Digitalocean Holdings, Inc. ( (DOCN) ) has released its Q1 earnings. Here is a breakdown of the information Digitalocean Holdings, Inc. presented to its investors.
DigitalOcean Holdings, Inc. is a cloud platform company that provides scalable cloud and AI solutions for digital native enterprises, focusing on simplifying cloud infrastructure for developers and businesses worldwide. In its first quarter of 2025, DigitalOcean reported a revenue of $211 million, marking a 14% increase year-over-year, and a net income of $38 million, which represents a significant 170% increase from the previous year. The company’s adjusted EBITDA also saw a rise, reaching $86 million, up 16% year-over-year.
Key financial highlights from the quarter include a gross profit of $129 million with a 61% margin, and an annual run-rate revenue of $843 million, both reflecting a 14% year-over-year growth. The company also noted a 41% increase in revenue from customers with annual revenue exceeding $100,000, which now accounts for 23% of total revenue. Operationally, DigitalOcean introduced over 50 new product features and saw a 27% growth in its higher spending customer base.
Strategically, DigitalOcean made significant strides in product innovation, particularly in AI, with its AI annual recurring revenue growing over 160% year-over-year. The company also launched new features and services, such as the GenAI Platform and enhancements to its Kubernetes services, which have been well-received by its customer base. Additionally, DigitalOcean entered into a new five-year credit agreement to support its financial flexibility and strategic initiatives.
Looking ahead, DigitalOcean’s management remains optimistic, projecting continued growth with expected revenue between $870 million and $890 million for the full year 2025. The company aims to maintain an adjusted EBITDA margin in the range of 37% to 40%, reflecting its commitment to sustaining profitability while investing in growth and innovation.