Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>DigitalOcean's results for the first quarter of 2024 presented a mixed financial perspective but showcased a robust strategic focus, particularly in ramping up initiatives around artificial intelligence and Machine Learning (AI/ML) capabilities.</li><li>The Chief Executive Officer highlighted the company's commitment to seizing substantial growth opportunities, particularly emphasizing AI/ML advancements.</li><li>Despite the optimism radiated from these developmental focuses, the company remains vigilant in navigating the complexities associated with rapid technological advancements and market competition.</li></ul>

DigitalOcean's results for the first quarter of 2024 presented a mixed financial perspective but showcased a robust strategic focus, particularly in ramping up initiatives around artificial intelligence and Machine Learning (AI/ML) capabilities.The Chief Executive Officer highlighted the company's commitment to seizing substantial growth opportunities, particularly emphasizing AI/ML advancements.Despite the optimism radiated from these developmental focuses, the company remains vigilant in navigating the complexities associated with rapid technological advancements and market competition.

DigitalOcean Holdings Inc.: Will Their Enhanced AI and Machine Learning Capabilities Yield Results? - Major Drivers

<ul><li>This is our first report on cloud platform operator, DigitalOcean.</li><li>The company's Fourth Quarter and year-end 2023 results included a revenue of $181 million, an 11% increase YoY. The financial results reflected stable net dollar retention and effectiveness in their financial operations, with Chief Financial Officer Matt Steinfort elaborating on a bottoming trend in Q3 at 96% NDR (Net Dollar Retention).</li><li>This was a significant turnaround in a year where the platform faced a slowing revenue growth and persistent macroeconomic headwinds.</li></ul>

This is our first report on cloud platform operator, DigitalOcean.The company's Fourth Quarter and year-end 2023 results included a revenue of $181 million, an 11% increase YoY. The financial results reflected stable net dollar retention and effectiveness in their financial operations, with Chief Financial Officer Matt Steinfort elaborating on a bottoming trend in Q3 at 96% NDR (Net Dollar Retention).This was a significant turnaround in a year where the platform faced a slowing revenue growth and persistent macroeconomic headwinds.

DigitalOcean Holdings Inc.: Initiation Of Coverage - Are Its Solid Investments In R&D & GPU Capacity Enough To Warrant A Bullish Outlook? - Major Drivers

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

<p>In between earnings seasons, we are trying to catch up on the flurry of TMT IPOs over the past few months that have caught our eye. Why Digital Ocean? We're pretty big Amazon bulls cause of AWS, so when we heard there was this mini-AWS that the developer community swears by, had 30%+ EBITDA margins, was accelerating growth by growing dollar retention rates and ARPUs...we had to learn more. Strikes us at the type of business that could be a 5 to 10-bagger over the next year or two. </p><div class="content-highlight"><p>Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.</p></div>

In between earnings seasons, we are trying to catch up on the flurry of TMT IPOs over the past few months that have caught our eye. Why Digital Ocean? We're pretty big Amazon bulls cause of AWS, so when we heard there was this mini-AWS that the developer community swears by, had 30%+ EBITDA margins, was accelerating growth by growing dollar retention rates and ARPUs...we had to learn more. Strikes us at the type of business that could be a 5 to 10-bagger over the next year or two. Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Alibaba Group Holding  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba (ADR) (BABA US)</a> aims to complete a spin-off of the Cloud Intelligence Group via a stock dividend distribution, with it becoming publicly listed in the next 12 months.  </li>
<li>The Cloud business is pursuing a land-grab strategy to reignite growth. While it is the only profitable Chinese cloud platform, the profitability gap to Amazon AWS highlights the opportunity. </li>
<li>The aim to bring in external strategic investors before the spin-off will provide a valuation benchmark. Our analysis points to a Cloud business valuation range of US$45-58 billion. </li>
</ul>



Alibaba (ADR) (BABA US) aims to complete a spin-off of the Cloud Intelligence Group via a stock dividend distribution, with it becoming publicly listed in the next 12 months.  
The Cloud business is pursuing a land-grab strategy to reignite growth. While it is the only profitable Chinese cloud platform, the profitability gap to Amazon AWS highlights the opportunity. 
The aim to bring in external strategic investors before the spin-off will provide a valuation benchmark. Our analysis points to a Cloud business valuation range of US$45-58 billion. 


