Digitalocean Holdings, Inc. · NYSE:DOCN

Digitalocean — Q4 2025 Earnings Presentation

54 slides from Digitalocean's earnings presentation, Feb 24, 2026

  1. Slide 1: Q4 2025 Earnings and Investor Update Presentation

    Q4 2025 Earnings and Investor Update Presentation February 24, 2026 2026 DigitalOcean. All rights reserved 1

  2. Slide 2: Safe Harbor

    Safe Harbor This presentation contains forward-looking statements within the meaning of acquisitions and their integration; 13) general market, political, economic, and Section 27A of the Securities Act of 1933, as amended, and Section 21E of the business conditions, including changes in trade poli

  3. Slide 3: Q4 2025 Earnings and Investor Update Presentation

    Q4 2025 Earnings and Investor Update Presentation February 24, 2026 2026 DigitalOcean. All rights reserved 3

  4. Slide 4: AI is reshaping entire industries, and we are built for this shift

    AI is reshaping entire industries, and we are built for this shift 2026 DigitalOcean. All rights reserved 4

  5. Slide 5: Key Takeaways

    Key Takeaways: Top customers are our growth engine We’re on the right side of SW disruption ● We put the Cloud in neo-cloud Building durable & profitable growth engine Note: Refer to the Appendix for definitions of metrics, other terms and reconciliations of Non-GAAP measures to GAAP. 2026 DigitalOce

  6. Slide 6: Reached $1B in annualized monthly revenue

    Top customers are our growth engine Reached $1B in annualized monthly revenue Reached $1B annualized monthly revenue $1B Dec 2025 IPO TechStars NYC Mar 2021 Aug 2012 $388M 2012 2025 Note: Refer to the Appendix for definitions of metrics. 2026 DigitalOcean. All rights reserved 6 Note: Annualized Mont

  7. Slide 7: Key Takeaways

    Key Takeaways: Top customers are our growth engine We’re on the right side of SW disruption ● Focus on top customers drove record $51M incr organic ARR ● 21K DNEs are 62% of total ARR, growing 30% YoY ● $133M $1M Customer ARR, growing 123% YoY ● $120M AI Customer ARR, growing 150% YoY ● We put the

  8. Slide 8: Highest organic incremental ARR in company history

    Top customers are our growth engine Highest organic incremental ARR in company history 48% of TTM Organic Incremental ARR in Q4 2025 from AI Customers Note: Refer to the Appendix for definitions of metrics. 2026 DigitalOcean. All rights reserved 8

  9. Slide 9: Focus on Digital Native Enterprises (DNEs) is driving growth

    Top customers are our growth engine Focus on Digital Native Enterprises (DNEs) is driving growth Net Dollar Retention Q4 2025 YoY ARR Growth (“NDR”) Developers DNE Note: Refer to the Appendix for revised definitions of customer categories, customer count and ARR metrics and our Form 10K filed with

  10. Slide 10: Our top DNEs are our fastest growing

    Top customers are our growth engine Our top DNEs are our fastest growing $100,000+ Customer ARR ($M) $500,000+ Customer ARR ($M) $1,000,000+ Customer ARR ($M) +58% +97% +123% Q4 2024 Q4 2025 Q4 2024 Q4 2025 Q4 2024 Q4 2025 % of total ARR 21% 28% 10% 17% 7% 14% Note: Refer to the Appendix for revised

  11. Slide 11: Performance with these top DNEs is now a strength

    Top customers are our growth engine Performance with these top DNEs is now a strength Net Dollar Net Expansion Churn Retention (NDR) Q4 2025 Q4 2025 Q4 2025 $100K $500K $1M $100K $500K $1M $100K $500K $1M 00K Note: Refer to the Appendix for revised definitions of customer categories, cust

  12. Slide 12: Top Cloud and AI Natives are driving our growth

    Top customers are our growth engine Top Cloud and AI Natives are driving our growth Developers $1,000,000+ customers drove ~900 bps of our total YoY ARR growth in Q4 2025 from resurgence of top Cloud DNE Natives coupled with surging traction with AI Natives % of total ARR 7% 4% 7% 14% Note: Refer to

  13. Slide 13: Key Takeaways

    Key Takeaways: Top customers are our growth engine We’re on the right side of SW disruption ● Modern Cloud and AI native companies are going after large markets with disruptive AI centric software innovation ● They are increasingly choosing DigitalOcean as a natural platform to build and scale their

