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.
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.