DigitalOcean (DOCN) CEO on Cloud Growth, Expanding A.I. Capabilities

Company Overview - Digital Ocean is a public company listed on the New York Stock Exchange with a run rate just shy of $1 billion and over 640,000 paying customers [2][4] Financial Performance - In Q3 2025, Digital Ocean reported a revenue growth of 16% to $230 million and a net income increase of 381% year-over-year [3][4] - The company achieved its highest ever organic net new Annual Recurring Revenue (ARR) addition of $44 million, driven by both its core cloud platform and rapidly growing AI product [4][5] Growth Drivers - The core cloud segment is focused on larger and more sophisticated workloads, with million-dollar customers growing over 70% year-over-year, surpassing a run rate of $110 million [4][6] - AI revenue has more than doubled year-over-year for five consecutive quarters, indicating strong performance across all business segments [5][6] Competitive Landscape - Digital Ocean operates in a competitive environment with both global hyperscalers and regional players in Europe and Asia, but maintains a strong position due to its software stack and pricing [10][11] - The company’s customer acquisition model allows most customers to sign up without direct interaction with sales, contributing to its global reach and success [9][10] Unique Selling Proposition - Digital Ocean differentiates itself through purpose-built software that optimizes AI models for inference performance, providing significant price-performance advantages for customers [14]