DigitalOcean Announces First Quarter 2024 Financial Results
DigitalOcean reported a strong first quarter for 2024 with revenue growth increasing to 12% driven by core cloud performance and AI platform demand. The company achieved strong profitability with a net income margin of 8% and adjusted EBITDA margin of 40%. Financial highlights include $185 million in revenue, $112 million in gross profit, and $14 million in net income attributable to common stockholders. Operational highlights feature an 8% increase in ARPU and a 97% Net Dollar Retention Rate. The company also provided a positive financial outlook for the second quarter and full year of 2024.
Revenue growth increased to 12% driven by core cloud performance and AI platform demand.
Strong profitability with net income margin of 8% and adjusted EBITDA margin of 40%.
Gross profit increased by 20% year-over-year to $112 million.
Operational highlights include an 8% increase in Average Revenue Per Customer (ARPU) and a Net Dollar Retention Rate of 97%.
Positive financial outlook for the second quarter and full year of 2024.
- None.
Insights
Revenue Growth Increases to
Strong Profitability with Net Income Margin of
“The first quarter was a strong start to the year as we position the company to be the leading cloud and AI platform for growing technology businesses,” said Paddy Srinivasan, CEO of DigitalOcean. “Our results demonstrate the solid performance of our core cloud and the exciting potential of our AI platform.”
First Quarter 2024 Financial Highlights:
-
Revenue was
$185 million 12% year-over-year. -
Annual Run-Rate Revenue (ARR) ended the quarter at
$749 million 12% year-over-year growth. -
Gross profit of
$112 million 20% year-over-year, and61% of revenue. -
Net income attributable to common stockholders was
$14 million 8% . -
Adjusted EBITDA was
$74 million 33% year-over-year, and adjusted EBITDA margin was40% . -
Diluted net income per share was
$0.15 $0.43 -
Net cash from operating activities was
$67 million $36 million -
Adjusted free cash flow was
$34 million $26 million -
Cash and cash equivalents was
$419 million
First Quarter 2024 Operational Highlights:
-
Average Revenue Per Customer (ARPU) was
$95.13 8% over the first quarter 2023. -
Builders and Scalers, those customers spending more than
$50 8% from the first quarter 2023 and their revenue grew13% year-over-year. -
Net Dollar Retention Rate (NDR) was
97% as compared to96% in the prior quarter. - The Company repurchased 200,258 shares during the quarter.
Financial Outlook:
Based on information available as of May 10, 2024, for the second quarter of 2024 we expect:
-
Total revenue of
$188 $189 million -
Adjusted EBITDA margin of
37% to38% . -
Non-GAAP diluted net income per share of
$0.38 $0.40 - Fully diluted weighted average shares outstanding of approximately 102 to 103 million shares.
For the full year 2024, we expect:
-
Total revenue of
$760 $775 million -
Adjusted EBITDA margin of
36% to38% . -
Adjusted free cash flow margin in the range of
19% to21% of revenue. -
Non-GAAP diluted net income per share of
$1.60 $1.67 - Fully diluted weighted average shares outstanding of approximately 102 to 103 million shares.
A reconciliation of non-GAAP outlook measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. For example, stock-based compensation expense-related charges are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. Accordingly, a reconciliation is not available without unreasonable effort and we are unable to assess the probable significance of the unavailable information, although it is important to note that these factors could be material to our results computed in accordance with GAAP.
Conference Call Information:
DigitalOcean will host a conference call today, May 10, 2024, at 8:00 a.m. ET to review its results. The conference call can be accessed by dialing (800) 715-9871 with conference ID 2333660. A live webcast and replay of the conference call can be accessed from the DigitalOcean investor relations website at http://investors.digitalocean.com.
About DigitalOcean
DigitalOcean simplifies cloud computing so businesses can spend more time creating software that changes the world. With its mission-critical infrastructure and fully managed offerings, DigitalOcean helps developers at startups and growing digital businesses rapidly build, deploy and scale, whether creating a digital presence or building digital products. DigitalOcean combines the power of simplicity, security, community and customer support so customers can spend less time managing their infrastructure and more time building innovative applications that drive business growth. For more information, visit digitalocean.com.
