Actually, I ran into this just the other day with Alibaba's earnings [1]. From their definitions:
> Adjusted EBITDA represents net income before (i) interest and investment income, net, interest expense, other income or loss, net, income tax expenses and share of results of equity investees, (ii) certain non-cash expenses, consisting of share-based compensation expense, amortization, depreciation, operating lease cost relating to land use rights and impairment of goodwill, which we do not believe are reflective of our core operating performance during the periods presented.
> Adjusted EBITA represents net income before (i) interest and investment income, net, interest expense, other income or loss, net, income tax expenses and share of results of equity investees, (ii) certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of goodwill, which we do not believe are reflective of our core operating performance during the periods presented.
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.
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.
You can be making money and paying it all to Uncle Sam and your bank loans. 100 million is gonna be a lot of interest payments.