Business analytics company Domo burst into the spotlight in Utah as one of the state’s vaunted “unicorns” — private startups valued at $1 billion or more — with a valuation that was twice that before the company went public in 2018.

It was another round of success for Josh James, who is credited with branding Utah’s tech industry as Silicon Slopes and had previously founded software company Omniture, acquired by Adobe for $1.8 billion.

Two years later, state officials praised Domo’s quick build of systems that helped them track resources and trends in the fight against COVID-19.

But Domo has also faced turmoil, from critiques of the taxpayer dollars it’s received to James’ departure and return, as the company continued to fall short of profitability and faced the impact of artificial intelligence on the software industry.

Now the business is being acquired by Massachusetts-based Progress Software for $400 million, less than a quarter of its past value, with an anticipated closing date before Nov. 30.

James and other company leaders will have $246 million in net cash, or $4.84 per share, after the transaction closes, the company said, along with the $900 million in net operating losses Domo racked up — which are an asset that could become a launching pad for a new venture.

If Domo becomes profitable by acquiring another business, for example, those losses could help lower its future tax bill.

The company said its board plans to explore ways to use the money from the sale to use those tax benefits, and “will consider potential transactions where the company can employ its expertise in AI and automation to enhance profitability as well as options to return capital to shareholders.” Companies do that in a range of ways, from paying special dividends to liquidating.

When the deal is done, the company will change its name and stock ticker symbol. James and the board of directors will continue to lead it.

A Domo spokesperson did not immediately respond to a request for comment Saturday.

In the news release announcing the deal, James said Domo’s mission has always been “helping organizations put data to work in ways that create real business value,” and said he believes Progress can provide “a strong, long-term home” for the company’s business.

Acquiring Domo’s platform “aligns with Progress’ strategy to deliver the context and control for AI so customers can achieve their business goals with confidence,” the company said in its announcement of the deal. Progress will take over Domo’s customer base of more than 2,400 businesses and its partnerships with cloud data companies, the company added. It also will “acquire substantially” all of the employees, Domo said.

A $2 billion startup

In 2015, Domo raised $200 million in a funding round that valued the company at about $2 billion, according to Forbes. The announcement came alongside Domo’s public unveiling of its business software after years of developing the platform largely out of public view. Before then, customers had to sign nondisclosure agreements to see the product.

Since going public, though, Domo has reported losses every year.

The company also made headlines as one of the businesses awarded a no-bid state contract worth millions of dollars at the start of the COVID-19 pandemic under the TestUtah initiative.

Domo was one of three firms contracted by the state to help operate the online testing portal. The initiative, initially led by Silicon Slopes, paired Domo with Nomi Health and Qualtrics to build and manage the state’s testing registration and data systems.

The TestUtah program, however, drew scrutiny over its contracts, questions about the accuracy of some COVID-19 test results and oversight of the testing program.

Leadership changes

The company also went through leadership turmoil in the years after the pandemic. In 2022, James abruptly resigned as CEO before returning to the role in 2023.

His resignation followed his comments suggesting Domo had received a Utah tax incentive worth up to $23 million to keep the company in the state, despite reports that he had not planned to relocate. The Governor’s Office of Economic Opportunity and the Utah Attorney General’s Office investigated the matter and found no wrongdoing.

Around the same time, a female employee accused James of sexual assault during a November 2021 business trip to South Carolina, Business Insider first reported. James was never charged, and investigators determined there wasn’t enough evidence to pursue the case, according to the news outlet.

Chief Financial Officer Bruce Felt resigned in December 2022 and was replaced by David Jolley in March 2023, the same month James returned as CEO. Catherine Wong also stepped down as chief operating officer and executive vice president of engineering in January 2023, less than a year after taking the role.

John Mellor, who had succeeded James as CEO, resigned in March 2023 after about a year leading the company.

Last year, James was arrested by Sandy police after crashing his BMW into a mailbox, according to Business Insider, which cited police reports it obtained.

Court records show he was later charged with a Class B misdemeanor of driving under the influence and an infraction for failing to drive within a single lane. James has pleaded not guilty, and his next hearing is scheduled for Aug. 13.