DigitalOcean Expands Container And Kubernetes Capabilities

Recently listed DigitalOcean (NYSE: DOCN) announced its first-quarter results since it went public. The company continues to invest in expanding its containerized and Kubernetes offerings to grow market share.

Digital Ocean’s Financials

For the first quarter of the year, revenues grew 29% to $93.7 million. Annual Run-Rate Revenue (ARR) grew 30% to $388 million. Adjusted EBITDA came in at $30.7 million, compared to adjusted EBITDA of $18.4 million a year ago.

Among other key metrics, total customers grew 7% to over 585,000. Net Dollar Retention (NDR) rate grew to 107%, reporting an increase of 600 basis points from a year ago, and Average Revenue Per Customer (ARPU) in the quarter grew 20% to $53.68.

For the current quarter, DigitalOcean forecast revenues of $97-$99 million. For the fiscal year, it forecast revenues of $405-$409 million. The market forecast revenues of $98.29 million for the quarter, and $407.74 million for the fiscal year.

DigitalOcean’s Product Expansion

Recently, DigitalOcean announced its new feature, Deploy to DigitalOcean App Platfom, that allows developers to deploy their code to production quickly. The offering increases DigitalOcean’s managed services strategy, simplifying cloud computing and giving developers and businesses the ability to spend more time to focus on creating software. The new lightweight platform-as-a-service (PaaS) environment is made available on top of Kubernetes and automates the deployment of open source code on the DigitalOcean cloud service from a GitHub repository.

Other capabilities added to App Platform include the ability to transfer existing root domains to DigitalOcean, support for wildcard domains, the ability to configure a static document to optimize performance of Single Page Applications (SPAs), and a Cross-Origin Resource Sharing (CORS) mechanism that uses additional HTTP headers to tell a browser to let a web application running at one domain have permission to access selected resources from a server at a different domain. These new features will allow development teams to run a process either before or after the deployment of an application.

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Disclosure: All investors should make their own assessments based on their own research, informed interpretations and risk appetite. This article expresses my own opinions based on my own ...

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