Digitalocean Hldgs Inc Stock Price, News & Analysis

DigitalOcean (NYSE: DOCN) has announced the general availability of new GPU Droplets powered by NVIDIA's RTX 4000 Ada Generation, RTX 6000 Ada Generation, and L40S GPUs. These additions complement their existing NVIDIA H100 GPU Droplets and H200 Bare Metal GPUs offerings.

The new GPU Droplets feature competitive pricing, simple setup process, and enterprise-grade SLAs. Notable capabilities include the RTX 4000 for content creation and inference workflows, the RTX 6000 with 48GB graphics memory for rendering and AI applications, and the L40S supporting up to eight Tensor Core GPUs with 48GB memory per GPU. The service is currently available in DigitalOcean's Toronto data centers.

This expansion aims to reduce AI adoption barriers and support various workloads including generative AI, LLM inference, model training, 3D graphics, and video applications.

DigitalOcean (NYSE: DOCN) reported strong Q1 2025 financial results with revenue reaching $211 million, up 14% year-over-year. The company demonstrated significant profitability improvements with net income of $38 million, surging 170% YoY at an 18% margin. Adjusted EBITDA grew 16% to $86 million with a 41% margin. Key operational highlights include a 41% growth in revenue from $100K+ ARR customers, now representing 23% of total revenue. The company's AI ARR continued growing over 160% YoY, with 5,000+ customers using their new GenAI Platform. DigitalOcean released 50+ new products and features, including VPC Peering and Droplet Autoscale Pools. The company also secured a new five-year credit agreement providing $800 million in total facilities. For Q2 2025, DigitalOcean expects revenue between $215.5-$217.5 million, and maintains its full-year 2025 revenue guidance of $870-$890 million.

DigitalOcean Holdings (NYSE: DOCN) has announced the general availability of Managed Caching for Valkey, a high-performance caching solution replacing their current Managed Caching offering. The new solution is designed to enhance application speed and scalability.

Key features include:

• Compatibility with Redis® 7.2
• Enhanced multi-threading capabilities
• Dual-channel replication
• New dictionary structure with experimental RDMA support
• Automated failover
• High-performance infrastructure with dedicated vCPUs
• Scalable clusters with adjustable CPU, RAM, storage, and nodes
• End-to-end security with private network operation and data encryption

The solution serves as a cost-effective alternative to self-managed caching database environments, targeting use cases like caching, message queues, and real-time data processing such as gaming leaderboards.

DigitalOcean Holdings (NYSE: DOCN), the scalable cloud platform for digital native enterprises, has scheduled its first quarter 2025 earnings release for Tuesday, May 6, 2025, before market opening.

The company will host a conference call at 8 a.m. ET / 5 a.m. PT on the same day to discuss Q1 2025 financial results and outlook with investors. Pre-registration for the webcast is available, and all materials will be accessible through DigitalOcean's investor relations website.

DigitalOcean Holdings (NYSE: DOCN) has announced its upcoming 2025 Investor Day to be held in New York on April 4, 2025. The event will feature presentations from CEO Paddy Srinivasan and the leadership team, focusing on the company's strategic vision, growth levers, and financial outlook.

The event will run from 9 a.m. to noon ET, with in-person attendance being invitation-only. A live video webcast will be available to the public through the company's investor relations website, with pre-registration available. The webcast replay will remain accessible until April 3, 2026.

DigitalOcean Holdings (NYSE: DOCN) has announced significant enhancements to its DigitalOcean Kubernetes Service (DOKS). The upgraded platform now offers seamless scaling up to 1,000 nodes, simplified VPC networking, and improved performance features.

Key improvements include eBPF-based routing for enhanced data plane latency and bandwidth efficiency, along with fully-managed Cilium for higher-performance networking. The platform provides a one-click cluster creation experience with optimized defaults, diverse CPU and GPU droplet options, and integrated cloud resources.

The announcement highlights NoBid as a customer success story, whose ad-tech platform leverages DOKS to process 200 billion auctions monthly across hundreds of containers in 4 regions, managing over 300,000 concurrent requests per second and handling 1.3 PB/month in data egress.

DigitalOcean (NYSE: DOCN) has launched Partner Network Connect, a secure connectivity solution for multi-cloud and hybrid cloud networking. The service enables private connections between DigitalOcean and other cloud providers or private clouds, offering improved security and network performance by bypassing public internet.

Powered by integration with Megaport, the solution provides connectivity to major cloud providers including AWS, Google Cloud, Microsoft Azure, and Oracle Cloud. The service features bandwidth options from 1 Gbps to 10 Gbps, with all-in pricing that excludes data transfer charges.

Key features include:

• Enhanced security through private connections
• Low latency, high-bandwidth connectivity
• Cost optimization with no egress charges
• Simplified management through DigitalOcean's Networking console

The service is available in most DigitalOcean regions except SYD1, LON1, BLR1, and TOR1, accessible via both UI and API.

DigitalOcean (NYSE: DOCN) reported strong Q4 2024 financial results with revenue reaching $205 million, up 13% year-over-year, while full-year 2024 revenue hit $781 million, also up 13%. The company's net income for 2024 surged 335% to $84 million (11% margin), with Adjusted EBITDA increasing 19% to $328 million (42% margin).

Q4 highlights include gross profit of $126 million (62% margin), net income of $18 million (9% margin), and diluted EPS of $0.19. The company's customer base growth was notable, with Scalers+ customers (spending over $50/month) increasing 17% year-over-year, contributing 22% of total revenue with 37% growth. Average Revenue Per Customer rose 14% to $105.75.

Product innovation accelerated significantly with 49 new products and features released in Q4 alone—four times more than Q4 2023—including GenAI Platform general availability and VPC Peering. For 2025, DigitalOcean forecasts Q1 revenue of $207-209 million and full-year revenue of $870-890 million.

DigitalOcean Holdings (NYSE: DOCN) has announced it will host an Investor Day on April 4, 2025, in New York. The event will feature presentations from CEO Paddy Srinivasan and other management team members from 9:00 a.m. to 12:00 p.m. ET.

While in-person attendance is by invitation only with space, a live video webcast will be available to the public. Investors and analysts can pre-register through the provided webinar link. The presentation materials and webcast link will be accessible on DigitalOcean's investor relations website. A replay will be available within 24 hours and remain accessible until April 3, 2026.