Core Insights - DigitalOcean reported Q2 2025 GAAP revenue of $219 million, exceeding analyst expectations of $216.62 million, with a non-GAAP EPS of $0.59, surpassing the estimate of $0.47, indicating strong year-over-year growth and profitability [1][5][11] Financial Performance - Q2 2025 non-GAAP EPS was $0.59, a 22.9% increase from $0.48 in Q2 2024 [2] - Revenue for Q2 2025 was $219 million, reflecting a 13.8% increase from $192.5 million in Q2 2024 [2] - Net income for Q2 2025 was $37 million, a 93.7% increase year-over-year, with a net income margin rising from 10% to 17% [2][5] - Adjusted EBITDA reached $89.5 million, maintaining a 41% margin [2][5] - Adjusted free cash flow increased to $57 million, up 52.4% from the previous year [2][9] Customer Segmentation and Growth - Revenue from high-spend customers, termed "Scalers+", grew by 35% year-over-year, now accounting for 24% of total revenue [6] - Average revenue per customer (ARPU) for Scalers+ increased to $30,000, a 9% rise year-over-year, while overall ARPU grew by 12% [6] - The number of Scalers+ customers increased by 23%, with a net dollar retention rate improving to 99% from 97% [6] Product Development and Market Position - DigitalOcean launched over 60 new products and features, including the DigitalOcean Gradient AI Platform and new GPU droplets powered by AMD [6][7] - AI/ML-related revenue more than doubled year-over-year, although specific figures were not disclosed [6] Strategic Initiatives - The company expanded dedicated account management to its top 3,000 clients, enhancing customer support and retention [8] - DigitalOcean is exploring new funding tools, such as leasing, to support cash flow while expanding capacity [10] Future Guidance - For Q3 2025, revenue is projected at $226–227 million, with an adjusted EBITDA margin of 39–40% [11] - Full-year FY2025 revenue guidance was raised to $888–892 million, with expected non-GAAP diluted net income per share of $2.05–$2.10 [11]