
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
Market Cap
$4.42B
P/E (TTM)
17.5
40
Dividend Yield
--
52W High
$52.20
52W Low
$25.45
52W Range
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)
EEFT$4.18B
$4.03B
STNE$2.42B
Gross Margin (Latest Quarter)
EEFT83.6%
QLYS83.6%
BOX79.5%
Key Metrics
Symbol | Market Cap | P/E (TTM) | ROE (TTM) | Debt to Assets |
|---|---|---|---|---|
| QLYS | $5.31B | 27.8 | 37.6% | 5.3% |
| BOX | $4.58B | 20.1 | 107.5% | 17.2% |
| DOCN | $4.42B | 17.5 | -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%BeatForm 10-Q - Q2 2025
Period End: Jun 30, 2025|Filed: Aug 5, 2025|Revenue: $218.70M+13.6%|EPS: $0.41+95.2%MissForm 10-Q - Q1 2025
Period End: Mar 31, 2025|Filed: May 6, 2025|Revenue: $210.70M+14.1%|EPS: $0.42+162.5%MissForm 10-K - FY 2024
Period End: Dec 31, 2024|Filed: Feb 25, 2025|Revenue: $780.62M+12.7%|EPS: $0.92+318.2%BeatForm 10-Q - Q3 2024
Period End: Sep 30, 2024|Filed: Nov 4, 2024|Revenue: $198.48M+12.1%|EPS: $0.36+63.6%MissForm 10-Q - Q2 2024
Period End: Jun 30, 2024|Filed: Aug 8, 2024|Revenue: $192.48M+13.3%|EPS: $0.21+369.8%MissForm 10-Q - Q1 2024
Period End: Mar 31, 2024|Filed: May 10, 2024|Revenue: $184.73M+11.9%|EPS: $0.16-143.2%MissForm 10-K - FY 2023
Period End: Dec 31, 2023|Filed: Feb 21, 2024|Revenue: $692.88M+20.2%|EPS: $0.22+191.7%Miss