Forward‑Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding our performance, including but not limited to statements in the section titled “Financial Outlook.” The forward-looking statements contained in this release and the accompanying earnings call referenced in this release are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to: (1) fluctuations in our financial results make it difficult to project future results; (2) our history of operating losses; (3) our identification of a material weakness in our internal control over financial reporting, which may impact our ability to accurately report our financial statements; (4) our ability to attract and retain customers and/or expand usage of our platform by such customers; (5) our ability to release updates and new features to our platform and adapt and respond effectively to rapidly changing technology or customer needs; (6) breaches in our security measures allowing unauthorized access to our platform, our data, or our customers’ data; (7) the competitive markets in which we participate; (8) general market, political, economic, and business conditions; (9) the operational challenges related to international operations; (10) our ability to successfully integrate acquired businesses, including Paperspace, and achieve expected synergies and benefits; (11) liability we may incur due to the activities of our customers; and (12) our customers’ ability to have continued and unimpeded access to our platform, including as a result of evolving laws and industry standards.
Further information on these and additional risks, uncertainties, assumptions and other factors that could cause actual results or outcomes to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent filings and reports we make with the SEC.
We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this release. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. We assume no obligation to, and do not currently intend to, update any such forward-looking statements after the date of this release.
About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in
Adjusted EBITDA and Adjusted EBITDA Margin
We define adjusted EBITDA as net income (loss) attributable to common stockholders, adjusted to exclude depreciation and amortization, stock-based compensation, interest expense, acquisition related compensation, acquisition and integration related costs, income tax expense, restructuring and other charges, restructuring related charges, impairment of long-lived assets, and other income, net. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. We believe that adjusted EBITDA, when taken together with our GAAP financial results, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of adjusted EBITDA is helpful to our investors as it is a measure used by management in assessing the health of our business, evaluating our operating performance, and for internal planning and forecasting purposes.
Our calculation of adjusted EBITDA and adjusted EBITDA margin may differ from the calculations of adjusted EBITDA and adjusted EBITDA margin by other companies and therefore comparability may be limited. Because of these limitations, when evaluating our performance, you should consider adjusted EBITDA and adjusted EBITDA margin alongside other financial performance measures, including our net income (loss) attributable to common stockholders and other GAAP results.
Non-GAAP Net Income and Non-GAAP Diluted Net Income Per Share
We define non-GAAP net income as net income (loss) attributable to common stockholders, excluding stock-based compensation, acquisition related compensation, amortization of acquired intangibles, acquisition and integration related costs, restructuring and other charges, restructuring related charges, impairment of long-lived assets, and other unusual or non-recurring transactions as they occur. We define non-GAAP diluted net income per share as non-GAAP net income divided by the weighted-average diluted shares outstanding, which includes the potentially dilutive effect of our stock options, RSUs, PRSUs, and Convertible Notes.
We believe non-GAAP diluted net income per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this metric generally eliminates the effects of unusual or non-recurring items from period to period for reasons unrelated to overall operating performance.
Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin
Adjusted free cash flow is a non-GAAP financial measure that we define as Net cash provided by operating activities less purchases of property and equipment, capitalized internal-use software costs, and excluding cash paid for restructuring and other charges, acquisition related compensation, restructuring related charges, and acquisition and integration related costs. Adjusted free cash flow margin is calculated as adjusted free cash flow divided by total revenue.
We believe that adjusted free cash flow and adjusted free cash flow margin are useful indicators of liquidity that provide information to management and investors about the amount of cash generated from our core operations that can be used for strategic initiatives, including investing in our business and selectively pursuing acquisitions and strategic investments. We further believe that historical and future trends in adjusted free cash flow and adjusted free cash flow margin, even if negative, provide useful information about the amount of Net cash provided by operating activities that is available (or not available) to be used for strategic initiatives. One limitation of adjusted free cash flow and adjusted free cash flow margin is that they do not reflect our future contractual commitments. Additionally, adjusted free cash flow does not represent the total increase or decrease in our cash balance for a given period.
Key Business Metrics:
We utilize the key metrics set forth below to help us evaluate our business and growth, identify trends, formulate financial projections and make strategic decisions.
