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2025 DigitalOcean. All rights reserved Earnings Presentation Q3 2025 November 5, 2025 1
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2025 DigitalOcean. All rights reserved The statements in the presentation regarding our financial outlook are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to: (1) fluctuations in our financial results make it difficult to project future results; (2) our ability to sustain profitability in the future; (3) our ability to expand usage of our platform by existing customers and/or attract new customers and/ or retain existing customers; (4) the speed at which the market for our platform and solutions develops; (5) the success of the development and use of our artificial intelligence and machine learning (AI/ML) product offerings or use of third-party AI/ML-based tools; (6) our ability to release updates and new features to our platform and adapt and respond effectively to rapidly changing technology or customer needs; (7) our ability to control costs, including our operating expenses, and the timing of payment for expenses; (8) the amount and timing of non-cash expenses, including stock-based compensation, goodwill impairments and other non-cash charges; (9) breaches in our security measures allowing unauthorized access to our platform, data, or customers' data; (10) the competitive markets in which we participate; (11) our ability to effectively integrate and retain new members of our executive leadership team and senior management; (12) the effects of acquisitions and their integration; (13) general market, political, economic, and business conditions, including changes in trade policies, such as trade wars, tariffs and other restrictions or the threat of such actions; (14) the impact of new accounting pronouncements; (15) our ability to control fraudulent registrations and usage of our platform, reduce bad debt and lessen capacity constraints on our data centers, servers and equipment; (16) our customers' ability to have continued and unimpeded access to our platform, including as a result of evolving laws and industry standards, and (17) our plans with respect to accelerating investments in data centers and GPU capacity. Further information on these and additional risks, uncertainties, assumptions and other factors that could cause actual results or outcomes to differ materially from those included in or contemplated by the forward-looking statements in this presentation are included under the caption “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent filings and reports we make with the SEC. We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this presentation. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur. The forward-looking statements in this presentation relate only to events as of the date on which the statements are made. We assume no obligation to, and do not currently intend to, update any such forward-looking statements after the date hereof. 2 Safe Harbor
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2025 DigitalOcean. All rights reserved Company Overview 3
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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
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$400B in 2025, growing 23%1 AI EXPANSION AI EXPANSION NONTECH ENTERPRISES DIGITAL NATIVES DO Focus Medium enterprises Individuals & Small enterprises $140B$260B Public Cloud Market Large enterprises 1 IDC Software and Public Cloud Services Spending Guide Feb 2025 2 DNE Count & Segmentation estimated based on ZoomInfo cloud spend estimates 3 DNEs consists of our Higher Spend Customer count as of 9/30/25. Refer to the Appendix for definitions of key metrics. 4M Digital Native Enterprises2 Our focus is on: $140B Digital Native Enterprises2 177K DNEs on DO3 2025 DigitalOcean. All rights reserved We operate in a large and growing market 5
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Scalable, comprehensive agentic cloud with enterprise-grade SLAs for mission critical products Scalable Trusted cloud partner without a walled garden, offering transparent costs, 247 support, and an open ecosystem Approachable Unmet need Simple cloud lifecycle management for lean teams without heavy DevOps, CloudOps, or FinOps resources Simple DigitalOcean is purpose built for AI & Digital Native Enterprises Highly complex Cost prohibitive at scale Locked in contracts & limited support Hyperscaler challenges 2025 DigitalOcean. All rights reserved 6
