DigitalOcean Announces First Quarter 2023 Financial Results

May 9, 2023

Revenue Grew 30% with $36 million of Operating Cash Flow and $26 million of Adjusted Free Cash Flow

Returned $266 million to Shareholders by Repurchasing Nearly 8 Million Shares

DigitalOcean Holdings, Inc. (NYSE: DOCN), the cloud for startups and SMBs, today announced results for its first quarter ended March 31, 2023.

“We are excited to report strong first quarter results in the midst of the weak economic backdrop, a testament to DigitalOcean’s differentiation of simple and easy to use solutions bundled with high touch customer service that enable us to help our customers navigate the uncertainty in their business,” said Yancey Spruill, CEO of DigitalOcean.

“We continue to deliver a compelling balance of growth and profitability, and have been able to invest for growth and deliver shareholder returns through buybacks, while improving margins and cash flow,” said Matt Steinfort, CFO of DigitalOcean.

First Quarter 2023 Financial Highlights:

  • Revenue was $165.1 million, an increase of 30% year-over-year.
  • Annual Run-Rate Revenue (ARR) ended the quarter at $669.1 million, representing 28% year-over-year growth.
  • Gross profit of $93.3 million or 56% of revenue.
  • Net loss attributable to common stockholders was $34.9 million.
  • Adjusted EBITDA was $56.2 million and adjusted EBITDA margin was 34%.
  • Net loss per share was $(0.37) and non-GAAP diluted net income per share was $0.28.
  • Cash, cash equivalents, and marketable securities was $613 million as of March 31, 2023.

First Quarter 2023 Operational Highlights:

  • Net Dollar Retention Rate (NDR) was 107% as compared to 117% in the first quarter 2022.
  • Average Revenue Per Customer (ARPU) was $88.35, an increase of 16% over the first quarter 2022.
  • Builders and Scalers, those customers spending more than $50 per month, increased 43% from the first quarter 2022 and their revenue grew 32% year-over-year.
  • Repurchased 7,759,973 shares for $266 million under the share repurchase program.

Financial Outlook:

Based on information available as of May 9, 2023, for the second quarter of 2023 we expect:

  • Total revenue of $169.5 to $170.5 million.
  • Adjusted EBITDA margin of 37% to 38%.
  • Non-GAAP diluted net income per share of $0.40 to $0.41.
  • Fully diluted weighted average shares outstanding of approximately 103 million shares.

For the full year 2023, we expect:

  • Total revenue of $700 to $720 million.
  • Adjusted EBITDA margin of 38% to 39%.
  • Adjusted free cash flow margin in the range of 21% to 22% of revenue.
  • Non-GAAP diluted net income per share of $1.70 to $1.73.
  • Fully diluted weighted average shares outstanding of approximately 103 to 105 million shares.

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. For example, 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, all of which are difficult to predict and subject to constant change. Accordingly, a reconciliation is not available without unreasonable effort and we are unable to assess the probable significance of the unavailable information, although it is important to note that these factors could be material to our results computed in accordance with GAAP.

Conference Call Information:

DigitalOcean will host a conference call today, May 9, 2023, at 8:00 a.m. ET to review its results. The conference call can be accessed by dialing (888) 330-3637 with conference ID 7741047. A live webcast and replay of the conference call can be accessed from the DigitalOcean investor relations website at http://investors.digitalocean.com.

Following the completion of the call, a telephonic replay will be available through May 16, 2023, by dialing (800) 770-2030 conference ID 7741047.

About DigitalOcean

DigitalOcean simplifies cloud computing so businesses can spend more time creating software that changes the world. With its mission-critical infrastructure and fully managed offerings, DigitalOcean helps developers at startups and small and medium-sized businesses (SMBs) rapidly build, deploy and scale, whether creating a digital presence or building digital products. DigitalOcean combines the power of simplicity, security, community and customer support so customers can spend less time managing their infrastructure and more time building innovative applications that drive business growth. For more information, visit digitalocean.com.

