Digitalocean Hldgs Inc Stock Price, News & Analysis

DigitalOcean Holdings, Inc. (NYSE:DOCN) has appointed Matt Steinfort as the new Chief Financial Officer (CFO), effective January 2023. Steinfort's experience includes serving as CFO at Zayo, overseeing $2.6 billion in revenue. He aims to help DigitalOcean achieve its revenue target of over $1 billion by 2024. Current CFO Bill Sorenson announced his retirement in August but will assist during the transition. Steinfort's strategic planning experience is expected to support DigitalOcean's growth and enhance its free cash flow performance.

DigitalOcean Holdings (NYSE:DOCN) has announced the launch of its new data center in Sydney, Australia, expanding its presence to better serve customers in Australia and New Zealand. This facility features advanced network architecture, ensuring 400 Gbps connectivity across Asia, North America, and Europe. The data center is designed for high availability, scalability, and security, targeting small and medium-sized businesses (SMBs) with low-latency services. The Australian cloud market is projected to grow by 12.5% by 2025, boosting DigitalOcean's potential customer base.

Cloudways, a subsidiary of DigitalOcean (DOCN), has launched a Web Hosting Savings Calculator to assist small businesses in managing their cloud hosting costs as they prepare for the holiday season. The tool helps users input website details and compare hosting plans effectively. Additionally, starting November 14th, Cloudways is offering a promotional deal with 40% off web hosting services for 4 months and up to 30 free migrations. This initiative aims to alleviate financial pressures from rising costs and inflation.

DigitalOcean Holdings, Inc. (NYSE: DOCN) reported third-quarter 2022 results with a 37% year-over-year revenue increase, totaling $152.1 million. The acquisition of Cloudways contributed $4.1 million to revenues, with standalone growth at 33%. Annual Run-Rate Revenue (ARR) reached $640.6 million, up 41% year-over-year. Free cash flow improved to $22.4 million, with a 15% free cash flow margin. Looking ahead, fourth-quarter revenue guidance is set between $160 and $162 million, with a full-year revenue forecast of $573 to $575 million.

DigitalOcean Holdings, Inc. (NYSE:DOCN) has launched the Partner Pod, a new channel partner program aimed at supporting digital agencies, consultants, and technology providers. This initiative is tailored for businesses servicing small and medium-sized enterprises (SMBs), providing access to a comprehensive suite of cloud products, technical support, and marketing resources. Through various partnership tracks, partners can select paths aligning with their business goals, enhancing their capacity to aid SMBs. The program emphasizes long-term relationships and mutual growth for partners and their clientele.

DigitalOcean Holdings, Inc. (NYSE: DOCN) will release its third quarter financial results on November 7, 2022, after U.S. financial markets close. The earnings report along with a webcast will be available on the DigitalOcean investor relations website. A conference call to discuss the results is scheduled for 4:30 PM ET on the same day, accessible via a designated phone line. A replay of the call will be available until November 14, 2022.

DigitalOcean Holdings, Inc. (NYSE:DOCN) has successfully completed its $350M acquisition of Cloudways, a prominent managed cloud hosting and SaaS provider catering to small and medium-sized businesses (SMBs). This acquisition is anticipated to enhance DigitalOcean's capabilities, enabling SMBs to launch and scale their businesses efficiently. CEO Yancey Spruill highlighted that this strategic move will strengthen their mission to simplify cloud computing, allowing builders to focus more on software development.

DigitalOcean (NYSE:DOCN) has announced its acquisition of Cloudways for $350 million, aimed at enhancing services for small to medium-sized businesses (SMBs). The transaction is set to accelerate revenue growth, increasing high spend customers by 18% while remaining neutral to operating profit and cash flow margins. Cloudways is expected to generate over $52 million in revenue for fiscal 2022, contributing between $13 and $15 million to DigitalOcean's revenue. The acquisition expands DigitalOcean's serviceable market.

DigitalOcean Holdings, Inc. (NYSE: DOCN) reported solid Q2 2022 results, with revenue increasing 29% year-over-year to $133.9 million. The Annual Run-Rate Revenue (ARR) reached $544.1 million, up 28% year-over-year. The company achieved a gross profit of $86.6 million, representing a gross margin of 65%. However, there was a net loss of $7.4 million. Looking ahead, for Q3 2022, revenue is projected between $145.5 million and $147 million, with a non-GAAP operating margin of 17-18%. The CFO plans to retire in 2023 after a transition period.