Alibaba’s Cloud Intelligence Group Spin-Off: The First Look

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Digitalocean Holdings / Equity Capital Markets

<p>DigitalOcean, a developer-friendly provider of cloud computing services, set terms for an IPO and intends to sell 16.5 million shares at expected price range of $44-$47 per share. Tech unicorn has ~573 000 customers in more than 185 countries and targets specific segment of the cloud market: developers, startups and SMBs. Number of developers to grow from 19 million to 45 million by 2030, according to SlashData and there are 100 million SMBs globally.</p><p>DigitalOcean has raised ~$456 million in funding over 13 rounds, according to Crunchbase. Cloud computing unicorn was backed by leading venture capital firms Access Industries, Andreessen Horowitz, IA Ventures and Viaduct Ventures. We expect net proceeds from the offering may reach ~$700 million and funds affiliated with Tiger Global Management and AI Droplet Subsidiary LLC have indicated an interest in purchasing an aggregate of up to a maximum of $175 million in shares in this offering at the IPO price. Morgan Stanley, Goldman Sachs and J.P. Morgan are the lead underwriters.  </p>

DigitalOcean, a developer-friendly provider of cloud computing services, set terms for an IPO and intends to sell 16.5 million shares at expected price range of $44-$47 per share. Tech unicorn has ~573 000 customers in more than 185 countries and targets specific segment of the cloud market: developers, startups and SMBs. Number of developers to grow from 19 million to 45 million by 2030, according to SlashData and there are 100 million SMBs globally.DigitalOcean has raised ~$456 million in funding over 13 rounds, according to Crunchbase. Cloud computing unicorn was backed by leading venture capital firms Access Industries, Andreessen Horowitz, IA Ventures and Viaduct Ventures. We expect net proceeds from the offering may reach ~$700 million and funds affiliated with Tiger Global Management and AI Droplet Subsidiary LLC have indicated an interest in purchasing an aggregate of up to a maximum of $175 million in shares in this offering at the IPO price. Morgan Stanley, Goldman Sachs and J.P. Morgan are the lead underwriters.  

DigitalOcean IPO. Niche Cloud Provider With Ambitious Growth Strategies

United States

Digitalocean Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, provides on-demand infrastructure and platform tools for developers, start-ups, and small and medium-sized businesses to build, deploy, and scale software applications. Digitalocean Holdings serves customers worldwide.

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Digitalocean Holdings (DOCN US)

DigitalOcean Holdings Inc.: Will Their Enhanced AI and Machine Learning Capabilities Yield Results? - Major Drivers

DigitalOcean's results for the first quarter of 2024 presented a mixed financial perspective but showcased a robust strategic focus, particularly...

Baptista Research

DigitalOcean Holdings Inc.: Initiation Of Coverage - Are Its Solid Investments In R&D & GPU Capacity Enough To Warrant A Bullish Outlook? - Major Drivers

This is our first report on cloud platform operator, DigitalOcean. The company's Fourth Quarter and year-end 2023 results included a revenue of...

Baptista Research

Recent IPO Insights: Digital Ocean

Why Digital Ocean? When we heard there was this mini-AWS that the developer community swears by, had 30%+ EBITDA margins, was accelerating net...

Aaron Gabin

Alibaba’s Cloud Intelligence Group Spin-Off: The First Look

The aim to bring in external strategic investors before the spin-off will provide a valuation benchmark. Our analysis points to a Cloud business...

Arun George

DigitalOcean IPO. Niche Cloud Provider With Ambitious Growth Strategies

DigitalOcean IPO may bring an opportunity for technology investors to increase exposure on fast-growing cloud computing sector

Andrei Zakharov

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