DigitalOcean Holdings, Inc. - DOCN STOCK NEWS

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.

DigitalOcean Holdings, Inc. (NYSE: DOCN) will release its financial results for Q2 2022 on August 8, 2022, after U.S. markets close. The earnings report and related materials will be available on the DigitalOcean investor relations website. A conference call to discuss the results is scheduled for the same day at 4:30 PM ET, accessible by dialing (888) 330-3637 and using conference ID 7741047. A telephonic replay will be available until August 15, 2022.

DigitalOcean Holdings (NYSE:DOCN) has appointed Megan Wood as the new Chief Strategy Officer, a role aimed at enhancing business strategy and execution. Reporting to CEO Yancey Spruill, Wood will oversee corporate development, strategy deployment, and program management, leveraging her previous experience at NerdWallet and Maxar. This appointment is part of DigitalOcean's strategy to align teams toward achieving business objectives amidst its growth journey.

DigitalOcean Holdings, Inc. (NYSE:DOCN) has released its latest Currents report highlighting a growing developer talent shortage. Key findings reveal that 42% of developers are contemplating job changes, with 8% aiming to start their own companies. Factors influencing this trend include the need for competitive compensation and flexible work arrangements. The survey included 2,598 responses from developers across 94 countries, indicating a shift toward entrepreneurship and open-source contributions, despite skepticism about Web3 technologies.

DigitalOcean Holdings has approved a new $300 million stock repurchase plan, complementing its previous $300 million program from February 2022. CEO Yancey Spruill stated the company's commitment to achieving 30%+ revenue growth while maintaining robust free cash flow. The repurchases may occur in the open market or through negotiated transactions, with no obligation for the company to acquire a specific number of shares. This initiative highlights DigitalOcean's confidence in its financial health and ongoing investments in both organic and inorganic growth.

DigitalOcean Holdings (NYSE:DOCN) has launched DigitalOcean Functions, a serverless solution tailored for developers, startups, and SMBs. This offering allows users to build applications without managing cloud infrastructure, enabling faster development and cost savings. According to IDC, 25% of cloud IaaS buyers plan to use serverless functions in the coming year, highlighting strong market demand. DigitalOcean Functions integrates seamlessly with existing services and supports multiple programming languages, enhancing user experience and productivity.

DigitalOcean Holdings, symbol DOCN, has announced an upcoming Investor Day set for June 9, 2022, at 1:00 p.m. EDT. This event will provide updates on the company’s strategy, product roadmap, and long-term financial plans. Interested parties can join via a live webcast on the DigitalOcean Investor Relations website, with an archived version available afterward.