DigitalOcean Q3 2023 Earnings Report
Key Takeaways
DigitalOcean reported a 16% increase in revenue to $177 million for Q3 2023. The company's ARR reached $713 million, representing 11% year-over-year growth. GAAP net income was $19 million, with adjusted EBITDA at $76 million. The company also closed the acquisition of Paperspace.
Revenue was $177 million, up 16% year-over-year.
ARR reached $713 million, an 11% increase year-over-year.
GAAP net income was $19 million, with a net income margin of 11%.
Adjusted EBITDA was $76 million, a 23% increase year-over-year, with a margin of 43%.
DigitalOcean
DigitalOcean
Forward Guidance
For Q4 2023, DigitalOcean is targeting revenue of $178 million, an adjusted EBITDA margin of 36% to 37%, and non-GAAP diluted net income per share of $0.36 to $0.37. For the full year 2023, the company expects revenue of $690 million, an adjusted EBITDA margin of 38% to 39%, and non-GAAP diluted net income per share of $1.52 to $1.54.
Positive Outlook
- Targeting total revenue of $178 million for Q4 2023.
- Anticipating an adjusted EBITDA margin of 36% to 37% for Q4 2023.
- Expecting non-GAAP diluted net income per share of $0.36 to $0.37 for Q4 2023.
- Targeting total revenue of $690 million for the full year 2023.
- Expecting an adjusted EBITDA margin of 38% to 39% for the full year 2023.
Challenges Ahead
- Non-GAAP diluted net income per share of $0.36 to $0.37 for Q4 2023.
- Fully diluted weighted average shares outstanding of approximately 100 to 101 million shares for Q4 2023.
- Adjusted free cash flow margin in the range of 21% to 22% of revenue for the full year 2023.
- Non-GAAP diluted net income per share of $1.52 to $1.54 for the full year 2023.
- Fully diluted weighted average shares outstanding of approximately 102 to 103 million shares for the full year 2023.