Digitalocean Holdings, Inc. · NYSE:DOCN
Digitalocean — Q2 2025 Earnings Presentation
27 slides from Digitalocean's earnings presentation, Aug 5, 2025
Slide 1: Earnings Presentation Q2 2025
Earnings Presentation Q2 2025 August 5, 2025 2025 DigitalOcean. All rights reserved
Slide 2: Safe Harbor
Safe Harbor The statements in the presentation regarding our financial outlook are management; (12) the effects of acquisitions and their integration; (13) general forward-looking statements within the meaning of Section 27A of the Securities Act market, political, economic, and business conditions,
Slide 3: Company Overview
Company Overview 2025 DigitalOcean. All rights reserved 3
Slide 4: Our mission is to simplify cloud and AI
Our mission is to simplify cloud and AI so builders can spend more time creating software that changes the world 2025 DigitalOcean. All rights reserved 4
Slide 5: AI Expansion: large and growing public cloud market
We operate in a large and growing market $400B in 2025, growing 23%1 Public Cloud Market AI EXPANSION Our focus is on: $140B Digital Native Large Enterprises2 enterprises AI EXPANSION $260B $140B 4M Digital Native Medium Enterprises2 enterprises Individuals & 174K Small enterprises DNEs on DO3 NO
Slide 6: Digital Native Enterprises' struggles with hyperscalers
Digital Native Enterprisesʼ struggles with hyperscalers Highly complex Cost prohibitive Locked in contracts at scale and limited support Note: Digital Native Enterprises are companies whose core products or services are built using cloud or AI technologies. 2025 DigitalOcean. All rights reserved 6
Slide 7: DigitalOcean is purpose built for Digital Native Enterprises
DigitalOcean is purpose built for Digital Native Enterprises Unmet need Simple cloud lifecycle management for lean teams without heavy DevOps, CloudOps, or FinOps resources Simple Scalable, full featured cloud with enterprise-grade SLAs for mission critical products Scalable Trusted cloud partner wi
Slide 8: Full stack Cloud + Agentic Cloud
Full stack Cloud + Agentic Cloud General Purpose Cloud DigitalOcean Gradient™ AI Agentic Cloud Marketplace Pre-configured VMs SaaS add ons DO.NEXT Coming soon) Including: App design agents, Optimization agents, and Troubleshooting agents Gradient™ AI SaaS Agents Web Hosting Cloudways - high perform
Slide 9: Q2 2025 Highlights
Q2 2025 Highlights 2025 DigitalOcean. All rights reserved
Slide 10: Q2 - Strong execution towards our Strategy
Q2 Strong execution towards our Strategy Strategy Financials Digital Native Enterprise Customers expand to 174k Q2 ‘25 14% YoY growth, AI/ML 100% YoY, 4x RPO with 500 Scalers+ $100K Annual run rate) growth quarter-over-quarter, Scalers+ growing at 35% and at 24% of revenue Agentic Cloud with
Slide 11: Core cloud computing platform enhancements & use cases
Core cloud computing platform enhancements & use cases Core Cloud Releases Core Cloud Customer Showcase ● Atlanta Data Center: Official Launch Xcitium signed an 18-month contract with ● Enabled Network File System DigitalOcean, migrating to the DigitalOcean ● Bring Your Own IP Address BYOIP - Publ
Slide 12: AI/ML platform enhancements & use cases
AI/ML platform enhancements & use cases AI/ML Releases AI/ML Customer Showcase ScribeAI, a company specializing in AI ● Collaboration with AMD including: generated documentation, that is used by 90% ○ AMD Instinct™ MI325X GPU Droplets of the Fortune 500 is leveraging DigitalOcean's ○ AMD Developer C
Slide 13: Continued revenue acceleration, with highest incremental ARR since Q4 2022
Continued revenue acceleration, with highest incremental ARR since Q4 2022 Q2’24 Q2’25 Y-o-Y Growth Revenue $192M $219M 14% Revenue Growth 13% 14% 100 bps Annual Run-rate Revenue (“ARR”) $770M $875M 14% Incremental ARR $31M $32M 3% Net Dollar Retention Rate (“NDR”) 97% 99% 200 bps Average Revenue
Slide 14: Consistently delivering strong profitability metrics
