DigitalOcean Holdings, Inc.
- Open
- 111.83
- Day high
- 121.66
- Day low
- 111.58
- Prev close
- 117.02
- Volume
- 2.3M
- Mkt cap
- $12.4B
- P/E (TTM)
- 45.9
- EPS (TTM)
- $2.59
- P/B
- 14.0
- P/S
- 13.1
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$565.9M over the last 3 months (0 open-market buys, 23 sales)
- 🏛Institutions accumulating (13F)
DigitalOcean Holdings, Inc. (DOCN) is a Technology company listed on NYSE. The stock is up 303% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 23 sales (SEC Form 4).
DigitalOcean Holdings, Inc. (DOCN) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 10 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
DOCN earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $0.27 | $0.44 | +63.0% | $258M | +3.3% |
| Feb 24, 2026 | $0.38 | $0.24 | -35.9% | $242M | +2.0% |
| Nov 5, 2025 | $0.31 | $0.33 | +6.5% | $230M | -3.4% |
| Aug 8, 2024 | $0.39 | $0.48 | +23.1% | $192M | +2.1% |
| May 10, 2024 | $0.38 | $0.43 | +13.2% | $185M | +1.2% |
| Feb 21, 2024 | $0.37 | $0.44 | +18.9% | $181M | +1.8% |
| Nov 2, 2023 | $0.36 | $0.44 | +22.2% | $177M | +2.2% |
| Aug 11, 2023 | $0.40 | $0.44 | +10.0% | $170M | -0.1% |
| Feb 16, 2023 | $0.19 | $0.28 | +47.4% | $163M | +1.2% |
| May 4, 2022 | $0.12 | $0.07 | -41.7% | $127M | +0.8% |
| Feb 24, 2022 | $0.09 | $0.10 | +11.1% | $120M | +0.5% |
| Nov 4, 2021 | $0.07 | $0.12 | +71.4% | $111M | +3.1% |
DOCN insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 1, 2026 | Adelman Warren Jdirector | Grant | 142 | $166.90 |
| Jul 1, 2026 | Arora Pratimadirector | Grant | 93 | $166.90 |
| Jul 1, 2026 | JENSON WARRENdirector | Grant | 116 | $166.90 |
| Jul 1, 2026 | SCHNEIDER HILARYdirector | Grant | 112 | $166.90 |
| Jul 1, 2026 | Keffer Pueodirector | Grant | 93 | $166.90 |
| Jun 17, 2026 | JENSON WARRENdirector | Grant | 1,223 | — |
| Jun 17, 2026 | Arora Pratimadirector | Grant | 1,223 | — |
| Jun 17, 2026 | Adelman Warren Jdirector | Grant | 1,223 | — |
| Jun 17, 2026 | Keffer Pueodirector | Grant | 1,223 | — |
| Jun 17, 2026 | SCHNEIDER HILARYdirector | Grant | 1,223 | — |
| Jun 3, 2026 | Barrett Cherieofficer: SVP, Chief Accounting Officer | Grant | 9,349 | — |
| Jun 3, 2026 | Steinfort Mattofficer: Chief Financial Officer | Tax | 25,151 | $155.95 |
| Jun 3, 2026 | Steinfort Mattofficer: Chief Financial Officer | Grant | 52,356 | — |
| Jun 3, 2026 | Srinivasan Padmanabhan Tdirector, officer: Chief Executive Officer | Grant | 130,891 | — |
| Jun 3, 2026 | Kumar Vinay S.officer: Chief Product & Tech Officer | Grant | 32,722 | — |
Source: DOCN SEC Form 4 filings, latest Jul 1, 2026. For informational purposes only — not investment advice.
See the full DOCN insider & 13F page →DigitalOcean Holdings, Inc. company profile
Overview
DigitalOcean Holdings, Inc. (NYSE:DOCN) is a cloud computing platform provider founded in 2012 and headquartered in New York. The company went public in March 2021 and has positioned itself as a simplified alternative to major cloud hyperscalers, specifically targeting developers, startups, and small-to-medium businesses. DigitalOcean operates globally across North America, Europe, and Asia, focusing on democratizing cloud infrastructure through user-friendly products and competitive pricing. The company has evolved from a basic virtual server provider to a comprehensive cloud platform offering compute, storage, networking, and increasingly, artificial intelligence capabilities.
