SCHEDULE: RPD Entities Disclose 11.9% Stake in DOMO, INC.

RPD Fund Management LLC and affiliated entities, including Ahmet H. Okumus, have disclosed a significant 11.9% beneficial ownership stake in DOMO, INC.'s Class B Common Stock.

Summary

• RPD Fund Management LLC, RPD Opportunity LLC, RPD Opportunity Fund LP, and Ahmet H. Okumus have filed a Schedule 13G disclosing beneficial ownership in DOMO, INC.'s Class B Common Stock.
• RPD Fund Management LLC and Ahmet H. Okumus each beneficially own 4,613,726 shares of DOMO, INC.'s Class B Common Stock, representing 11.9% of the class.
• RPD Opportunity LLC and RPD Opportunity Fund LP each beneficially own 3,512,826 shares, representing 9.1% of the class.
• All reporting persons share both voting and dispositive power over their respective reported shares.
• The securities were acquired by advisory clients of RPD Fund Management LLC, with RPD Opportunity Fund LP identified as the only advisory client known to beneficially own more than 5% of the Class B Common Stock.
• The reporting persons certified that the securities were not acquired or held for the purpose of changing or influencing control of DOMO, INC., except for activities solely in connection with a nomination under Rule 14a-11.

Sentiment

Score: 7

Explanation: The disclosure of a significant beneficial ownership stake by a reputable investment firm and its principal, Ahmet H. Okumus, is generally viewed positively as it signals confidence in the company's prospects. The certification against control-influencing intent, with the exception of potential nominations, suggests a strategic, but not immediately activist, investment.

Positives

• Significant institutional investment by RPD Fund Management LLC and its affiliates, including Ahmet H. Okumus, signals confidence in DOMO, INC.'s future prospects.
• The 11.9% stake held by RPD Fund Management LLC and Ahmet H. Okumus represents a substantial position, potentially indicating a long-term investment horizon and belief in the company's value.

Management Comments

• I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11.
• Each Reporting Person disclaims beneficial ownership of the reported securities except to the extent of his, her or its pecuniary interest therein, and this report shall not be deemed an admission that such Reporting Person is the beneficial owner of the securities for purposes of Section 16 of the Securities Exchange Act of 1934, as amended, or for any other purpose.

Industry Context

This filing indicates a significant institutional investor taking a substantial stake in DOMO, INC., a company operating in the data analytics and business intelligence software industry. Such investments can sometimes precede increased shareholder engagement or signal a belief in the company's long-term value proposition within its competitive landscape.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake could be seen as a positive signal, potentially increasing investor confidence and attracting further investment.
• Management: Management may need to engage with the new significant shareholder, RPD Fund Management LLC and Ahmet H. Okumus, regarding their investment thesis and any potential suggestions, especially given the allowance for nominations under Rule 14a-11.

Key Dates

Recommendation

This Schedule 13G filing primarily discloses a significant beneficial ownership stake by RPD Fund Management LLC and its affiliates in DOMO, INC. While a substantial institutional investment can be a positive signal, the filing itself does not provide new operational or financial data to warrant a 'buy' or 'sell' recommendation. It indicates a strategic position by an investor, but without further context on their intentions or DOMO's performance, a 'hold' recommendation is prudent for existing investors, while potential investors should conduct further due diligence.

Keywords

DOMO INC, Class B Common Stock, RPD Fund Management LLC, RPD Opportunity LLC, RPD Opportunity Fund LP, Ahmet H. Okumus, Schedule 13G, Beneficial Ownership, Institutional Investor, SEC Filing, Investment Stake