Digitalocean Holdings, Inc. · NYSE:DOCN
Digitalocean — Q1 2026 Earnings Presentation
35 slides from Digitalocean's earnings presentation, May 5, 2026
Slide 1: Q1 2026 Earnings Presentation
Q1 2026 Earnings Presentation May 5, 2026
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of Section acquisitions and their integration; (13) general market, political, economic, and business 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities conditions, including changes in
Slide 3: AI-Native Cloud
GPU Rentals Inference Wrappers Legacy SaaS Cloud Data Center Shells CDN AI-Native Cloud
Slide 4: Record Q1 Results
Record Q1 Results $258M $170M $183M Q1 Revenue AI Customer ARR $1M+ Customer ARR 22% YoY Growth 221% YoY Growth 221% 179% YoY Growth 79% $62M 41% 18% Incremental Organic ARR Q1 Adjusted EBITDA Margin TTM Adjusted FCF Margin 168% YoY Growth Note: Refer to the Appendix for definitions of metrics and r
Slide 5: Top DNEs continue to be our fastest growing
Top DNEs continue to be our fastest growing $100K+ Customer ARR($M) $500K+ Customer ARR($M) $1M+ Customer ARR($M) +73% +132% +179% Q1 2025 Q1 2026 Q1 2025 Q1 2026 Q1 2025 Q1 2026 % of total ARR 22% 30% 11% 21% 8% 18% Note: Refer to the Appendix for revised definitions of customer categories, custome
Slide 6: $170M AI Customer ARR, growing 221% with >80% non-bare metal
$170M AI Customer ARR, growing 221% with >80% non-bare metal Revenue($M) Q1 YoY % Q1 AI ARR Growth Customer ARR Total $170M ARR Q1 2026 Core 81% non-Bare Metal +11% QoQ Cloud Inference Services Bare Metal Q1 2024 Q1 2026 Core Cloud Inference Services Bare Metal Note: Refer to the Appendix for defini
Slide 7: State of AI
State of AI Four forces reshaping the landscape Inference is the dominant workload Reasoning Model Adoption 50%+ of all AI tokens processed are now reasoning tokens, up from <1% just 18 months ago. % of AI Compute Agentic systems 250k+ stars in 4 months Github Stars (K) Training Inference Open Sourc
Slide 8: The DigitalOcean AI-Native Cloud
The DigitalOcean AI-Native Cloud Five layers. One beautifically integrated stack. Zero lock-in. Managed Agents For Agent Natives Open Harness · Sandbox · Toolbox · State · Plano Data & Learning Postgres, MySQL, Mongo, Valkey, OpenSearch, Kafka, Weaviate — DBaaS · Advanced Edition (PG/MySQL) · Knowle
Slide 9: DigitalOcean AI-Native Cloud - Open source at every layer
DigitalOcean AI-Native Cloud - Open source at every layer We commit to open interfaces above the line and we do the hard engineering below it. Managed Agents For Agent Natives BYO-Harness (OpenCode, LangGraph, etc) · Managed sandboxes (via Firecracker), Durable state for agents. Data & Learning Post
Slide 10: Industry-leading Performance on OSS LLM Inference
Industry-leading Performance on OSS LLM Inference DigitalOcean in the Leader Quadrant. Latency vs. Output Speed; DeepSeek v3.2 3.50 Latency (TTFT, seconds) SiliconFlow Nebius Parasail 1.75 Novita HIGHEST PERFORMANCE QUADRANT Amazon Bedrock (Low Latency / High Speed) DeepSeek Eigen AI Fireworks Googl
Slide 11: Continued marquee AI-native wins
Continued marquee AI-native wins AI-native code editor used by Foundation model developer for AI-native video generation millions of developers worldwide high-fidelity text-to-image platform turning text and images generation into cinematic-grade video for 20M+ creators and brands Built on DigitalOc
Slide 12: DigitalOcean vs Others
DigitalOcean vs Others The only full-stack AI-native cloud — from agent orchestration to bare metal Hyperscalers Neoclouds Inference Providers Full-stack AI-Native Cloud AWS / Azure / GCP CoreWeave / Nebius Baseten / Fireworks / Together Native orchestration DIY Not available Not available Managed A
Slide 13: The New Era
Thinking+Doing needs a lot of Tokens and Compute Thinking Doing 500T+ 4X daily inference tokens by 2030 up from ~50T/day today CPUs needed to support agentic AI workloads The Inference Era The Agentic Era Thinking + Doing = The New Era Sources: a16z Enterprise AI Survey, 2025,— a16z / OpenRouter 100
Slide 14: Investing to meet growing demand
Investing to meet growing demand Equity Raise Maintains strong and flexible balance sheet ● Proceeds used to repay debt and reduce leverage $888M ● Borrowing capacity targeted to fund data center and GPU expansion Incremental Data Center Capacity Adding incremental capacity to match customer demand
Slide 15: Raising our medium-term outlook
Raising our medium-term outlook Based on 2025 2026E 2027E Revenue Growth 15% 25%-27% ~50% ~60MW aEBITDA Margin 42% 37%-39% ~40% New Committed Capacity Adjusted Free Cash 19% 9%-12% ~17-20% Flow Margin 18% - 21% Without Incremental 60MW Note: Refer to the Appendix for definitions of metrics and recon
Slide 16: Profitable growth
