Domo Inc. was founded in 2010 and offers business solutions software that serves the needs of company decision-makers. Domo is a cloud-based dashboard that compiles key information points, which are typically accessed by CEOs who would otherwise be required to peruse company reports and data compilations to assess the progress of business goals. The businesses that Domo services are in a variety of industries, including finance, sales, marketing and retail. Domo's software has the potential to reduce overhead costs incurred by companies due to low information accessibility. Domo occupies a specific niche within business intelligence resources; this is why the company's product is valuable.

Serving Data Needs

The possibilities of customizable data solutions that cater to the needs of CEOs and other key figures within a company is a valuable, yet-to-be tapped resource in the business world. In the future, more companies will be looking to offer products similar to Domo's business intelligence software. For this reason, Domo is in a good position due to the company's early entrance into the market. There was already a need for what Domo does, and by assessing and filling that need, Domo has successfully entered the business intelligence industry.

Domo gives its clients the option to access a customizable information dashboard that displays information about a given company and the company's industry, all within the same interface. CEOs and others can use one dashboard to access information that is normally stored in Excel spreadsheets, Microsoft Word documents or on various websites that report on market statistics. The information accessed on Domo is self-updating, reflecting the most recent changes made to company documents through use of the cloud.

Domo's competitors include Oracle, SAS and GoodData. Though competition may be steep, it's still limited. Domo maintains its originality among these competitors. There are many business intelligence companies, but not many cater to the needs of CEOs. Few focus on accessibility, convenience and ease of use as the main facets of their marketing.

Initial Public Offering

Previous reports suggested Domo's initial public offering (IPO) would occur prior to 2016. Domo will likely partake in an IPO in 2016, though it is too soon to ascertain when the IPO will take place. The valuation of Domo as of April 2015 was $2 billion.

Quite a few large companies have already invested in Domo. BlackRock has financed Domo for $200 million, joining other investors such as GGV Capital and Fidelity. The company listed its total funding at $450 million as of January 2016. Investors should consider Domo for its growth potential, given its already strong entrance into the business intelligence world.

Niche Market

The business solutions that Domo offers exist in a niche that is likely to expand in coming years. Domo was founded by Josh James, who has experience in his role from founding marketing analytics company Omniture. James is also the current chief executive officer (CEO) of Domo.

In addition to providing decision-makers with information specific to the company, Domo can show information external to the company, such as market indicators, displayed alongside company-specific data. The simultaneous display of information is the main selling point for Domo.

Overall, the software reduces the need to compile reports. Business owners are likely to look favorably on a product that can reduce or eliminate the expenditure of time, energy and effort on the part of employees who repeatedly present key data points to decision-makers. Many businesses would likely use Domo's software if they were aware of the amount of time and effort it can save in researching, compiling and delivering up-to-date reports on company progress and market indicators.

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