DigitalOcean Q1 2021 Earnings Report
Key Takeaways
DigitalOcean announced its Q1 2021 financial results, reporting a revenue of $93.7 million, a 29% year-over-year increase. The company's ARR increased to $388 million, up 30% year-over-year. The adjusted EBITDA margin expanded by 740 bps to 33%.
Revenue was $93.7 million, an increase of 29% year-over-year.
Annual Run-Rate Revenue (ARR) ended the quarter at $388 million, an increase of 30% year-over-year.
Adjusted EBITDA was $30.7 million and adjusted EBITDA margin was 33% of revenue.
The company completed an initial public offering and sold 16.5 million shares for net proceeds of $723.1 million and used a portion to pay off all outstanding debt.
DigitalOcean
DigitalOcean
Forward Guidance
Based on information available as of May 6, 2021, for the second quarter of 2021 we expect: Total revenue of $97 to $99 million. Adjusted EBITDA margin of 30% to 31%. Fully diluted weighted average shares outstanding of 117 to 119 million shares. For the full year 2021, we expect: Total revenue of $405 to $409 million. Adjusted EBITDA margin of 30% to 31%. Fully diluted weighted average shares outstanding of 115 to 117 million shares. Capital expenditures as a percentage of revenue of 25% to 26%.
Positive Outlook
- Total revenue of $97 to $99 million for Q2 2021.
- Adjusted EBITDA margin of 30% to 31% for Q2 2021.
- Fully diluted weighted average shares outstanding of 117 to 119 million shares for Q2 2021.
- Total revenue of $405 to $409 million for full year 2021.
- Adjusted EBITDA margin of 30% to 31% for full year 2021.