The earnings call reflects a positive sentiment overall, with strong revenue growth, increased guidance, and significant advances in AI/ML offerings. However, challenges remain in customer retention metrics and capacity constraints in the AI segment.

Company Guidance

During DigitalOcean's Q2 2025 earnings call, the company announced an increase in full-year guidance for both revenue and profitability metrics, showcasing its strong financial performance and strategic execution. Revenue for the second quarter reached $219 million, marking a 14% year-over-year growth. The AI/ML business demonstrated exceptional strength, with revenue surging over 100% compared to the previous year. Scalers+ customers, with annual run rates exceeding $100,000, contributed significantly to this growth, expanding by 35% year-over-year and accounting for 24% of total revenue. DigitalOcean reported incremental annual recurring revenue (ARR) of $32 million, the highest since Q4 2022. Consequently, the full-year revenue guidance was raised to a range of $888 million to $892 million, while the free cash flow guidance was increased to 17% to 19% of revenue. The company's adjusted EBITDA margin for Q2 was 41%, and adjusted free cash flow was $57 million, representing 26% of revenue. These results underline DigitalOcean's ability to accelerate top-line growth while maintaining healthy profitability margins.

Strong Revenue Growth

Revenue for the second quarter was $219 million, growing 14% year-over-year. AI/ML business revenue grew north of 100% year-over-year.

Increased Full Year Guidance

The company raised its full year revenue guidance to a range of $888 million to $892 million and adjusted free cash flow guidance to 17% to 19% of revenue.

Record Incremental ARR

DigitalOcean achieved incremental annual recurring revenue (ARR) of $32 million, the highest since Q4 of 2022 and the highest organic incremental ARR in over 3 years.

Product Innovation

Released more than 60 new products and features, and 64 of the top 100 customers have adopted a product or feature released within the last year.

Successful Customer Migrations

Facilitated 76 customer migrations during the quarter, including significant deals with companies like Xcitium and Servd.host.

AI/ML Platform Success

Launched DigitalOcean Gradient AI Platform with 14,000 agents created since January and 6,000 customers leveraging the platform.

DigitalOcean Holdings (DOCN) Earnings, Revenues Date & History

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DOCN Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 30, 2025	2025 (Q3)	0.49 / -	0.52	―	―	―
Aug 05, 2025	2025 (Q2)	0.47 / 0.59	0.48	22.92% (+0.11)
May 06, 2025	2025 (Q1)	0.44 / 0.56	0.43	30.23% (+0.13)
Feb 25, 2025	2024 (Q4)	0.34 / 0.49	0.44	11.36% (+0.05)
Nov 04, 2024	2024 (Q3)	0.40 / 0.52	0.44	18.18% (+0.08)
Aug 08, 2024	2024 (Q2)	0.39 / 0.48	0.434	10.60% (+0.05)
May 10, 2024	2024 (Q1)	0.38 / 0.43	0.28	53.57% (+0.15)
Feb 21, 2024	2023 (Q4)	0.36 / 0.44	0.28	57.14% (+0.16)
Nov 02, 2023	2023 (Q3)	0.36 / 0.44	0.38	15.79% (+0.06)
Aug 03, 2023	2023 (Q2)	0.41 / 0.43	0.2	117.00% (+0.23)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

DOCN Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 05, 2025	$27.01	$34.81	+28.88%
May 06, 2025	$32.76	$28.25	-13.77%
Feb 25, 2025	$37.17	$40.83	+9.85%
Nov 04, 2024	$40.83	$35.33	-13.47%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.