Domo Seeks Sale by July 31 as $137 Million Debt Breach Triggers Forbearance
Updated
Updated · Business Insider · Jun 27
Domo Seeks Sale by July 31 as $137 Million Debt Breach Triggers Forbearance
1 articles · Updated · Business Insider · Jun 27
Summary
Domo entered a forbearance agreement after saying its annualized recurring revenue fell below loan-covenant minimums and it lacked cash to repay $137 million in principal and related fees.
July 31 is the deadline for Domo to reach a sale agreement under the deal, extending a strategic review the company formally launched in February and said in June had reached advanced talks.
Revenue pressure has intensified the crunch: Domo reported a 1% quarterly revenue decline to $79.4 million, while analysts said renewals are weakening and AI-driven competition is eroding growth.
The company’s stock has fallen about 80% over the past year, cutting its market value to roughly $133 million from a 2021 peak valuation of $2.8 billion.
Leadership turmoil has compounded the slide, with founder-CEO Josh James returning in 2023, later reducing duties for substance-abuse treatment, and the company disclosing executive departures and settlement costs.