DigitalOcean Holdings, Inc.
39.60-0.13 (-0.33%)
Oct 29, 4:00:02 PM EDT · NYSE · DOCN · USD
Key Stats
Market Cap
3.61BP/E (TTM)
30.23Basic EPS (TTM)
1.31Dividend Yield
0%Recent Filings
8-K
DigitalOcean refinances debt
DigitalOcean completed a $625 million private offering of 0.00% Convertible Senior Notes due 2030 on August 14, 2025, yielding net proceeds of $605.6 million after fees. The company deployed these funds, plus cash on hand and $380 million in term loans, to repurchase $1,187.7 million of its 2026 Notes for $1,131.3 million, extending debt maturity while capping dilution via $83.9 million in capped call transactions. It also launched a $100 million stock repurchase program expiring July 31, 2027. Hedging unwinds may pressure shares.
8-K
Q2 revenue up 14%, guidance raised
DigitalOcean reported Q2 2025 revenue of $219 million, up 14% year-over-year, with net income surging 93% to $37 million at a 17% margin. Adjusted EBITDA hit $89 million, up 10%, while Scalers+ revenue jumped 35% to 24% of total, fueled by AI initiatives like the Gradient platform and AMD GPU collaboration. Full-year revenue guidance rose to $888-$892 million, with Adjusted EBITDA margin at 39-40%. Share repurchases totaled $1.6 billion since IPO. Yet profitability hinges on sustaining AI traction amid competition.
10-Q
Q2 FY2025 results
DigitalOcean's Q2 revenue climbed 14% year-over-year to $218.7M, fueled by higher usage from existing customers and a 16% jump in higher-spend revenue, while gross margin edged up to 60% amid data center expansions. Operating income surged 60% to $35.6M, with diluted EPS at $0.39 on 100.6M shares, reconciling neatly to net income of $37.0M after adding back interest on convertible notes. Cash from operations hit $156.5M year-to-date, funding $100.4M in capex for AI and infrastructure, leaving $387.7M in cash against $1.5B in zero-coupon convertible notes due 2026; the new $800M credit facility remains undrawn with full covenant compliance. Revenue diversified across geographies, with Asia at 23%. Competition from larger clouds remains a persistent pressure.
8-K
Stockholders approve officer exculpation
DigitalOcean stockholders approved the amended and restated certificate of incorporation at the June 9, 2025 annual meeting, limiting officer liability for breaches of the duty of care under Delaware law; it took effect June 10. They also elected Padmanabhan Srinivasan as a Class I director until 2028, ratified PwC as auditors for 2025, and backed executive pay on an advisory basis. This shields officers from personal suits. Yet risks persist in fiduciary oversight.
10-Q
Q1 FY2025 results
DigitalOcean's Q1 revenue climbed 14% year-over-year to $210.7M, fueled by higher usage from scalers and builders, while gross margin edged up to 61% from 59% on efficiency gains. Operating income surged to $37.6M from $11.5M, with diluted EPS at $0.39 versus $0.15, reconciling cleanly to 102.3M shares including convertible notes impact. Cash from operations held steady at $64.1M, funding $64.0M in capex for data centers and AI; free cash flow not disclosed in the 10-Q. The $1.5B zero-coupon convertible notes due 2026 carry at $1.49B, backed by $360.4M cash and a fresh $800M credit facility with no draws yet. Share repurchases totaled $59.1M. Intense competition from larger clouds pressures pricing.
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