Customers
We divide our customer population into the following categories:
-
Testers: users that both (i) spend less than or equal to
$50 -
Learners: users that both (i) spend less than or equal to
$50 -
Builders: users that spend greater than
$50 $500 -
Scalers: users that spend greater than
$500
We view Learners, Builders and Scalers as the most appropriate measure of our customer population, and Testers have therefore been excluded from the total customer population count. While we believe the total number of these customers is an important indicator of the growth of our business and future revenue opportunity, the trends relating to our Builders and Scalers is of particular importance to us as these customers represent a significant majority of our revenue and revenue growth, and they are representative of the SMB customers that grow on our platform and use multiple products.
ARPU
We calculate ARPU on a monthly basis as our total revenue for Learners, Builders and Scalers in that period divided by the number of total Learner, Builder and Scaler customers determined as of the last day of that period, excluding aggregate Testers revenue and total user count from the calculation. Beginning in the first quarter of 2023, we redefined ARPU to exclude testers. For a quarterly or annual period, ARPU is determined as the weighted average monthly ARPU over such three or 12-month period.
ARR
We calculate ARR at a point in time by multiplying the latest monthly period’s revenue by 12. For our ARR calculations, we include the total revenue from all customers, including Testers, Learners, Builders and Scalers.
Net Dollar Retention Rate
We calculate net dollar retention rate monthly by starting with the revenue from the cohort of all customers during the corresponding month 12 months prior, or the Prior Period Revenue. We then calculate the revenue from these same customers as of the current month, or the Current Period Revenue, including any expansion and net of any contraction or attrition from these customers over the last 12 months. The calculation also includes revenue from customers that generated revenue before, but not in, the corresponding month 12 months prior, but subsequently generated revenue in the current month and are therefore reflected in the Current Period Revenue. We include this group of re-engaged customers in this calculation because our customers frequently use our platform for projects that stop and start over time. We then divide the total Current Period Revenue by the total Prior Period Revenue to arrive at the net dollar retention rate for the relevant month. For our net dollar retention rate calculations, we include the total revenue from all customers, including Testers, Learners, Builders and Scalers. For a quarterly or annual period, the net dollar retention rate is determined as the average monthly net dollar retention rates over such three or 12-month period.
DIGITALOCEAN HOLDINGS, INC. |
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||
|
March 31, 2024 |
|
December 31, 2023 |
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
419,063 |
|
$ |
317,236 |
Marketable securities |
|
— |
|
|
94,532 |
Accounts receivable, less allowance for credit losses of |
|
63,866 |
|
|
62,186 |
Prepaid expenses and other current assets |
|
32,884 |
|
|
29,040 |
Total current assets |
|
515,813 |
|
|
502,994 |
|
|
|
|
||
Property and equipment, net |
|
322,052 |
|
|
305,444 |
Restricted cash |
|
1,747 |
|
|
1,747 |
Goodwill |
|
348,322 |
|
|
348,322 |
Intangible assets, net |
|
134,416 |
|
|
140,151 |
Operating lease right-of-use assets, net |
|
156,002 |
|
|
155,201 |
Deferred tax assets |
|
1,945 |
|
|
1,994 |
Other assets |
|
