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Re:DigitalOcean raises $100M in debt as it scales toward rev... by cdolan on Thursday February 20, 2020 @01:44PM (#22377464)
Perhaps, but debt is real and you cannot be “profitable” if you are under a mountain of debt... in fact, you become insolvent if you can’t keep up with the interest payments and pay down the principal.
Re:DigitalOcean raises $100M in debt as it scales toward rev... by pmart123 on Thursday February 20, 2020 @02:12PM (#22377681)
That’s all true. It really depends on how stable Digital Ocean’s cash flows are as well as likelihood of how they can grow. You don’t want to have to deleverage by paying down debt vs. lowering debt to cash flow/EBITDA ratios.