the new york stock exchange welcomes digitalocean inc nyse docn today wednesday march 24 2021 in celebration of its initial public offering to honor the occasion ceo yancey spruill joined by john tuttle nyse vice chairman and chief commercial officer rings the opening bell® smallscale cloud infrastructure provider digitalocean debuted on the new york stock exchange on wednesday under the ticker symbol docn the stock started trading at 4150 per share about 12 lower than the 47 price at which it sold shares in its initial public offering and below the range of 44 to 47 per share the company had provided in updates to its ipo prospectus at the end of wednesdays trading session shares had fallen almost 10 to 4250 valuing the company at 448 billion digitalocean challenges much bigger companies including amazon and microsoft in the market to provide computing and storage resources that companies can consume to run their software instead of operating their own data center infrastructure digitalocean has built up a business by keeping its products easy to use most of its revenue come from the use of droplets which are virtual slices of physical servers we give every customer regardless of size a personalized support experience so we think that making it easy and simple and giving our customers help when they need it is the way to earn every day our developers and entrepreneurs hearts and minds ceo yancey spruill said on cnbcs squawk alley he said the market is large with over 100 billion in annual cloud spending for small and mediumsized businesses the company sees an opportunity to add analytics software that would enable users to do more with data stored in databases and it intends to add data center infrastructure in more places around the world spruill told cnbc later on wednesday digitalocean raised 775 million in the ipo the company operates 14 data centers of its own in the us and abroad through leases and the company intends to continue expanding its footprint like its competitors but unlike its large rivals digitalocean doesnt have billions of dollars that customers have agreed to pay for services they have not used yet the company had less than 5 million in deferred revenue at the end of 2020 in 2020 digitalocean registered a 436 million net loss on a total of 3184 million in revenue the loss was up 7 from 2019 and revenue grew by about 25 in a presentation to prospective investors finance chief bill sorenson said the company wants to increase the amount of money it derives from each customer while reducing research and development and general administrative costs as a percentage of revenue we still see a pathway to continuing to increase our overall operating margins in a number of the spend areas sorenson said on wednesday at its 47 ipo price digitalocean was valued at a pricetosales multiple of 16 based on 2020 revenue compared with 12 for microsoft watch bessemers byron deeter on the resurgence of cloud computing stocks