Customer Metrics - As of March 31, 2024, DigitalOcean had approximately 637,000 active customers categorized as Learners, Builders, and Scalers, with Learners accounting for 479,387, Builders for 140,306, and Scalers for 17,243[105][120]. - DigitalOcean's customer base is geographically diverse, with 37% of revenue from North America, 29% from Europe, 24% from Asia, and 10% from the rest of the world for the three months ended March 31, 2024[110]. Revenue and Growth - Average Revenue Per User (ARPU) increased from $88.35 in Q1 2023 to $95.13 in Q1 2024, indicating a growth in customer spending[111][120]. - Annual Run-Rate Revenue (ARR) reached $749 million as of March 31, 2024, up from $669 million in the same period of 2023, reflecting a year-over-year growth of approximately 12%[111][120]. - Revenue for the three months ended March 31, 2024, was $184.7 million, a 12% increase from $165.1 million in the same period of 2023, driven by new customer acquisitions and increased utilization from existing customers[137]. - Revenue from Builders and Scalers increased by 9% and 15%, respectively, for the three months ended March 31, 2024, contributing to 87% of total revenue[112]. Profitability and Expenses - Gross profit margin improved to 61% for the three months ended March 31, 2024, up from 56% in the same period of 2023, primarily due to a decrease in ancillary equipment and bandwidth expenses[138]. - Total operating expenses decreased by 20% to $100.5 million for the three months ended March 31, 2024, compared to $126.3 million in the same period of 2023, largely due to the absence of restructuring charges[139]. - Research and development expenses decreased by 11% to $34.0 million for the three months ended March 31, 2024, compared to $38.3 million in the same period of 2023[139]. - Sales and marketing expenses increased by 14% to $20.8 million for the three months ended March 31, 2024, compared to $18.2 million in the same period of 2023, driven by higher affiliate fees and advertising expenses[140]. - Net income attributable to common stockholders was $14.1 million for the three months ended March 31, 2024, compared to a net loss of $16.4 million in the same period of 2023[135]. - Adjusted EBITDA for the same period was $74,324,000, representing a 33.5% increase from $55,682,000 in the prior year, with an adjusted EBITDA margin of 40% compared to 34%[162]. - Non-GAAP net income for the three months ended March 31, 2024, was $42,747,000, up from $29,685,000 in 2023, resulting in a non-GAAP diluted net income per share of $0.43, compared to $0.28 in the previous year[166]. - The company reported a net income margin of 8% for the three months ended March 31, 2024, compared to a negative margin of 10% in the same period of 2023[162]. Cash and Investments - As of March 31, 2024, the company had $419.1 million in cash and cash equivalents, primarily consisting of cash and money market funds[148]. - The Board of Directors approved a stock repurchase program of up to $140 million through fiscal year 2025, with $7.8 million spent on repurchasing 200,258 shares in the three months ended March 31, 2024[147]. Market Conditions and Risks - Macroeconomic conditions, including inflation and geopolitical tensions, are monitored as potential risks that could impact business investments in information technology[117][118]. - The company did not experience any material changes in market risk compared to the previous fiscal year[169]. Accounting and Compliance - There were no recent accounting pronouncements that had or are expected to have a material impact on the consolidated financial statements[158]. - The company continues to evaluate its estimates and assumptions, which may lead to differences in actual results compared to reported estimates[159].

Exhibit 99.1 DigitalOcean Announces First Ouarter 2024 Financial Results Revenue Growth Increases to 12% on Improving Core Cloud Performance and Robust Al Platform Demand Strong Profitability with Net Income Margin of 8% and Adjusted EBITDA Margin of 40% NEW YORK, May 10, 2024 – DigitalOcean Holdings, Inc. (NYSE: DOCN), the developer cloud optimized for startups and growing technology businesses, today announced results for its first quarter ended March 31, 2024. "The first quarter was a strong start to the ...

DigitalOcean (DOCN) is scheduled to report first-quarter 2024 results on May 10.For the first quarter, DigitalOcean anticipates revenues between $182 million and $183 million.The Zacks Consensus Estimate for first-quarter revenues is pegged at $182.7 million, suggesting growth of 10.64% year over year.The company projects earnings in the range of 37-39 cents. The consensus mark for first-quarter earnings remained unchanged in the past 30 days at 38 cents per share, suggesting growth of 35.71% year over year ...

DigitalOcean Holdings, Inc. (DOCN) shares rallied 8.1% in the last trading session to close at $35.53. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 11.7% loss over the past four weeks.DOCN is benefiting from strong spending in the cloud computing domain. Annual Run-Rate Revenue (ARR) ended the quarter at $730 million, representing 11% year-over-year growth.This company is expected to post quarterly earning ...

Could the company be growing faster than anticipated?Shares of cloud-computing company DigitalOcean (DOCN 9.81%) jumped on Wednesday, getting a boost from investors extrapolating positive results from Amazon. Moreover, the company is getting some recognition by being added to a prominent stock index. As of 12:10 p.m. ET, DigitalOcean stock was up 8%.Companies are spending on cloud computing againDigitalOcean stock has essentially traded sideways over the past year because its growth is slowing considerably ...

NEW YORK, April 30, 2024 /PRNewswire/ -- DigitalOcean Holdings Inc. (NYSE: DOCN) will replace Agiliti Inc. (NYSE: AGTI) in the S&P SmallCap 600 effective prior to the opening of trading on Tuesday, May 7. Thomas H. Lee Partners L.P. is acquiring Agiliti in a deal expected to be completed on or about that date pending final conditions. Following is a summary of the changes that will take place prior to the open of trading on the effective date: Effective Date Index Name Action Company Name Ticker GIC ...

These stocks have carved new niches in established industries.The Nasdaq may have reached a turning point. In the five trading sessions during the third week in April, the Nasdaq Composite dropped almost 6% and Nvidia fell 14%.The good news is that pullback was more likely a healthy correction than a sign of a permanent decline. That makes more tech stocks a buy. With the lower share prices and many tech stocks showing signs of a resurgence, it may be an excellent time to buy these three stocks.DigitalOcean ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Analysts on Wall Street expect robust earnings from this small-cap stock.Fool.com contributor Parkev Tatevosian, using Wall Street analyst estimates, evaluates how high this small-cap stock could rise by the end of the year. *Stock prices used were the afternoon prices of April 12, 2024. The video was published on April 14, 2024. ...

As we venture into the fourth month of 2024, the ongoing stock market rally shows no signs of waning. Consequently, many stock pickings, particularly in the artificial intelligence sector, are becoming pricier to acquire.Nevertheless, given their recent downturns and price reversals in the preceding year, there exists a multitude of options for stock traders that hold the potential for profitable long-term investments. Conducting an analysis encompassing fundamentals, technicals, and past performance, Finbo ...