Forward‑Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding our performance, including but not limited to statements in the section titled “Financial Outlook.” The forward-looking statements contained in this release and the accompanying earnings call referenced in this release are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to: (1) our recent growth may not be indicative of our future growth; (2) our history of operating losses; (3) our limited operating history; (4) our ability to attract and retain customers and/or expand usage of our platform by such customers; (5) breaches in our security measures allowing unauthorized access to our platform, our data, or our customers’ data; (6) our ability to release updates and new features to our platform and adapt and respond effectively to rapidly changing technology or customer needs; (7) the competitive markets in which we participate; (8) the rapidly evolving laws and industry standards that relate to privacy, data security, liability for service providers regarding the activities of customers, and access to the internet; (9) risks associated with successfully managing our growth; (10) our ability to successfully integrate acquired businesses, including Cloudways, and achieve expected synergies and benefits; and (11) general market, political, economic, and business conditions.

Further information on these and additional risks, uncertainties, assumptions and other factors that could cause actual results or outcomes to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 22, 2023.

We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this release. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. We assume no obligation to, and do not currently intend to, update any such forward-looking statements after the date of this release.

About Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States, or GAAP, we provide investors with non-GAAP financial measures including: (i) adjusted EBITDA and adjusted EBITDA margin; (ii) non-GAAP net income and non-GAAP diluted net income per share; and (iii) adjusted free cash flow and adjusted free cash flow margin. These measures are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In particular, adjusted free cash flow is not a substitute for cash provided by operating activities. Additionally, the utility of adjusted free cash flow as a measure of our financial performance and liquidity is further limited as it does not represent the total increase or decrease in our cash balance for a given period. Our calculations of each of these measures may differ from the calculations of measures with the same or similar titles by other companies and therefore comparability may be limited. Because of these limitations, when evaluating our performance, you should consider each of these non-GAAP financial measures alongside other financial performance measures, including the most directly comparable financial measure calculated in accordance with GAAP and our other GAAP results. A reconciliation of each of our non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP is set forth in the tables in the section “Reconciliation of GAAP to Non-GAAP Data.”

Adjusted EBITDA and Adjusted EBITDA Margin

We define adjusted EBITDA as net loss attributable to common stockholders, adjusted to exclude depreciation and amortization, stock-based compensation, interest expense, acquisition related compensation, acquisition and integration related costs, income tax expense, loss on extinguishment of debt, restructuring and other charges, restructuring related salary continuation charges, impairment of long-lived assets and other income. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. We believe that adjusted EBITDA, when taken together with our GAAP financial results, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of adjusted EBITDA is helpful to our investors as it is a measure used by management in assessing the health of our business, determining incentive compensation, evaluating our operating performance, and for internal planning and forecasting purposes.

Our calculation of adjusted EBITDA and adjusted EBITDA margin may differ from the calculations of adjusted EBITDA and adjusted EBITDA margin by other companies and therefore comparability may be limited. Because of these limitations, when evaluating our performance, you should consider adjusted EBITDA and adjusted EBITDA margin alongside other financial performance measures, including our net loss attributable to common stockholders and other GAAP results.

Non-GAAP Net Income and Non-GAAP Diluted Net Income Per Share

We define non-GAAP net income as Net loss attributable to common stockholders, excluding stock-based compensation, acquisition related compensation, amortization of acquired intangibles, acquisition and integration related costs, loss on extinguishment of debt, impairment of long-lived assets, restructuring and other charges, restructuring related salary continuation charges, and other unusual or non-recurring transactions as they occur. We define non-GAAP diluted net income per share as non-GAAP net income divided by the weighted-average shares including the dilutive effects of our stock options, RSUs, PRSUs, ESPP and Convertible Notes.

We believe non-GAAP net income per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this metric generally eliminates the effects of unusual or non-recurring items from period to period for reasons unrelated to overall operating performance.

