Cloud Platform DigitalOcean Unveils S-1 Filing For An IPO

DigitalOcean logo

The latest technology company to speed up on the route onto the public markets is DigitalOcean, a popular cloud infrastructure provider for developers and enterprises. The company has unveiled its S-1 filing for a public listing with the US SEC and given a peek into its finances and business operations with information not publicly known before.

DigitalOcean is a cloud infrastructure and hosting provider for developers and enterprises to deploy their apps and online services. Though based in New York, the company operates data centers spread across the globe. 

As indicated by its S-1 filing, DigitalOcean pulled in $318.4 million in revenue in 2020, compared to $254.8 million in the previous year, 2019. The company’s annual sales grew by over 100% from $203 million in 2018 to roughly $318 million in 2020.

Though, DigitalOcean isn’t profitable and hasn’t been in the past successive years, posting respective losses of $43.6 million, $40.4 million, and $36 million in 2020, 2019, and 2018.

DigitalOcean has come a long way from a small startup founded in 2012 to now a big cloud infrastructure provider on a global scale. Though it’s nowhere near the size of bigger cloud companies like Amazon Web Services, Microsoft’s Azure, and Google Cloud, the market for cloud infrastructure is so big that carving out just a small percentage can result in a company like DigitalOcean pulling in hundreds of millions of dollars in sales.

Along the path of its rapid growth, DigitalOcean rode on the backs of a big amount of venture funding from many investors. The company has raised over $450 million in venture funding (Crunchbase data), though the bulk of that amount was debt funding and not equity funding. Its investors include notable names like Andreessen Horowitz and Access Industries.

DigitalOcean’s most recent funding round was a $50 million cash infusion in May 2020 that valued it at $1.15 billion, and as it’s now on the path towards the public markets, that valuation could soar much higher inferring from the very positive investor sentiment towards technology companies as of late.

DigitalOcean has applied to trade on the New York Stock Exchange (NYSE) under the ticker symbol “DOCN”. With an S-1 filing already released, a completed public offering should be expected soon.

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