DigitalOcean Q3 2021 Earnings Report
Key Takeaways
DigitalOcean announced strong third-quarter results with revenue growth accelerating to 37% year-over-year and a net dollar retention rate of 116%. The company is building a foundation for durable 30%+ revenue growth with strong free cash flow generation.
Revenue was $111.4 million, an increase of 37% year-over-year.
ARR ended the quarter at $455 million, an increase of 36% year-over-year.
Net Dollar Retention Rate was 116%, an increase of 1,200 basis points from the third quarter 2020.
Average Revenue Per Customer in the quarter was $61.97, an increase of 28% over the third quarter 2020.
DigitalOcean
DigitalOcean
Forward Guidance
For the fourth quarter of 2021, DigitalOcean expects total revenue of $117 to $119 million and an adjusted EBITDA margin of 30% to 31%. For the full year 2021, the company expects total revenue of $426 to $428 million and an adjusted EBITDA margin of 30% to 31%.
Positive Outlook
- Total revenue of $117 to $119 million is expected for Q4 2021.
- Adjusted EBITDA margin of 30% to 31% is expected for Q4 2021.
- Total revenue of $426 to $428 million is expected for the full year 2021.
- Adjusted EBITDA margin of 30% to 31% is expected for the full year 2021.
- Capital expenditures as a percentage of revenue of 25% to 26%.