DigitalOcean Q3 revenue up 37% YoY to $152.1M; improves margins, Cloudways acquired

Based on information available as of November 7, 2022, for the fourth quarter of 2022 we expect: • Total revenue of $160 to $162 million. • Non-GAAP operating margin of 16%. • Non-GAAP diluted net income per share of $0.18 to $0.19.

For the full year 2022, we expect: • Total revenue of $573 to $575 million. • Non-GAAP operating margin of 17%. • Free cash flow in the range of 10% to 11% of revenue. • Non-GAAP diluted net income per share of $0.79 to $0.80.

NEW YORK, November 7, 2022 – DigitalOcean Holdings, Inc. (NYSE: DOCN), the cloud for developers, startups and SMBs, today announced results for its third quarter ended September 30, 2022. “I'm proud that we delivered top-line acceleration combined with significant operating margin and free cash flow leverage in the third quarter, despite the difficult operating environment due to global macro challenges,” said Yancey Spruill, CEO of DigitalOcean. “In addition, we made a significant investment to expand our addressable market with the acquisition of Cloudways. We will continue to leverage our capabilities to provide exceptional value to support the growth of SMBs. We are committed to delivering durable 30% growth with increasing profitability and cash flow.” Third Quarter 2022 Financial Highlights: • Revenue was $152.1 million, an increase of 37% year-over-year and included a $4.1 million net revenue contribution from Cloudways, and revenue growth was 33% on a standalone basis.