# DigitalOcean Holdings, Inc. (DOCN) — Stock CV

DigitalOcean Holdings, Inc. 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.

> 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.

## Identity

- **Ticker**: DOCN
- **Sector**: Technology
- **Industry**: Services-Computer Programming, Data Processing, Etc.
- **Headquarters**: BROOMFIELD, CO
- **Employees**: 1 462
- **Website**: https://www.digitalocean.com
- **Market cap**: $15.8B
- **Last price**: $134.82
- **Financial profile**: Solid

## Vitals (TTM)

- **Revenue**: $1.01B
- **Net income**: $235M
- **Free cash flow**: $143M
- **Net debt**: $716M
- **P/E**: 67.4
- **Revenue growth (YoY)**: 21.4%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 10 |
| Growth | 25 |
| Profitability | 75 |
| Health | 67 |
| Quality | 74 |
| Moat | 55 |

## Qualifications (beginner checklist) — 6 of 10 passed

- [x] Revenue growing — +21.4% YoY
- [x] Profitable — $235M TTM
- [x] Profit growing — +206.8% YoY
- [x] Generates cash — $143M TTM
- [ ] Debt under control — ~5.0y of cash flow to repay
- [x] Established company — $15.8B market cap
- [ ] Not printing shares — +13.0% shares over ~5y
- [ ] Proven track record — 3/5 profitable years
- [x] Financially stable — Altman Z 4.2 — safe
- [ ] Valuation not extreme — P/E 67.4

## Experience (career milestones)

- **FY2025** — Best year on record: $259M net income
- **FY2023** — Turned profitable: $19.4M net income after a loss year
- **2022** — The company released DigitalOcean Functions
- **2022** — The company acquired CSS-Tricks, a learning website for front-end developers
- **FY2021** — Positive free cash flow every year since: 5-year streak
- **2021** — DigitalOcean announced plans to acquire Nimbella, a serverless startup
- **2021** — " In 2021, DigitalOcean launched a managed MongoDB database service
- **Mar 24, 2021** — DigitalOcean became a publicly traded company on the New York Stock Exchange
- **Jan 16, 2018** — New droplet (virtual machines) plans were introduced
- **Jan 15, 2013** — DigitalOcean became one of the first cloud-hosting companies to offer SSD-based virtual machines
- **2012** — The company launched their beta product in January 2012

## 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

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $429M | -$19.5M | $36.0M |
| FY2022 | $576M | -$24.3M | $88.8M |
| FY2023 | $693M | $19.4M | $116M |
| FY2024 | $781M | $84.5M | $105M |
| FY2025 | $901M | $259M | $181M |

---

Source: https://stockcv.com/DOCN — derived from company filings; may be delayed or incomplete. Information, not investment advice.