Digitalocean Holdings, Inc. · NYSE:DOCN
Digitalocean — Q3 2026 Earnings Presentation
33 slides from Digitalocean's earnings presentation, Nov 3, 2026
Slide 1: Q3 2026 Earnings Presentation
Q3 2026 Earnings Presentation November 3, 2026
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of Section measures allowing unauthorized access to our platform, data, or customers' data; (10) the 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities competitive markets in
Slide 3: Accelerating Growth With Disciplined Execution
Accelerating Growth With Disciplined Execution 1 2 3 4 Fastest Growth in Growing Traction on Software Makes Our We are Different a Decade Complete Cloud MW More Valuable by Design 40% revenue growth, fifth Leader in both tokens and agents, Earn industry-leading ARR per Delivering MWs of tier-one DC
Slide 4: Record Q3 Revenue Results & Strong Profitability
Record Q3 Revenue Results & Strong Profitability Q3 Revenue Incremental ARR AI Customer ARR $321M $160M $376M 40% YoY 266% YoY 288% YoY 45% 23% 20% Q3 Adjusted Operating Q3 Adjusted EBITDA Margin TTM Adjusted FCF Margin Income Margin Note: Refer to the Appendix for definitions of metrics and reconci
Slide 5: The AI-Native Cloud Flywheel
The AI-Native Cloud Flywheel Every layer a customer adopts pulls them into the next Better More consumption price-performance Token Flow Inference Engine ADOPTION UNIT ECONOMICS 90% of AI Customer Compounding on our Revenue from Customers infrastructure also using Core Cloud Cloud Primitives Managed
Slide 6: DigitalOcean AI-Native Cloud
DigitalOcean AI-Native Cloud ACT AGENTS RUN HERE THINK MODELS REASON HERE Harness Runtime Action Gateway Model Library Inference Engine MicroVM Checkpoint Fork Active CPU billing MCP tools Find by intent Open models Frontier models Inference Router Fine-tuning Session Mgmt Durable sessions Live web
Slide 7: Customers Are Adopting The Full AI Native Cloud
Customers Are Adopting The Full AI Native Cloud Multi-layer adoption proof points Amplitude Wave, built on DigitalOcean ~60% of total revenue came from customers on four or more products Amplitude (NASDAQ:AMPL) whose product analytics platform powers some of the world's largest digital brands. Wave
Slide 8: Our Software Makes Our Megawatts More Valuable
Our Software Makes Our Megawatts More Valuable ↑ $/MW 3 4 Platform adoption 2 Elastic AI pulls through higher compute 1 Newer GPU margin primitives including Leverage elastic compute core cloud, creating stickier generations customers Short-term fleet to maximize utilization Today contracts More tok
Slide 9: Committed Capacity and Balance Sheet Flexibility Support Sustained Acceleration
Committed Capacity and Balance Sheet Flexibility Support Sustained Acceleration Execution Data Centers delivered on / ahead of schedule Richmond Q1, Kansas City Q2, Memphis Q3 Actively ~180 MW Committed Capacity pursuing Actively pursuing additional 2028 capacity and beyond more capacity Funding Add
Slide 10: Highly Differentiated Profile
Highly Differentiated Profile Materially different business model and financial profile vs. other industry participants Concerns with industry What it means Customer concentration Lower concentration risk Hyperscaler & AI lab customers who can bring capacity in house 27% Top 25 customers % of revenu
Slide 11: Accelerating Growth
Accelerating Growth YoY Revenue Growth 2026 DigitalOcean. All rights reserved 11
Slide 12: Record Quarterly Revenue on All Key Metrics
Record Quarterly Revenue on All Key Metrics Revenue ($M) $1M+ Customer ARR ($M) 40% 273% 3Q23 3Q24 3Q25 3Q26 3Q23 3Q24 3Q25 3Q26 Incremental ARR ($M) AI Customer ARR ($M) 266% 288% 3Q23 3Q24 3Q25 3Q26 3Q23 3Q24 3Q25 3Q26 Note: Refer to the Appendix for reconciliations of Non-GAAP measures to GAAP an
Slide 13: $1M+ Customer ARR Reached $386M and Grew 273% YoY
$1M+ Customer ARR Reached $386M and Grew 273% YoY $100K+ Customer ARR ($M) $500K+ Customer ARR ($M) $1M+ Customer ARR ($M) +133% +214% +273% Q3 2025 Q3 2026 Q3 2025 Q3 2026 Q3 2025 Q3 2026 % of total ARR 25% 41% 15% 33% 11% 30% Note: Refer to the Appendix for definitions of customer categories, cust
Slide 14: AI Customer ARR Reached $376M and Grew 288% YoY
AI Customer ARR Reached $376M and Grew 288% YoY Q3 YoY AI Customer ARR ($M) ARR Growth Total Core Cloud Inference Services Bare Metal % Non 61% 70% 81% 85% 90% Bare-metal Note: Refer to the Appendix for definitions of AI Customers and AI Customer ARR. Core Cloud includes: VM, VPC, Storage, High Perf
Slide 15: Operating Leverage Remains Strong
Operating Leverage Remains Strong GAAP Gross Profit ($M) & Margin Adjusted EBITDA ($M) & Margin +18% +45% 3Q23 3Q24 3Q25 3Q26 3Q23 3Q24 3Q25 3Q26 Margin (%) 60% 59% 60% 50% Margin (%) 43% 44% 43% 45% Adjusted Operating Income ($M) & Margin TTM Adjusted Free Cash Flow ($M) & Margin +6% +24% 3Q23 3Q24
Slide 16: Strong Balance Sheet Provides Significant Financial Flexibility
Strong Balance Sheet Provides Significant Financial Flexibility $220M ~$1.2B <1.5x TTM aFCF at 20% margin Total liquidity Net Leverage up 24% YoY; raising FY26 aFCF guide to 20%-22% $666M cash + $179M securities + $397M revolver no material debt maturities until 2030 Strong Balance Sheet Funding Fle