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin

Adjusted free cash flow is a non-GAAP financial measure that we define as Net cash provided by operating activities less purchases of property and equipment, capitalized internal-use software costs, and excluding restructuring related costs, restructuring related salary charges, and acquisition and integration related costs. Adjusted free cash flow margin is calculated as adjusted free cash flow divided by total revenue.

We believe that adjusted free cash flow and adjusted free cash flow margin are useful indicators of liquidity that provide information to management and investors about the amount of cash generated from our core operations that can be used for strategic initiatives, including investing in our business and selectively pursuing acquisitions and strategic investments. We further believe that historical and future trends in adjusted free cash flow and adjusted free cash flow margin, even if negative, provide useful information about the amount of Net cash provided by operating activities that is available (or not available) to be used for strategic initiatives. One limitation of adjusted free cash flow and adjusted free cash flow margin is that they do not reflect our future contractual commitments. Additionally, adjusted free cash flow does not represent the total increase or decrease in our cash balance for a given period.

Key Business Metrics:

We utilize the key metrics set forth below to help us evaluate our business and growth, identify trends, formulate financial projections and make strategic decisions.

Customers

We divide our customer population into the following categories:

  • Testers: users that both (i) spend less than $50 per month and (ii) utilize our platform for three months or less.
  • Learners: users that both (i) spend less than or equal to $50 for the month-end period and (ii) have been on our platform for more than three months.
  • Builders: users that spend greater than $50 and less than or equal to $500 for the month-end period.
  • Scalers: users that spend greater than $500 for the month-end period.

The Company views Learners, Builders and Scalers as the most appropriate measure of our customer population, and Testers have therefore been excluded from the total customer population count.

While we believe the total number of these customers is an important indicator of the growth of our business and future revenue opportunity, the trends relating to our Builders and Scalers is of particular importance to us as these customers represent a significant majority of our revenue and revenue growth, and they are representative of the SMB customers that grow on our platform and use multiple products.

ARPU

We calculate ARPU on a monthly basis as our total revenue for Learners, Builders and Scalers in that period divided by the number of total Learner, Builder and Scaler customers determined as of the last day of that period, excluding aggregate Testers revenue and total user count from the calculation. For a quarterly or annual period, ARPU is determined as the weighted average monthly ARPU over such three or 12-month period.

ARR

We calculate ARR at a point in time by multiplying the latest monthly period’s revenue by 12. For our ARR calculations, we include the total revenue from all customers, including Testers, Learners, Builders and Scalers.

Net Dollar Retention Rate

We calculate net dollar retention rate monthly by starting with the revenue from the cohort of all customers during the corresponding month 12 months prior, or the Prior Period Revenue. We then calculate the revenue from these same customers as of the current month, or the Current Period Revenue, including any expansion and net of any contraction or attrition from these customers over the last 12 months. The calculation also includes revenue from customers that generated revenue before, but not in, the corresponding month 12 months prior, but subsequently generated revenue in the current month and are therefore reflected in the Current Period Revenue. We include this group of re-engaged customers in this calculation because our customers frequently use our platform for projects that stop and start over time. We then divide the total Current Period Revenue by the total Prior Period Revenue to arrive at the net dollar retention rate for the relevant month. For our net dollar retention rate calculations, we include the total revenue from all customers, including Testers, Learners, Builders and Scalers. For a quarterly or annual period, the net dollar retention rate is determined as the average monthly net dollar retention rates over such three or 12-month period.

