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DigitalOcean Holdings, Inc. (DOCN) is a cloud infrastructure provider that simplifies cloud computing for developers, startups, and small-to-medium-sized businesses. The company offers scalable and cost-effective solutions, including virtual servers, storage, networking, and artificial intelligence/machine learning capabilities. Its services are designed to meet the needs of various customer segments based on their monthly spending levels.
- Scalers - Provides cloud services to customers spending more than $500 and up to $8,333 per month, catering to businesses requiring scalable infrastructure for growth.
- Builders - Offers cloud solutions to customers spending more than $50 and up to $500 per month, focusing on developers and small businesses building applications.
- Scalers+ - Delivers advanced cloud infrastructure to customers spending more than $8,333 per month, supporting high-demand and enterprise-level operations.
- Learners and Testers - Serves customers spending $50 or less per month, including learners who have been on the platform for over three months and testers who are newer users.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Padmanabhan Srinivasan ExecutiveBoard | Chief Executive Officer | CEO of DigitalOcean Holdings, Inc since February 12, 2024. Previously held leadership roles at companies such as GoTo and Microsoft. | View Report → | |
Cherie Barrett Executive | Senior Vice President and Chief Accounting Officer | Cherie Barrett is the Senior Vice President and Chief Accounting Officer at DOCN since December 4, 2023. She previously served as Senior Vice President, Chief Accounting Officer, and Controller at Zayo Group Holdings, Inc. from June 2017 to May 2023. | ||
W. Matthew Steinfort Executive | Chief Financial Officer | W. Matthew Steinfort has served as Chief Financial Officer at DigitalOcean since January 2023. He also stepped in as interim Chief Accounting Officer in May 2023, demonstrating his extensive financial leadership. | ||
Amy Butte Board | Member of the Board of Directors | Member of the Board of Directors at Bain Capital Specialty Finance, Inc. ; Member of the Board of Directors at Bain Capital Private Credit ; Member of the Board of Directors and Audit Committee Chair at Stash Financial, Inc. | Amy Butte has served on the Board of Directors at DigitalOcean Holdings, Inc. (DOCN) since April 2018. She also contributed as an Audit Committee member, serving as Chair until February 2025. | |
Christopher Merritt Board | Member of the Board of Directors | Christopher Merritt is a seasoned executive with extensive experience in sales and marketing at various technology companies, and he currently serves as a board member at DOCN since April 17, 2023. He has previously held key leadership roles at companies such as Cloudflare. | ||
Hilary Schneider Board | Board Member | Board Member at Vail Resorts, Inc. ; Board Member at Getty Images, Inc. ; Board Member at Sleep Number Corporation ; Board Member at Water.org | Hilary Schneider has served as a Board Member at DOCN since November 2020. She previously held executive roles as CEO at Shutterfly from January 2020 to May 2023, as well as CEO positions at Wag Labs, Inc. and LifeLock, Inc.. | |
Pratima Arora Board | Member of the Board of Directors | Advisor at Chainalysis Inc. (since January 2025) | Pratima Arora has served as a Member of the Board of Directors at DigitalOcean Holdings, Inc. since February 2021. She also serves on the Compensation Committee and the Nominating and Corporate Governance Committee, leveraging extensive experience in product management. | |
Warren Adelman Board | Lead Independent Director | Managing Director of Nativ Group | Warren Adelman is the Lead Independent Director at DOCN since August 25, 2024. He previously served as Executive Chairman from August 24, 2023 to August 25, 2024 and has been on the Board since November 2020 , bringing extensive leadership experience from his roles as Managing Director at Nativ Group and former CEO at GoDaddy. | |
Warren Jenson Board | Board Member | USC Marshall School of Business; Marriott School of Business at Brigham Young University; Ripple; Jobcase; Dropbox | Warren Jenson has served as a Board Member at DigitalOcean since December 2020 and was appointed Chairperson of the Audit Committee effective February 25, 2025. He brings extensive executive experience from roles such as CFO at Nielsen Holdings and LiveRamp. |
- How do you plan to sustain the improvement in net dollar retention in light of ongoing competitive pressures and macro uncertainties, and what specific measures are you taking to ensure that high-spending customer retention remains a growth lever?
- Could you elaborate on the change in ARR methodology and explain how this might affect investor analysis by comparing growth trends across sequential periods, particularly in a consumption-based business model?
- With the Atlanta data center investments front-loading expenses in Q1, what steps are being taken to mitigate the anticipated impact on gross margins, and how should investors view this in the context of long-term margin improvements?
- How do you assess the challenges and risks associated with scaling your AI/ML product offerings, especially considering the integration of these solutions into your existing revenue mix and their impact on the overall margin profile?
