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Jun 30, 2024
DigitalOcean Q2 2024 Earnings Report
DigitalOcean's Q2 2024 performance was marked by revenue growth, ARR increase, and strategic leadership additions.
Key Takeaways
DigitalOcean announced strong second-quarter results with revenue increasing by 13% year-over-year to $192 million. The company's ARR grew by 15% to $781 million, and it reported a net income of $19 million. They expanded their leadership team and saw AI/ML ARR increase significantly.
Revenue increased by 13% year-over-year, reaching $192 million.
ARR grew by 15% year-over-year, ending the quarter at $781 million.
Net income attributable to common stockholders was $19 million.
ARPU increased by 9% over the second quarter of 2023, reaching $99.45.
DigitalOcean
DigitalOcean
Forward Guidance
DigitalOcean provided guidance for the third quarter ending September 30, 2024, and updated its full-year 2024 guidance.
Positive Outlook
- Total revenue is expected to be between $196 to $197 million for Q3 2024.
- Adjusted EBITDA margin is projected to be 37% to 38% for Q3 2024.
- Non-GAAP diluted net income per share is expected to be $0.39 to $0.41 for Q3 2024.
- Total revenue is projected to be between $770 to $775 million for the full year 2024.
- Adjusted EBITDA margin is expected to be 37% to 39% for the full year 2024.
Challenges Ahead
- Adjusted free cash flow margin is expected to be in the range of 15% to 17% of revenue for the full year 2024.
- Non-GAAP diluted net income per share is projected to be $1.60 to $1.70 for the full year 2024.
- Fully diluted weighted average shares outstanding are expected to be approximately 102 to 103 million shares for Q3 2024.
- Fully diluted weighted average shares outstanding are expected to be approximately 102 to 103 million shares for the full year 2024.
- A reconciliation of non-GAAP outlook measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future.