DIGITALOCEAN HOLDINGS, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

(unaudited)

 

March 31,

December 31,

 

2023

 

2022

Current assets:

 

 

 

Cash and cash equivalents

$

20,872

 

 

$

140,772

 

Marketable securities

 

591,681

 

 

 

723,462

 

Accounts receivable, less allowance for credit losses of $6,148 and $6,099, respectively

 

54,972

 

 

 

53,833

 

Prepaid expenses and other current assets

 

31,087

 

 

 

28,485

 

Total current assets

 

698,612

 

 

 

946,552

 

 

 

 

 

Property and equipment, net

 

277,957

 

 

 

273,170

 

Restricted cash

 

1,747

 

 

 

1,935

 

Goodwill

 

296,579

 

 

 

313,718

 

Intangible assets, net

 

117,638

 

 

 

118,928

 

Operating lease right-of-use assets, net

 

185,516

 

 

 

154,501

 

Deferred tax assets

 

753

 

 

 

751

 

Other assets

 

5,594

 

 

 

6,353

 

Total assets

$

1,584,396

 

 

$

1,815,908

 

 

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

11,005

 

 

$

21,138

 

Accrued other expenses

 

38,220

 

 

 

33,987

 

Deferred revenue

 

5,015

 

 

 

5,550

 

Operating lease liabilities, current

 

73,058

 

 

 

57,682

 

Other current liabilities

 

58,856

 

 

 

45,913

 

Total current liabilities

 

186,154

 

 

 

164,270

 

 

 

 

 

Deferred tax liabilities

 

3,771

 

 

 

18,209

 

Long-term debt

 

1,472,148

 

 

 

1,470,270

 

Operating lease liabilities, non-current

 

133,471

 

 

 

108,243

 

Other long-term liabilities

 

6,506

 

 

 

3,826

 

Total liabilities

 

1,802,050

 

 

 

1,764,818

 

Commitments and Contingencies

 

 

 

 

 

 

 

Preferred stock ($0.000025 par value per share; 10,000,000 shares authorized; 0 shares issued and outstanding as of March 31, 2023 and December 31, 2022)

 

 

 

 

 

Common stock ($0.000025 par value per share; 750,000,000 shares authorized; 89,983,568 and 96,732,507 issued and outstanding as of March 31, 2023 and December 31, 2022, respectively)

 

2

 

 

 

2

 

Additional paid-in capital

 

28,781

 

 

 

263,957

 

Accumulated other comprehensive loss

 

(679

)

 

 

(2,048

)

Accumulated deficit

 

(245,758

)

 

 

(210,821

)

Total stockholders’ (deficit) equity

 

(217,654

)

 

 

51,090

 

 

 

 

 

Total liabilities and stockholders’ equity

$

1,584,396

 

 

$

1,815,908

 

 

DIGITALOCEAN HOLDINGS, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 

 

Three Months Ended

 

March 31,

 

2023

 

2022

Revenue

$

165,134

 

 

$

127,327

 

Cost of revenue

 

71,879

 

 

 

47,202

 

Gross profit

 

93,255

 

 

 

80,125

 

Operating expenses:

 

 

 

Research and development

 

38,272

 

 

 

37,241

 

Sales and marketing

 

17,709

 

 

 

19,044

 

General and administrative

 

48,939

 

 

 

37,424

 

Restructuring and other charges

 

20,869

 

 

 

 

Total operating expenses

 

125,789

 

 

 

93,709

 

 

 

 

 

Loss from operations

 

(32,534

)

 

 

(13,584

)

 

 

 

 

Other (income) expense:

 

 

 

Interest expense

 

2,189

 

 

 

2,059

 

Loss on extinguishment of debt

 

 

 

 

407

 

Other (income) expense, net

 

(7,394

)

 

 

(820

)

Other (income) expense

 

(5,205

)

 

 

1,646

 

 

 

 

 

Loss before income taxes

 

(27,329

)

 

 

(15,230

)

Income tax expense

 

7,608

 

 

 

3,338

 

Net loss attributable to common stockholders

$

(34,937

)

 

$

(18,568

)

Net loss per share attributable to common stockholders, basic

and diluted

$

(0.37

)

 

$

(0.17

)

Weighted-average shares used to compute net loss per share,

basic and diluted

 

95,565

 

