DigitalOcean Holdings, Inc. reported a revenue of $780.6 million for the fiscal year ending December 31, 2024, marking a 13% increase from $692.9 million in 2023. The company achieved a net income of $84.5 million, a significant rise from $19.4 million the previous year. This growth was primarily driven by an 11% increase in average revenue per user (ARPU), which rose to $100.71, and a 15% increase in revenue from its Higher Spend Customers, who now account for 87% of total revenue. The company’s annual run-rate revenue (ARR) also saw an increase, reaching $820 million, up from $723 million in 2023.
In terms of operational metrics, DigitalOcean reported approximately 165,000 Higher Spend Customers as of December 31, 2024, an increase from 156,000 in 2023. The company has redefined its customer categories to better reflect its user base, focusing on Builders, Scalers, and Scalers+, which represent varying levels of monthly spending. The company’s net dollar retention rate (NDR) decreased slightly to 98% in 2024 from 101% in 2023, attributed to the effects of previous price increases. DigitalOcean continues to expand its global footprint, with 38% of revenue generated from North America, 28% from Europe, 23% from Asia, and 11% from other regions.
Strategically, DigitalOcean has made significant investments in its platform, including the launch of new products such as GPU Droplets and enhancements to its Managed Hosting offerings. The company completed the acquisition of Paperspace in July 2023, which has bolstered its artificial intelligence and machine learning capabilities. Additionally, DigitalOcean has entered into partnerships, including one with Hugging Face, to enhance its product offerings and simplify the deployment of AI models for customers.
The company’s total operating expenses decreased by 3% to $374.9 million in 2024, primarily due to a reduction in restructuring charges and a focus on cost optimization. DigitalOcean's employee headcount stood at 1,210 as of December 31, 2024, with a commitment to maintaining a strong workforce to support its growth initiatives. Looking ahead, DigitalOcean aims to continue expanding its customer base and product offerings while navigating the competitive landscape of cloud computing, which includes major players like Amazon Web Services and Microsoft Azure. The company remains focused on enhancing customer engagement and retention to drive future growth.
About DigitalOcean Holdings, Inc.
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