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DigitalOcean to acquire Cloudways for $350M in cash, in accretive deal » 08:0808/2308/23/22
DigitalOcean Holdings has…
DigitalOcean Holdings has entered into an agreement to acquire Cloudways, a managed cloud hosting and software as a service, SaaS, provider for SMBs. "The acquisition will simplify workflows for small to medium-sized businesses that are looking for easier ways to build and scale their digital businesses. Cloudways provides simple onboarding and day-to-day management that is purpose-built for certain SMBs looking to outsource their on-ramp to the internet, helping them offload the complexities of cloud infrastructure so they can spend more time running and scaling their businesses. Under the terms of the transaction, DigitalOcean will acquire Cloudways for $350M in cash, including a significant portion of the consideration to be paid over a 30-month period following the closing. Cloudways will be accretive to DigitalOcean's revenue growth rate and will not impact the fiscal year 2022 operating profit margin and cash flow margin outlook that was provided on August 8, 2022, as part of the Q2 2022 earnings release. Cloudways is expected to generate more than $52M in revenue in fiscal 2022, representing a three-year compound annual growth rate in excess of 50%. The transaction is expected to close in September and DigitalOcean is forecasting for Cloudways to contribute between $13 and $15M of revenue in fiscal 2022.
DigitalOcean says customer email addresses exposed in Mailchimp hack » 10:5308/1608/16/22
In a Sunday blog post,…
In a Sunday blog post, DigitalOcean's (DOCN) VP of security Tyler Healy said, "The security of DigitalOcean customers and their data is a responsibility we approach with utmost dedication. When our customers' security is threatened we respond swiftly, communicate with transparency, and take accountability, even if the incident root cause occurs beyond the boundaries of DigitalOcean systems. Today, we wanted to share an update about how DigitalOcean and our customers were impacted by a recent security incident disclosed by Mailchimp (INTU). The key takeaways are below: On August 8th, DigitalOcean discovered that our Mailchimp account had been compromised as part of what we suspect to be a wider Mailchimp security incident that affected their customers, targeted at crypto and blockchain. From that Mailchimp incident, we suspect certain DigitalOcean customer email addresses may have been exposed. Out of an abundance of caution, we are currently sending email communications to those impacted. A very small number of DigitalOcean customers experienced attempted compromise of their accounts through password resets. These customers' accounts have been secured, and have been contacted directly. As of August 9th, we have migrated email services away from Mailchimp. No customer information other than email address was compromised, however, we recommend increased vigilance against phishing attempts in the coming weeks, in addition to enabling two-factor authentication on your DigitalOcean account." Reference Link
DigitalOcean price target raised to $57 from $48 at KeyBanc » 08:5908/0908/09/22
KeyBanc analyst Michael…
KeyBanc analyst Michael Turits raised the firm's price target on DigitalOcean to $57 from $48 and keeps an Overweight rating on the shares following a solid Q2 amid a difficult macro environment that saw headwinds in international markets and in verticals like blockchain. Management maintained its 2022 revenue guide and raised margins with the 20% price uplift implemented primarily across the IaaS products about offset by increased macro headwinds, the analyst notes. Turits remains positive on DigitalOcean as the leading developer-oriented, down market public cloud vendor, but does acknowledge concern of SMB risk accentuated by month-tomonth contracts amid a tougher macro environment.
DigitalOcean price target lowered to $65 from $80 at Oppenheimer » 07:3808/0908/09/22
Oppenheimer analyst Timothy Horan lowered the firm's price target on DigitalOcean to $65 from $80 and keeps an Outperform rating on the shares. The analyst notes the company reported Q2 revenue of $133.9M, a 160bps miss at +29% year-over-year versus 36% last quarter. Horan thinks the next quarter will be well above guidance, but a weak macro, with half the revenue international SMBs, makes the next year uncertain.
DigitalOcean price target raised to $57 from $56 at Piper Sandler » 06:0608/0908/09/22
Piper Sandler analyst…
Piper Sandler analyst James Fish raised the firm's price target on DigitalOcean to $57 from $56 and keeps an Overweight rating on the shares. The company reported a mixed quarter as churn remains near the historical average across the business but Q2 underlying key performance indicators and second half of 2022 targets came in beneath expectations, Fish tells investors in a research note. While disappointed in the lack of clarity around the pricing impact, the analyst says strength of the margin upside and free cash flow targets "are helping to create confidence in shares at these levels."
DigitalOcean raises FY22 EPS view to 74c-75c from 70c-71c » 16:0908/0808/08/22
Consensus 66c. Backs FY22…
Consensus 66c. Backs FY22 revenue view $564M-$568M, consensus $566.32M.
DigitalOcean sees Q3 adjusted EPS 22c-23c, consensus 22c » 16:0808/0808/08/22
Sees Q3 revenue…
Sees Q3 revenue $145.5M-$147M, consensus $146.73M.
DigitalOcean CFO Sorenson to retire in 2023 » 16:0708/0808/08/22
DigitalOcean announced that Chief Financial Officer Bill Sorenson plans to retire from the Company in 2023 and that it will commence a search for his successor. Mr. Sorenson will continue in his capacity throughout the search process and then will serve as an advisor to the company until his departure in August 2023 ensuring a smooth transition and onboarding of a new chief financial officer.
DigitalOcean reports Q2 adjusted EPS 20c, consensus 10c » 16:0608/0808/08/22
Reports Q2 revenue…
Reports Q2 revenue $133.9M, consensus $134.36M. "We are taking a number of actions in the second half to deliver 30% growth with improving profitability and cash flow despite an uncertain environment driven by macroeconomic factors beyond our control," said Yancey Spruill, CEO of DigitalOcean.
DigitalOcean Holdings options imply 11.7% move in share price post-earnings » 14:3408/0808/08/22
Pre-earnings options volume in DigitalOcean Holdings is 1.2x normal with calls leading puts 8:3. Implied volatility suggests the market is anticipating a move near 11.7%, or $5.56, after results are released. Median move over the past eight quarters is 11.4%.