DigitalOcean Seeks New CEO as Growth Cools
The cloud infrastructure market is cooling off after years of rapid-fire growth. Amazon's (NASDAQ: AMZN) market-leading Amazon Web Services (AWS) grew revenue by just 12% year over year in the second quarter, and profits tumbled as customers started to take hard looks at their cloud bills. The same trends are playing out across the industry.
DigitalOcean (NYSE: DOCN), a cloud provider focused on developers and small businesses, still grew revenue by 27% in the second quarter. But the company's guidance was subpar. For the third quarter, DigitalOcean expects revenue to grow by just 14%. That guidance includes the contributions from recent acquisitions, notably from managed cloud provider Cloudways.
While DigitalOcean has little control over how its customers react to a tough economy, there could be deeper problems at the company. It announced on Thursday that CEO Yancey Spruill will step down once a successor has been found.
Source Fool.com
