Mission Statement, Vision, & Core Values (2024) of DigitalOcean Holdings, Inc. (DOCN)

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An Overview of DigitalOcean Holdings, Inc. (DOCN)

General Summary of DigitalOcean Holdings, Inc. (DOCN)

DigitalOcean Holdings, Inc. (DOCN) was founded in 2011 and has grown to become a leading provider of cloud infrastructure and platform solutions for developers, startups, and small to medium-sized businesses. The company's core offerings include scalable compute, storage, and networking solutions, which are designed to simplify cloud computing for developers.

As of 2024, DigitalOcean serves approximately 145,000 Builders and 18,000 Scalers, with a focus on enhancing user experience and fostering developer engagement. The company reported an average revenue per user (ARPU) of $102.51 in the third quarter of 2024, up from $92.06 in the same period of 2023. DigitalOcean's annual run-rate revenue (ARR) reached $798 million, an increase from $713 million in the previous year, reflecting its strong growth trajectory.

Company's Financial Performance in the Latest Financial Reports

In the nine months ended September 30, 2024, DigitalOcean reported total revenue of $575.7 million, marking a 12% increase from $512 million in the same period of 2023. This revenue growth was primarily driven by a 14% increase in revenue from Builders and Scalers and a 10% increase in ARPU to $99.02 from $90.43.

For the three months ended September 30, 2024, the company achieved revenue of $198.5 million, compared to $177.1 million in the prior year, reflecting a 12% increase. The cost of revenue for this period was $79.0 million, leading to a gross profit margin of 60%.

DigitalOcean's operating expenses totaled $290.4 million for the nine months ended September 30, 2024, down 4% from $301.5 million in the previous year. Notably, research and development expenses decreased by 4% to $105.4 million, while sales and marketing expenses rose by 9% to $58 million during the same period.

The net income attributable to common stockholders for the nine months ended September 30, 2024, was $66.2 million, compared to $3.5 million in the previous year. The diluted net income per share was $0.70 for the nine months ended September 30, 2024, compared to $0.04 in the same period of 2023.

Financial Metric Q3 2024 Q3 2023 Change
Revenue $198.5 million $177.1 million +12%
ARPU $102.51 $92.06 +11%
Cost of Revenue $79.0 million $70.3 million +12%
Gross Profit Margin 60% 60% No Change
Total Operating Expenses $290.4 million $301.5 million -4%
Net Income $66.2 million $3.5 million +1886%

Introduction to Company as a Leader in the Industry

DigitalOcean has established itself as a significant player in the cloud computing industry, particularly for developers and small to medium-sized enterprises. The company benefits from a diverse customer base across approximately 190 countries, with around two-thirds of its revenue generated from international markets. As of September 30, 2024, 39% of revenue came from North America, 28% from Europe, 23% from Asia, and 10% from the rest of the world.

DigitalOcean's success is attributed to its focus on simplifying cloud infrastructure, fostering a strong community of developers, and providing affordable pricing structures. The company has consistently demonstrated a commitment to product innovation, which has resulted in increased customer retention and growth in high-value customer segments. With a net dollar retention rate of 97%, DigitalOcean is well-positioned for continued growth in the expanding cloud market.




Mission Statement of DigitalOcean Holdings, Inc. (DOCN)

Mission Statement Overview

DigitalOcean Holdings, Inc. (DOCN) operates with a clear and focused mission statement that emphasizes its commitment to providing a simplified cloud computing experience for developers and businesses. The mission statement serves as a guiding principle for the company, aligning its strategic goals with the needs of its customers and the evolving technology landscape. This mission is crucial for fostering innovation, customer satisfaction, and sustainable growth.

Core Component 1: Accessibility

The first core component of DigitalOcean's mission is to ensure accessibility to cloud computing for all developers and businesses. The company aims to provide a platform that is intuitive and easy to use, allowing users to deploy applications and services without the complexities typically associated with cloud infrastructure.

As of September 30, 2024, DigitalOcean reported an average revenue per user (ARPU) of $102.51, up from $92.06 a year earlier, indicating an increasing adoption and usage of its services among a growing customer base. This reflects the effectiveness of their accessibility initiatives, which cater to developers ranging from novices to seasoned professionals.

Core Component 2: Innovation

Innovation is at the heart of DigitalOcean's mission. The company continually invests in new technologies and features to enhance its platform. Notably, DigitalOcean has increased its focus on artificial intelligence and machine learning, investing significantly in these areas to improve service offerings and customer experience.

For the nine months ended September 30, 2024, DigitalOcean's research and development expenses totaled $105.4 million, a slight decrease from $109.5 million in the same period of the previous year. However, the company has made substantial investments in AI/ML infrastructure, which are expected to drive future growth and innovation.

Core Component 3: Community Empowerment

DigitalOcean is committed to empowering the developer community by providing resources and support that facilitate learning and growth. This includes extensive documentation, community forums, and educational content aimed at helping users maximize the potential of the platform.

The company serves approximately 190 countries, with a significant portion of its revenue coming from international markets. For the three months ended September 30, 2024, 39% of revenue was generated from North America, while Europe accounted for 28%, and Asia contributed 23%. This global reach underscores DigitalOcean's commitment to community empowerment across diverse geographic regions.