 

 

106,980

 

 

DIGITALOCEAN HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

Three Months Ended

 

March 31,

 

2023

 

2022

Operating activities

 

 

 

Net loss attributable to common stockholders

$

(34,937

)

 

$

(18,568

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

28,913

 

 

 

23,933

 

Stock-based compensation

 

31,531

 

 

 

25,981

 

Provision for expected credit losses

 

3,987

 

 

 

4,023

 

Loss on extinguishment of debt

 

 

 

 

407

 

Net accretion of discounts and amortization of premiums on investments

 

(3,436

)

 

 

(117

)

Non-cash interest expense

 

1,983

 

 

 

1,959

 

Loss on impairment of long-lived assets

 

553

 

 

 

 

Deferred income taxes

 

4,150

 

 

 

 

Operating lease right-of-use assets and liabilities, net

 

9,523

 

 

 

445

 

Other

 

590

 

 

 

697

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(5,125

)

 

 

(6,931

)

Prepaid expenses and other current assets

 

(2,755

)

 

 

2,843

 

Accounts payable and accrued expenses

 

(11,031

)

 

 

(10,455

)

Deferred revenue

 

(535

)

 

 

422

 

Other assets and liabilities

 

12,804

 

 

 

5,762

 

Net cash provided by operating activities

 

36,215

 

 

 

30,401

 

 

 

 

 

Investing activities

 

 

 

Capital expenditures - property and equipment

 

(23,314

)

 

 

(23,045

)

Capital expenditures - internal-use software development

 

(1,794

)

 

 

(2,276

)

Cash paid for asset acquisitions

 

(2,500

)

 

 

(4,000

)

Purchase of available-for-sale securities

 

(195,910

)

 

 

(1,091,279

)

Maturities of available-for-sale securities

 

331,581

 

 

 

 

Purchased interest on available-for-sale securities

 

(113

)

 

 

(1,530

)

Proceeds from interest on available-for-sale securities

 

 

 

 

649

 

Proceeds from sale of equipment

 

6

 

 

 

457

 

Net cash provided by (used in) investing activities

 

107,956

 

 

 

(1,121,024

)

 

 

 

 

Financing activities

 

 

 

Payment of debt issuance costs

 

 

 

 

(921

)

Proceeds related to the issuance of common stock under equity incentive plan

 

5,535

 

 

 

5,426

 

Employee payroll taxes paid related to net settlement of equity awards

 

(3,864

)

 

 

(12,384

)

Repurchase and retirement of common stock

 

(265,901

)

 

 

(150,000

)

Net cash used in financing activities

 

(264,230

)

 

 

(157,879

)

 

 

 

 

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

(29

)

 

 

(49

)

Decrease in cash, cash equivalents and restricted cash

 

(120,088

)

 

 

(1,248,551

)

Cash, cash equivalents and restricted cash - beginning of period

 

151,807

 

 

 

1,715,425

 

Cash, cash equivalents and restricted cash - end of period

$

31,719

 

 

$

466,874

 

 

DIGITALOCEAN HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP DATA

(unaudited)

Adjusted EBITDA and Adjusted EBITDA Margin

 

Three Months Ended

 

March 31,

(In thousands)

2023

 

2022

GAAP Net loss attributable to common stockholders

$

(34,937

)

 

$

(18,568

)

 

 

 

 

Adjustments:

 

 

 

Depreciation and amortization

 

28,913

 

 

 

23,933

 

Stock-based compensation

 

27,594

 

 

 

25,981

 

Interest expense

 

2,189

 

 

 

2,059

 

Acquisition related compensation

 

7,601

 

 

 

 

Acquisition and integration related costs

 

1,301

 

 

 

(46

)

Income tax expense

 

7,608

 

 

 

3,338

 

Loss on extinguishment of debt

 

 

 

 

407

 

Restructuring and other charges

 

20,869

 

 

 

 

Restructuring related salary continuation charges

 

1,907

 

 

 

 

Impairment of long-lived assets

 

553

 

 

 

908

 

Other expense(1)

 

(7,394

)

 

 

(820

)

Adjusted EBITDA

$

56,204

 

 

$

37,192

 

As a percentage of revenue:

 

 

 

Adjusted EBITDA margin

 

34

%

 

 

29

%

___________________

(1)

Other income (expense), net primarily consists of interest and accretion income from our marketable securities.

