DOCN Stock: DigitalOcean gets ready for its IPO

DOCN Stock: DigitalOcean gets ready for its IPO

Another tech company is entering the open market, it’s DigitalOcean (DOCN), a cloud computing company. The company is an American cloud infrastructure provider headquartered in New York City with data centers worldwide. DigitalOcean provides developers cloud services that help to deploy and scale applications that run simultaneously on multiple computers.

The company will list under ticker symbol “DOCN.” The IPO comes after a hot frenzy in tech stocks with valuations stretched pass the norms.

It’s filing with the SEC lists a $100 million placeholder which will update when the company announces a price target.

Morgan Stanley, Goldman Sachs & Co. LLC and J.P. Morgan are acting as lead book-running managers for the proposed offering. BofA Securities, Barclays and KeyBanc Capital Markets are acting as joint book-running managers for the offering. Canaccord Genuity, JMP Securities and Stifel are acting as co-managers for the proposed offering.

DigitalOcean’s financials

According to hints and clues, I know that the company had reportedly reached $202 million in revenue during 2018, $251 million in 2019 and that DigitalOcean had expected to reach an annualized run rate of $310 million in 2020.

Those numbers held up well. Per its S-1 filing, DigitalOcean generated $203.1 million in 2018 revenue, $254.8 million in 2019 and $318.4 million in 2020. The company closed 2020 out with a self-calculated $357 million in annual run rate.

During its recent years of growth, DigitalOcean has managed to lose modestly increasing amounts of money, calculated using generally accepted accounting principles (GAAP), and non-GAAP profit (adjusted EBITDA) in rising quantities.