Metric Value (2024) Value (2023) % Change
Average Revenue Per User (ARPU) $102.51 $92.06 11%
Research and Development Expenses $105.4 million $109.5 million -4%
Total Revenue $575.7 million $512.0 million 12%
Gross Profit Margin 61% 59% 2%



Vision Statement of DigitalOcean Holdings, Inc. (DOCN)

Vision Statement Overview

The vision statement of DigitalOcean Holdings, Inc. (DOCN) emphasizes its commitment to simplifying cloud computing for developers and startups. The company aims to provide accessible, reliable, and affordable cloud solutions, fostering innovation and productivity.

Accessibility and Affordability

DigitalOcean's vision focuses on making cloud technology accessible to all. As of September 30, 2024, the company reported:

  • Average Revenue Per User (ARPU): $102.51, up from $92.06 in the same period of 2023, reflecting increased customer engagement and value derived from services.
  • Annual Run-Rate Revenue (ARR): $798 million, an increase from $713 million year-over-year, indicating significant growth in customer adoption and product usage.

Commitment to Innovation

DigitalOcean aims to accelerate innovation through its platform. The company has invested heavily in research and development, with expenses amounting to:

Period R&D Expenses (in thousands)
Three Months Ended September 30, 2024 $37,377
Three Months Ended September 30, 2023 $32,627
Nine Months Ended September 30, 2024 $105,388
Nine Months Ended September 30, 2023 $109,468

This investment highlights the company's focus on enhancing its product offerings, particularly in AI and machine learning.

Fostering Developer Community

DigitalOcean is dedicated to supporting developers and startups. As of September 30, 2024, the customer base included:

  • Builders: 145,412, up from 137,959 in 2023.
  • Scalers: 17,892, an increase from 16,305 in the previous year.

The growth in these segments emphasizes the company's goal of fostering a robust developer community.

Global Reach and Customer Diversity

DigitalOcean operates in approximately 190 countries, with a diverse revenue stream. For the three months ended September 30, 2024, revenue distribution was as follows:

  • North America: 39%
  • Europe: 28%
  • Asia: 23%
  • Rest of the World: 10%

This geographical diversity underscores the company's vision of global accessibility to its cloud services.

Financial Performance Indicators

The financial performance of DigitalOcean further illustrates its vision in action. Key metrics for the three months ended September 30, 2024 include:

Metric Value
Revenue $198,484,000
Net Income Attributable to Common Stockholders $32,949,000
Gross Profit Margin 60%
Operating Expenses $94,835,000

These figures reflect the company's operational efficiency and commitment to driving profitability while expanding its customer base.

Long-term Strategic Goals

DigitalOcean's vision encompasses long-term strategic goals, including:

  • Investing in AI/ML capabilities to enhance product offerings.
  • Expanding customer outreach to prevent churn and increase usage.
  • Continued focus on optimizing costs while improving service delivery.

These goals align with the company's mission to empower developers and startups globally.




Core Values of DigitalOcean Holdings, Inc. (DOCN)

Customer-Centricity

Customer-centricity is a core value at DigitalOcean Holdings, Inc. (DOCN), emphasizing the importance of understanding and responding to customer needs. This value drives the company's initiatives and product development, ensuring that offerings align with customer expectations.

In 2024, DigitalOcean has demonstrated its commitment to customer-centricity through various initiatives, including:

  • Increased average revenue per user (ARPU), which rose to $102.51 in Q3 2024 from $92.06 in Q3 2023, reflecting enhanced customer engagement and satisfaction.
  • Expansion of the Builders and Scalers customer segments, which contributed to 88% of total revenue in Q3 2024, up from 86% in Q3 2023.

Innovation

Innovation is another fundamental core value for DigitalOcean, driving the company to continuously improve its platform and offerings. The company invests significantly in research and development to foster innovation.

For the nine months ended September 30, 2024, DigitalOcean allocated $105.4 million to research and development, compared to $109.5 million in the same period of 2023. This investment supports the development of new products and enhancements to existing services, particularly in AI/ML offerings.

Period R&D Expenses (in thousands)
Q3 2024 $37,377
Q3 2023 $32,627
9M 2024 $105,388
9M 2023 $109,468

Community Engagement

Community engagement is integral to DigitalOcean's operations, reflecting its commitment to creating a positive impact in the tech community and beyond.

The company actively supports developers through educational programs and resources, contributing to the growth of the developer community. In 2024, DigitalOcean launched several initiatives aimed at enhancing developer skills and knowledge, including free webinars and tutorials.

Sustainability

DigitalOcean is dedicated to sustainability as a core value, focusing on environmentally responsible practices within its operations.

As of September 2024, DigitalOcean has made strides in reducing its carbon footprint, committing to 100% renewable energy for its data centers. This initiative is part of a broader strategy to enhance sustainability and reduce environmental impact.

Transparency

Transparency is crucial for fostering trust with customers and stakeholders. DigitalOcean maintains open communication regarding its operations and performance.

In its financial disclosures, the company provided comprehensive details about its revenue, expenses, and strategic initiatives. For example, DigitalOcean reported total revenue of $198.5 million for Q3 2024, reflecting a 12% increase from $177.1 million in Q3 2023, underscoring its growth trajectory and commitment to transparency.

Period Revenue (in thousands) % Change
Q3 2024 $198,484 12%
Q3 2023 $177,062 -

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Resources:

  1. DigitalOcean Holdings, Inc. (DOCN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of DigitalOcean Holdings, Inc. (DOCN)' financial performance, including balance sheets, income statements, and cash flow statements.
  2. SEC Filings – View DigitalOcean Holdings, Inc. (DOCN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.