DOCN
DigitalOcean Holdings, Inc.44.44
-1.34-2.93%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Q&A colors AI economics, capacity
Q&A reinforced prepared remarks' AI momentum without walk-backs, adding color on open-source models—90% cheaper tokens, already 30% of traffic—enabling AI natives' unit economics via intelligent routing. Management touted $22M ARR per MW (vs. Neoclouds' $9-12M), settling at $20M post-ramp thanks to leasing for months-fast GPU payback. Demand swamps supply; pricing holds or rises amid scarcity. Analysts grilled FCF mechanics and capacity; replies affirmed 18-20% unlevered margins en route to 30% 2027 growth. DO out-executes rivals. Investors eye April 28 Deploy updates on inference innovations.
Key Stats
Market Cap
4.07BP/E (TTM)
17.78Basic EPS (TTM)
2.50Dividend Yield
0%Recent Filings
10-K
FY2025 results
DigitalOcean delivered FY2025 revenue of $901M, up 15% y/y, with DNE customers—those spending >$500/month—driving 60% of total and growing 24% y/y to 21k accounts as ARR hit $970M. Q4 momentum shone through NDR ticking to 100% from 98%, fueled by DNE expansion while Developers held steady; gross margins held firm at 60% despite data center builds. Cash from operations reached $310M, supporting $380M Term Loan A draw and $625M 2030 Notes issuance to retire most 2026 Notes—strong liquidity persists with $420M revolver headroom. Yet cybersecurity threats loom large.
8-K
Q4 revenue up 18%, guidance raised
DigitalOcean reported Q4 2025 revenue of $242M, up 18% year-over-year, hitting $1B annualized monthly revenue in December. Full-year net income soared to $259M at 29% margin, fueled by record $51M organic ARR add and $133M from $1M+ customers, up 123%. AI inference traction powers raised 2026 revenue guide to $1.075-1.105B at 21% growth. Cash dipped to $254M amid debt moves.
8-K
Saha resigns; guidance reaffirmed
DigitalOcean's Chief Product and Technology Officer Bratin Saha resigns effective November 26, 2025, to pursue other opportunities—no disagreements noted. Company reaffirms Q4 and full-year 2025 financial guidance from November 5 press release. Leadership transition smooth, yet product execution now tests interim team.
10-Q
Q3 FY2025 results
DigitalOcean posted Q3 revenue of $229.6M, up 16% y/y from $198.5M, with gross margin ticking to 60% from 59% as Scalers+ jumped to 26% of mix. Operating income hit $44.9M, +83% y/y, but net income of $158.4M reflected a $48.4M gain on extinguishing most 2026 Convertible Notes—net far outpaced operating due to that and a $69.9M tax valuation release. Diluted EPS landed at $1.51 on 105.5M shares, reconciling cleanly with if-converted math. Cash fell to $236.6M after debt swaps and $82M buybacks, yet op cash flow stayed robust at $252.3M YTD; total debt sits at $1.3B long-term with $420M revolver room. Debt refinancing done.
8-K
Q3 revenue up 16%
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