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DigitalOcean Gradient AI Agentic Cloud 2025 DigitalOcean. All rights reserved 7 7 SaaSPaaSIaaS Pre-configured VMs SaaS add onsMarketplace Web Hosting Cloudways - New high performance kernel Databases Kubernetes Serverless Application Platform - MCP, VPC, Cron Jobs Support for Optimized GPU types, Cluster Autoscaler, Managed Gateway API, NFS, NAT Gateway Streaming: Kafka Schema Registry Storage Auto- scaling Search: OpenSearch Compute Storage Network Object block BYOIPVPC App design agents, Optimization agents, and Troubleshooting agents Enhanced Cloudways CoPilot Code Fix Agents Documentation Agents InfrastructureOptimization Software Building Blocks Platform Agent Insights Media Model VPC Agent Platform Agent Deployments Public & Private Endpoints Agent Evals Agent Traceability Agent Versioning Model/ Agent Playground Agent Templates Data Integrations Multi-Agent Routing Improved Knowledge Bases Updated Guardrails Data Processing 3PModel Ops DOKS Orchestration Autoscaling New GPU Droplets + Inference-Optimized Image New GPU Types Bare Metal GPUs High-Performance Databases Vector Database CPU Object Storage Networking Agents Deploy Test Build Commercial & Open Source Model Support Caching: Valkey Network file storage Droplets: CPU, Memory, and Storage optimized VMs Network file storage Load balancers Spaces cold storage, Usage- based backups New Droplet plans, Per-sec billing Private Preview) MySQL PostgreSQL MongoDB
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2025 DigitalOcean. All rights reserved Q3 2025 Highlights 8
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2025 DigitalOcean. All rights reserved ● Enhanced full-stack inference platform with powerful lineup of GPUs, advanced performance optimizations, serverless inferencing and building block services ● Added enterprise grade Cold Storage Tier, automated autoscaling for Managed Databases, NFS, NAT Gateways and more Q3 Growing momentum; Raising outlook Unified Agentic Cloud ● Customers having more than $1 million annualized run-rate reached $110 million in total ARR, growing 72% YoY ● Multiple eight figure committed contracts signed after the quarter closed Large Customer Traction ● Exceeded Q3 revenue and profitability guidance ● Delivered 16% YoY revenue growth and $44M incremental organic ARR, highest in the companyʼs history ● Generated 21% trailing twelve month adjusted free cash flow margin Strong Q3 Performance ● Increasing 2025 and 2026 revenue and adjusted free cash flow outlook ● Increasing investment in data center and GPU capacity to further accelerate growth while maintaining attractive margins Raising 2025 and 2026 outlook 9Note: Refer to the Appendix for definitions of key metrics, other terms and reconciliations of Non-GAAP measures to GAAP.
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2025 DigitalOcean. All rights reserved 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 Accelerating revenue growth, with highest organic incremental ARR in company history Note: Refer to the Appendix for definitions of key metrics. 10
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2025 DigitalOcean. All rights reserved 11Note: $100k+ ARR Customers based on Scalers+ customer category, which also includes $500k+ ARR customers and $1M ARR customers. Refer to Appendix for definitions. Our largest customers are our fastest growing 55% 72% 41%
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New since last earningsRapidly innovating our Agentic Cloud 2025 DigitalOcean. All rights reserved 12 12 SaaSPaaSIaaS Pre-configured VMs SaaS add onsMarketplace Web Hosting Cloudways - New high performance kernel Databases Kubernetes Serverless Application Platform - MCP, VPC, Cron Jobs Support for Optimized GPU types, Cluster Autoscaler, Managed Gateway API, NFS, NAT Gateway Streaming: Kafka Schema Registry Storage Auto- scaling Search: OpenSearch Compute Storage Network Object block BYOIPVPC App design agents, Optimization agents, and Troubleshooting agents Enhanced Cloudways CoPilot Code Fix Agents Documentation Agents InfrastructureOptimization Software Building Blocks Platform Agent Insights Media Model VPC Agent Platform Agent Deployments Public & Private Endpoints Agent Evals Agent Traceability Agent Versioning Model/ Agent Playground Agent Templates Data Integrations Multi-Agent Routing Improved Knowledge Bases Updated Guardrails Data Processing 3PModel Ops DOKS Orchestration Autoscaling New GPU Droplets + Inference-Optimized Image New GPU Types Bare Metal GPUs High-Performance Databases Vector Database CPU Object Storage Networking Agents Deploy Test Build Commercial & Open Source Model Support Caching: Valkey Network file storage Droplets: CPU, Memory, and Storage optimized VMs Network file storage Load balancers Spaces cold storage, Usage- based backups New Droplet plans, Per-sec billing Private Preview) MySQL PostgreSQL MongoDB 2025 DigitalOcean. All rights reserved 12
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13 SaaSPaaSIaaS Pre-configured VMs SaaS add onsMarketplace Web Hosting Cloudways - New high performance kernel Databases Kubernetes Serverless Application Platform - MCP, VPC, Cron Jobs Support for Optimized GPU types, Cluster Autoscaler, Managed Gateway API, NFS, NAT Gateway Streaming: Kafka Schema Registry Storage Auto- scaling Search: OpenSearch Compute Storage Network Object block BYOIPVPC App design agents, Optimization agents, and Troubleshooting agents Enhanced Cloudways CoPilot Code Fix Agents Documentation Agents InfrastructureOptimization Software Building Blocks Platform Agent Insights Media Model VPC Agent Platform Agent Deployments Public & Private Endpoints Agent Evals Agent Traceability Agent Versioning Model/ Agent Playground Agent Templates Data Integrations Multi-Agent Routing Improved Knowledge Bases Updated Guardrails Data Processing 3PModel Ops DOKS Orchestration Autoscaling New GPU Droplets + Inference-Optimized Image New GPU Types Bare Metal GPUs High-Performance Databases Vector Database CPU Object Storage Networking Agents Deploy Test Build Commercial & Open Source Model Support Caching: Valkey Network file storage Droplets: CPU, Memory, and Storage optimized VMs Network file storage Load balancers Spaces cold storage, Usage- based backups New Droplet plans, Per-sec billing Private Preview) MySQL PostgreSQL MongoDB Expanding the DigitalOcean AI Ecosystem 2025 DigitalOcean. All rights reserved 13
