$DOCN (-4,71%)

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📊 𝐑𝐞𝐬𝐮𝐥𝐭𝐬

• Non-GAAP EPS: $0.45 (Est. $0.26) ✅

• Revenue: $281M (Est. $278.82M) ✅

• Adjusted EBITDA: $114M (40% margin).

• AI Customer ARR: $234M (+212% YoY).

• Record incremental ARR: $93M (+191% YoY).

• RPO: $894M, up more than 12x YoY.

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🎯 𝐆𝐮𝐢𝐝𝐚𝐧𝐜𝐞

• Q3 2026 revenue: $304M–$307M (Midpoint: $305.5M vs. Est. $299.71M) ✅

• Q3 2026 Non-GAAP EPS: $0.28–$0.30 (Midpoint: $0.29 vs. Est. $0.28) 🟰

• FY2026 revenue: $1.170B–$1.180B (Midpoint: $1.175B vs. Est. $1.16B) ✅

• FY2026 Non-GAAP EPS: $1.35–$1.40 (Midpoint: $1.38 vs. Est. $1.24) ✅

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📌 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬

• Revenue grew 29% YoY, more than doubling the company's growth rate from a year ago.

• AI Customer ARR surged 212% YoY, while Million+ Dollar Customer ARR increased 214% YoY.

• Signed its first nine-figure annual customer commitments and expanded committed data center capacity to approximately 155 MW.

• Raised its full-year revenue outlook and reiterated confidence in exceeding 50% growth in 2027.

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💬 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐂𝐨𝐦𝐦𝐞𝐧𝐭𝐚𝐫𝐲

CEO Paddy Srinivasan said DigitalOcean's accelerating growth is being driven by AI-native customers and larger enterprise commitments, giving the company confidence to raise its 2026 outlook and target revenue growth of 35% or more by Q4 2026.

$DOCN (-4,71%)

🔹 Revenue: $230M (Est. $226.58M) 🟢; UP +16% YoY

🔹 EPS (Adj.): $0.54 (Est. $0.49) 🟢

🔹 ARR: $919M; UP +16% YoY

Guidance

🔹 FY’25 Revenue: $896–$897M (Est. $891M) 🟡

🔹 FY’25 EPS (Adj.): $2.00–$2.05 (Est. $2.09) 🔴

🔹 FY’25 Adj. EBITDA Margin: 40.7%–41.0%

🔹 FY’25 Adj. FCF Margin: 18%–19%

🔹 Q4’25 Revenue: $237–$238M

🔹 Q4’25 EPS (Adj.): $0.35–$0.40

🔹 Q4’25 Adj. EBITDA Margin: 38.5%–39.5%

Customers & Growth

🔹 >$100K ARR customers: Count UP +26%; revenue from this cohort UP +41% YoY; now 26% of total revenue

🔹 >$1M ARR customers: $110M total ARR; UP +72% YoY

🔹 Incremental ARR: $44M (company record)

🔹 Net Dollar Retention: 99% (vs. 97% in Q3’24)

Cash Flow & Balance Sheet

🔹 Gross Profit: $137M; UP +17% YoY; Margin 60%

🔹 Adjusted EBITDA: $100M; UP +15% YoY; Margin 43%

🔹 Net Cash from Ops: $96M (42% margin)

🔹 Adjusted FCF: $85M (37% margin)

🔹 Cash & Equivalents: $237M

🔹 RPO: $47M (vs. $10M in Q3’24)

🔹 2026 Convertible Notes: Repurchased $1.188B principal at a $56M discount; Share repurchases: 0.1M in Q3 (cumulative $1.6B / 34.9M shares since IPO)

Product & Platform

🔹 New: Spaces Cold Storage, Network File Storage, Managed Databases Storage Autoscaling

🔹 Gradient AI: Multi-Modal support, Function Calling, Guardrails; direct AI revenue >2x YoY (5th straight quarter)

Management Commentary

🔸 “DigitalOcean’s unified agentic cloud is driving accelerated momentum… strongest incremental organic ARR in our history.” – CEO Paddy Srinivasan

🔸 “Our momentum gives us confidence to deliver our 2027 18–20% growth targets a year earlier in 2026.”

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🔹 Adj EPS: $0.49 (Est. $0.38) 🟢

🔹 Revenue: $205M (Est. $200.16M) 🟢; UP +13% YoY

🔹 Adj EBITDA: $86M (Est. $73.72M) 🟢; UP +17% YoY

Q1'25 Guidance:

🔹 Adj EPS: $0.41-$0.46 (Est. $0.42) 🟢

🔹 Revenue: $207M-$209M (Est. $207.7M) 🟡

FY25 Guidance:

🔹 Revenue: $870M-$890M (Est. $877.7M) 🟡

🔹 Adj EPS: $1.85-$1.95 (Est. $1.84) 🟢

Q4'24 Segment Highlights:

🔹 Revenue from Scalers+ (Top 500+ Customers): 22% of total revenue; UP +37% YoY

Q4'24 Geographical Breakdown:

🔹 Total Revenue: $205M; UP +13% YoY (global, no regional split provided)

Other Q4'24 Metrics:

🔹 ARR: $820M; UP +13% YoY

🔹 Net Dollar Retention: 99%; UP from 97% QoQ

🔹 ARPU: $105.75; UP +14% YoY

Strategic/Shareholder Updates:

🔸 Released 49 new products/features, 4x more than Q4’23

🔸 Repurchased 716,718 shares in Q4

🔸 Launched GenAI Platform and Cloudways Copilot (AI-powered hosting)

Management Commentary:

🔸 "Paddy Srinivasan (CEO): We’re entering 2025 with momentum—Q4 revenue grew 13% YoY, and our top 500+ customers’ revenue surged 37% YoY, reflecting traction in AI and focus on higher-spend customers."