NYSE$DOCN

DigitalOcean Holdings Inc. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Revenue grew and ARR increased, driven by strong execution and customer adoption.

DigitalOcean announced strong second-quarter results with accelerated revenue growth and improved capital efficiency. Revenue increased by 35% year-over-year to $103.8 million, and ARR grew by 36% year-over-year to $426 million. The company also launched Managed MongoDB to further drive revenue growth from managed service offerings.

  • Revenue was $103.8 million, an increase of 35% year-over-year.
  • ARR ended the quarter at $426 million, an increase of 36% year-over-year.
  • Net Dollar Retention Rate was 113%, an increase of 1,100 basis points from the second quarter 2020.
  • Average Revenue Per Customer in the quarter was $58.07, an increase of 25% over the second quarter 2020.

Headline financials

Total Revenue

$104M

Previous: $76.9M+35.0%
EPS (adj)

-$0.02

Previous: -$0.06+66.7%
Annual Run-Rate Revenue

$426M

Previous: $314M+35.7%
Net Dollar Retention Rate

113.0%

Previous: 102.0%+10.8%
Capital Expenditures

-$47M

Previous: $27.4M-271.8%
Free Cash Flow

-$49.2M

Previous: -$11.8M-317.3%
Net Income

-$2.19M

Previous: -$2.57M+14.9%
Operating Income

-$2.63M

Previous: $1.78M-247.9%
Gross Profit

$60.7M

Previous: $41.7M+45.5%
Cash & Equivalents

$577M

Previous: $126M+357.3%
Total Assets

$915M

No prior period

Revenue & EPS history

DigitalOcean · Revenue · Quarterly

$104M

Q2 2021+35%vs Q2 2020
Beat estimate in 9 of 11 quarters(82%)
ActualEstimate

Forward guidance

Based on information available as of August 5, 2021, DigitalOcean expects total revenue of $106 to $109 million and an adjusted EBITDA margin of 30% to 31% for the third quarter of 2021. For the full year 2021, the company expects total revenue of $419 to $423 million and an adjusted EBITDA margin of 30% to 31%.

Tailwinds

  • Total revenue of $106 to $109 million for Q3 2021.
  • Adjusted EBITDA margin of 30% to 31% for Q3 2021.
  • Fully diluted weighted average shares outstanding of 119 to 121 million shares for Q3 2021.
  • Total revenue of $419 to $423 million for full year 2021.
  • Adjusted EBITDA margin of 30% to 31% for full year 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+3.4%

Avg return

Earnings day

+6.1%

Avg return

5 days after

+9.3%

Avg return

30 days after

56%

14 / 25 earnings

Positive

+40.8%

Q1 2026

Best reaction

-25.3%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+40.8%+51.1%+66.1%
Q4 2025+8.2%-5.4%+44.5%
Q3 2025+17.1%+33.1%+24.4%
Q1 2025-13.3%-11.0%-15.2%
Q4 2024+9.8%+15.3%-4.4%
Q3 2024-12.2%-5.7%-2.2%
Q2 2024+17.6%+29.6%+31.4%
Q1 2024+15.6%+19.0%+14.6%
Q4 2023+5.3%-2.2%+6.2%
Q3 2023+24.9%+32.5%+55.7%
Q2 2023-25.3%-23.3%-43.1%
Q1 2023-1.8%-2.6%+28.8%
Q4 2022+7.1%+2.0%+3.3%
Q3 2022-7.8%+8.3%-8.9%
Q2 2022+2.9%+6.4%-11.7%
Q1 2022-13.4%-21.8%+15.8%
Q4 2019+6.6%+13.9%+3.4%
Q4 2021+27.6%+29.4%+22.7%
Q3 2020+6.9%+2.3%-20.2%
Q3 2021+8.5%+23.4%-11.1%
Q2 2020-7.1%-2.8%+27.9%
Q2 2021-8.2%-2.0%+24.9%
Q4 2020-9.1%-11.5%-5.2%
Q1 2020-9.1%-11.5%-5.2%
Q1 2021-5.6%-14.5%-10.6%

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