Latest news with #DigitalOcean
Miami Herald
6 hours ago
- Business
- Miami Herald
E2M Solutions Appoints Brent Weaver as CEO to Lead the Next Phase of Global Growth
Brent's appointment signals E2M's bold move to unify U.S. and India operations while doubling down on AI, systems, and agency success SAN DIEGO, CA / ACCESS Newswire / June 5, 2025 / E2M Solutions, a leading white-label digital services partner for agencies worldwide, has announced the appointment of Brent Weaver as its new Chief Executive Officer, effective today. Brent Weaver, a Colorado-based entrepreneur and executive, brings over two decades of experience in the digital agency ecosystem. He is the founder of UGURUS, a well-known coaching and training company for digital agency owners, which was later acquired by Cloudways and became part of DigitalOcean. At DigitalOcean, he played a key role in scaling agency partnerships globally. Weaver also served as a partner at UnlimitedWP, which E2M Solutions acquired last year - making this appointment a full-circle moment. "This is a significant milestone in our journey and the beginning of a bold new chapter," said Manish Dudharejia, Founder of E2M. "Brent is someone who lives and breathes the agency world-just like I do. His philosophy around growth, integrity, and client success aligns perfectly with ours. I've known Brent for years and have always admired his ability to lead with clarity, empathy, and vision. I couldn't think of a better person to guide E2M Solutions into its next chapter. With him on board, we're doubling down on our mission to serve agencies better. This move will also help E2M expand our brand presence and operations in the US. Our goal is to build a company that has a strong presence in both the US and India-truly bringing together the best of both worlds in this era of globalization." As CEO, Brent will be strengthening internal systems, expanding service offerings-especially in AI-and helping E2M Solutions' clients scale faster and more efficiently. "I'm honored to lead E2M Solutions at such a pivotal time," said Brent Weaver, CEO of E2M Solutions. "This team has built something truly special. My focus will be on helping our people grow, refining our delivery systems, and ensuring our clients stay ahead in an evolving digital landscape. I've spent the last 20+ years immersed in the agency space-advising, mentoring, and scaling - and I see a huge opportunity to bring that experience to E2M Solutions to help agencies thrive in this new AI-driven era." "Brent's operational excellence and client-first approach were evident during our UnlimitedWP partnership," said Ronik Patel, Advisor at E2M Solutions. "He has the focus and strategic vision needed to execute our ambitious growth plans." This leadership transition marks a unique milestone - an Indian-founded company appointing an American CEO - reflecting E2M's global vision and its commitment to bold, forward-thinking leadership. About E2M Solutions Founded in 2012, E2M Solutions is the #1 White Label Partner for Digital Agencies-currently serving over 300+ agencies with a team of 300+ experts. E2M Solutions provides white label services that help digital agencies grow and scale their business with WordPress Development, eCommerce Solutions, SEO, Content Writing, and AI Adoption services. The company operates out of offices in Ahmedabad, India, and San Diego, California. SOURCE: E2M Solutions Inc press release
Yahoo
5 days ago
- Business
- Yahoo
DigitalOcean Holdings, Inc. (DOCN): A Bull Case Theory
We came across a bullish thesis on DigitalOcean Holdings, Inc. (DOCN) on Rene Sellmann's Substack. In this article, we will summarize the bulls' thesis on DOCN. DigitalOcean Holdings, Inc. (DOCN)'s share was trading at $28.82 as of 27th May. DOCN's trailing and forward P/E were 25.50 and 15.02 respectively according to Yahoo Finance. Copyright: melpomen / 123RF Stock Photo DigitalOcean stands out as a capital-disciplined, customer-focused cloud provider serving startups, developers, and small to mid-sized businesses underserved by hyperscalers like AWS and Azure. Its core advantage lies in offering a frictionless experience—simple pricing, rapid deployment, and intuitive UX—tailored for teams that value speed, control, and predictability. While traditionally viewed as a 'starter cloud,' DigitalOcean has begun reversing customer churn by expanding platform depth and targeting higher-value accounts. The number of customers spending over $100K annually rose 41% YoY in Q1, showing early success in its move upmarket. Metrics such as Net Dollar Retention (a proxy for monetization and satisfaction), growth in Scalers+ accounts, and free cash flow margin form the essential dashboard for tracking its operational execution, with rising GPU workloads and GenAI adoption offering long-term upside. Despite lacking the scale advantages of hyperscalers, DigitalOcean operates in a stable, cash-generative segment of cloud infrastructure where recurring revenue, modest churn, and growing capital efficiency create increasing