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DigitalOcean Holdings, Inc.

DigitalOcean Holdings, Inc.

NYSE•DOCN
CEO: Mr. Warren J. Adelman
Sector: Technology
Industry: Software - Infrastructure
Listing Date: 2021-03-24
DigitalOcean Holdings, Inc., through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company's platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC). The company also provides platform-as-a-service (PaaS) solutions, such as managed databases; managed Kubernetes and container registry; application platform to build, deploy, and scale applications; Functions, a serverless compute solution; and Uptime for real-time uptime and latency alerts, as well as software-as-a-service (SaaS), including managed hosting and DigitalOcean Marketplace, a platform where developers can find pre-configured applications and solutions. In addition, it offers artificial intelligence (AI)/machine learning (ML) applications comprising GPU virtual machines for scaling AI applications; Notebooks, a simple cloud workspace that runs on GPUs that provides a managed interactive development environment for exploring data, and training and building machine learning models; and Deployments for deploying their machine learning model as an API endpoint. The company's customers include software engineers, researchers, data scientists, system administrators, students, and hobbyists. Its customers use its platform in various industry verticals and for a range of use cases, such as web and mobile applications, website hosting, e-commerce, media and gaming, personal web projects, managed services, and AI/ML applications. DigitalOcean Holdings, Inc. was incorporated in 2012 and is headquartered in New York, New York.
Contact Information
101 6th Avenue, New York, NY, 10013, United States
646-827-4366
www.digitalocean.com
Market Cap
$4.42B
P/E (TTM)
17.5
40
Dividend Yield
--
52W High
$52.20
52W Low
$25.45
52W Range
85%
Rank48Top 50.7%
3.7
F-Score
Modified Piotroski Analysis
Based on 7-year fundamentals
Weak • 3.7 / 9 points
Scoring Range (0-9)
8-9: Excellent Value
6-7: Strong Fundamentals
4-5: Average Quality
0-3: Weak Performance
Data Period: 2018-2024

Financial Dashboard

Q3 2025 Data

Revenue

$229.63M+15.69%
4-Quarter Trend

EPS

$1.73+380.56%
4-Quarter Trend

FCF

$88.97M+556.35%
4-Quarter Trend

2025 Q3 Earnings Highlights

Key Highlights

Nine Months Revenue Growth Revenue grew $83.3M, 14% for nine months, driven by 13% ARPU increase to $112.18 from $99.02.
Net Income Attributable Surge Net income reached $233.6M, up 253% for nine months, heavily influenced by $69.9M discrete tax benefit release.
Higher Spend Customer Growth Higher Spend Customers increased to 177,000 users, contributing 89% of Q3 revenue, showing strong retention.
Strong Operating Cash Flow Operating cash flow provided $252.3M for nine months, up $40.9M from prior period due to higher revenues.

Risk Factors

Data Center Expansion Costs Cost of Revenue rose 11% (9M) due to $22.6M increase in co-location costs resulting from data center expansion.
Macroeconomic Environment Uncertainty Unfavorable global economic conditions, trade tensions, and interest rate volatility could negatively affect business growth.
Significant Debt Repurchase Activity Used $1.1B cash to repurchase 2026 Convertible Notes; $1.3B debt remains outstanding as of September 30, 2025.
Legal Proceedings Exposure Company involved in ordinary course litigation; outcomes are uncertain and could burden management resources.

Outlook

Platform Investment Focus Will continue significant investment in platform features, especially expanding IaaS, PaaS, and newer AI/ML offerings.
Growing High-Value Customers Strategy targets new Higher Spend Customers via optimized marketing, dedicated AI sales team, and migration services.
Liquidity Supports Operations Existing cash and $420.0M borrowing capacity support working capital and capital expenditure requirements long term.
Future Debt Settlement Plan Plans to settle remaining 2026 Convertible Notes principal using available credit facility capacity and operational cash.

Peer Comparison

Revenue (TTM)

Euronet Worldwide, Inc.EEFT
$4.18B
+7.2%
Plexus Corp.PLXS
$4.03B
+1.8%
StoneCo Ltd.STNE
$2.42B
+12.0%

Gross Margin (Latest Quarter)

Euronet Worldwide, Inc.EEFT
83.6%
+56.7pp
Qualys, Inc.QLYS
83.6%
+2.4pp
Box, Inc.BOX
79.5%
-0.3pp

Key Metrics

Symbol
Market Cap
P/E (TTM)
ROE (TTM)
Debt to Assets
QLYS$5.31B27.837.6%5.3%
BOX$4.58B20.1107.5%17.2%
DOCN$4.42B17.5-153.0%19.1%

Long-Term Trends

Last 4 Quarters
Revenue
Net Income
Operating Cash Flow
4Q Revenue CAGR
3.9%
Moderate Growth
4Q Net Income CAGR
105.4%
Profitability Improved
Cash Flow Stability
100%
Strong Cash Flow

Research & Insights

Next earnings:Feb 24, 2026
|
EPS:$0.38
|
Revenue:-
Reports
All Years
  • Form 10-Q - Q3 2025

    Period End: Sep 30, 2025|Filed: Nov 5, 2025|
    Revenue: $229.63M+15.7%
    |
    EPS: $1.73+380.6%
    Beat
  • Form 10-Q - Q2 2025

    Period End: Jun 30, 2025|Filed: Aug 5, 2025|
    Revenue: $218.70M+13.6%
    |
    EPS: $0.41+95.2%
    Miss
  • Form 10-Q - Q1 2025

    Period End: Mar 31, 2025|Filed: May 6, 2025|
    Revenue: $210.70M+14.1%
    |
    EPS: $0.42+162.5%
    Miss
  • Form 10-K - FY 2024

    Period End: Dec 31, 2024|Filed: Feb 25, 2025|
    Revenue: $780.62M+12.7%
    |
    EPS: $0.92+318.2%
    Beat
  • Form 10-Q - Q3 2024

    Period End: Sep 30, 2024|Filed: Nov 4, 2024|
    Revenue: $198.48M+12.1%
    |
    EPS: $0.36+63.6%
    Miss
  • Form 10-Q - Q2 2024

    Period End: Jun 30, 2024|Filed: Aug 8, 2024|
    Revenue: $192.48M+13.3%
    |
    EPS: $0.21+369.8%
    Miss
  • Form 10-Q - Q1 2024

    Period End: Mar 31, 2024|Filed: May 10, 2024|
    Revenue: $184.73M+11.9%
    |
    EPS: $0.16-143.2%
    Miss
  • Form 10-K - FY 2023

    Period End: Dec 31, 2023|Filed: Feb 21, 2024|
    Revenue: $692.88M+20.2%
    |
    EPS: $0.22+191.7%
    Miss