5,276 |
|
|
5,114 |
Total assets |
$ |
1,485,573 |
|
$ |
1,460,967 |
|
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
4,536 |
|
$ |
3,957 |
Accrued other expenses |
|
24,398 |
|
|
31,046 |
Deferred revenue |
|
5,477 |
|
|
5,340 |
Operating lease liabilities, current |
|
81,218 |
|
|
81,320 |
Other current liabilities |
|
73,322 |
|
|
70,982 |
Total current liabilities |
|
188,951 |
|
|
192,645 |
|
|
|
|
||
Deferred tax liabilities |
|
3,517 |
|
|
3,533 |
Long-term debt |
|
1,479,687 |
|
|
1,477,798 |
Operating lease liabilities, non-current |
|
95,174 |
|
|
91,161 |
Other long-term liabilities |
|
4,316 |
|
|
9,528 |
Total liabilities |
|
1,771,645 |
|
|
1,774,665 |
|
|
|
|
||
Preferred stock ( |
|
— |
|
|
— |
Common stock ( |
|
2 |
|
|
2 |
Additional paid-in capital |
|
44,615 |
|
|
30,989 |
Accumulated other comprehensive loss |
|
(591) |
|
|
(452) |
Accumulated deficit |
|
(330,098) |
|
|
(344,237) |
Total stockholders’ deficit |
|
(286,072) |
|
|
(313,698) |
|
|
|
|
||
Total liabilities and stockholders’ deficit |
$ |
1,485,573 |
|
$ |
1,460,967 |
DIGITALOCEAN HOLDINGS, INC. |
|||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) |
|||||
|
Three Months Ended |
||||
|
March 31, |
||||
|
2024 |
|
2023 |
||
Revenue |
$ |
184,730 |
|
$ |
165,134 |
Cost of revenue |
|
72,644 |
|
|
71,879 |
Gross profit |
|
112,086 |
|
|
93,255 |
Operating expenses: |
|
|
|
||
Research and development |
|
33,971 |
|
|
38,272 |
Sales and marketing |
|
20,804 |
|
|
18,231 |
General and administrative |
|
45,773 |
|
|
48,939 |
Restructuring and other charges |
|
— |
|
|
20,869 |
Total operating expenses |
|
100,548 |
|
|
126,311 |
|
|
|
|
||
Income (loss) from operations |
|
11,538 |
|
|
(33,056) |
|
|
|
|
||
Other income (expense): |
|
|
|
||
Interest expense |
|
(2,304) |
|
|
(2,189) |
Interest income and other income, net |
|
5,021 |
|
|
7,394 |
Other income, net |
|
2,717 |
|
|
5,205 |
|
|
|
|
||
Income (loss) before income taxes |
|
14,255 |
|
|
(27,851) |
Income tax (expense) benefit |
|
(116) |
|
|
11,481 |
Net income (loss) attributable to common stockholders |
$ |
14,139 |
|
$ |
(16,370) |
Net income (loss) per share attributable to common stockholders |
|||||
Basic |
$ |
0.16 |
|
$ |
(0.17) |
Diluted |
$ |
0.15 |
|
$ |
(0.17) |
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders |
|||||
Basic |
|
90,794 |
|
|
95,565 |
Diluted |
|
93,787 |
|
|
95,565 |
DIGITALOCEAN HOLDINGS, INC. |
|||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
|||||
|
Three Months Ended March 31, |
||||
|
2024 |
|
2023 |
||
Operating activities |
|
|
|
||
Net income (loss) attributable to common stockholders |
$ |
14,139 |
|
$ |
(16,370) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
||
Depreciation and amortization |
|
31,887 |
|
|
28,913 |
Stock-based compensation |
|
22,877 |
|
|
31,531 |
Provision for expected credit losses |
|
4,175 |
|
|
3,987 |
Operating lease right-of-use assets and liabilities, net |
|
3,300 |
|
|
9,523 |
Net accretion of discounts and amortization of premiums on investments |
|
2,569 |
|
|
(3,436) |
Non-cash interest expense |
|
1,993 |
|
|
1,983 |
Loss on impairment of long-lived assets |
|
— |
|
|
553 |
Deferred income taxes |
|
— |
|
|
1,589 |
Other |
|
(53) |
|
|
590 |
Changes in operating assets and liabilities: |
|
|
|
||
Accounts receivable |
|
(5,855) |
|
|
(5,125) |
Prepaid expenses and other current assets |
|
(2,744) |
|
|
(2,568) |
Accounts payable and accrued expenses |
|
(3,260) |
|
|
(11,031) |
Deferred revenue |
|
137 |
|
|
(535) |
Other assets and liabilities |
|
(2,472) |
|
|
(3,389) |
Net cash provided by operating activities |
|
66,693 |
|
|
36,215 |
|
|
|
|
||
Investing activities |
|
|
|
||
