Digitalocean Holdings, Inc. ( (DOCN) ) has released its Q2 earnings. Here is a breakdown of the information Digitalocean Holdings, Inc. presented to its investors.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
DigitalOcean Holdings, Inc. is a cloud computing company that provides a scalable platform for digital native enterprises, focusing on simplifying cloud and AI solutions for its customers. In its second quarter of 2025, DigitalOcean reported a revenue of $219 million, marking a 14% increase compared to the previous year. The company also raised its full-year revenue guidance to between $888 million and $892 million, reflecting strong growth and strategic focus on AI and core cloud services.
The company’s financial performance in the second quarter was robust, with a net income of $37 million, up 93% year-over-year, and an adjusted EBITDA of $89 million, representing a 10% increase. DigitalOcean’s gross profit margin stood at 60%, and the adjusted EBITDA margin was 41%. The company also achieved its highest incremental Annual Run-Rate Revenue (ARR) since the fourth quarter of 2022, with an increase of $32 million.
Operational highlights included a 23% growth in the number of Scalers+ customers, who now contribute to 24% of the total revenue, with a 35% increase in revenue from this cohort. The average revenue per customer rose by 12% to $111.70. DigitalOcean also launched over 60 new products and features, including a collaboration with AMD to provide access to AMD Instinct GPUs for AI workloads and the general availability of the DigitalOcean Gradient AI Platform.
Looking ahead, DigitalOcean is optimistic about its growth trajectory, with expectations of continued revenue increases and profitability. The company anticipates a total revenue of $226 to $227 million for the third quarter of 2025 and maintains its focus on expanding its AI and cloud offerings to further drive growth and customer engagement.