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Exhibit 99.1 DigitalOcean Announces Third Quarter 2021 Financial Results Revenue Growth Accelerated to 37 % and Net Dollar Retention Rate Increased to 116 % Average Revenue Per Customer Grew 28 % Year - over - year NEW YORK , November 4 , 2021 – DigitalOcean Holdings , Inc. ( NYSE : DOCN ) , the cloud for developers , startups and SMBs , today announced results for its third quarter ended September 30 , 2021 . " We are excited about the continued acceleration across our business , " said Yancey Spruill , CEO of DigitalOcean . " We are building the foundation for durable 30 % + revenue growth with strong free cash flow generation driven by investments in product innovation to support our customers ' needs and sales and marketing initiatives to further penetrate our massive market opportunity . " Third Quarter 2021 Financial Highlights : • Revenue was $ 111.4 million , an increase of 37 % year - over - year . • Annual Run - Rate Revenue ( ARR ) ended the quarter at $ 455 million , an increase of 36 % year - over - year . . GAAP Gross Profit of $ 67.9 million or 61 % of revenue , and adjusted Gross Profit of $ 89.0 million or 80 % of revenue . • • • • Loss from operations was $ 1.7 million and operating margin was ( 1 ) % as compared to loss from operations of $ 6.7 million and operating margin of ( 8 ) % in the prior year period . Adjusted EBITDA was $ 36.4 million and adjusted EBITDA margin was 33 % of revenue as compared to adjusted EBITDA of $ 26.4 million and adjusted EBITDA margin of 33 % in the prior year period . GAAP net loss per share was $ ( 0.02 ) and non - GAAP diluted net income per share was $ 0.12 . Cash flow from operations was $ 40.2 million or 36 % of revenue as compared to cash flow from operations of $ 23.3 million or 29 % of revenue in the prior year period , an increase of 73 % . • • Capital expenditures were $ 26.7 million or 24 % of revenue as compared to $ 26.1 million or 32 % of revenue in the prior year period . Cash , cash equivalents , and restricted cash were $ 592.0 million with zero debt as of September 30 , 2021 . Third Quarter 2021 Operational Highlights : . Net Dollar Retention Rate ( NDR ) was 116 % , an increase of 1,200 basis points from the third quarter 2020 . • Average Revenue Per Customer ( ARPU ) in the quarter was $ 61.97 , an increase of 28 % over the third quarter 2020 . • . Total customers of approximately 598K at the end of the quarter , up 7 % as compared to the third quarter 2020 . Acquired Nimbella , a serverless platform , built on open - source software , that is designed to simplify the cloud programming experience and help developers and SMBs focus more on application development and business outcomes and less on managing the underlying infrastructure . Financial Outlook Based on information available as of November 4 , 2021 , for the fourth quarter of 2021 we expect : • Total revenue of $ 117 to $ 119 million . • Adjusted EBITDA margin of 30 % to 31 % . • Fully diluted weighted average shares outstanding of 122 to 124 million shares . 1