  14. Slide 14: AI Native Companies

    We're on the right side of SW disruption AI Native Companies AI Native attributes ● Solve a business or consumer problem primarily with AI ● AI inference runs every time value is delivered ● $ spend on AI Inference scales as the company grows ● Product quality scales with model quality + inference p

  15. Slide 15: Visible success with marquee AI customer wins

    We're on the right side of SW disruption Visible success with marquee AI customer wins Consumer AI platform delivering Enterprise-AI leader in Model Context AINative healthcare company conversational, character based Protocol MCP, provides focused on deploying clinically experiences to tens of mi

  16. Slide 16: Serving rapidly growing AI customers

    We're on the right side of SW disruption Serving rapidly growing AI customers Q3 2025 Q4 2025 Q3 2025 Q4 2025 Q3 2025 Q4 2025 2026 DigitalOcean. All rights reserved 16 Note: Reflects usage growth on DigitalOcean platform; Scales on X axis are different for each customer, not indicative of relative u

  17. Slide 17: Key Takeaways

    Key Takeaways: Top customers are our growth engine We’re on the right side of SW disruption ● We put the Cloud in neo-cloud Building durable & profitable growth engine ● AI Natives need inference with great model performance, high accuracy, low latency, and good token unit economics all with a co-loc

  18. Slide 18: Burning Needs of AI Natives, How DO solves these problems

    We put the Cloud in neo-cloud Burning Needs of AI Natives How DO solves these problems 1.1 Access to the latest AI models, Versatile AI Inferencing: A flexible offering that ranges from serverless inference optimized for low latency, high APIs to dedicated inference to GPU Droplets, allowing custome

  19. Slide 19: DigitalOcean Agentic Inference Cloud

    DigitalOcean Agentic Inference Cloud Agents FinOps*, SecOps*, Advisor Agents, Agent Marketplace VectorDB Agent Agent runtime ADK, APIs, CLI, Console, Databases Security Compliance Governance Guardrails Development Agent Hosting Search Data Services & Tools Catalog, Model Evals*, Benchmarking, Fine

  20. Slide 20: DigitalOcean vs. neo-clouds and Inference Wrappers

    We put the Cloud in neo-cloud DigitalOcean vs. neo-“clouds” and Inference Wrappers Neo-Clouds Inference Wrappers AI Inference Engine Serverless, Inference Containers, Dedicated Inference, Model Optimizations) Comprehensive Model Lineup with performance, throughput, latency, FDE Agent Platform GPU I

  21. Slide 21: DigitalOcean vs. neo-clouds

    We put the Cloud in neo-cloud DigitalOcean vs. neo-“clouds” Top 25 Customers ARR per MW GAAP Operating % of Revenue Margin vs 70%-80% vs $9M-$12M vs -90% to +5% Top 2−5 Concentration Note:DigitalOcean results as of Q4 2025; Based on company filings and other publicly available information. Certain m

  22. Slide 22: Recent Product Innovation & Executive Addition Vinay Kumar

    We put the Cloud in neo-cloud Recent Product Innovation & Executive Addition Vinay Kumar Chief Product and Technology Officer Ex-Oracle, AWS, Akamai Core Cloud Agent Platform AIEmbedded Infrastructure with From Experimentation to Production with Agent Remote MCP support Development Kit and enhanced

  23. Slide 23: 150% YoY AI Customer ARR growth, driven by non-Bare Metal

    We put the Cloud in neo-cloud 150% YoY AI Customer ARR growth, driven by non-Bare Metal Q4 YoY ARR Growth Total $120M ARR Q4 2025 Developers 70% non-Bare Metal Core Cloud Inference DNE Services Bare Metal Note: Refer to the Appendix for definitions of AI Customers and AI Customer Revenue. 2026 Digit

  24. Slide 24: Key Takeaways

    Key Takeaways: Top customers are our growth engine We’re on the right side of SW disruption ● We put the Cloud in neo-cloud Building durable & profitable growth engine ● Exceeded Q4 revenue and profitability guidance ● Generated 19% full year 2025 adjusted free cash flow margin ● DC expansion investm

  25. Slide 25: Accelerating growth with strong profitability

    Building durable & profitable growth engine Accelerating growth with strong profitability 15% 123% 150% Adjusted EBITDA Adjusted Free Cash ($M) & Margin 14% Flow ($M) & Margin 25% 2026 DigitalOcean. All rights reserved 25 Note: Refer to the Appendix for reconciliations of Non-GAAP measures to GAAP.

