Case Study: DOMO, INC.
Case Study: DOMO, INC.
DOMO is a SAAS business intelligence solution company that completed its IPO in 2018. This project requires you
to a) create a 10-12 slide investment presentation and b) create a simple bottom-up revenue/income statement
model that supports your valuation analysis. Please review company’s IPO prospectus and annual report on SEC’s
website and company presentation on its own website. Feel free to review additional information from other
sources as long as you can provide references for the sources.
ORDER A SIMILAR PAPER
Reference Links:
IPO prospectus
https://www.sec.gov/Archives/edgar/data/1505952/000162828018008829/domoinc424b4.htm
Annual Report
https://www.sec.gov/Archives/edgar/data/1505952/000150595219000016/domofy1910-k.htm
Company Website:
https://www.domo.com/
Company Investor Portal:
https://www.domoinvestors.com/
Your presentation and financial model should address the below:
Business Review
1. What are the company’s main products/revenue drivers?
2. Who are its main competitors and what are DOMO’s advantages?
3. How big is its market? What’s DOMO’s market share today? How much could it grow its market share in
the next 3-5 years and why?
4. What are DOMO’s main growth drivers and strategies?
5. What are its main business risks?
Financial Review
6. What percentage of the revenue is recurring?
7. How much is its customer acquisition cost? How much is its average customer’s life time value?
8. Do you consider its sales & marketing and R&D expenses high or low? Why?
9. At what revenue level do you think it can breakeven? When will that be? How much additional capital do you think the company needs to reach the breakeven point?
ORDER A SIMILAR PAPER
Investment Review
10. How much is the total investment that has been made into the company since its inception?
11. What are the main reasons for the stock price increase and decline over the last 12 months?
12. What should be the right valuation metrics for DOMO? Please create a comparable company analysis.
13. What should be the fair value for the company’s common shares?
14. Based on your fair value estimate, please calculate the return for the $10 million investment below:
a. $10 million 3-year term convertible note (12% interest p.a., convertible at $15/share, principal
paid at maturity)
b. As part of the investment, Investors also receive free warrants that give the investors the right to
purchase $4 million worth of common shares @ $15/share at any time
Others
15. If you are going to have a call with its CEO, what are the three most important questions that you would
like to ask?
How to create a simple bottom-up revenue/income statement:
https://corporatefinanceinstitute.com/resources/knowledge/modeling/bottom-up-forecasting/
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