DigitalOcean Holdings, Inc. has recently released its 10-K report, providing a detailed overview of its operations. The company operates a cloud computing platform that offers on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. Its services include infrastructure-as-a-service solutions, platform-as-a-service solutions, software-as-a-service, and artificial intelligence/machine learning applications. The company's customer base spans various industry verticals and use cases, such as web and mobile applications, e-commerce, media and gaming, and AI/ML applications.
In its 10-K report, DigitalOcean highlighted its focus on increasing usage by existing customers, growing its base of higher spend customers, and investing in its platform and product offerings. The report also emphasized the company's efforts to drive increased adoption through its community ecosystem and strategic partnerships and acquisitions. Furthermore, the report addressed the potential impact of macroeconomic conditions on the company's business and results of operations.
Key financial metrics outlined in the report include the average revenue per customer (ARPU), annual run-rate revenue (ARR), and net dollar retention rate. DigitalOcean reported an increase in ARPU from $82.76 in 2022 to $100.71 in 2024, with ARR reaching $820 million as of December 31, 2024. The company's net dollar retention rate decreased from 101% in 2023 to 98% in 2024 as it lapped the effects of the 2022 price increases.
DigitalOcean's focus on customer acquisition and its global customer base were also highlighted, with approximately 190 countries represented among its customer spread. The company's sales and marketing expenses were approximately 9% of its revenue in 2024, reflecting its efficient go-to-market model and focus on the needs of growing technology companies.
Today the company's shares have moved 12.6% to a price of $41.86. For the full picture, make sure to review DigitalOcean's 10-K report.
