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Jun 30, 2021

DigitalOcean Q2 2021 Earnings Report

Revenue grew and ARR increased, driven by strong execution and customer adoption.

Key Takeaways

DigitalOcean announced strong second-quarter results with accelerated revenue growth and improved capital efficiency. Revenue increased by 35% year-over-year to $103.8 million, and ARR grew by 36% year-over-year to $426 million. The company also launched Managed MongoDB to further drive revenue growth from managed service offerings.

Revenue was $103.8 million, an increase of 35% year-over-year.

ARR ended the quarter at $426 million, an increase of 36% year-over-year.

Net Dollar Retention Rate was 113%, an increase of 1,100 basis points from the second quarter 2020.

Average Revenue Per Customer in the quarter was $58.07, an increase of 25% over the second quarter 2020.

Total Revenue
$104M
Previous year: $76.9M
+35.0%
EPS
-$0.02
Previous year: -$0.06
-66.7%
Annual Recurring Revenue
$426M
Previous year: $314M
+35.7%
Average Revenue per User
$58.1
Previous year: $46.5
+25.0%
Net Dollar Retention Rate
113%
Previous year: 102%
+10.8%
Gross Profit
$60.7M
Previous year: $41.7M
+45.5%
Cash and Equivalents
$577M
Previous year: $126M
+357.3%
Total Assets
$915M

DigitalOcean

DigitalOcean

Forward Guidance

Based on information available as of August 5, 2021, DigitalOcean expects total revenue of $106 to $109 million and an adjusted EBITDA margin of 30% to 31% for the third quarter of 2021. For the full year 2021, the company expects total revenue of $419 to $423 million and an adjusted EBITDA margin of 30% to 31%.

Positive Outlook

  • Total revenue of $106 to $109 million for Q3 2021.
  • Adjusted EBITDA margin of 30% to 31% for Q3 2021.
  • Fully diluted weighted average shares outstanding of 119 to 121 million shares for Q3 2021.
  • Total revenue of $419 to $423 million for full year 2021.
  • Adjusted EBITDA margin of 30% to 31% for full year 2021.