Consistently delivering strong profitability metrics Note: Refer to the Appendix for definitions of our Non-GAAP measures and reconciliations to GAAP. 2025 DigitalOcean. All rights reserved 14
Slide 15: Front-loaded 2025 capital program - raising FY 2025 aFCF guidance
Front-loaded 2025 capital program - raising FY 2025 aFCF guidance ● Raising FY 2025 guidance to 17%19% ● Q2 Adjusted Free Cash Flow Margin at 26%; Q2 2025 trailing twelve months Adjusted Free Cash Flow Margin at 14% Note: Refer to the Appendix for definitions of our Non-GAAP measures and reconcilia
Slide 16: Raising full year financial outlook across all metrics
With strong H1 performance and confidence in H2, raising full year financial outlook across all metrics Metric Q3 2025 FY 2025 FY 2025 FY Delta (as of 5/6 (as of 8/5 $10 million at Revenue $226$227M $870$890M $888$892M midpoint 130 bps at Revenue Growth 13.9%14.4% 11.5%14% 13.8%14.3% midpo
Slide 17: Appendix
Appendix 2025 DigitalOcean. All rights reserved
Slide 18: Our global Infrastructure Supports Customers in approximately 190 Countries
Our global Infrastructure Supports Customers in approximately 190 Countries 17 Data Centers Across 9 Regions Customers in 190 Countries Amsterdam Toronto London Frankfurt New York San Francisco Atlanta Asia Europe 23% 27% Bangalore of revenue North America of revenue 37% of revenue Singapore RoW 13
Slide 19: Financial Highlights and Key Business Metrics
Financial Highlights and Key Business Metrics Q2ʼ24 Q3ʼ24 Q4ʼ24 Q1ʼ25 Q2ʼ25 Revenue (M) $192.5 $198.5 $204.9 $210.7 $218.7 Revenue Growth Year-over-year 13% 12% 13% 14% 14% ARR (M) $770 $794 $820 $843 $875 ARR Increase (M) $31 $24 $26 $23 $32 Adj. EBITDA (M) $81.6 $86.7 $85.9 $86.3 $89.5 Net Dollar
Slide 20: Key Business Metrics Definitions
Key Business Metrics Definitions Customers Beginning in the fourth quarter of 2024, we changed our methodology to 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 separate categories bas
Slide 21: Key Business Metrics Definitions and Other
Key Business Metrics Definitions and Other Net Dollar Retention Rate We calculate net dollar retention rate monthly by starting with the revenue from all customers, including Testers, Learners, Builders, Scalers and Scalers+ for our IaaS and PaaS/SaaS offerings during the corresponding month 12 mont
Slide 22: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA and Adjusted EBITDA Margin 2025 DigitalOcean. All rights reserved 22
Slide 23: Non-GAAP Net Income
Non-GAAP Net Income 1 For the periods presented in fiscal years 2024 and 2025, we used a tax rate of 16%, which we believe is a reasonable estimate of our long-term effective tax rate applicable to non-GAAP pre-tax income for each respective year. 2025 DigitalOcean. All rights reserved 23
Slide 24: Non-GAAP Diluted Net Income per Share
Non-GAAP Diluted Net Income per Share 1 For the periods presented in fiscal years 2024 and 2025, we used a tax rate of 16%, which we believe is a reasonable estimate of our long-term effective tax rate applicable to non-GAAP pre-tax income for each respective year. 2 May not foot due to rounding.
Slide 25: Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin
Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin 1 For the three and six months ended June 30, 2024, primarily consists of executive reorganization charges. 2025 DigitalOcean. All rights reserved 25
Slide 26: 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 June 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 costs.
Slide 27: Non-GAAP Operating Expenses
Non-GAAP Operating Expenses 1 For the three and six months ended June 30, 2024, amounts have been recast to conform with current period presentation. Refer to Note 2. Summary of Significant Accounting Policies, Prior Period Reclassification, included in Part II, Item 8 of our Annual Report on Form
DigitalOcean Holdings — Q2 2025 Earnings Presentation on 6ix