DigitalOcean Reports 14% Revenue Growth to $218.7 Million in Q2 2025

DigitalOcean Holdings, Inc. reported a notable increase in its financial performance for the second quarter of 2025, with revenue reaching $218.7 million, a 14% rise from $192.5 million in the same period last year. The company also achieved a net income of $37 million, compared to $19.1 million in Q2 2024, reflecting a significant improvement in profitability. For the first half of 2025, revenue totaled $429.4 million, up from $377.2 million in the prior year, while net income for the six-month period increased to $75.2 million from $33.3 million.

The growth in revenue was primarily driven by a 12% increase in average revenue per user (ARPU), which rose to $111.70 from $99.45, and a 16% increase in revenue from higher spend customers. DigitalOcean's customer base expanded, with approximately 174,000 higher spend customers as of June 30, 2025, up from 160,000 a year earlier. The company reported a net dollar retention rate of 99%, indicating strong customer loyalty and expansion within its existing customer base.

In terms of operational developments, DigitalOcean has continued to invest in its platform, particularly in artificial intelligence and machine learning capabilities. The company has made strategic acquisitions, including Paperspace and Cloudways, to enhance its service offerings. Additionally, DigitalOcean has expanded its geographic reach, with revenue distribution showing 37% from North America, 27% from Europe, 23% from Asia, and 13% from the rest of the world.

The company’s total assets increased to $1.72 billion as of June 30, 2025, up from $1.64 billion at the end of 2024. However, total liabilities also rose to $1.90 billion, reflecting ongoing investments and operational costs. DigitalOcean's cash and cash equivalents decreased to $387.7 million from $428.4 million, primarily due to increased capital expenditures and share repurchase activities. The company repurchased 2.26 million shares for $79.2 million during the first half of 2025.

Looking ahead, DigitalOcean remains optimistic about its growth trajectory, focusing on expanding its higher spend customer base and enhancing its product offerings. The company plans to leverage its self-service customer acquisition model while investing in marketing and sales strategies to drive further adoption of its cloud services. Despite potential macroeconomic challenges, DigitalOcean is confident in its ability to sustain growth and profitability in the coming quarters.