DigitalOcean(DOCN)2024-05-10 11:04Customer 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 95.13 in Q1 2024, indicating a growth in customer spending[111][120]. - Annual Run-Rate Revenue (ARR) reached 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 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 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 38.3 million in the same period of 2023[139]. - Sales and marketing expenses increased by 14% 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 16.4 million in the same period of 2023[135]. - Adjusted EBITDA for the same period was 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 29,685,000 in 2023, resulting in a non-GAAP diluted net income per share of 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 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].