DigitalOcean Soars 28.88% on Earnings $360M Volume Ranks 338th in Daily Trading

On August 5, 2025, DigitalOcean (DOCN) surged 28.88% with a trading volume of $0.36 billion, ranking 338th in daily equity trading. This followed the company’s Q2 2025 earnings report, which highlighted a 14% year-over-year revenue increase to $219 million and a 93% rise in net income to $37 million. Adjusted EBITDA reached $89 million, maintaining a 41% margin, while full-year revenue guidance was raised to $888–$892 million.

Operational metrics underscored growth in high-spend customer segments, with Scalers+ revenue contributing 24% of total revenue and rising 35% annually. Incremental annual recurring revenue (ARR) hit $32 million, the highest since late 2022. The net dollar retention rate climbed to 99%, and average revenue per user (ARPU) increased 12% year-over-year to $111.70. The company also launched the Gradient AI Platform and expanded GPU offerings via AMD collaboration, signaling strategic focus on AI infrastructure.

Management emphasized disciplined cost management and free cash flow generation, with adjusted free cash flow hitting $57 million at a 26% margin. Share repurchases totaled $1.6 billion since the IPO, and cash reserves stood at $388 million. CEO Paddy Srinivasan noted progress in AI/ML revenue and operational efficiency, reinforcing confidence in the updated 2025 guidance.

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