predictability. Its niche is defensible because hyperscalers over-serve this segment with complexity, and most smaller competitors lack its support quality, developer brand, or productized experience. The business is not without risks—particularly from low-end competition and evolving CapEx needs—but its focused approach, improving retention, and solid FCF profile position it well. It won't become AWS, but it does not have to. By continuing to execute against its playbook—prioritizing customer value, simplicity, and operational leverage—DigitalOcean can carve out a durable, profitable space in a structurally sound and often misunderstood corner of the cloud market. For a deeper look into another technology stock, be sure to check out our article on Microsoft Corporation (MSFT), wherein we summarized a bullish thesis by Ray Myers on Substack. Since our coverage, the stock is up 0.40%. DigitalOcean Holdings, Inc. (DOCN) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held DOCN at the end of the first quarter which was 18 in the previous quarter. While we acknowledge the risk and potential of DOCN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DOCN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
1 Growth Stock Down 40% to Buy Hand Over Fist Right Now
DigitalOcean stock took a beating this year despite a couple of solid quarterly results. The cloud services provider is trading at an attractive valuation following its plunge. DigitalOcean's growth could turn out to be much better than expected thanks to the red-hot demand for its AI services. 10 stocks we like better than DigitalOcean › Shares of DigitalOcean (NYSE: DOCN) experienced a sharp pullback in the past three months after a bright start to the year. The drop seems quite surprising considering the company delivered a couple of solid quarterly reports so far in 2025. DigitalOcean provides on-demand, cloud-computing infrastructure to developers, small businesses, and start-ups, and the demand for the company's solutions has picked up impressively in recent quarters thanks to artificial intelligence (AI). The growing adoption of cloud-based AI services was a key reason why DigitalOcean crushed Wall Street's estimates in February. This was followed by another set of strong results for the first quarter of 2025, released on May 6. Still, the cloud-computing stock trades down about 40% since hitting a 52-week high in mid-February. The good part is that this steep pullback in DigitalOcean's share price is an opportunity for savvy investors to buy a top growth stock at an attractive valuation. Let's look at the reasons why this discounted stock is a no-brainer buy right now. DigitalOcean reported healthy revenue growth of 14% in Q1 as compared to the year-ago period. This was a 2-percentage-point improvement to the top-line growth it delivered in Q1 2024. The company's adjusted earnings increased at a faster pace of 30% year over year. The company's management attributed the robust growth in its revenue and earnings to the rapid adoption of its AI services. DigitalOcean customers can rent powerful graphics processing units (GPUs) from the company to train and deploy AI models, perform AI inference tasks, and scale their AI projects as per their requirements. The company gives customers the flexibility to do all of this without having to invest in expensive hardware, such as GPUs that cost in the tens of thousands of dollars each. Moreover, DigitalOcean customers save on the costs associated with managing the AI infrastructure. They can pay for the capacity they require and focus on building and deploying AI applications. Importantly, DigitalOcean has been adding more AI-focused services to its portfolio to capitalize on the adoption of this technology. For instance, the company introduced its GenAI Platform in January 2025, offering customers "an all-in-one solution that empowers you to build and scale AI agents quickly." Backed by popular large language models (LLMs) from the likes of Anthropic, Meta Platforms, and Mistral AI, DigitalOcean saw terrific demand for its GenAI Platform. The company points out that more than 5,000 customers use its GenAI Platform already and have built more than 8,000 AI agents. As a result, DigitalOcean's annual recurring revenue (ARR) from AI services increased by a whopping 160% year over year in Q1. The company's focus on pushing the envelope on the product-development front played a key role in driving this growth as it released 50 new features during the quarter, which was a 5x jump from the year-ago period. Looking ahead, the demand for AI agents is expected to increase at an annual rate of 46% through 2030, while the adoption of cloud-based AI services is also expected to jump at a compound annual growth rate of 30% over the next eight years. Moreover, DigitalOcean believes that it has a total addressable market (TAM) worth a whopping $140 billion, which means that the possibility of further acceleration in its growth cannot be ruled out, considering that it has generated just over $800 million in