here, Josh James is a self-promoter who used the success at Omniture to leverage a far greater amount of equity financing than Domo would have otherwise received. It is disappointing to hear that he potentially used some of that money to enrich himself through various other companies he has a stake in.

    I would not be surprised to see a massive restructuring at Domo. They are burning through cash and cannot support their current organization. Public investors are going to want to know how Mr. James proposes to right the ship.

  • Brave Sir Robin San Diego, CA
    June 5, 2018 10:58 a.m.

    A Utah County-based tech company with unscrupulous bookkeeping and spending? Why, I never!

  • Johnny Triumph Salt Lake City, UT
    June 5, 2018 9:28 a.m.

    How did Domo burn through $700M in VC funding??? They've only been around a handful of years! Yikes, stay far, far away!

  • dbrbmw Orem, UT
    June 5, 2018 9:04 a.m.

    Just believe what you read people. The media is always dead on.

  • Ron Swanson Salt Lake City, UT
    June 5, 2018 8:17 a.m.

    Domo is all smoke and mirrors. At least the last time I saw their workings they had very little technology but rather threw people at each customer...and anyone researching the IPO should see that. If they had an actual BI technology they'd have a much smaller employee base and would actually be worth at least part of their $2.3B 2017 valuation. It seems they don't know what they're actually doing nor the talent they need to make it happen.

    The market will see that any company that burns $700M in VC funding (as of their last fund raising round in 2017) is a huge risk and one that will not succeed. This is looking more and more like a quick cash grab, get new leadership in the door, and watch the company sink. While Omniture paid off handsomely for the principles Domo will not have the same luck. And I'm curious how Domo burned through the latest $100M they raised in April 2017, a year in and they're out of money?

    Run very far away from this mess...

  • B-Real2 Saratoga Springs, UT
    June 5, 2018 7:14 a.m.

    I feel bad for employees when they find out via a news article that the owner was using the business as their personal piggy bank as the article states. That’s gotta be a major buzz kill. I feel bad for the workers who are simply doing their job.

    That said, Domo is famous in Utah county for its spending and perks. It doesn’t surprise me that they’ve run out of other people’s money to spend.

  • Tyler McArthur South Jordan, UT
    June 5, 2018 6:56 a.m.

    Maybe if they didn't put up weird billboards everywhere they'd have more money to actually run a business.

  • scrappy do DRAPER, UT
    June 5, 2018 4:25 a.m.

    Yeah that looks like a good investment.... i would rather invest in the janitorial service that is gonna have to clean up the mess

  • Kralon HUNTINGTON BEACH, CA
    June 4, 2018 8:53 p.m.

    I don't think I'm revealing anything new here that people can't put together without knowing Josh James.

    Josh is first and foremost a showman, in that area he excels. With his first company, Omniture, Josh didn't get as much money as he expected nor as much as outsiders assumed, he wasn't really cognizant of the end-game deals he made with investors.

    Josh fully believes that he deserves to be a tech billionaire and maybe he does. I've know four billionaires personally and only two impressed me. He set out to correct his Omniture equity mistakes with Domo, hence his 90% stake of class A shares. Unfortunately, Domo (Corda Technologies when Josh bought it) entered a crowded market with no competitive advantage. Josh did correctly choose a large market, but he really needed to find a disruptive/competitive advantage rather than trying to force it. Josh was probably too impatient to wait to find that kind of company or too impatient to wait for that kind of idea to strike.

    Domo is a real company with a real product and real customers, but fighting an uphill battle in a very crowded market. Domo advantage has been marketing with Josh's showmanship and the money behind Domo.