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DigitalOcean Holdings, Inc.(DOCN) has announced the successful compl etion of its acquisition of Paperspace Co., a Delaware corporation. The transaction, which involved a cash payment of $111 million, was closed by DigitalOcean, LLC, a wholly-owned subsidiary of the Company. While the acquisition is not expected to significantly impact the Company's 2023 financial results, DigitalOcean will provide additional information on the strategic advantages of the acquisition and update its financial outlook for 2023 during its Q2 2023 earnings call on August 3, 2023.
Q2 2023 Financial Guidance
DigitalOcean Holdings, Inc. has reaffirmed its previously issued guidance for the second quarter of 2023. The revenue guidance, as stated in the Company's press release filed with the SEC on May 9, 2023, remains unchanged. Additionally, the Company anticipates exceeding the guidance for both adjusted EBITDA margin and non-GAAP diluted net income per share. However, it is important to note that these preliminary financial results are subject to revision as the Company finalizes its financial statements for the quarter ended June 30, 2023. The actual results may differ from the preliminary figures provided.
Stock Repurchase Program
On February 16, 2023, DigitalOcean Holdings, Inc. announced a stock repurchase program, authorizing the repurchase of up to $500 million of its common stock. As of June 30, 2023, the Company has repurchased shares under the Program for approximately $370 million. This amount corresponds to the repurchase of 10,570,732 shares of common stock at an average price of $35.00 per share. The repurchases were made in accordance with 10b5-1 plans adopted by the Company. As of June 30, 2023, DigitalOcean Holdings, Inc. had approximately 88.6 million shares of common stock outstanding.
DigitalOcean Holdings, Inc. has successfully acquired Paperspace Co., with the transaction amounting to $111 million in cash. While the acquisition is not expected to have a significant impact on the Company's 2023 financial results, DigitalOcean remains optimistic about exceeding its revenue, adjusted EBITDA margin, and non-GAAP diluted net income per share guidance for the second quarter of 2023. Furthermore, the Company has been actively repurchasing its common stock under the previously announced stock repurchase program, having repurchased shares for approximately $370 million as of June 30, 2023. DigitalOcean Holdings, Inc. will continue to monitor market conditions and provide updates as necessary.