Domo founder Josh James was arrested for DUI over the weekend, adding to the company's troubles including a sexual assault allegation, executive exits, and intense competition.
Alpha Score of 51 reflects moderate overall profile with poor momentum, strong value, strong quality, weak sentiment.
Domo founder Josh James was arrested Saturday night on suspicion of driving under the influence, police records show. The arrest adds a personal crisis to a software company already grappling with a sexual assault allegation, a string of executive departures, and intensifying competition from AI-driven analytics tools.
James, who returned as CEO in 2023 after stepping down over a workplace assault claim, was booked and released on bail. The company declined to comment on the arrest. James founded Domo in 2010 and took it public in 2018. At its peak valuation in 2021, Domo was worth $2.8 billion. Its market capitalization has now slipped below $100 million for the first time since its IPO.
The sexual assault allegation surfaced in 2022. An employee accused James of assault on a work trip. James denied the allegation. The company later settled. The board brought him back as CEO about a year later, hoping to revive a stock that had lost 90% of its value. Since then, Domo has lost its chief financial officer and chief revenue officer without permanently replacing them. At least three C-suite executives have left in the past 12 months, public filings show.
Competition has eroded Domo's differentiation. Domo's cloud platform, which connects data sources and provides dashboards, faces pressure from established players like Microsoft and Tableau. Newer AI agents can write queries and generate reports in natural language. Domo has released its own AI features. Analysts note that sales growth has stagnated. Revenue declined in each of the last three quarters.
Domo ended its fiscal year with $80 million in cash, down from $120 million a year earlier. Long-term debt stands at roughly $350 million, mostly in convertible notes. Operating losses have narrowed. They remain above $30 million per year. The company has not guided for profitability in its latest earnings call.
The stock closed Friday at $2.17, down 95% from its 2021 high. Average daily trading volume has fallen below 300,000 shares. Short interest is roughly 15% of the float. Domo's market capitalization has slipped below $100 million.
The DUI arrest creates a new distraction for a leadership team trying to execute a turnaround. Police records indicate James was booked and released after posting bail. Domo's next quarterly report is due in September. Investors will see whether the 2022 settlement and subsequent leadership churn have taken a permanent toll on customer retention.
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