revenue in the past year. DigitalOcean's solid growth last quarter and its sunny prospects tell us that investors are getting a great deal on this AI stock right now, considering that it is trading at just 26 times earnings. The forward price-to-earnings (P/E) ratio of 15 looks even more attractive, as it points toward robust growth in its bottom line. Investors, however, should note that DigitalOcean's earnings forecast of $1.85 to $1.95 per share for 2025 doesn't point toward any meaningful growth from 2024 levels of $1.92 per share. That's because the company ramped up capital expenses (capex) this year to shore up its AI infrastructure. DigitalOcean's capex was 31% of revenue in Q1 as compared to 24% of revenue in the year-ago period. The company's bottom line increased nicely despite that substantial increase. This is a result of an increase in customer spending on its platform. DigitalOcean's average revenue per customer increased by 14% year over year. This figure could move higher thanks to DigitalOcean's focus on adding new AI services. That's why it won't be surprising to see its earnings growing at a faster pace than its guidance in 2025 and pick up pace in the long run, which could lead to more stock-price upside. That's why investors looking to buy an AI stock that delivers a mix of both value and growth should consider DigitalOcean following its sharp decline this year. Before you buy stock in DigitalOcean, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and DigitalOcean wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DigitalOcean and Meta Platforms. The Motley Fool has a disclosure policy. 1 Growth Stock Down 40% to Buy Hand Over Fist Right Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
What To Expect From Snowflake's (SNOW) Q1 Earnings
Data warehouse-as-a-service Snowflake (NYSE:SNOW) will be reporting results tomorrow after market hours. Here's what you need to know. Snowflake beat analysts' revenue expectations by 3% last quarter, reporting revenues of $986.8 million, up 27.4% year on year. It was a mixed quarter for the company, with an impressive beat of analysts' EBITDA estimates but a miss of analysts' billings estimates. It added 38 enterprise customers paying more than $1 million annually to reach a total of 580. Is Snowflake a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Snowflake's revenue to grow 21.6% year on year to $1.01 billion, slowing from the 32.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Snowflake has missed Wall Street's revenue estimates twice over the last two years. Looking at Snowflake's peers in the data and analytics software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Commvault Systems delivered year-on-year revenue growth of 23.2%, beating analysts' expectations by 4.8%, and DigitalOcean reported revenues up 14.1%, topping estimates by 1%. Commvault Systems's stock price was unchanged after the results, while DigitalOcean was down 12.7%. Read our full analysis of Commvault Systems's results here and DigitalOcean's results here. There has been positive sentiment among investors in the data and analytics software segment, with share prices up 23.7% on average over the last month. Snowflake is up 33.2% during the same time and is heading into earnings with an average analyst price target of $201.87 (compared to the current share price of $182.43). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Sign in to access your portfolio
Yahoo
19-05-2025
- Business
- Yahoo
DOCN Q1 Earnings Call: Large Enterprise Momentum and AI Investments Drive Results
Cloud computing provider DigitalOcean (NYSE: DOCN) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 14.1% year on year to $210.7 million. The company expects next quarter's revenue to be around $216.5 million, close to analysts' estimates. Its non-GAAP profit of $0.56 per share was 25.8% above analysts' consensus estimates. Is now the time to buy DOCN? Find out in our full research report (it's free). Revenue: $210.7 million vs analyst estimates of $208.6 million (14.1% year-on-year growth, 1% beat) Adjusted EPS: $0.56 vs analyst estimates of $0.44 (25.8% beat) Adjusted Operating Income: $62.27 million vs analyst estimates of $53.38 million (29.6% margin, 16.7% beat) The company reconfirmed its revenue guidance for the full year of $880 million at the midpoint Management reiterated its full-year Adjusted EPS guidance of $1.90 at the midpoint Operating Margin: 17.9%, up from 6.2% in the same quarter last year Free Cash Flow was -$821,000, down from $36.71 million in the previous quarter Net Revenue Retention Rate: 100%, up from 99% in the previous quarter Annual Recurring Revenue: $843 million at quarter end, up 14.1% year on year Billings: $210.9 million at quarter end, up 14.1% year on year Market Capitalization: $2.83 billion DigitalOcean's latest quarterly results reflected continued growth with management crediting strong demand from larger digital native enterprises and the expansion of AI-related services as primary drivers. CEO Paddy Srinivasan highlighted