DigitalOcean Boasts 13% Revenue Growth In Q4, Raises Full-Year Guidance Due To AI Momentum (CORRECTED)

Core Insights - DigitalOcean Holdings, Inc. reported Q4 revenue of $204.93 million, exceeding the consensus estimate of $200.51 million, with adjusted earnings of 49 cents per share, surpassing analyst expectations of 34 cents per share [1][2] Financial Performance - Total revenue increased by 13% year-over-year, with an Annual Run-Rate Revenue (ARR) of $820 million, also up by 13% [4] - Net cash from operating activities was $71 million, a decrease from $81 million a year ago [4] - Adjusted free cash flow reached $37 million, compared to $29 million in the previous year [4] - The company ended the quarter with $428 million in cash, cash equivalents, restricted cash, and investments [4] - Increased net dollar retention to 99% [4] - Achieved an 18% adjusted free cash flow margin [4] Product and Customer Growth - In Q4, DigitalOcean released over four times as many products and features compared to the previous year [2] - Revenue from the top 500 customers, which account for 22% of total revenue, grew by 37% year-over-year, driven by continued traction in AI [2] Future Outlook - DigitalOcean anticipates Q1 revenue between $207 million and $209 million, slightly below the estimate of $207.71 million, with adjusted EPS expected between $0.41 and $0.46 [3] - For fiscal year 2025, the company projects revenue of $870 million to $890 million, compared to estimates of $877.56 million, and adjusted EPS of $1.85 to $1.95 against a consensus of $1.84 [3] Stock Performance - DOCN stock increased by 12.30%, reaching $41.73 [3]