  26. Slide 26: Exited 2025 at 18% top-line growth, up 500 bps YoY

    Building durable & profitable growth engine Exited 2025 at 18% top-line growth, up 500 bps YoY YoY YoY Q4 2024 Q4 2025 FY 2024 FY 2025 Growth Growth Revenue $205M $242M 18% $781M $901M 15% Revenue Growth 13% 18% 500 bps 13% 15% 200 bps Annual Run-rate Revenue (“ARRˮ) $820M $970M 18% $820M $970M 18%

  27. Slide 27: Maintaining profitability while accelerating growth

    Building durable & profitable growth engine Maintaining profitability while accelerating growth GAAP Gross Profit ($M) Adjusted EBITDA ($M) TTM Adjusted Free Cash Flow ($M) 16% 14% 25% Margin 60% 60% 42% 42% 17% 19% Note: Refer to the Appendix for reconciliations of Non-GAAP measures to GAAP. 2026 Dig

  28. Slide 28: Effectively managing equity

    Building durable & profitable growth engine Effectively managing equity Stock-based Compensation % Revenue) 300 bps aEBITDA less SBC was 33% in 2025, in 80th+ percentile, well above 13% median of broad-based software comp set* Note: Comp set includes 157 public software companies per Factset as of 2

  29. Slide 29: Healthy Net Income Per Share growth

    Building durable & profitable growth engine Healthy Net Income Per Share growth Diluted Net Income Per Share, GAAP Diluted Net Income Per Share, Non-GAAP 183% 10% Note: Refer to the Appendix for reconciliations of Non-GAAP measures to GAAP. 2026 DigitalOcean. All rights reserved 29

  30. Slide 30: Strong Balance Sheet

    Building durable & profitable growth engine Strong Balance Sheet Debt Maturities as of 12/31 ($M) No material debt maturities until 2030 Ample liquidity with cash of $254M and $300M undrawn revolving credit facility Zero coupon 2026 and 2030 convertible notes 3.2X Net Leverage Note: Refer to the Appe

  31. Slide 31: Winding down legacy dedicated bare metal CPU offering

    Building durable & profitable growth engine Winding down legacy dedicated bare metal CPU offering Pro Forma Impact on Key Metrics ● Strategic Rationale: Winding-down product to focus on cloud and AI platform Q4 2025 Q4 2025 Metric Actual Pro Forma ● Exit Costs: Anticipate $5M$8M in wind-down $1M Cu

  32. Slide 32: Raising 2026 outlook

    Building durable & profitable growth engine Raising 2026 outlook FY 2026 Metric Q1 2026 (as of 2/24) Revenue $M $249  $250 $1,075  $1,105 Revenue Growth 18.2%  18.7% 19.3%  22.6% Adjusted EBITDA Margin 36%  37% 36%  38% Non-GAAP Diluted Net Income Per Share $0.22  $0.27 $0.75  $1.00 Adjuste

  33. Slide 33: Capacity Timing Impact on Financials

    Building durable & profitable growth engine Capacity Timing Impact on Financials Capacity Ramp Implications ● Data center timing: 6MW data center will start 1819% growth in Q1 and Q2; ramping revenue in Q2, other two data centers Revenue Growth accelerates in Q3, reaching 25% (remaining 25MW) star

  34. Slide 34: Key Growth Levers

    Building durable & profitable growth engine Key Growth Levers Growth lever Key metrics Investments ● $100,000 Customer ARR ● DNE Product innovation 1● Scale top DNEs ● Top customer engagement ● $1,000,000 Customer ARR ● Drive workload migrations ● Grow DC and GPU capacity ● Launch leading Agentic 2

  35. Slide 35: Projected Financial Profile

    Responsible investment, rapid and durable growth Projected Financial Profile 2025 2026E 2027E Revenue Growth 15% 21% 30% On path to Rule of 50+ in aEBITDA Margin 42% 37% 40% 2027 with existing committed capacity alone Unlevered Adjusted FCF 19% 19% 20% Margin Rule of 40 50! 33% 40% 50% Note:

  36. Slide 36: Key Takeaways

    Key Takeaways: Top customers are our growth engine We’re on the right side of SW disruption ● Focus on top customers drove record $51M incr organic ARR ● Modern Cloud and AI native companies are going after large ● 21K DNEs are 62% of total ARR, growing 30% YoY markets with disruptive AI centric sof

  37. Slide 37: AI is reshaping entire industries, and we are built for this shift

    AI is reshaping entire industries, and we are built for this shift 2026 DigitalOcean. All rights reserved 37