the company's focus on scaling with these customers, noting a 41% year-over-year increase in revenue from clients spending over $100,000 annually. This expansion was further supported by product innovation and increased account engagement, particularly through enhanced support for complex workloads in both core cloud and AI infrastructure. Looking ahead, management emphasized a cautious yet optimistic outlook for the remainder of the year, citing the diverse customer base and robust demand for AI inferencing capabilities. Srinivasan stated, "We have taken a very appropriately cautious approach to projecting the outlook for the rest of the year," acknowledging macroeconomic uncertainty while reaffirming guidance for both revenue and profitability. The ongoing rollout of AI platform features and investments in capacity are expected to support future growth, with management monitoring evolving customer needs and potential financing strategies to enable larger-scale deals. DigitalOcean's management attributed quarterly performance to customer mix shifts, product innovation, and targeted go-to-market efforts. The company's ability to serve rapidly growing digital native enterprises and expand AI workloads drove both the top line and improved operating metrics. Enterprise customer expansion: Revenue from customers spending over $100,000 annually grew 41% year-over-year, supported by targeted engagement and new product capabilities tailored to larger workloads. AI workload acceleration: The company's AI annual recurring revenue (ARR) grew over 160% year-over-year, with most new AI business focused on real-world inferencing workloads. Access to advanced GPUs from NVIDIA and AMD underpinned this growth. Product innovation pace: Over 50 new products and features were released in the quarter—five times more than the prior year's comparable period—without a significant increase in R&D spending as a percentage of revenue. Enhanced customer engagement: DigitalOcean doubled named account coverage to its top 3,000 customers, assigning dedicated managers and technical specialists to deepen relationships and identify new workload opportunities. Capacity and infrastructure strategy: The opening of a new Atlanta data center enabled the company to win larger, multi-year deals, but required substantial upfront capital investment, influencing short-term free cash flow. Management's outlook for the next quarter and full year centers on sustained expansion with digital native enterprises and increased adoption of AI offerings, with a focus on maintaining operational efficiency and managing capital investments. AI and cloud platform adoption: Management expects continued demand for AI inferencing and scalable cloud solutions to fuel revenue growth, especially as larger customers migrate more workloads to DigitalOcean's infrastructure. Capacity investments and financing: The company is evaluating additional funding strategies, including leasing arrangements, to support rapid deployment of infrastructure needed for larger customer commitments without compromising free cash flow. Customer diversification and macro risks: While customer concentration risk remains low, management is monitoring for changes in macroeconomic conditions that could impact usage trends or delay enterprise purchasing decisions. Jason Ader (William Blair): Asked about timing for general availability of the GenAI platform and differentiation in the AI market; management expects GA by end of Q2 or early Q3 and highlighted their full-stack approach to AI inferencing. Pinjalim Bora (JPMorgan): Inquired about macro environment impacts; management stated that observed trends are reflected in guidance and noted cautious optimism due to diversified customer base. Gabriela Borges (Goldman Sachs): Sought clarity on the nature of large multi-year deals; management explained these deals are enabled by new enterprise features and staged migration capabilities, with more such opportunities expected. James Fish (Piper Sandler): Probed on capital expenditure needs for supporting large deals; management clarified that recent CapEx was front-loaded for new capacity and outlined plans to maintain flexibility for future large contracts. Kingsley Crane (Canaccord Genuity): Asked about expansion of the named account model; management described the current focus on top 3,000 customers and a data-driven approach to scaling targeted engagement. In the coming quarters, the StockStory team will be monitoring (1) the general availability and customer adoption of DigitalOcean's GenAI platform, (2) progress on winning and onboarding large-scale enterprise and AI inferencing deals, and (3) the company's execution on alternative capital strategies to support infrastructure growth. Continued innovation in core cloud offerings and expansion of targeted account engagement models will also be key areas of focus. DigitalOcean currently trades at a forward price-to-sales ratio of 3.5×. Should you load up, cash out, or stay put? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
