DigitalOcean Holdings, Inc.
Services-Computer Programming, Data Processing, Etc.
DigitalOcean Holdings Inc is a cloud computing platform offering on-demand infrastructure and platform tools for developers, start-ups, and small and medium-sized businesses.
It is a $15.8B technology company. Revenue grew 21.4% over the last year, it keeps 23¢ of every dollar of sales as profit, and its net debt equals ~5.0 years of free cash flow. It trades at 67.4× earnings — near the highest of its own history.
- Website
- digitalocean.com
- Location
- Broomfield, CO
- Employees
- 1 462
- Sector
- Technology
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong profitability; Valuation and Growth lag behind.
Valuation10
- P/E vs own history94th pct · 0/25
- FCF yield0.9% · 5/25
- P/S15.7x · 5/25
- EV/EBITDA45.1x · 0/25
Growth25
- Revenue CAGR20.4% · 25/25
- Net income CAGRn/a · 0/25
- EPS CAGR ~5Yn/a · 0/25
- Fwd implied growth-27.0% · 0/25
Profitability75
- ROIC37.7% · 25/25
- ROE5.6% · 5/25
- Net margin23.3% · 25/25
- Operating margin19.3% · 20/25
Health67
- Altman Z4.21 · 25/25
- Current ratio1.31 · 12/25
- Interest coverage15.7x · 25/25
- Net cash / debtD/A 39% · 5/25
Quality74
- Piotroski F7/9 · 22/25
- Beneish M-2.57 · 25/25
- FCF conversion61% · 15/25
- Margin stabilityσ 8.5% · 12/25
Moat55
- ROIC >12% years1/5 yrs · 0/25
- Median gross margin59.9% · 25/25
- FCF-positive years5/5 yrs · 25/25
- Worst-year net marginworst -4.6% · 5/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2025FinancialBest year on record$259M net income
- FY2023FinancialTurned profitable$19.4M net income after a loss year
- 2022ProductThe company released DigitalOcean Functions
- 2022AcquisitionThe company acquired CSS-Tricks, a learning website for front-end developers
- FY2021FinancialPositive free cash flow every year since5-year streak
- 2021AcquisitionDigitalOcean announced plans to acquire Nimbella, a serverless startup
- 2021Product" In 2021, DigitalOcean launched a managed MongoDB database service
- Mar 24, 2021IPODigitalOcean became a publicly traded company on the New York Stock Exchange
- Jan 16, 2018ProductNew droplet (virtual machines) plans were introduced
- Jan 15, 2013MilestoneDigitalOcean became one of the first cloud-hosting companies to offer SSD-based virtual machines
- 2012ProductThe company launched their beta product in January 2012
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (57.2%)
- Strongly profitable — 23.3% net margin
- Revenue growing 21.4% year over year
- Interest covered 15.7× by operating earnings
- High returns on invested capital (ROIC 37.7%)
Watch-outs
- Net debt would take ~8.5 years of free cash flow to repay
- Loss-making in 2 of the recent years
- Net debt equals ~5.0 years of free cash flow
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+21.4% YoY
- Profitable — makes more than it spends$235M TTM
- Profit growing — earnings are higher than last year+206.8% YoY
- Generates cash — cash left after running and investing$143M TTM
- Debt under control — could handle its obligations~5.0y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$15.8B market cap
- Not printing shares — share count not ballooning — you keep your slice+13.0% shares over ~5y
- Proven track record — years of profitability behind it3/5 profitable years
- Financially stable — balance sheet not near distressAltman Z 4.2 — safe
- Pays a dividend — returns cash to shareholdersno data
- Valuation not extreme — price not wildly above earningsP/E 67.4
Peer comparisonDigitalOcean Holdings, Inc. vs 6 largest technology peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| DOCN this company | $15.8B | 67.4 | +21.4% | 23.3% | Solid |
| NVDA Nvidia Corp | $5.5T | 28.6 | +83.4% | 63.7% | Mixed |
| AAPL Apple Inc. | $4.9T | 38.1 | +14.2% | 27.6% | Strong |
| GOOGL Alphabet Inc. | $4.3T | 17.6 | +20.1% | 54.8% | Mixed |
| MSFT Microsoft Corp | $4.0T | 29.7 | +17.8% | 40.3% | Strong |
| SPCX Space Exploration Technologies Corp. | $2.1T | — | +33.2% | -34.0% | Strained |
| META Meta Platforms, Inc. | $1.8T | 26.9 | +27.7% | 29.8% | Mixed |
Head-to-head: DOCN vs NVDA · DOCN vs AAPL · DOCN vs GOOGL
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2021–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/DOCN
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of DOCN on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $134.82 · market cap $15.8B.