Business
DigitalOcean operates in the cloud infrastructure-as-a-service (IaaS) market, providing on-demand computing resources over the internet. The cloud computing industry allows businesses to rent computing power, storage, and networking capabilities rather than purchasing and maintaining physical hardware. This model offers scalability, cost efficiency, and flexibility for organizations of all sizes. The company's core offering centers around Droplets, which are virtual private servers that customers can deploy in minutes. These virtual machines run on DigitalOcean's physical infrastructure and can be configured with various amounts of CPU, memory, and storage based on customer needs. Beyond basic compute, DigitalOcean provides a comprehensive suite of cloud services including managed databases, container orchestration through Kubernetes, object storage (called Spaces), load balancers, and networking tools like Virtual Private Clouds. DigitalOcean has expanded significantly into the artificial intelligence and machine learning space, offering GPU-powered Droplets with NVIDIA H100 and H200 processors for AI workloads. The company launched a GenAI platform that simplifies the deployment of AI applications and agents, targeting businesses that want to leverage AI without deep technical expertise. This AI platform represents a growing portion of the business, with AI Annual Recurring Revenue growing over 160% year-over-year. The company also operates Cloudways, a managed cloud hosting platform acquired to serve customers who prefer fully managed services rather than self-managed infrastructure. Cloudways provides website hosting, e-commerce platforms, and application hosting with additional management layers. Revenue is primarily generated from two customer segments: Builders and Scalers (customers spending more than $50 monthly, representing approximately 88% of total revenue) and smaller individual developers. Within the Builders and Scalers segment, Scalers+ customers (those with over $100,000 in annual recurring revenue) represent about 23% of total revenue and are growing at 41% year-over-year, indicating successful expansion into larger enterprise accounts.
Revenue model
DigitalOcean operates on a consumption-based subscription model where customers pay for cloud resources based on actual usage. Revenue is generated through hourly or monthly billing for virtual servers, storage, bandwidth, and additional services. Customers can scale their usage up or down, with billing adjusting accordingly. The company also offers reserved instances and committed use discounts for customers seeking predictable pricing. The primary paying customers include software developers, startups, small-to-medium businesses, independent software vendors, and digital agencies. These customers use DigitalOcean's platform for web applications, mobile app backends, website hosting, e-commerce platforms, development environments, and increasingly, AI/ML workloads. The company's sweet spot is organizations that find major cloud providers like Amazon Web Services too complex or expensive but need more sophisticated infrastructure than basic web hosting. Several factors influence DigitalOcean's margins and profitability. Positive margin drivers include the company's focus on standardized, simplified products that reduce support costs, economies of scale as the platform grows, and the shift toward higher-value services like managed databases and AI capabilities. The company benefits from operational leverage, where fixed infrastructure costs are spread across a growing customer base. Margin pressures come from intense competition with hyperscale cloud providers who can offer aggressive pricing, the need for continuous capital investment in data centers and hardware (particularly expensive GPU infrastructure for AI services), and customer optimization behaviors during economic downturns where businesses reduce their cloud spending. Energy costs, real estate expenses for data centers, and the need to maintain competitive pricing in a commoditized market also impact margins. Additionally, the company's expansion into AI requires significant upfront investment in specialized hardware before revenue materializes.
