Domo Inc. has decided its business management platform is ready for prime time and raised $200 million from investors at a $2 billion valuation to bankroll its next act: scaling sales.
The five-year-old company counts more than 1,000 customers and hit an annual revenue run rate of $50 million in December 2014, but sales have been less of a priority than perfecting the product that allows businesses to access all of its information from any device.
The company said that customers, which include eBay, MasterCard , Goodwill, Sage and Telus, agreed to sign nondisclosure agreements before they could try the product. And then, according to Domo founder and Chief Executive Josh James, significant “hand holding” was necessary to help those users create their dream dashboard displaying the sales, inventory, financial
other metrics that most mattered to them and ensure those metrics were updated continuously in real time.
“We couldn’t handle more customers before. Now we can because we’ve automated” the platform, Mr. James said.
The platform pulls data from any source the user chooses in real time, regardless of location and format, and prepares it for analysis by cleaning and reconciling items like name orders, which may vary by data source.
Domo’s service displays key metrics about a business’s operations with rich graphics on an easy to use dashboard and then allows users to collaborate with one another and create custom reports on the fly. The platform also includes some predictive analytics to alert companies to things like how sales may be affected by an impending snowstorm based on past events. Mr. James says Domo will continue to develop that feature this year.
So long as those data sources, be they spreadsheets, databases or social media, are updated, then the Domo dashboard will also remain up-to-date. Domo can be accessed from any mobile device or laptop.
Mr. James said Domo doubled its annual revenue run rate last year and expects to do it again in 2015, booking $100 million in annual recurring revenue by December 2015.
“Now we can handle as many customers as come our way,” he said.
BlackRock led the Series D round with participation from Capital Group and Glynn Capital. Existing investor GGV Capital also contributed in a “significant way” that was roughly five times its pro rata, according to Mr. James.
The deal was unusual for GGV, which typically invests at earlier stages, but it was an opportunity GGV Managing Partner Glenn Solomon said he had to seize.
“Domo has the ability to become a very big company over time. The market is very large and they have strong early momentum,” Mr. Solomon said. “Now the question is can the team continue to execute on that?”
From business intelligence startups like GoodData to legacy systems from the likes of IBM , Microsoft and Oracle , there are dozens of options for business users seeking to understand and analyze their operations. Although there is significant competition, none are direct competitors offering the exact same product, at least not yet.
“The giants, like Oracle, SAP and Microsoft, they loom out there because they have huge footprints and large development teams. The challenge for Domo is to keep and maintain their lead before the bigger players develop something” similar, Mr. Solomon said.
Mr. Solomon said that he is confident Domo’s team can do this and that was a major reason he reinvested. Along with Mr. James, who previously co-founded Web analytics company Omniture which he took public and later sold to Adobe for $1.8 billion, the Domo team is packed with veteran executives.
One of them, Chief Financial Officer Bruce Felt, left his position as CFO at SuccessFactors in August after what Mr. Solomon said was a monthlong campaign he launched, urging him to switch.
Mr. Felt, who has taken two companies public and handled more than a half-dozen mergers and acquisitions, is helping Domo prepare for an IPO.
Mr. James said while there is no urgency, his team is putting the processes and procedures in place so Domo can go public by the end of this year.
“Within the next 18 to 24 months would be optimal for us if the markets are good, but there’s no rush. We will be cash-flow break even by next year,” he said. “I like being a public company. I’d love to be doing this when I’m 70 and have a $50 billion-revenue company.”
Based in American Fork, Utah, Domo previously raised $259 million from investors including TPG Growth, Salesforce.com Inc., T. Rowe Price , Fidelity Investments, Morgan Stanley , Viking Ventures, Dragoneer Investment Group, Greylock Partners, Institutional Venture Partners and Mercato Partners.
Founded in 2010, it employs 600 people.