DigitalOcean S-1

#1

Post by marc__1 » Thu, Feb 25, 2021, 1:25 PM UTC

DigitalOcean S-1
sec.gov

Re: DigitalOcean S-1

#2

Post by jimmyed » Thu, Feb 25, 2021, 2:00 PM UTC

One would imagine they'd make their APIs resilient before this?

Re: DigitalOcean S-1

#3

Post by unixhero » Thu, Feb 25, 2021, 2:01 PM UTC

Fantastic company.

Re: DigitalOcean S-1

#4

Post by rvz » Thu, Feb 25, 2021, 2:03 PM UTC

That sounds like a buy signal. I like this stock.

Re: DigitalOcean S-1

#5

Post by yannoninator » Thu, Feb 25, 2021, 2:07 PM UTC

What is the point of DigitalOcean, Linode etc, when one can use the more reliable big cloud providers GCP/AWS/Azure.

I don't think DO's offerings are strong enough to compete with the big players long term, especially in production.

Seems like an exit for a later acquisition by a bigger company, like Slack with Salesforce.

Re: DigitalOcean S-1

#6

Post by _ea1k » Thu, Feb 25, 2021, 2:08 PM UTC

yannoninator wrote: post #5

What is the point of DigitalOcean, Linode etc, when one can use the more reliable big cloud providers GCP/AWS/Azure. I don't think DO's offerings are strong enough to compete with the big players long term, especially in production. Seems like an exit for a later acquisition by a bigger company, like Slack with Salesforce.

It seems to me that these services are much more cost effective than AWS.

Re: DigitalOcean S-1

#7

Post by dukeofdoom » Thu, Feb 25, 2021, 2:09 PM UTC

So how does one buy ipo shares? One of my resolutions for this year was to buy shares in companies I do business with.

Re: DigitalOcean S-1

#8

Post by fersarr » Thu, Feb 25, 2021, 2:09 PM UTC

So simple and nice to use

Re: DigitalOcean S-1

#9

Post by gizmo » Thu, Feb 25, 2021, 2:09 PM UTC

Excellent growth, fair margins. Probably worth about $3bn. If it IPOs at less than $5bn it's probably worth picking up. Long term digitalocean will struggle to maintain its margins when competing with Azure and AWS on one side, and Cloudflare edge computing on the other side, so I don't think it can command the same kind of premium we've seen from other tech IPOs.

A big red flag is that 570,000 customers bring in only 357m in rev. That's $50 a month for the average customer. That's way too low.

Re: DigitalOcean S-1

#10

Post by halfmatthalfcat » Thu, Feb 25, 2021, 2:09 PM UTC

I love DigitalOcean. The simplicity of their UI, friendly CLI tooling and (as a hosted k8s customer) the frequency of updates to their offerings.

BUT:

1. Their web UI stability is terrible (constantly hangs and errors out)

2. Their hosted DB IOPS aren't competitive with other PaaS providers. There's also no way to scale DB size dynamically without upgrading to a new price tier which is overkill.

3. Their Kubernetes Control Plane scaling is obfuscated. I had to contact support to realize that the control plane nodes are somehow tied to the size of your node pool when you create the cluster? That's not documented anywhere and was the cause of many control plane timeouts.

4. No ALIAS dns record, no way to serve Spaces from an apex domain. (I know this is a vendor specific implementation but it's table stakes imo)

Again, I'm a (mostly) happy DO customer and wish them the best but if they really want to be seen on the same level as AWS or GCP in terms of some parity, they need to include some of these QoL features.