Competitive moat
DigitalOcean's competitive moat is moderate and primarily based on simplicity and developer experience rather than technological superiority or network effects. The company's main defensive advantage lies in its focus on ease of use and simplified cloud infrastructure, which resonates with developers and smaller businesses who find major cloud providers overly complex. This simplicity extends to pricing transparency, straightforward product offerings, and streamlined user interfaces that reduce the learning curve for cloud adoption. The company has built a strong developer community and brand recognition within its target market, evidenced by events like Hacktoberfest which attracts 65,000 developers annually. This community engagement creates some switching costs and customer loyalty, though these are not insurmountable barriers. However, DigitalOcean's moat faces significant challenges. The company competes directly with Amazon Web Services, Microsoft Azure, and Google Cloud Platform, which have vastly superior resources, global infrastructure, and can sustain price competition that would be devastating to smaller players. These hyperscalers also continue to simplify their offerings, potentially eroding DigitalOcean's core differentiation. The cloud infrastructure market is increasingly commoditized, and DigitalOcean lacks the scale economies or unique technology that would create sustainable competitive advantages. Customer switching costs are relatively low since applications can be migrated between cloud providers, and the company doesn't benefit from strong network effects or data lock-in that characterize more defensible technology businesses. DigitalOcean's expansion into AI represents both an opportunity and a risk - while it could create new differentiation, the company is entering a space dominated by well-funded competitors with deeper technical capabilities and more extensive partnerships with AI hardware providers.
Risks & safety
DigitalOcean maintains a strong financial position with adequate margin of safety, though growth investments and competitive pressures require monitoring. **Liquidity and Solvency:** 1. Strong cash position of $360 million with minimal debt obligations 2. Current ratio of 2.42, indicating solid short-term liquidity 3. Positive free cash flow of $96 million annually, though quarterly volatility exists 4. Recently secured an $800 million credit facility for growth capital flexibility 5. No significant solvency concerns given debt-light balance sheet **Valuation Metrics:** 1. EV/EBITDA ratio of 15.3x, reasonable for a growing cloud infrastructure company 2. Price-to-earnings ratio of 20.1x based on recent profitability 3. Revenue trading at approximately 3.3x annual revenue ($781 million), modest for SaaS-like recurring revenue model 4. Free cash flow yield of approximately 3.7% provides some downside protection **Other Considerations:** 1. High capital expenditure requirements for data center expansion and AI infrastructure could pressure free cash flow 2. Negative return on equity due to accumulated losses, though improving operational performance 3. Customer concentration risk limited with diversified base of 638,000+ customers 4. Macro-sensitive business model vulnerable to economic downturns affecting SMB spending
Recent development
Over the past few years, DigitalOcean has undergone significant strategic evolution, transitioning from a basic virtual server provider to a comprehensive cloud platform with strong emphasis on artificial intelligence capabilities. The company's most significant strategic pivot has been its aggressive expansion into the AI/ML market, launching GPU-powered Droplets with NVIDIA H100 and H200 processors and developing a GenAI platform that allows customers to build AI applications and agents with minimal technical complexity. The company has dramatically accelerated its product development pace, releasing over 200 new features and products across 2024 compared to much slower innovation in previous years. Key product launches include VPC Peering for multi-cloud networking, Internal Load Balancers, Droplet Auto Scale Pools, and enhanced Kubernetes services that can now scale to 1,000 nodes. These developments represent DigitalOcean's push toward enterprise-grade capabilities while maintaining its simplicity focus. Strategic acquisitions have played a crucial role in the company's evolution. The acquisition of Cloudways expanded DigitalOcean into managed hosting services, while the Paperspace acquisition brought AI/ML capabilities and over 12,000 paying AI customers. These acquisitions have enabled the company to serve customers who prefer managed services over self-service infrastructure. The company has also invested heavily in its go-to-market strategy, expanding from a purely self-service model to include direct sales coverage for its top 3,000 customers. This includes launching migration programs to help customers move from hyperscale providers and developing enterprise-grade features to support larger, multi-year commitments. The introduction of named account management and staged migration capabilities represents a significant shift toward serving larger enterprise customers while maintaining its SMB focus. DigitalOcean's global infrastructure expansion has accelerated, with new data centers launched in Atlanta and Sydney to support both traditional cloud workloads and AI inferencing requirements. The company is exploring alternative financing methods including equipment leasing to accelerate growth without compromising free cash flow generation.
DOCN company profile · for informational purposes only — not investment advice.
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