- Given the slower upsell momentum in your non-scalers customer cohort compared to the rapid revenue growth of scalable high-spending customers, what specific strategies are in place to accelerate revenue growth and improve wallet share within the lower-tier segments?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Competes primarily with large, diversified technology companies that focus on large enterprise customers and provide cloud computing as just a portion of the products and services they offer. Also competes in AI/ML offerings with providers of AI/ML infrastructure and services. | |
Competes primarily with large, diversified technology companies that focus on large enterprise customers and provide cloud computing as just a portion of the products and services they offer. Also competes in AI/ML offerings with providers of AI/ML infrastructure and services. | |
Competes primarily with large, diversified technology companies that focus on large enterprise customers and provide cloud computing as just a portion of the products and services they offer. Also competes in AI/ML offerings with providers of AI/ML infrastructure and services. | |
Competes primarily with large, diversified technology companies that focus on large enterprise customers and provide cloud computing as just a portion of the products and services they offer. | |
Competes primarily with large, diversified technology companies that focus on large enterprise customers and provide cloud computing as just a portion of the products and services they offer. | |
Competes primarily with large, diversified technology companies that focus on large enterprise customers and provide cloud computing as just a portion of the products and services they offer. | |
OVHcloud | Competes with smaller and/or niche cloud service providers that typically target individuals and smaller businesses, simple use cases and/or narrower geographic markets. |
Competes with smaller and/or niche cloud service providers that typically target individuals and smaller businesses, simple use cases and/or narrower geographic markets. | |
Hetzner | Competes with smaller and/or niche cloud service providers that typically target individuals and smaller businesses, simple use cases and/or narrower geographic markets. |
Vultr | Competes with smaller and/or niche cloud service providers that typically target individuals and smaller businesses, simple use cases and/or narrower geographic markets. |
Contabo | Competes with smaller and/or niche cloud service providers that typically target individuals and smaller businesses, simple use cases and/or narrower geographic markets. |
Scaleway | Competes with smaller and/or niche cloud service providers that typically target individuals and smaller businesses, simple use cases and/or narrower geographic markets. |
UpCloud | Competes with smaller and/or niche cloud service providers that typically target individuals and smaller businesses, simple use cases and/or narrower geographic markets. |
Heroku | Competes with smaller and/or niche cloud service providers that typically target individuals and smaller businesses, simple use cases and/or narrower geographic markets. |
Coreweave | Competes in AI/ML offerings with providers of AI/ML infrastructure and services, focusing on more infrastructure-focused companies. |
Lambda Labs | Competes in AI/ML offerings with providers of AI/ML infrastructure and services, focusing on more infrastructure-focused companies. |
Kinsta | Competes with digital agencies and other managed hosting providers in Managed Hosting offerings. |
WP Engine | Competes with digital agencies and other managed hosting providers in Managed Hosting offerings. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Paperspace Co. | 2023 | DigitalOcean acquired Paperspace Co. in July 2023 for $111 million in cash, aiming to integrate advanced AI/ML technology into its platform to extend customer offerings, despite noted integration risks and modest financial impact in 2023. |
SnapShooter Limited | 2023 | Acquired in January 2023 for $2,500 as an asset acquisition, this deal included a contingent compensation liability of $1,000 and targeted enhancement of DigitalOcean’s backup and snapshot storage capabilities through a developed technology intangible asset (amortized over five years). |
Cloudways Ltd. | 2022 | Completed on September 1, 2022 for $350 million in cash, this acquisition (with a significant payment spread over 30 months and a $42 million escrow contribution) aims to simplify cloud computing for SMBs by integrating managed cloud hosting services, though integration risks remain. |
JournalDev IT Services Private Limited | 2022 | Acquired in June 2022 for $1,400 in intangible assets that will be amortized over three years, this acquisition is intended to expand DigitalOcean’s content offering—especially web development tutorials—to enhance customer acquisition on its community platform. |
Recent press releases and 8-K filings for DOCN.
- Revenue reached $211M in Q1 2025, up 14% YoY, with ARR at $843M
- Net income climbed to $38M (18% margin) with Adjusted EBITDA of $86M (41% margin), demonstrating robust operational performance
- AI ARR surged over 160% YoY, reflecting rapid momentum in DigitalOcean’s product-led growth strategy
- High-spending digital native enterprises drove growth, with revenue from customers at annual run rates over $100K increasing 41% YoY and 500+ such customers contributing 23% of revenue
- Gross margin improved to 61% (up 200 bps YoY), underscoring enhanced operational efficiency
- Executed strategic financing with an $800M credit facility to refinance convertible debt and $59M in share repurchases
- DigitalOcean reaffirmed its guidance for the fiscal quarter ending March 31, 2025 and for the full year ending December 31, 2025, as detailed during its Investor Day event .
- Achieved $820M ARR in Q4 2024 with non-GAAP EPS of $1.92 in 2024, demonstrating robust financial performance .
- On track for 18-20% revenue growth by 2027 and targeting a 40%+ Weighted Rule of 40 (up from 27%) .
- Delivered over 40 product releases—including multi-cloud support and enterprise-grade SLAs—that are driving customer acquisition and market share .
- Announced strategic initiatives including $1.5B+ share repurchases, AI-driven cost efficiencies, and selective M&A to bolster organic growth .
- Emphasized a focused market approach with simplified, scalable, and cost-effective cloud solutions tailored to Digital Native Enterprises .
- Included forward-looking statements on financial conditions and risks, as noted in the official filing and signed by CFO W. Matthew Steinfort .
- Revenue Growth: Q4 2024 revenue reached $205 million (up 13% YoY) with full-year revenue of $781 million .
- Profitability & Efficiency: Achieved Q4 net income of $18 million (9% margin) and FY net income of $84 million (11% margin) with 42% adjusted EBITDA margin and 18% Free Cash Flow Margin .
- Operational Momentum: Accelerated product releases in Q4 (over 4x compared to Q4'23) and repurchased 716,718 shares to drive customer revenue growth .
- AI/ML Expansion: The AI/ML platform delivered over 160% ARR growth in Q4, underscoring significant product momentum .
- High-Spend Segment: 500+ customers at $100K+ run-rate drove 37% YoY growth in the Scalers+ cohort, accounting for 22% of total revenue with Net Dollar Retention at 99% .