DigitalOcean Holdings Inc
F:0SU
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DigitalOcean Holdings Inc
F:0SU
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US |
DigitalOcean Holdings Inc
DigitalOcean is a cloud infrastructure company that helps developers and small businesses build and run software on the internet. It sells simple cloud servers, storage, networking tools, managed databases, and related services that customers use to host websites, apps, and data without building their own data centers. Its main customers are software developers, startups, and small to mid-sized businesses that want cloud tools that are easier to set up and manage than the large enterprise clouds. DigitalOcean makes money by charging customers for the computing and storage they use, plus fees for higher-level services such as managed databases, application hosting, and support. What makes DigitalOcean different is its focus on simplicity and a narrower customer base. Instead of trying to be the biggest all-purpose cloud provider, it packages core cloud services in a way that is more approachable for smaller teams, making it a practical choice for customers that want fast setup and predictable usage-based pricing.
DigitalOcean is a cloud infrastructure company that helps developers and small businesses build and run software on the internet. It sells simple cloud servers, storage, networking tools, managed databases, and related services that customers use to host websites, apps, and data without building their own data centers.
Its main customers are software developers, startups, and small to mid-sized businesses that want cloud tools that are easier to set up and manage than the large enterprise clouds. DigitalOcean makes money by charging customers for the computing and storage they use, plus fees for higher-level services such as managed databases, application hosting, and support.
What makes DigitalOcean different is its focus on simplicity and a narrower customer base. Instead of trying to be the biggest all-purpose cloud provider, it packages core cloud services in a way that is more approachable for smaller teams, making it a practical choice for customers that want fast setup and predictable usage-based pricing.
Beat and raise: DigitalOcean said Q1 revenue was $258 million, up 22% year over year and above its prior outlook, and management raised both 2026 and 2027 guidance again.
AI momentum: AI customer ARR reached $170 million, up 221% year over year, while $1 million-plus customer ARR rose to $183 million, up 179%. Management said over 80% of AI customer ARR now comes from inference services and core cloud, not bare metal.
Big product launch: The company launched its DigitalOcean AI native cloud, calling it the most significant product launch in its history and positioning it as a full-stack platform for inference and agentic workloads.
Capacity expansion: DigitalOcean raised $888 million in equity, repaid its $500 million Term Loan A, and secured about 60 megawatts of incremental capacity on top of its existing plan, bringing total committed capacity to about 135 megawatts.
Outlook raised: Management now expects 2026 revenue growth of 25% to 27% and 2027 revenue growth of 50% or more, with strong profitability still expected despite higher investment and start-up costs.
