Cloud platform provider DigitalOcean grabbed a $300 million life preserver that it said will help fund its operations to profitability and move toward generating more than $1 billion in revenues within the next five years.

The funding rescue was secured as bank debt financing from a “consortium of blue-chip commercial lenders,” according to a blog post from DigitalOcean CEO Yancey Spruill. “With this capital we have fully funded our business to profitability and reach our aspiration of more than $1 billion in revenue within the next five years.”

“This debt financing is an important milestone for us as it means we have now fully funded the business and don’t need to raise any more money before achieving profitability,” Spruill noted in an email to SDxCentral. He added that the bank financing model preserves “more value for shareholders” compared with an equity raise. “With our business model and focus on profitability, debt is a low risk and much more cost effective approach than a capital raise which would dilute the existing equity.”

DigitalOcean is currently generating $275 million in annual recurring revenue.

Spruill also explained that the financing “puts the [initial public offering] option on the table,” but that decision “will ultimately be dictated by the public market, however our existing financials compare favorably to recent enterprise tech IPOs.”

Restructuring, Job Cuts DigitalOcean last month acknowledged that it was laying off dozens of employees as part of a broader corporate restructuring. The company did not provide specifics on the number of jobs that would be cut, but reports indicated it could be up to 50 positions, which could be about 10% of its workforce. DigitalOcean has offices in New York City; Cambridge, Massachusetts; and Bangalore, India.

Spruill did not directly answer a question regarding what impact the debt financing would have on its job cuts but noted that the “restructuring was done to streamline our organization and enable our teams to have clearer lines of ownership on our critical priorities and initiatives. It was not financially driven, but rather a difficult, but important, step to set our team up for growth.”

The restructuring came six months after the firm revamped its executive team, and named a new CEO and CFO. Spruill replaced Mark Templeton, who left the CEO position due to “personal reasons.” Spruill was touted as having spent several years as an investment banker “focused on mergers and acquisitions.”

Bill Sorenson took over the CFO position having previously served as CFO at energy intelligent software provider Enernoc, which was sold to Enel Green Power North America for $250 million, and he served as CFO at data management and analytics company Qlik.

DigitalOcean early last year hired away Barry Cooks from VMware to be its CTO. Cooks had served as VP of research and development for cloud operations products at VMware.

DigitalOcean was founded in 2012, and has raised more than $300 million in funding across 11 rounds, according to Crunchbase. It’s often lumped into the “others” category among cloud providers. That market is dominated by Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, with Alibaba Cloud, Oracle, and IBM most often cited as challengers in the space. DigitalOcean was lauded by Forbes as one of the top 100 private cloud companies in 2019.