DigitalOcean (DOCN) Q4 2025 Earnings Transcript

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Tuesday, Feb. 24, 2026 astatine 8 a.m. ET

• Chief Executive Officer — Padmanabhan T. Srinivasan

• Chief Financial Officer — W. Matthew Steinfort

• [Moderator] — Melanie Strate

Melanie Strate: Thank you, and bully morning. Thank you each for joining america contiguous to reappraisal DigitalOcean Holdings, Inc.'s 4th fourth and afloat twelvemonth 2025 fiscal results and an capitalist update. Joining maine connected the telephone contiguous are Padmanabhan T. Srinivasan, our Chief Executive Officer, and W. Matthew Steinfort, our Chief Financial Officer. Before we begin, fto maine punctual you that definite statements made connected the telephone contiguous whitethorn beryllium considered forward-looking statements, which bespeak management's champion judgement based connected presently disposable information. Our existent results whitethorn disagree materially from those projected successful these forward-looking statements, including our fiscal outlook.

I nonstop your attraction to the hazard factors contained successful our filings with the SEC arsenic good arsenic those referenced successful today's property merchandise that is posted connected our website. DigitalOcean Holdings, Inc. expressly disclaims immoderate work oregon undertaking to merchandise publically immoderate updates oregon revisions to immoderate forward-looking statements made today. Additionally, non-GAAP fiscal measures volition beryllium discussed connected this league call, and reconciliations to the astir straight comparable GAAP fiscal measures tin beryllium recovered successful today's net property release, arsenic good arsenic successful our capitalist presumption that outlines the treatment connected today's call. A webcast of today's telephone is besides disposable successful the IR conception of our website.

And with that, I volition crook the telephone implicit to Padmanabhan T. Srinivasan.

Padmanabhan T. Srinivasan: Thank you, Melanie. Good morning, everyone, and convey you for joining us. We had a fantastic 4th and a precise beardown decorativeness to the year. And I americium excited to stock the details with each of you. We ended the twelvemonth with 18% gross maturation successful Q4, reaching $901 cardinal for the afloat year. We delivered $51 cardinal successful incremental integrated ARR, the highest successful the company's history. Our million-dollar customers reached $133 cardinal successful ARR, increasing astatine 123% twelvemonth implicit year. We support fiscal subject and beardown profitability with 42% adjusted EBITDA margins and 19% adjusted escaped currency travel margins for the year. There is simply a batch to beryllium excited about.

And fixed this momentum that we are seeing and the advancement we are making against our semipermanent strategy, we wanted to supply a much broad update contiguous alternatively than hold for a abstracted capitalist day. Our prepared remarks volition beryllium somewhat longer than usual. We volition beforehand slides from our net presumption connected the webcast arsenic we go, and we volition permission plentifulness of clip for questions.