DIGITALOCEAN HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP DATA

(unaudited)

Non-GAAP Net Income and Non-GAAP Diluted Net Income Per Share

 

Three Months Ended

 

March 31,

(In thousands)

2023

 

2022

GAAP Net loss attributable to common stockholders

$

(34,937

)

 

$

(18,568

)

Stock-based compensation

 

27,594

 

 

 

25,981

 

Acquisition related compensation

 

7,601

 

 

 

 

Amortization of acquired intangibles

 

3,790

 

 

 

462

 

Acquisition and integration related costs

 

1,301

 

 

 

(46

)

Loss on extinguishment of debt

 

 

 

 

407

 

Impairment of long-lived assets

 

553

 

 

 

908

 

Restructuring and other charges

 

20,869

 

 

 

 

Restructuring related salary continuation charges

 

1,907

 

 

 

 

Income tax effects of non-GAAP adjustments(1)

 

36

 

 

 

309

 

Non-GAAP net income

$

28,714

 

 

$

9,453

 

Deferred financing fees(2)

 

1,879

 

 

 

1,868

 

Non-GAAP net income used in computing Non-GAAP diluted net income per share(2)

$

30,593

 

 

$

11,321

 

Weighted-average shares used to compute Non-GAAP diluted net income per share

 

111,224

 

 

 

126,555

 

Non-GAAP diluted net income per share

$

0.28

 

 

$

0.09

 

___________________

(1)

 

 

The income tax effects of non-GAAP adjustments are calculated based on the applicable statutory tax rate for the relevant jurisdiction, except for those items which are non-taxable or subject to valuation allowances for which the tax expense (benefit) was calculated at 0%. The tax benefit for amortization is calculated in a similar manner as the tax effects of the non-GAAP adjustments.

(2)

Non-GAAP net income has been adjusted for the dilutive impact of deferred financing fees related to the Convertible Notes.

DIGITALOCEAN HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP DATA

(unaudited)

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin

 

Three Months Ended

 

March 31,

(In thousands)

2023

 

2022

GAAP Net cash provided by operating activities

$

36,215

 

 

$

30,401

 

Adjustments:

 

 

 

Capital expenditures - property and equipment

 

(23,314

)

 

 

(23,045

)

Capital expenditures - internal-use software development

 

(1,794

)

 

 

(2,276

)

Restructuring related costs

 

11,261

 

 

 

 

Restructuring related salary continuation charges

 

1,907

 

 

 

 

Acquisition and integration related costs

 

1,468

 

 

 

97

 

Adjusted free cash flow

$

25,743

 

 

$

5,177

 

As a percentage of revenue:

 

 

 

GAAP Net cash provided by operating activities

 

22

%

 

 

24

%

Adjusted free cash flow margin

 

16

%

 

 

4

%

 

DIGITALOCEAN HOLDINGS, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(unaudited)

Stock-Based Compensation

Three Months Ended

 

March 31,

 

2023

 

2022

Cost of revenue

$

392

 

$

432

Research and development

 

9,590

 

 

9,720

Sales and marketing

 

3,332

 

 

3,346

General and administrative

 

14,280

 

 

12,483

Restructuring and other charges

 

3,937

 

 

Total stock-based compensation

$

31,531

 

$

25,981

 

Investors
Rob Bradley
investors@digitalocean.com

Media
Spencer Anopol
press@digitalocean.com

Source: DigitalOcean Holdings, Inc.