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2025 DigitalOcean. All rights reserved Maintaining profitability while accelerating growth 14Note: Refer to the Appendix for reconciliations of Non-GAAP measures to GAAP. 44% 43%Margin:Margin: 59% 60% 17% 15% 40% 17% 21%Margin:
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2025 DigitalOcean. All rights reserved Raising 2025 revenue and aFCF margin guidance Metric Q4 2025 FY 2025 (as of 8/5 FY 2025 (as of 11/5 FY Delta (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 bps Non-GAAP Diluted Net Income Per Share $0.35$0.40 $2.05$2.10 $2.00$2.05 $0.05 * Adjusted Free Cash Flow Margin N/A 17%19% 18%19% 50 bps Non-GAAP Diluted Weighted Average Shares Outstanding 111112M 103104M 106107M 3M shares 15 Note: Refer to the Appendix for definitions of key metrics and reconciliations of Non-GAAP measures to GAAP. *The impact from our current debt structure after the refinancing activities in Q3 drove a negative ~$0.15-$0.20 on Non-GAAP Diluted Net Income Per Share for full fiscal year 2025
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2025 DigitalOcean. All rights reserved Appendix 16
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2025 DigitalOcean. All rights reserved Our global infrastructure supports customers in approximately 190 Countries Note: % based on Q3ʼ25 revenue. Asia 23% of revenue Europe 27% of revenue RoW 10% of revenue North America 40% of revenue Atlanta Amsterdam Frankfurt London Toronto Singapore New York Bangalore San Francisco Sydney Customers in 190 Countries17 Data Centers Across 9 Regions 17
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2025 DigitalOcean. All rights reserved 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 Net Dollar Retention Rate (NDR) 97% 99% 100% 99% 99% Higher Spend Customers (Builders, Scalers, and Scalers+) 162.7K 165.4K 170.7K 174.5K 176.6K Higher Spend Customers % of total company revenue 88% 88% 88% 89% 89% Capex as % of Revenue 30% 23% 31% 16% 5% Note: Refer to the Appendix for definitions of key metrics and reconciliations of Non-GAAP measures to GAAP. 18
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2025 DigitalOcean. All rights reserved 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 based on the amount of their spend in a given month and individual customers may fall within different categories within a reporting period: ● Testers: users that both (i) spend less than or equal to $50 in a month and (ii) have been on our platform for three months or less. ● Learners: users that both (i) spend less than or equal to $50 in a month and (ii) have been on our platform for more than three months. ● Builders: users that spend more than $50 and less than or equal to $500 in a month. ● Scalers: users that spend more than $500 and less than or equal to $8,333 in a month. ● Scalers+: users that spend more than $8,333 in a month. We refer to our Builders, Scalers and Scalers+ customer categories collectively as our Higher Spend Customers. Net Dollar Retention Rate We calculate net dollar retention rate monthly by starting with the revenue from all customers, including Testers, Learners, Builders, Scalers and Scalers+ for our IaaS and PaaS/SaaS offerings during the corresponding month 12 months prior, or the Prior Period Revenue. We then calculate the revenue from these same customers as of the current month, or the Current Period Revenue, including any expansion and net of any contraction or attrition from these customers over the last 12 months. The calculation also includes revenue from customers that generated revenue before, but not in, the corresponding month 12 months prior, but subsequently generated revenue in the current month and are therefore reflected in the Current Period Revenue. We include this group of re-engaged customers in this calculation because some of our customers use our platform for projects that stop and start over time. We then divide the total Current Period Revenue by the total Prior Period Revenue to arrive at the net dollar retention rate for the relevant month. For a quarterly or annual period, the net dollar retention rate is determined as the average monthly net dollar retention rates over such three or 12-month period. ARR Beginning in the fourth quarter of 2024, we changed our methodology to calculate ARR by multiplying the revenue for the most recent quarter by four. For our ARR calculations, we include the total revenue from all customers, including Testers, Learners, Builders, Scalers, and Scalers+. Key Business Metrics Definitions 19
