The man who coined "Silicon Slopes" is selling his company.
Domo, the Utah business analytics firm founded by Josh James, announced Wednesday, July 23, that its board unanimously approved a $400 million cash sale to Progress Software Corporation. The deal sends substantially all of Domo's assets and employees to the Burlington, Massachusetts-based buyer. Domo has been a fixture of the tech corridor running through Draper's Point of the Mountain area since James founded it in 2010.
The price marks a steep fall from Domo's peak. The company hit a $2 billion valuation during a 2017 funding round, according to the Deseret News. It has reported losses every quarter since going public in 2018, per Business Insider.
"No one has done more for Utah's tech ecosystem than Josh James," Silicon Slopes CEO Clint Betts said in a statement shared with the Deseret News on Thursday, July 24. "From Omniture to Domo, now with a new company with plenty of cash, I'm excited to see what he does next and the legacy he continues to build."
Silicon Slopes is the nonprofit that represents Utah's tech industry, and its name traces directly to James. He created the moniker that now defines the corridor stretching through Lehi, American Fork, and Draper.
Domo's path from $2 billion to $400 million
James co-founded his first analytics startup, Omniture, in 1996. That company went public in 2006, and Adobe acquired it in 2009 for $1.8 billion. The Deseret News described the Omniture acquisition as a "bellwether moment" that demonstrated a Utah County startup could achieve a Silicon Valley-scale exit without relocating to California.
James founded Domo in 2010 and raised more than $700 million over its first seven years. But the 2018 IPO valued the company at just $511 million. The Deseret News reported that SEC filings at the time showed debt exceeding $800 million and 2017 losses of $176.6 million on revenues of $108.5 million.
Growth slowed further amid intensifying competition from AI-powered tools, Business Insider reported.
What the deal means
Progress Software, valued at approximately $1.5 billion according to Business Insider, will absorb Domo's operations and workforce. Progress CEO Yogesh Gupta said Domo's capabilities "are highly complementary to our expanding Progress data platform capabilities." The company said it expects to continue serving Domo customers and supporting the platform.
The deal excludes Domo's net operating loss carryforwards, which exceed $900 million. After closing, the remaining Domo entity will rename itself, change its stock ticker, and stay publicly traded with a debt-free balance sheet and roughly $246 million in cash, according to the company's announcement.
James will lead that remaining entity. Its board said it will consider "potential transactions" using AI and automation expertise and could return capital to shareholders.
Domo shares jumped about 30% on Thursday, July 24, following the announcement, though that gain valued the remaining company at nearly $190 million, still below its $246 million cash position, Business Insider reported.
What's next
No closing date has been announced. The deal still requires standard regulatory and shareholder approvals. For Draper-area tech workers employed by Domo, Progress Software has said it will retain substantially all employees and continue platform development.
