Digitalocean Holdings, Inc. · NYSE:DOCN

Digitalocean — Q3 2025 Earnings Presentation

27 slides from Digitalocean's earnings presentation, Nov 5, 2025

  1. Slide 1: Earnings Presentation Q3 2025

    Earnings Presentation Q3 2025 November 5, 2025 2025 DigitalOcean. All rights reserved 1

  2. 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,

  3. Slide 3: Company Overview

    Company Overview 2025 DigitalOcean. All rights reserved 3

  4. Slide 4: Our mission is to simplify cloud and AI so builders can spend more time

    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

  5. Slide 5: We operate in a large and growing 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 & 177K Small enterprises DNEs on DO3 NO

  6. Slide 6: DigitalOcean is purpose built for AI & Digital Native Enterprises

    DigitalOcean is purpose built for AI & Digital Native Enterprises Hyperscaler challenges Unmet need Simple cloud lifecycle management for Highly lean teams without heavy DevOps, Simple complex CloudOps, or FinOps resources Cost prohibitive Scalable, comprehensive agentic cloud at scale with enterpri

  7. Slide 7: DigitalOcean Gradient AI Agentic Cloud

    DigitalOcean Gradient AI Agentic Cloud Marketplace Pre-configured VMs SaaS add ons App design agents, Optimization agents, and Troubleshooting agents Agents SaaS Web Hosting Cloudways - New high performance kernel Enhanced Cloudways CoPilot Code Fix Agents Documentation Agents Storage Auto- VPC  Ag

  8. Slide 8: Q3 2025 Highlights

    Q3 2025 Highlights 2025 DigitalOcean. All rights reserved 8

  9. Slide 9: Q3: Growing momentum; Raising outlook

    Q3 Growing momentum; Raising outlook Unified Agentic Cloud Strong Q3 Performance ● Enhanced full-stack inference platform with powerful lineup of ● Exceeded Q3 revenue and profitability guidance GPUs, advanced performance optimizations, serverless ● Delivered 16% YoY revenue growth and $44M increme

  10. Slide 10: Accelerating revenue growth, with highest organic incremental ARR in company history

    Accelerating revenue growth, with highest organic incremental ARR in company history Q3 2024 Q3 2025 Y-o-Y Growth Revenue $198M $230M 16% Revenue Growth 12% 16% 400 bps Annual Run-rate Revenue (“ARR”) $794M $919M 16% Incremental ARR $24M $44M 82% Net Dollar Retention Rate (“NDR”) 97% 99% 200 bps N

  11. Slide 11: Our largest customers are our fastest growing

    Our largest customers are our fastest growing 41% 55% 72% Note: $100k+ ARR Customers based on Scalers+ customer category, which also includes $500k+ ARR 2025 DigitalOcean. All rights reserved 11 customers and $1M ARR customers. Refer to Appendix for definitions.

  12. Slide 12: Rapidly innovating our Agentic Cloud

    Rapidly innovating our Agentic Cloud New since last earnings Marketplace Pre-configured VMs SaaS add ons App design agents, Optimization agents, and Troubleshooting agents Agents SaaS Web Hosting Cloudways - New high performance kernel Enhanced Cloudways CoPilot Code Fix Agents Documentation Agents

  13. Slide 13: Expanding the DigitalOcean AI Ecosystem

    Expanding the DigitalOcean AI Ecosystem Marketplace Pre-configured VMs SaaS add ons App design agents, Optimization agents, and Troubleshooting agents Agents SaaS Web Hosting Cloudways - New high performance kernel Enhanced Cloudways CoPilot Code Fix Agents Documentation Agents Storage Auto- VPC  A

  14. Slide 14: Maintaining profitability while accelerating growth

    Maintaining profitability while accelerating growth 17% 15% 40% Margin: 59% 60% Margin: 44% 43% Margin: 17% 21% Note: Refer to the Appendix for reconciliations of Non-GAAP measures to GAAP. 2025 DigitalOcean. All rights reserved 14

  15. Slide 15: Raising 2025 revenue and aFCF margin guidance

    Raising 2025 revenue and aFCF margin guidance FY 2025 FY 2025 FY Delta Metric Q4 2025 (as of 8/5 (as of 11/5 (at midpoint) Revenue $237$238M $888$892M $896$897M $6.5 million Revenue Growth 15.7%16.2% 13.8%14.3% 14.8%14.9% 80 bps Adjusted EBITDA Margin 38.5%39.5% 39%40% 40.7%41.0% 135 b

  16. Slide 16: Appendix

    Appendix 2025 DigitalOcean. All rights reserved 16

  17. Slide 17: 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 40% of revenue Singapore RoW 10

  18. Slide 18: Financial Highlights and Key Business Metrics

    Financial Highlights and Key Business Metrics Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Revenue (M) $198.5 $204.9 $210.7 $218.7 $229.6 Revenue Growth Year-over-year 12% 13% 14% 14% 16% ARR (M) $794 $820 $843 $875 $919 ARR Increase (M) $24 $26 $23 $32 $44 Adj. EBITDA (M) $86.7 $85.9 $86.3 $89.5 $99.8 N

  19. Slide 19: 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

  20. Slide 20: Other Metrics Definitions

    Other Metrics Definitions Organic ARR We define Organic Annual Run-Rate revenue (“Organic ARRˮ) 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

  21. Slide 21: 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 measure

  22. Slide 22: Adjusted EBITDA and Adjusted EBITDA Margin

    Adjusted EBITDA and Adjusted EBITDA Margin 1 For the nine months ended September 30, 2024, non-GAAP stock-based compensation excludes $0.1 million as it is presented in restructuring related charges. 2 For the three and nine months ended September 30, 2024, primarily consists of executive reorgani

  23. Slide 23: Non-GAAP Net Income

    Non-GAAP Net Income 1 For the nine months ended September 30, 2024, non-GAAP stock-based compensation excludes $0.1 million as it is presented in restructuring related charges. 2 For the three and nine months ended September 30, 2024, primarily consists of executive reorganization charges. 3 For

  24. Slide 24: Non-GAAP Diluted Net Income per Share

    Non-GAAP Diluted Net Income per Share 1 For the nine months ended September 30, 2024, non-GAAP stock-based compensation excludes $0.1 million as it is presented in restructuring related charges. 2 For the three and nine months ended September 30, 2024, primarily consists of executive reorganizatio

  25. Slide 25: Adjusted Free Cash Flow, Unlevered Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin

    Adjusted Free Cash Flow, Unlevered Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin and Unlevered Adjusted Free Cash Flow Margin 1 For the three and nine months ended September 30, 2024, primarily consists of executive reorganization charges. 2025 DigitalOcean. All rights reserved 25

  26. 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 September 30, 2024 through December 31, 2024, primarily consists of executive reorganization charges. For the periods ended September 30, 2023 through December 31, 2023, primarily consists of salary continuation ch

  27. Slide 27: Non-GAAP Operating Expenses

    Non-GAAP Operating Expenses 1 For the three and nine months ended September 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

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