The issue with going public is that the public can then see under the covers.
And the financial picture is not rosy for DOMO.It almost sounds like
it was go public or sell the technology and take a huge loss. With
the current burn rate, the public funds won't last long. And sales
aren't increasing rapidly enough to close the gap. Sounds like
more debt is in the future for DOMO. I've heard working there is fun. But
if I worked there, I'd dust off my resume and get it out to other Silicon
Slopes firms. Turbulent times are ahead.Starting a company and
running a company at this level are two completely different things. Bill
Gates and Steve Jobs are very rare individuals. Most can't do it.
"Headlines included, "Hype and plunder: This high-tech company may be
setting a new low for self-indulgent IPOs" from a Los Angeles Times story,
and "Here's the poster child for Silicon Valley excess" on a
Bloomberg piece on the company's IPO plans."It sounds like
the reputation of businesses in Utah County preceded the offering. They are
losing money and "hope" to improve their ratios?"Hope" is only a good business plan in Utah, right after prayers
don't work. Maybe they can turn this around, but I'm not betting my
money on it.
At their current rate of cash burn, Domo will need additional funds in fewer
than five quarters. Unless Domo turns around quickly - and there are no signs
that these cash flow issues are being remedied - investors will quickly face
dilution or the company will need to take on debt (undesirable when you're
Domo represents a lot of Utah jobs, I hope it works out in spite of my