DigitalOcean Holdings (DOCN) Q4 FY2023 earnings: revenue $181 million, up 11.0% on the year

DigitalOcean Holdings, Inc. (DOCN) reported revenue of $181 million for Q4 FY2023, the quarter ended 31 December 2023, up 11.0% on the same quarter a year earlier. Net income was $16 million, and diluted earnings per share $0.17. The figures are the company's own, from the 10-K it filed with the SEC on 25 February 2025.

Revenue$181 millionup 11.0%

Net income$16 million

Diluted EPS$0.17

QuarterQ4 FY2023ended 31 December 2023

The quarter, against the one before and a year earlier

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Revenue	181	177	n/a	n/a
Cost of revenue	77.6	73.2	n/a	n/a
Gross profit	103	104	n/a	n/a
Gross margin	57.1%	58.6%	n/a
Research and development	30.0	31.7	n/a	n/a
Operating income	11.0	35.5	n/a	n/a
Operating margin	6.1%	20.0%	n/a
Interest expense	2.3	2.3	n/a	n/a
Pre-tax income	13.5	37.1	n/a	n/a
Income tax	-2.4	17.9	n/a	n/a
Effective tax rate	-17.8%	48.3%	n/a
Net income	15.9	19.2	n/a	n/a
Net margin	8.8%	10.8%	n/a
Diluted EPS	$0.17	$0.20	n/a	n/a

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed.

Cash flow and capital returned

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Operating cash flow	80.5	54.0	n/a	n/a
Capital expenditure	52.2	20.2	n/a	n/a
Free cash flow	28.3	33.8	n/a	n/a
Free cash flow margin	15.6%	19.1%	n/a
Cash from investing	153	4.6	n/a	n/a
Cash from financing	4.4	-108	n/a	n/a
Depreciation and amortisation	30.8	30.6	n/a	n/a
Share-based compensation	22.8	-2.4	n/a	n/a
Buybacks	13.5	106	n/a	n/a
Diluted shares, weighted	92m	103m	n/a	n/a
Shares outstanding at period end	90m	86m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Shareholders' equity	-314	-359	n/a	n/a
Redeemable equity	0.0	n/a	n/a	n/a
Debt	1,478	1,476	n/a	n/a
Operating lease liabilities	91.2	107	n/a	n/a
Finance lease liabilities	4.5	5.9	n/a	n/a
Other liabilities	201	195	n/a	n/a
Total liabilities and equity	1,461	1,425	n/a	n/a
Fixed assets	305	285	n/a	n/a
Goodwill	348	348	n/a	n/a
Intangible assets	140	146	n/a	n/a
Investments	94.5	305	n/a	n/a
Cash and equivalents	317	79.4	n/a	n/a
Receivables	62.2	60.2	n/a	n/a
Other assets	193	202	n/a	n/a
Total assets	1,461	1,425	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023 †	Q4 FY2023	Q1 FY2024 †	Q2 FY2024 †	Q3 FY2024 †	Q4 FY2024	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	177	181	185	192	198	205	211	219	230	242	258	281
Cost of revenue	73.2	77.6	75.6	78.3	81.9	78.8	81.3	87.8	92.7	100	113	127
Gross profit	104	103	109	114	117	126	129	131	137	142	145	155
Gross margin	59%	57%	59%	59%	59%	62%	61%	60%	60%	59%	56%	55%
R&D	31.7	30.0	32.9	33.0	36.3	40.3	39.6	39.6	38.1	44.3	48.8	57.5
Operating income	35.5	11.0	11.5	22.3	24.6	32.5	37.6	35.6	44.9	38.8	36.6	29.4
Operating margin	20%	6%	6%	12%	12%	16%	18%	16%	20%	16%	14%	10%
Interest expense	2.3	2.3	2.3	2.3	2.3	2.2	2.2	2.2	5.0	8.5	10.6	7.5
Pre-tax income	37.1	13.5	14.3	24.8	29.6	29.0	41.4	42.4	90.3	32.5	24.5	27.1
Tax rate	48%	-18%	1%	23%	-11%	37%	8%	13%	-75%	21%	36%	-31%
Net income	19.2	15.9	14.1	19.1	32.9	18.3	38.2	37.0	158	25.7	15.8	35.4
Net margin	11%	9%	8%	10%	17%	9%	18%	17%	69%	11%	6%	13%
Diluted EPS	$0.20	$0.17	$0.15	$0.20	$0.33	$0.19	$0.39	$0.39	$1.51	$0.24	$0.15	$0.29
Operating cash flow	54.0	80.5	66.7	71.3	73.4	71.3	64.1	92.4	95.8	57.3	46.9	110
Capital expenditure	20.2	52.2	43.7	31.9	57.4	45.3	62.0	33.2	7.8	26.2	40.0	41.6
Free cash flow	33.8	28.3	23.0	39.5	16.0	26.1	2.1	59.2	88.0	31.1	6.9	68.4
Buybacks	106	13.5	8.8	9.4	11.7	29.9	59.1	20.1	2.9	0.0	0.0	0.0
Shares outstanding	86m	90m	91m	92m	92m	92m	91m	91m	91m	92m	104m	105m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-K for the period ended 31 December 2023, filed 25 February 2025, accession 0001582961-25-000035: the filing on EDGAR. All of DigitalOcean Holdings, Inc.'s filings: EDGAR company page.

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