Profitable growth LTM GAAP Operating Income Margin x NTM Revenue Growth U.S. Cloud / Infrastructure Software Peer Set 60% NBIS (-113%, 740%) 50% CRWV (-0.3%, 145%) NTM Revenue Growth, % 40% SHOP SNOW NET 30% MDB DDOG ZS CRWD TEAM TWLO 20% CFLT FRSH GTLB ESTC WIX OKTA AKAM 10% GDDY 0% -10% -40% -30%
Slide 17: Accelerating growth with strong profitability
Accelerating growth with strong profitability Revenue($M) $1M+ Customer ARR($M) AI Customer ARR($M) 22% 179% 221% 1Q23 1Q24 1Q25 1Q26 1Q23 1Q24 1Q25 1Q26 1Q23 1Q24 1Q25 1Q26 Adjusted Operating Income ($M) & TTM Adjusted Free Cash Flow($M) & Adjusted EBITDA($M) & Margin Margin Margin 21% 3% 72% 1Q23
Slide 18: Raised $888M in follow-on offering
Raised $888M in follow-on offering Strengthened Balance Sheet Expanded Capacity for Demand Term Loan A paid down in full ~60 MW incremental across 4 locations ~$50M in annual cash interest & prepayment savings 80% increase in contracted capacity; ramping through 2027 No material debt maturities unti
Slide 19: Raising 2026 outlook
Raising 2026 outlook FY 2026 FY 2026 FY Delta Metric Q2 2026 (as of 2/24) (as of 5/5) (at midpoint) Revenue ($M) $272 - $274 $1,075 - $1,105 $1,130 - $1,145 +47.5M Revenue Growth 24% - 25% 19% - 23% 25% - 27% +527bps Adjusted EBITDA Margin 37% - 38% 36% - 38% 37% - 39% +100bps Non-GAAP Diluted Net I
Slide 20: Accelerating into 2027
Accelerating into 2027 Based on FY 2027 FY 2027 Delta (as of 2/24) (as of 5/6) Revenue Growth ~30% 50%+ 20%+ ~60MW aEBITDA Margin ~40% ~40% - New Committed Capacity Adjusted Free Cash 20%+ ~17%-20% -1.5% Flow Margin Note: Refer to the Appendix for definitions of metrics and reconciliations of Non-GA
Slide 21: Strong Momentum
1 2 3 4 Strong DigitalOcean Adding 60MW to Raising Outlook, Momentum AI-Native Cloud Support Demand Growing Profitably
Slide 22: Appendix
#) DigitalOcean Appendix
Slide 23: Financial Highlights and Key Business Metrics
Financial Highlights and Key Business Metrics Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Revenue (M) $210.7 $218.7 $229.6 $242.4 $257.9 Revenue Growth Year-over-year 14% 14% 16% 18% 22% ARR (M) $843 $875 $919 $970 $1,032 ARR Increase (M) $23 $32 $44 $51 $62 Adj. Operating Income (M) $62 $62 $70 $64 $64
Slide 24: Infrastructure - Growing Global Footprint
Infrastructure - Growing Global Footprint 20 Data Centers. 200+ Network PoPs. Amsterdam London San Francisco Toronto Frankfurt Kansas City New York Richmond Atlanta Memphis Bengaluru Singapore Sydney Existing NEW
Slide 25: Core Cloud: The foundation under every agent
Core Cloud: The foundation under every agent Every AI feature burns tokens, compute and storage Droplets GPU Droplets Kubernetes (DOKS) App Platform NVIDIA: H100 / H200 / B300 Linux VMs: cost-effective, fast NVIDIA: H100 / H200 / B300 Managed control plane. Git-push to prod. AMD: Mi300 / Mi325 / Mi3
Slide 26: 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 27: Metrics Definitions
Metrics Definitions Organic ARR We define Organic Annual Run-Rate revenue (“Organic ARR”) as ARR excluding the impacts of (i) revenue from acquisitions that closed in the prior 12 months, and (ii) incremental revenue from broad-based pricing increases that occurred on July 1, 2022 for our IaaS and P
Slide 28: 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 29: Adjusted Operating Income and Adjusted Operating Income Margin
Adjusted Operating Income and Adjusted Operating Income Margin 1) For the three months ended March 31, 2023, non-GAAP stock-based compensation excludes $3.9 million as it is presented in Restructuring and other charges. For the three months ended March 31, 2024, non-GAAP stock-based compensation exc
Slide 30: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA and Adjusted EBITDA Margin 1) For the three months ended March 31, 2023, non-GAAP stock-based compensation excludes $3.9 million as it is presented in Restructuring and other charges. For the three months ended March 31, 2024, non-GAAP stock-based compensation excludes $0.1 million a
Slide 31: Non-GAAP Net Income
Non-GAAP Net Income 1) For the three months ended March 31, 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 tax rate applic
Slide 32: Non-GAAP Diluted Net Income per Share
Non-GAAP Diluted Net Income per Share 1) Includes 15,957 of potentially dilutive securities related to our 2030 Convertible Notes as if the entire principal amount outstanding were converted into shares for the three months ended March 31, 2026. Includes 8,403 of potentially dilutive securities rela
Slide 33: Adjusted Free Cash Flow and Margin Reconciliations
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 33
Slide 34: 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 35: Non-GAAP Operating Expenses
Non-GAAP Operating Expenses 2026 DigitalOcean. All rights reserved 35
DigitalOcean Holdings — Q1 2026 Earnings Presentation on 6ix