Overview

• DigitalOcean shares surged 28.88% to $34.81 on August 6 after the company reported strong earnings and raised its outlook.
• In Q2, DigitalOcean generated $219 million in revenue, net income of $37 million and $89 million in adjusted EBITDA, equating to margins of 17% and 41%, respectively.
• Annual recurring revenue climbed 14% to $875 million supported by 99% net dollar retention and a 35% year-over-year increase in Scalers+ revenue.
• The company raised full-year guidance to $888–$892 million in revenue, 39%–40% adjusted EBITDA margins and non-GAAP EPS of $2.05–$2.10.
• DigitalOcean expanded its AI infrastructure with the general availability of its Gradient platform and a new GPU-based service in partnership with AMD.