DigitalOcean Reports Q1 2025 Revenue Growth, 170% Profit Jump

DigitalOcean Holdings reported strong financial results for the first quarter of 2025, with revenue reaching $211 million, a 14% year-over-year increase, and net income climbing significantly. The company saw notable growth in its AI segment, with annual recurring revenue from AI products increasing by over 160% year-over-year, and revenue from customers spending over $100,000 rising 41%. Operationally, DigitalOcean launched more than 50 new product features, including advancements in AI infrastructure and enhancements to its Kubernetes services, supporting its focus on digital native enterprises. Key metrics such as a 61% gross margin and a net dollar retention rate of 100% underscore improved customer retention and operational efficiency. Management remains optimistic for the remainder of 2025, projecting continued revenue growth to between $870 million and $890 million and maintaining a strong EBITDA margin. Despite recent declines in its stock price, the company's financial health is characterized as strong, and its strategic investments in AI and infrastructure are driving renewed momentum.