DigitalOcean(DOCN) - 2022 Q4 - Annual Report

Revenue Growth - Revenue from higher spend customers represented 85% of total revenue in 2022, up from 83% in 2021 and 79% in 2020[34] - Average revenue per customer (ARPU) increased significantly from $47.78 in 2020 to $75.19 in 2022[34] - Net dollar retention (NDR) rose from 103% in 2020 to 115% in 2022, indicating strong revenue growth from existing customers[39] - The number of higher spend customers increased to approximately 144,000 in 2022, up from 100,000 in 2021[39] - Approximately two-thirds of the company's revenue in 2022 came from customers located outside the United States[59] Customer Engagement and Community - DigitalOcean's community ecosystem attracted over 8 million monthly unique visitors, enhancing customer engagement and content generation[37] - The company emphasizes community engagement, with over 7,500 technical tutorials available to support developers in creating modern applications[69] Product and Service Expansion - The company launched its Australia data center in November 2022 and plans to expand into additional new locations[42] - DigitalOcean acquired Cloudways in Q3 2022, adding a managed hosting offering and a significant number of higher spend customers[44] - The company introduced performance upgrades to its storage offerings in 2022, aiming to enhance functionality and increase usage[48] - The company launched a new Dedicated CPU Managed MongoDB in 2022, improving performance and enabling easier database migration[49] - The company operates the DigitalOcean Marketplace, which features over 250 preconfigured one-click applications, streamlining the deployment process for developers[52] Innovation and Investment - The company continues to invest in innovative products and features, particularly in IaaS, PaaS, and SaaS markets, to meet the evolving needs of its customers[40] - The company launched the DigitalOcean Partner Pod program to enhance partnership opportunities and drive revenue growth[55] Financial Position - As of December 31, 2022, the company had cash, cash equivalents, and marketable securities totaling $864 million[372] - The company issued Convertible Notes with an aggregate principal amount of $1.5 billion in November 2021[373] - A hypothetical 10% increase in interest rates would have decreased the fair value of available-for-sale securities by approximately $23 million[372] Employee and Diversity Initiatives - The company has a total of 1,204 employees, with 524 located outside the United States[77] - In 2022, the company allocated over $1.1 million in cash and $150,000 in infrastructure credits to more than 900 organizations[90] - The company has published its second annual diversity, equity, inclusion, and belonging report, highlighting progress in workforce diversity[86] - The company maintains a global compensation program aimed at promoting a pay-for-performance culture[80] Security and Compliance - The company has implemented a comprehensive information security program, achieving AICPA SOC 2 Type II certification and Cloud Security Alliance (CSA) STAR Level 1[63] Intellectual Property - The company has filed applications for registration for one additional trademark in the United States and two additional trademarks in various non-U.S. jurisdictions[94] - The company has four issued patents scheduled to expire in 2039 and 2040, with pending applications that could expire in 2039 and 2042[94] Risk Management - The company has not entered into any hedging arrangements regarding foreign currency risk, although it may consider doing so in the future[375]