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NEW YORK - DigitalOcean Holdings Inc (NYSE: DOCN), a cloud infrastructure provider generating $780 million in annual revenue with healthy profitability metrics according to InvestingPro data, has unveiled the general availability of its Partner Network Connect service, a new offering aimed at streamlining multi-cloud and hybrid-cloud networking for businesses. This service allows companies to establish private connections between DigitalOcean’s cloud and other cloud providers or private data centers, which is intended to enhance security and network performance while avoiding the public internet.
The solution comes as businesses increasingly adopt multi-cloud and hybrid-cloud strategies, which can introduce complexity and high costs in managing cloud connectivity. Partner Network Connect promises to address these challenges by offering a private connection that supports distributed workloads, leveraging DigitalOcean’s collaboration with Megaport, a prominent Network-as-a-Service provider.
According to Bratin Saha, Chief Product and Technology Officer at DigitalOcean, the service aims to provide customers with secure, high-performance networking options that are easy to manage and come with predictable pricing. Michael Reid, CEO of Megaport, added that their integration with DigitalOcean meets a market demand for simpler multi-cloud connectivity, particularly for businesses running data-intensive or AI workloads.
The key benefits highlighted for Partner Network Connect include improved latency with high-bandwidth private connectivity, enhanced security by keeping sensitive data off the public internet, cost optimization by eliminating egress charges, and simplified management through DigitalOcean’s Networking console. With a strong current ratio of 2.45 and revenue growth of nearly 13% over the last twelve months, InvestingPro analysis suggests the company is well-positioned to support this expansion, though currently trading above its Fair Value estimate.
Potential users of the service span various industries, such as FinTech and Healthcare companies that handle sensitive data, AdTech and MarTech firms, SaaS providers managing multi-cloud deployments, and online businesses like e-learning platforms that require efficient data delivery across different regions.
Partner Network Connect is now available across most DigitalOcean regions, with access through both the UI and API interfaces. However, it is not offered in the SYD1, LON1, BLR1, and TOR1 regions. For more information or to get started, customers can consult the DigitalOcean Partner Network Connect documentation.
This announcement is based on a press release statement from DigitalOcean Holdings, Inc. Despite recent market volatility that has seen the stock decline nearly 8% in the past week, analysts maintain a positive outlook, with InvestingPro offering 10+ additional investment insights and a comprehensive Pro Research Report available for deeper analysis of the company’s prospects.
In other recent news, DigitalOcean Holdings Inc. reported impressive fourth-quarter earnings for 2024, surpassing market expectations. The company achieved an earnings per share (EPS) of $0.49, exceeding the forecast of $0.38, and reported revenue of $255 million, which was significantly higher than the anticipated $200.16 million. DigitalOcean’s revenue grew by 13% year-over-year, reaching a total of $781 million for the full year. The company also provided a positive outlook for 2025, projecting revenue between $870 million and $890 million.
In addition to its financial performance, DigitalOcean has been active in expanding its product offerings, launching 49 new products and features in the fourth quarter alone. The company’s focus on AI has been highlighted by the introduction of a platform that allows users to create AI agents, further supported by a partnership with Hugging Face. Analyst firm JMP Securities maintains a Market Outperform rating for DigitalOcean, with a price target of $55, citing confidence in the company’s leadership and innovation strategy. These recent developments underscore DigitalOcean’s strong operational execution and growth prospects in the cloud computing sector.
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