  38. Slide 38: Appendix

    Appendix 2026 DigitalOcean. All rights reserved 38

  39. Slide 39: 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 2026 DigitalOcean. All rights reserved 39

  40. Slide 40: We address the full stack needs of AI and Cloud Natives

    We address the full stack needs of AI and Cloud Natives Public Cloud & AI Market Apps & Agents Inference Wrappers Hyperscalers Cloud & AI PaaS z Cloud & AI VPS & Small Clouds Neoclouds/GPU farms Infrastructure Cloud Native AI Native Companies SMBs Large Traditional Enterprises Companies (ANE) 2026 D

  41. Slide 41: Presence to power businesses worldwide

    Presence to power businesses worldwide 76 MW 190 Countries Europe 28% of revenue 20 Data Centers 99.9% Asia Uptime North America 23% 38% of revenue of revenue 247 Support RoW 11% of revenue Note: % based on FYʼ25 revenue. 2026 DigitalOcean. All rights reserved 41

  42. Slide 42: Financial Highlights and Key Business Metrics

    Financial Highlights and Key Business Metrics Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Revenue (M) $204.9 $210.7 $218.7 $229.6 $242.4 Revenue Growth Year-over-year 13% 14% 14% 16% 18% ARR (M) $820 $843 $875 $919 $970 ARR Increase (M) $26 $23 $32 $44 $51 Adj. EBITDA (M) $85.9 $86.3 $89.5 $99.8 $99.3 N

  43. Slide 43: 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. Beginning in the fourth quarter of 2025, we redefined our total customer count and excluded the number of users that spend less than

  44. Slide 44: Metrics Definitions

    Metrics Definitions ARR We calculate Annual Run-Rate revenue (“ARRˮ) by multiplying total revenue for the most recent quarter by four. 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

  45. Slide 45: Metrics Definitions

    Metrics Definitions Net Leverage We calculate net leverage as Net Debt divided by trailing-12-months (“TTMˮ) adjusted EBITDA. Net debt is calculated as Total debt less cash and cash equivalents. Churn We calculate churn as attrition attributable to our NDR cohort. See slide 42 for NDR definition. Net

  46. Slide 46: 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 (“GAAPˮ). These non-GAAP metrics are in addition to, and not as a substitute for, or superior to, financial measu

  47. Slide 47: Adjusted EBITDA and Adjusted EBITDA Margin

    Adjusted EBITDA and Adjusted EBITDA Margin 1 For the year ended December 31, 2024, non-GAAP stock-based compensation excludes $0.1 million as it is presented in restructuring related charges. 2 For the year ended December 31, 2024, primarily consists of executive reorganization charges. 3 For the

  48. Slide 48: Non-GAAP Net Income

    Non-GAAP Net Income 1 For the year ended December 31, 2024, non-GAAP stock-based compensation excludes $0.1 million as it is presented in restructuring related charges. 2 For the year ended December 31, 2024, primarily consists of executive reorganization charges. 3 For the periods in fiscal year

  49. Slide 49: Non-GAAP Diluted Net Income per Share

    Non-GAAP Diluted Net Income per Share 1 For the year ended December 31, 2024, non-GAAP stock-based compensation excludes $0.1 million as it is presented in restructuring related charges. 2 For the year ended December 31, 2024, primarily consists of executive reorganization charges. 3 For the peri

  50. Slide 50: Adjusted Free Cash Flow, Unlevered Adjusted Free Cash Flow and Margins

    Adjusted Free Cash Flow, Unlevered Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin and Unlevered Adjusted Free Cash Flow Margin 1 For the year ended December 31, 2024, primarily consists of executive reorganization charges. 2026 DigitalOcean. All rights reserved 50

  51. Slide 51: 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. 2026 DigitalOcean. All rights reserved 51

  52. Slide 52: Non-GAAP Operating Expenses

    Non-GAAP Operating Expenses 1 For the year ended December 31, 2024, non-GAAP stock-based compensation excludes $0.1 million as it is presented in restructuring related charges. 2026 DigitalOcean. All rights reserved 52

  53. Slide 53: Adjusted EBITDA and Adjusted EBITDA Margin

    Adjusted EBITDA and Adjusted EBITDA Margin 1 For the year ended December 31, 2023, non-GAAP stock-based compensation excludes the $31.3 million reversal related to the former CEOʼs forfeited MRSU award that is reported in Restructuring related charges, as well as $3.9 million that is reported in Re

  54. Slide 54: Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin

    Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin 1 For the year ended 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. For the year ended December 31, 2

DigitalOcean Holdings — Q4 2025 Earnings Presentation on 6ix