Capital expenditures - property and equipment |
|
(43,665) |
|
|
(23,314) |
Capital expenditures - internal-use software development |
|
(1,563) |
|
|
(1,794) |
Cash paid for asset acquisitions |
|
— |
|
|
(2,500) |
Purchase of available-for-sale securities |
|
— |
|
|
(195,910) |
Maturities of available-for-sale securities |
|
91,675 |
|
|
331,581 |
Purchased interest on available-for-sale securities |
|
— |
|
|
(113) |
Proceeds from sale of equipment |
|
— |
|
|
6 |
Net cash provided by investing activities |
|
46,447 |
|
|
107,956 |
|
|
|
|
||
Financing activities |
|
|
|
||
Proceeds related to the issuance of common stock under equity incentive plan |
|
5,674 |
|
|
5,535 |
Principal repayments of finance leases |
|
(1,359) |
|
|
— |
Employee payroll taxes paid related to net settlement of equity awards |
|
(6,792) |
|
|
(3,864) |
Repurchase and retirement of common stock |
|
(8,770) |
|
|
(265,901) |
Net cash used by financing activities |
|
(11,247) |
|
|
(264,230) |
|
|
|
|
||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
(66) |
|
|
(29) |
Increase (decrease) in cash, cash equivalents and restricted cash |
|
101,827 |
|
|
(120,088) |
Cash, cash equivalents and restricted cash - beginning of period |
|
318,983 |
|
|
151,807 |
Cash, cash equivalents and restricted cash - end of period |
$ |
420,810 |
|
$ |
31,719 |
DIGITALOCEAN HOLDINGS, INC. |
|||||
RECONCILIATION OF GAAP TO NON-GAAP DATA (unaudited) |
|||||
Adjusted EBITDA and Adjusted EBITDA Margin |
|||||
|
Three Months Ended |
||||
|
March 31, |
||||
(In thousands) |
2024 |
|
2023 |
||
GAAP Net income (loss) attributable to common stockholders |
$ |
14,139 |
|
$ |
(16,370) |
|
|
|
|
||
Adjustments: |
|
|
|
||
Depreciation and amortization |
|
31,887 |
|
|
28,913 |
Stock-based compensation(1) |
|
22,730 |
|
|
27,594 |
Interest expense |
|
2,304 |
|
|
2,189 |
Acquisition related compensation |
|
4,530 |
|
|
7,601 |
Acquisition and integration related costs |
|
19 |
|
|
1,301 |
Income tax expense |
|
116 |
|
|
(11,481) |
Restructuring and other charges(1) |
|
— |
|
|
20,869 |
Restructuring related charges(1)(2) |
|
3,620 |
|
|
1,907 |
Impairment of long-lived assets |
|
— |
|
|
553 |
Other income, net(3) |
|
(5,021) |
|
|
(7,394) |
Adjusted EBITDA |
$ |
74,324 |
|
$ |
55,682 |
As a percentage of revenue: |
|
|
|
||
Net income (loss) margin |
|
8 % |
|
|
(10) % |
Adjusted EBITDA margin |
|
40 % |
|
|
34 % |
___________________ |
||
(1) |
For the three months ended March 31, 2024, non-GAAP stock-based compensation excludes |
|
(2) |
For the three months ended March 31, 2024, primarily consists of executive reorganization charges. For the three months ended March 31, 2023, primarily consists of salary continuation charges. |
|
(3) |
For the three months ended March 31, 2024 and 2023, primarily consists of interest and accretion income from our marketable securities. |
|
Non-GAAP Net Income and Non-GAAP Diluted Net Income Per Share |
|||||
|
|
|
|
||
|
Three Months Ended |
||||
|
March 31, |
||||
(In thousands) |
2024 |
|
2023 |
||
GAAP Net income (loss) attributable to common stockholders |
$ |
14,139 |
|
$ |
(16,370) |
Stock-based compensation(1) |
|
22,730 |
|
|
27,594 |
Acquisition related compensation |
|
4,530 |
|
|
7,601 |
Amortization of acquired intangible assets |
|
5,735 |
|
|
3,790 |
Acquisition and integration related costs |
|
19 |
|
|
1,301 |
Restructuring and other charges(1) |
|
— |
|
|
20,869 |
Restructuring related charges(1)(2) |
|
3,620 |
|
|
1,907 |
Impairment of long-lived assets |
|
— |
|
|
553 |
Non-GAAP income tax adjustment(3) |
|
(8,026) |
|
|
(17,560) |
Non-GAAP Net income |
$ |
42,747 |
|
$ |
29,685 |
|
|
|
|
||
Non-cash charges related to convertible notes(4) |
$ |
1,586 |
