The Domo IPO (NASDAQ:DOMO) happened on Friday and the company’s stock soared on its first day of trading, selling just over 9 million shares.
The stock’s price opened at $23.80 in its public trading debut and soared 30% throughout the course of the day, raising $193 million in the offering and increasing the per-share price to $27.30. Domo is a Utah-based data analytics firm that specializes in business intelligence tools and data visualization.
It was a shaky day for the firm as shares originally surged as much as 16% before paring back down, but a late surge helped the stock reach its first record-high. “There’s ups and downs. I don’t know anything that’s just smooth up and to the right,” CEO Josh James told CNBC Friday. “These are just pricing events; these are just financing events. What really matters is what does this look like in 24 months?”
It hasn’t been an easy road for Domo as the company was once valued at above $1 billion but it is now worth less than $700 million after its IPO. This figure is based on an outstanding share count of 24,953,806 shares, which reflects a 15-to-1 reverse stock split that happened back on June 15.
Domo sells data analytics software and competes against some of the biggest names in tech, including IBM (NYSE:IBM) and Microsoft (NASDAQ:MSFT). The company had a negative cash flow of $148.7 million for the 2018 fiscal year ended in January and has only $71.9 million of cash on hand.
“The important thing is what you’re doing for your customers,” James said. “What we’re seeing from our customers is just amazing things that we believe no one else can touch.”