Slide 17: Raising 2026 Outlook
Raising 2026 Outlook Quarterly Guidance Full Year Guidance Metric Q4 2026 FY 2026 FY 2026 FY Delta (as of 8/4) (as of 11/3) (at midpoint) Revenue ($M) $348 - $351 $1,170 - $1,180 $1,208 - $1,211 +34.5M Revenue Growth 44% - 45% 30% - 31% ~34% +350bps Adjusted EBITDA Margin 42% - 43% 38.5% - 39.5% 41%
Slide 18: Continuing to Raise the Bar for 2027
Continuing to Raise the Bar for 2027 Raised both 2026 and implied 2027 revenue outlook in every guidance update since February 2026 guidance midpoint 2027 implied revenue midpoint $1,935+ $1,763+ $1,706+ +$518M 60%+ total 2027 implied guide $1,417+ increase, 2/24 to 11/3 50%+ 50%+ ~30% +$120M $1,175
Slide 19: Accelerating Growth With Disciplined Execution
Accelerating Growth With Disciplined Execution 1 2 3 4 Fastest Growth in Growing Traction on Software Makes Our We are Different a Decade Complete Cloud MW More Valuable by Design 40% revenue growth, fifth Leader in both tokens and agents, Earn industry-leading ARR per Delivering MWs of tier-one DC
Slide 20: Appendix
#) DigitalOcean Appendix
Slide 21: Financial Highlights and Key Business Metrics
Financial Highlights and Key Business Metrics Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Revenue (M) $229.6 $242.4 $257.9 $281.2 $321.2 Revenue Growth Year-over-year 16% 18% 22% 29% 40% ARR (M) $919 $970 $1,032 $1,125 $1,285 ARR Increase (M) $44 $51 $62 $93 $160 Adj. Operating Income (M) $70 $64 $64 $6
Slide 22: Over 70 releases in 65 business days
PUBLIC PREVIEW PUBLIC PREVIEW PUBLIC PREVIEW PRIVATE PREVIEW Prompt caching Insights Agent Droplets MicroVMs Automatic for open Logs, metrics and One price, one bill for Isolated compute for models traces agents agents GA PRIVATE PREVIEW v5 Droplets Managed Agents Runtime 5th Gen AMD Agent sandboxes
Slide 23: Metrics Definitions
Metrics Definitions Customers We calculate customer count as the average number of customers as of the last day of the month for each month in the most recent quarter. Customers are classified in the following categories based on the amount of their spend in a given month and individual customers ma
Slide 24: Metrics Definitions
Metrics Definitions Remaining Performance Obligation Remaining performance obligation (“RPO”) represents commitments in customer contracts for future services that have not yet been recognized in the condensed consolidated financial statements. RPO is not necessarily indicative of future revenue gro
Slide 25: Use of Non-GAAP Metrics
Use of Non-GAAP Metrics This presentation includes certain non-GAAP metrics, which have not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP metrics are in addition to, and not as a substitute for, or superior to, financial measu
Slide 26: Adjusted Operating Income and Adjusted Operating Income Margin
Adjusted Operating Income and Adjusted Operating Income Margin 1) For the three months ended September 30, 2023, non-GAAP stock-based compensation excludes a $31.3 million reversal related to the former CEO’s forfeited MRSU award that is reported in Restructuring related charges. 2) For the three mo
Slide 27: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA and Adjusted EBITDA Margin 1) For the three months ended September 30, 2023, non-GAAP stock-based compensation excludes a $31.3 million, reversal related to the former CEO’s forfeited MRSU award that is reported in Restructuring related charges. 2) For the three months ended Septembe
Slide 28: Non-GAAP Net Income
Non-GAAP Net Income 1) For the three and nine months ended September 30, 2026, excludes tax impact which is presented in Non-GAAP income tax adjustment. 2) For the periods in fiscal year 2026 and 2025, we used a tax rate of 16%, which we believe is a reasonable estimate of our long-term effective ta
Slide 29: Non-GAAP Diluted Net Income per Share
Non-GAAP Diluted Net Income per Share 1) For the three and nine months ended September 30, 2026, excludes tax impact which is presented in Non-GAAP income tax adjustment. 2) For the periods in fiscal year 2026 and 2025, we used a tax rate of 16%, which we believe is a reasonable estimate of our long
Slide 30: Adjusted Free Cash Flow and Margin Reconciliation
Adjusted Free Cash Flow, Unlevered Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin and Unlevered Adjusted Free Cash Flow Margin 2026 DigitalOcean. All rights reserved 30
Slide 31: TTM Adjusted Free Cash Flow and TTM Adjusted Free Cash Flow Margin
TTM Adjusted Free Cash Flow and TTM Adjusted Free Cash Flow Margin 1) For the periods ended September 30, 2023 through December 31, 2023, primarily consists of salary continuation charges and executive reorganization charges, including CEO search firm fees and other legal and professional service co
Slide 32: Non-GAAP Operating Expenses
Non-GAAP Operating Expenses 2026 DigitalOcean. All rights reserved 32
Slide 33: Net Leverage
Net Leverage 2026 DigitalOcean. All rights reserved 33
DigitalOcean Holdings — Q3 2026 Earnings Presentation on 6ix