Form 4: Domo Director Sells $4.1M in Class B Stock

A Domo director reported significant stock transactions, including a $4.1 million sale by an investment fund and a charitable donation by his spouse.

Summary

• Daniel Daniel David III, a Director of DOMO, INC., reported several transactions involving Class B Common Stock.
• Twenty Acre Capital LP, for which Mr. Daniel is the portfolio manager, sold 273,900 shares of Class B Common Stock on October 6, 2025, at a weighted average price of $15.2558 per share, totaling approximately $4,179,900.
• This sale was conducted in connection with the winding up of an investment fund and a return of capital to its limited partners.
• Mr. Daniel's spouse, Denise Daniel, donated 4,429 shares of Class B Common Stock to a charitable organization on October 6, 2025.
• Denise Daniel also acquired 300 shares of Class B Common Stock through Domo's 2018 Employee Stock Purchase Plan (ESPP) during the period of April 1, 2025, to October 1, 2025.
• Following these transactions, Mr. Daniel directly owns 72,442 shares, and his spouse indirectly owns 4,010 shares. Twenty Acre Capital no longer holds shares.

Sentiment

Score: 5

Explanation: The sentiment is neutral to slightly negative. While a large insider sale typically raises concerns, the explanation that it's due to the winding up of an investment fund mitigates the negative impact, suggesting it's not a reflection of a lack of confidence in Domo's performance. The spouse's ESPP acquisition is a minor positive, indicating continued employee participation.

Positives

• Acquisition of 300 shares by the reporting person's spouse through the company's Employee Stock Purchase Plan (ESPP) indicates continued employee participation and potential confidence in the company.

Negatives

• A significant sale of 273,900 shares of Class B Common Stock, valued at approximately $4.18 million, by an entity managed by a director could be perceived negatively by the market, despite the stated reason.

Risks

• The large sale by a director-affiliated entity, even if explained as a fund winding up, could lead to negative market sentiment or questions about insider confidence in Domo's future prospects.
• The reporting person disclaims beneficial ownership except for pecuniary interest, which means his personal financial exposure to these specific shares has decreased.

Future Outlook

The reporting person has no current plans to sell any other shares of the Issuer but reserves the right to do so in his discretion.

Management Comments

• The sale of 273,900 shares of Class B common stock by Twenty Acre Capital LP was in connection with a winding up of an investment fund and a return of capital to its limited partners.
• The reporting person disclaims beneficial ownership of these shares except to the extent of his pecuniary interest therein.
• The Reporting Person has no current plans to sell any other shares of the Issuer, but reserves his right to do so in his discretion.

Industry Context

Insider transactions, particularly sales by directors, are closely watched by investors as they can signal management's perception of the company's future. While a large sale might typically raise concerns, the explanation of a fund winding up provides a specific, non-company-performance-related reason, which is a common occurrence in the investment fund industry.

Comparison to Industry Standards

• N/A. This filing reports individual insider transactions, which are not typically compared to industry-wide benchmarks or specific competitor results. The context is specific to the individual's investment fund activities rather than Domo's operational performance against peers.

Related Party Transactions

• The donation of 4,429 shares and the acquisition of 300 shares via ESPP by Denise Daniel, the reporting person's spouse and an employee of the Issuer, represent transactions by a related party.

Stakeholder Impact

• Shareholders: May view the large sale with caution, but the explanation regarding the fund winding up could alleviate significant concerns. The director's disclaimer of beneficial ownership (except pecuniary interest) and statement of no current plans to sell other shares might also temper negative sentiment.
• Employees: The spouse's participation in the ESPP indicates continued employee engagement with company stock.

Next Steps

• No specific future actions or milestones are mentioned in this filing, which primarily reports past transactions.

Key Dates

Recommendation

The significant sale of Class B Common Stock by an entity managed by a director, totaling approximately $4.18 million, is a notable event. However, the explanation that this transaction is due to the winding up of an investment fund and a return of capital to limited partners suggests it is not directly related to a change in the director's confidence in Domo's operational performance or future prospects. The director also stated no current plans to sell additional shares. Given this context, and the absence of other material financial or strategic updates in this Form 4, a 'hold' recommendation is appropriate. Investors should monitor future filings and company performance for more fundamental insights.

Keywords

DOMO, Form 4, insider trading, stock sale, director, Class B Common Stock, Twenty Acre Capital, ESPP, beneficial ownership, Daniel Daniel David III, corporate governance