$DOCN DigitalOcean Q1 Earnings:
First Quarter 2022 Financial Highlights:

  • Revenue of $127.3 million, an increase of 36% YoY.
  • Annual Run-Rate Revenue (ARR) ended the quarter at $524 million, representing 35% YoY growth.
  • Gross profit of $80.6 million or 63% of revenue and adjusted gross profit of $103.3 million or 81% of revenue.
  • Loss from operations was $13.1 million and operating margin was (10)%.
  • Non-GAAP income from operations was $13.6 million and non-GAAP operating margin was 11%.

  • Net loss per share was $(0.17) and non-GAAP diluted net income per share was $0.07.

  • Cash, cash equivalents, and marketable securities was $1.6 billion as of March 31, 2022.

First Quarter 2022 Operational Highlights:

  • Net Dollar Retention Rate (NDR) was 117%, up from 107% in the first quarter 2021.
  • Average Revenue Per Customer (ARPU) in the quarter was $68.90, an increase of 28% over the first quarter 2021.
  • Total customers grew 6% to 623K and customers spending more than $50 per month grew 20% to 102K.
  • Revenue from customers spending more than $50 per month grew 43% year-over-year. These customers had an NDR of 118% and now represent 84% of total revenue.

  • Repurchased 2.6 million shares for $150.0 million utilizing the share repurchase program
Jeff Sanders's avatar
Not liking this slowdown but they kept their guidance for full year intact. Their growth rates are solid just not good enough for a hyper growth stock. I would say it’s a hold but not as eager to add as j was before prior to ER. Curious how the call goes.
Cameron McFarlane's avatar
@darthtrader going back to this... Do you think they kept their guidance for the full year intact, because we know now they are raising prices on their offerings?
Jeff Sanders's avatar
To add. This post on Twitter is good. Charts show company is on right trajectory which keeps thesis in tact. I maybe being nit picky this ER. https://twitter.com/giuliano_mana/status/1521950616871911428?s=21&t=a6u_2yICqDCcpcrDNwUURQ