DigitalOcean Q2 Results: Revenue Grows 35% to $103.8M In The Second Quarter

Business News Cloud Industry August 11th 2021

NEW YORK, August 11, 2021 – DigitalOcean Inc. an American cloud service provider, unveiled the revenue results of its second quarter ended on June 30. The results disclosed the earning grew by 35% to $103.8M and the Annual Run-Rate Revenue (ARR) increased to $426M, up by 36% as compared to Q2 2020. During the announcement, the company also launched Managed MongoDB, a completely new and managed database as a service.

The American Cloud Infrastructure company DigitalOcean Holdings Inc. is growing rapidly and this time it has beaten Wall Street’s expectations as well. The company has reported its second-quarter financial results at the starting of August and the revenue results were far better than predictions. Before these specific costs like stock compensation of 2 cents/share on the total revenue of $103.8M, raised 35% as compared to the last year.

Expectedly, DigitalOcean Chief Executive Yancey Spruill also referred to it as an “outstanding quarter” and assured a huge revenue growth acceleration in the coming future. The company anticipates continuous growth by promoting and expanding its managed service offerings.

He added “We are super excited about the progress we have made this year by leveraging the technology across our business to serve the best to our customers. We are following a durable 30+ growth rate path for the year 2021 and the next year.”

Revenue analysts had stated a break-even earning on the total revenue of $98.29M for the quarter.

Also Check Alibaba Group Cloud Computing Revenue Results

DigitalOcean Revenue Highlights (Quarter-On-Quarter)

For this quarter of 2021, DigitalOcean is expecting at least $106 to $109M revenue along with an adjusted EBITDA margin of 30% to 31%. For 2021, the company expects a total of $419 to $423M revenue with an adjusted margin of 30% to 31%. Besides, the capital expenses of revenue must be 25% to 26%.

• The company’s revenue in Q2 2021 was $103, growing at the rate of 35% every year.
• During the second quarter of 2021 , the company had 602K subscribers, which is more than 9% of the second quarter of 2020.
• The company’s average revenue per user (ARPU) for this particular time period was $58.07, which is more than 25% as compared to the second quarter of 2020.
• DigitalOcean also started offering Managed MongoDB, a managed Database as a Service (DBaaS) product that will allow all developers to spin up all the MongoDB clusters on its cloud platform.
• The Gross Profit of 60.7M or 58% of the revenue is now adjusted to a Gross Profit of $81.1M, which is 78% of revenue.
• The total loss from ongoing operations was $2.6M and the operating margin was 3% while comparing it to the income from the operations of $1.8M. The operating margin of 2% in the last year during the same period.

DigitalOcean plans are working at their best and the company is enjoying a period of sustainable growth. This time the company is imagining a big picture of increased Annual-Run-Rate-Revenue, which ended in this quarter at $226M, more than 36% as compared to the last year.

The company’s Net Dollar Retention Rate (a key metric representing the revenue growth) was 113%, up 1,100 while comparing it to the last year.

Do you know?
Virtuozzo Acquired OnApp To Offer Comprehensive Cloud Infrastructure Solutions

About Company

DigitalOcean, a company that simplifies cloud computing for all levels of developers and businesses, spends most of the time developing simple cloud software to make the cloud accessible for everyone. The main motive of the company is to build a mission-critical infrastructure along with completely managed offerings. It helps businesses build, deploy, and scale software to maximize creativity and increased productivity.