DigitalOcean Q3 2024 Earnings Report
Key Takeaways
DigitalOcean announced its Q3 2024 financial results, reporting a 12% year-over-year revenue increase to $198 million. The company's net income was $33 million, representing a 17% margin, and adjusted EBITDA reached $87 million, a 44% margin. DigitalOcean raised its full-year revenue guidance while maintaining its free cash flow margin guidance.
Revenue increased by 12% year-over-year, reaching $198 million.
ARR increased by 12% year-over-year, ending the quarter at $798 million.
Net income attributable to common stockholders was $33 million, a 72% year-over-year increase.
Average Revenue Per Customer (ARPU) increased by 11% year-over-year to $102.51.
DigitalOcean
DigitalOcean
Forward Guidance
DigitalOcean provided guidance for the fourth quarter ending December 31, 2024, and updated its full-year 2024 guidance.
Positive Outlook
- Total revenue of $199 to $201 million for Q4 2024.
- Adjusted EBITDA margin of 34% to 38% for Q4 2024.
- Non-GAAP diluted net income per share of $0.27 to $0.32 for Q4 2024.
- Increasing total revenue guidance of $775 to $777 million for full year 2024.
- Adjusted EBITDA margin of 40% to 41% for full year 2024.
Challenges Ahead
- Adjusted free cash flow margin in the range of 15% to 17% of revenue for full year 2024.
- Fully diluted weighted average shares outstanding of approximately 103 to 104 million shares for Q4 2024.
- Fully diluted weighted average shares outstanding of approximately 103 to 104 million shares for full year 2024.
- Uncertainty regarding expenses that may be incurred in the future.
- Stock-based compensation expense-related charges are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs.