DigitalOcean Q4 2024 Earnings Report
Key Takeaways
DigitalOcean reported Q4 2024 revenue of $205 million, up 13% year-over-year, with net income rising to $18 million. Adjusted EBITDA margin reached 42%, demonstrating operational efficiency. The company's focus on higher-spend customers and AI-powered solutions contributed to its strong performance.
Revenue grew 13% year-over-year to $205 million.
Net income increased to $18 million, representing a 9% net margin.
Adjusted EBITDA reached $86 million, a 42% margin.
Net dollar retention rate improved to 99% from 97% in the previous quarter.
DigitalOcean Revenue
DigitalOcean EPS
Forward Guidance
DigitalOcean anticipates continued growth in 2025, with projected revenue between $870 million and $890 million. The company expects adjusted EBITDA margin between 37% and 40% while maintaining strong free cash flow generation.
Positive Outlook
- Projected full-year 2025 revenue of $870M-$890M.
- Expected adjusted EBITDA margin of 37%-40%.
- Non-GAAP diluted EPS guidance of $1.85-$1.95.
- Expansion of AI-powered solutions to drive growth.
- Continued focus on higher-spend customers for sustained revenue increase.
Challenges Ahead
- Potential macroeconomic headwinds affecting customer spending.
- Foreign exchange fluctuations could impact revenue growth.
- Increased competition in the cloud services industry.
- Higher capital expenditures to support infrastructure expansion.
- Regulatory challenges in key international markets.