RPD Fund Management has built an 11.9% ownership position in Domo, Inc. as a long-term, passive investor, based on our view that the company is materially undervalued following a broad selloff across the public software sector.
At approximately 1.1x EV/Sales and a roughly $370 million enterprise value, Domo has been swept up in the broader SaaS selloff despite generating over $300 million of annual recurring revenue and operating a platform that consistently earns high marks from users—a view reinforced across dozens of expert calls conducted as part of our diligence. The stock traded near $18 less than six months ago, and notably, no insiders sold shares during that period.
While reported revenue has been muted by a shift toward consumption-based pricing and longer-term contracts, forward indicators tell a different story. As of fiscal 3Q26, revenue was roughly flat year-over-year (-0.5%), while bookings grew 14.6%. Management has guided to sequential improvement, with the gap pointing to a potential re-acceleration through calendar 2026.
Strategically, Domo has repositioned as a high-value analytics layer across Snowflake, Databricks, Google BigQuery, Redshift, and Oracle—enhancing both its go-to-market pipeline and its relevance as an acquisition target. The broader Analytics and BI market is expected to grow at a 16% five-year CAGR, making it one of the fastest-growing application software subsectors. Importantly, Domo is often misunderstood as purely a visualization tool; its data management, metadata handling, and data preparation capabilities are where the real value lies as enterprises invest to make their data AI-ready.
The company also carries over $1 billion in net operating loss carryforwards, a figure James himself highlighted on the same call as providing "substantial financial value" to strategic buyers.
Founder and CEO Josh James owns approximately 10% of the company and has a track record of maximizing shareholder value, having sold Omniture to Adobe for $1.8 billion in 2009. Importantly, he put himself on the clock. In May 2024, James stated publicly:
"I believe we'll either end up with several partnerships and revenue growth north of 20%, or I believe we'll sell to one of several potential strategic parties at a substantial premium that is multiples of where our stock price is today, or one of many interested private equity shops. If we still believe the best move to optimize the long-term risk-adjusted stock price for shareholders is to sell the company, then that is absolutely what we will do—just like I did last time with Omniture."
That 12–24 month window expires between now and May 2026.
Private SaaS M&A transactions are currently pricing at 3–4x revenue, with higher multiples for quality assets. At those levels, Domo would trade at $20–25+ per share before accounting for the value of its tax assets. In our view, the outcome is straightforward: either the stock re-rates as growth inflects, or Josh James does what he has done before.
About RPD Fund Management
Founded in 2021, RPD Fund Management is a New York–based investment firm specializing in fundamental, bottom-up deep-value investing. The firm manages approximately $530 million in assets across its two flagship funds, supported by a team of 12 professionals. CIO Ahmet Okumus previously founded and managed Okumus Capital, established in 2001, where assets under management peaked at $1.2 billion.
