Filing Flows › DigitalOcean Holdings (DOCN) › Q1 2025
DigitalOcean Holdings (DOCN) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 6, 2025
DigitalOcean Holdings (DOCN) reported revenue of $211M for the first quarter 2025 (Q1 2025), +14% from a year earlier and +3% from the quarter before. Operating margin was 17.9%, net earnings $38.2M (18.1% of revenue).
DigitalOcean Holdings, Q1 2025: revenue $211M (+14% year over year), operating margin 17.9%, net earnings $38.2M, operating cash flow $64.1M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $211M | +3% | +14% |
| Gross profit | $129M | +3% | +19% |
| Operating profit | $37.6M | +16% | +226% |
| Net earnings | $38.2M | +109% | +170% |
| Operating cash flow | $64.1M | -10% | -4% |
| Free cash flow | $2.1M | -92% | -91% |
What changed
Revenue was $210.7M in Q1 2025, up 14% year over year and up 3% from the previous quarter.
Gross margin was 61.4%, up 2.3 points from a year earlier. Operating profit was $37.6M, a 17.9% margin (up 11.6 points year over year). Of the extra revenue versus a year earlier, 101% reached operating profit, above the 6% margin then. Operating expenses fell 6% while revenue rose 14%. The fastest-growing cost line was Research & development (+20%). Net earnings were $38.2M, up 170% year over year. The effective tax rate was 7.7%.
Operating cash flow was $64.1M (down 4% year over year), 168% of net earnings. Non-cash charges added back $29.2M of depreciation and amortization and $19.4M of share-based compensation. Working capital and other items used $22.8M. Capital expenditures of $62.0M left free cash flow of $2.1M.
Questions
What was DigitalOcean Holdings' revenue in the first quarter 2025?
DigitalOcean Holdings (DOCN) reported revenue of $211M for the first quarter 2025 (Q1 2025), +14% from a year earlier and +3% from the quarter before.
Was DigitalOcean Holdings profitable in the first quarter 2025?
Operating profit was $37.6M (17.9% of revenue) and net earnings $38.2M.