|
$ |
1,559 |
Non-GAAP Net income used to compute net income per share, diluted |
$ |
44,333 |
|
$ |
31,244 |
|
|
|
|
||
|
Three Months Ended |
||||
|
March 31, |
||||
(In thousands, except per share amounts) |
2024 |
|
2023 |
||
GAAP Net income (loss) per share attributable to common stockholders, diluted |
$ |
0.15 |
|
$ |
(0.17) |
Stock-based compensation(1) |
|
0.22 |
|
|
0.26 |
Acquisition related compensation |
|
0.04 |
|
|
0.07 |
Amortization of acquired intangible assets |
|
0.05 |
|
|
0.03 |
Acquisition and integration related costs |
|
— |
|
|
0.01 |
Restructuring and other charges(1) |
|
— |
|
|
0.19 |
Restructuring related charges(1)(2) |
|
0.03 |
|
|
0.02 |
Impairment of long-lived assets |
|
— |
|
|
0.01 |
Non-cash charges related to convertible notes(4) |
|
0.02 |
|
|
0.01 |
Non-GAAP income tax adjustment(3) |
|
(0.08) |
|
|
(0.15) |
Non-GAAP Net income per share, diluted |
$ |
0.43 |
|
$ |
0.28 |
|
|
|
|
||
GAAP weighted-average shares used to compute net income (loss) per share, diluted |
|
93,787 |
|
|
95,565 |
Weighted-average dilutive effect of potentially dilutive securities |
|
8,403 |
|
|
15,659 |
Non-GAAP weighted-average shares used to compute net income per share, diluted |
|
102,190 |
|
|
111,224 |
______________ |
||
(1) |
For the three months ended March 31, 2024, non-GAAP stock-based compensation excludes |
|
(2) |
For the three months ended March 31, 2024, primarily consists of executive reorganization charges. For the three months ended March 31, 2023, primarily consists of salary continuation charges. |
|
(3) |
For the periods in fiscal year 2024, we used a tax rate of |
|
(4) |
Consists of non-cash interest expense for amortization of deferred financing fees related to the Convertible Notes. | |
Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin |
|||||
|
Three Months Ended |
||||
|
March 31, |
||||
(In thousands) |
2024 |
|
2023 |
||
GAAP Net cash provided by operating activities |
$ |
66,693 |
|
$ |
36,215 |
Adjustments: |
|
|
|
||
Capital expenditures - property and equipment |
|
(43,665) |
|
|
(23,314) |
Capital expenditures - internal-use software development |
|
(1,563) |
|
|
(1,794) |
Restructuring and other charges |
|
61 |
|
|
11,261 |
Restructuring related charges(1) |
|
4,193 |
|
|
1,907 |
Acquisition related compensation |
|
8,326 |
|
|
— |
Acquisition and integration related costs |
|
298 |
|
|
1,468 |
Adjusted free cash flow |
$ |
34,343 |
|
$ |
25,743 |
As a percentage of revenue: |
|
|
|
||
GAAP Net cash provided by operating activities |
|
36 % |
|
|
22 % |
Adjusted free cash flow margin |
|
19 % |
|
|
16 % |
___________________ |
||
(1) |
For the three months ended March 31, 2024, primarily consists of executive reorganization charges. For the three months ended March 31, 2023, primarily consists of salary continuation charges. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240510252304/en/
Investor
Rob Bradley
investors@digitalocean.com
Media
press@digitalocean.com
Source: DigitalOcean Holdings, Inc.
FAQ
What was DigitalOcean's revenue for the first quarter of 2024?
DigitalOcean reported a revenue of $185 million for the first quarter of 2024.
What was DigitalOcean's net income margin for the first quarter of 2024?
DigitalOcean's net income margin was 8% for the first quarter of 2024.
What was DigitalOcean's adjusted EBITDA margin for the first quarter of 2024?
DigitalOcean's adjusted EBITDA margin was 40% for the first quarter of 2024.
What is DigitalOcean's financial outlook for the full year 2024?
For the full year 2024, DigitalOcean expects total revenue of $760 to $775 million, adjusted EBITDA margin of 36% to 38%, and non-GAAP diluted net income per share of $1.60 to $1.67.
