🔹 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.”