DigitalOcean(DOCN) - 2024 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 2024 was $198 million, representing a 12% year-over-year increase[2] - Net income was$ 33 million, a 72% increase year-over-year, with a net income margin of 17%[3] - Adjusted EBITDA was $87 million, up 14% year-over-year, with an adjusted EBITDA margin of 44%[3] - Annual Run-Rate Revenue (ARR) reached$ 798 million, also a 12% increase year-over-year[2] - Revenue for Q3 2024 reached $198,484,000, a 12.5% increase from$ 177,062,000 in Q3 2023[27] - Gross profit for Q3 2024 was $119,441,000, up 11.8% from$ 106,733,000 in Q3 2023[27] - Net income attributable to common stockholders for Q3 2024 was $32,949,000, compared to$ 19,175,000 in Q3 2023, representing a 71.6% increase[27] - Non-GAAP Net income for the three months ended September 30, 2024, was $51,674,000, compared to$ 43,591,000 for the same period in 2023, indicating an 18.5% increase[35] - The company reported a net income margin of 17% for the three months ended September 30, 2024, compared to 11% for the same period in 2023[33] Guidance and Expectations - DigitalOcean is raising its full year 2024 revenue guidance to $775 to$ 777 million[6] - The fourth quarter revenue guidance is set between $199 to$ 201 million[5] - The company expects continued growth in adjusted EBITDA and net income margins in the upcoming quarters, driven by operational efficiencies and market expansion strategies[33] Customer Metrics - Average Revenue Per Customer (ARPU) increased to $102.51, an 11% rise compared to Q3 2023[4] - Net Dollar Retention Rate (NDR) remained stable at 97% compared to the prior quarter[4] Cash and Assets - Cash and cash equivalents totaled$ 440 million as of September 30, 2024[3] - Total current assets increased to $552,006,000 as of September 30, 2024, from$ 502,994,000 at the end of 2023, a growth of 9.7%[25] - Cash and cash equivalents rose to $439,872,000 as of September 30, 2024, compared to$ 317,236,000 at the end of 2023, an increase of 38.7%[25] - Total assets increased to $1,526,478,000 as of September 30, 2024, from$ 1,460,967,000 at the end of 2023, reflecting a growth of 4.5%[25] Operating Expenses and Cash Flow - Operating expenses for Q3 2024 totaled $94,835,000, a 33.1% increase from$ 71,265,000 in Q3 2023[27] - The company reported net cash provided by operating activities of $211,386,000 for the nine months ended September 30, 2024, compared to$ 154,426,000 for the same period in 2023[29] - GAAP Net cash provided by operating activities for the three months ended September 30, 2024, was $73,353,000, compared to$ 54,050,000 for the same period in 2023, a 35.8% increase[39] Capital Expenditures - Capital expenditures for property and equipment for the three months ended September 30, 2024, were $57,352,000, compared to$ 20,229,000 in the same period of 2023[39] Share Metrics - The weighted-average shares used to compute net income per share (diluted) were 102,591,000 for Q3 2024, compared to 102,674,000 for Q3 2023[27] - Non-GAAP Net income per share, diluted, for the three months ended September 30, 2024, was $0.52, compared to$ 0.44 for the same period in 2023[36] Product Development - The company launched 42 new product features in Q3, including Global Load Balancers and Kubernetes Log Forwarding[4]