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2025 DigitalOcean. All rights reserved 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 and PaaS/ SaaS offerings and April 1, 2023 for our Managed Hosting offerings, in each case until the beginning of the first full quarter following the one-year anniversary of the closing date of such acquisition or date pricing changes were effective. Remaining Performance Obligation Remaining performance obligation (“RPOˮ) represents commitments in customer contracts for future services that have not yet been recognized in the condensed consolidated financial statements. We have applied the optional exemption to exclude contracts with an original expected term of one year or less from this amount. RPO is not necessarily indicative of future revenue growth because it does not account for the timing of customersʼ consumption or their usage beyond their contracted capacity. Additionally, RPO may increase when customers transition from usage-based to commitment-based agreements, which does not always reflect incremental revenue growth. RPO is influenced by a number of factors, including the timing and size of renewals, the timing and size of purchases of additional capacity and average contract term. Customers with Greater than $500 Thousand in ARR Customers within our Scalers+ category with more than $41,667 of spend in a given month. Individual customers may fall within different categories within a reporting period. Customers with Greater than $1 Million in ARR Customers within our Scalers+ category with more than $83,333 of spend in a given month. Individual customers may fall within different categories within a reporting period. Other Metrics Definitions 20
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2025 DigitalOcean. All rights reserved 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 measures calculated in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP metrics versus their nearest GAAP equivalents. Other companies, including companies in our industry, may calculate non-GAAP metrics differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP metrics as tools for comparison. We urge you to review the reconciliation of our non-GAAP metrics to the most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business. See this Appendix for a reconciliation between each non-GAAP metric and the most comparable GAAP measure and our press release dated November 5, 2025 for a definition of each non-GAAP metric not otherwise defined herein. TTM Adjusted Free Cash Flow and TTM Adjusted Free Cash Flow Margin TTM Adjusted free cash flow is Adjusted free cash flow for the most recent 12 consecutive months. TTM Adjusted free cash flow margin is calculated as Adjusted free cash flow for the most recent 12 consecutive months divided by total Revenue for the most recent 12 consecutive months. Use of Non-GAAP Metrics 21
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2025 DigitalOcean. All rights reserved Adjusted EBITDA and Adjusted EBITDA Margin 22 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 the three and nine months ended September 30, 2025, primarily consists of interest income from our cash and cash equivalents. For the three and nine months ended September 30, 2024, primarily consists of interest and accretion income from our cash and cash equivalents and marketable securities.
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2025 DigitalOcean. All rights reserved 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 the periods in fiscal year 2025 and 2024, we used a tax rate of 16%, which we believe is a reasonable estimate of our long-term effective tax rate applicable to non-GAAP pre-tax income for each respective year. 4 Consists of non-cash interest expense for amortization of debt issuance costs related to the 2026 and 2030 Convertible Notes. 5 For the three and nine months ended September 30, 2025, excludes tax impact which is presented in Non-GAAP income tax adjustment. 6 May not foot due to rounding. 23
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2025 DigitalOcean. All rights reserved 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 reorganization charges. 3 For the periods in fiscal year 2025 and 2024, we used a tax rate of 16%, which we believe is a reasonable estimate of our long-term effective tax rate applicable to non-GAAP pre-tax income for each respective year. 4 Consists of non-cash interest expense for amortization of debt issuance costs related to the 2026 and 2030 Convertible Notes. 5 For the three and nine months ended September 30, 2025, excludes tax impact which is presented in Non-GAAP income tax adjustment. 6 May not foot due to rounding. 24
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2025 DigitalOcean. All rights reserved 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. 25
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2025 DigitalOcean. All rights reserved 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 charges and executive reorganization charges, including CEO search firm fees and other legal and professional service costs. 26
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2025 DigitalOcean. All rights reserved 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 Form 10K filed with the SEC on February 25, 2025 for further details. 2 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. 27