According to market research firm Pringle & Company, the worldwide business intelligence software services market is projected to grow from $76 billion in 2012 to $143 billion in 2016. The research firm estimates that nearly two-thirds of the industry’s revenue is from consulting, development, and integration-related services, which are estimated to grow from $54.5 billion in 2012 to $96.9 billion by 2016. The growth in the BI market is attributed to the increased adoption of analytics software which is estimated to grow 19% annually.
Utah-based Domo was founded in 2010 by Omniture co-founder Josh James. The idea of Domo began out of the frustration faced by James at being unable to access relevant data for his own business, as this data was housed in multiple sources. Today, Domo is able to offer a unified intuitive platform that simplifies business decision making.
Domo connects to many sources of data including spreadsheets, cloud-based and on-premise apps, data warehouses, databases, and social media to help executives make more informed decisions. Decision makers are able to use this data to create simple and interactive visual graphs to help understand the data better. Additionally, Domo’s mobile capabilities enable the users to access this data anytime, anywhere, making the whole experience seamless between desktops and mobile devices. Domo helps with real-time decision making and is thus able to help businesses adjust variables such as product inventory levels to better manage their product sales.
Domo likes to keep most details of their product under tight wraps as they are worried that competitors would imitate their offering. They believe that once they achieve a bigger scale, they will be able to share more details of their product.
Domo offers its product to their customers on a subscription-based model. But, like their product, most of their financials are a big secret. They have a clientele of nearly 500 customers including several Fortune 500 customers. Their customer list includes names like National Geographic, Xerox, Nissan, and H&R Block to name a few. They claim that their revenues have grown 100% over the past year and have been growing 25-50% each quarter.
They remain venture funded and have raised $249 million in financing from investors including Hummer Winblad Venture Partners, Benchmark, SV Angel, Transmedia Capital, Institutional Venture Partners, GGV Capital, Greylock Partners, Bezos Expeditions, Mercato Partners, TPG Growth, Salesforce.com, T. Rowe Price, Fidelity Investments, Morgan Stanley, Viking Venture Management, Founders Fund, and Dragoneer Investment Group. They also have backing from investors like Marc Benioff, Ron Conway, David Lee, Lars Dalgaard, Andreessen Horowitz, Mark Gorenberg, Hiroshi Mikitani, John Pestana, Dan Rose, Paul Sagan, Steven Singh, John Thompson, and Jeff Bezos. Their last round of funding was held earlier this month when they raised $125 million in funding at a valuation of over $800 million. While they have not finalized any plans, Domo believes that an IPO may be on the cards within the next couple of years. For now, they plan to use the new funds to double their sales force and expand their engineering team.
In a recent report, Gartner highlighted a trend in the BI market where organizations will shift their future investment away from IT-developed reporting solutions toward business user-led analysis solutions. Domo seems to be addressing this trend by creating a product that is focused on delivering a tool that, as their customers vouch, has helped in improved decision making.
Of course, Omniture was a big success for investors like Hummer Winblad (Mark Gorenberg was the partner on the investment). Thus, it is not a surprise that Josh James is able to gather a large mass of VC and angel capital this time round.