DigitalOcean Holdings IncQ2 beat and raised guidance

DigitalOcean reported second quarter results that beat analyst estimates, with revenue of $281.2 million, up 28.6% year-over-year, and adjusted EPS of $0.45 versus the $0.26 consensus. The company raised its full-year revenue guidance to $1.18 billion at the midpoint from $1.14 billion, and lifted its full-year adjusted EPS guidance to $1.38 at the midpoint, a 19.6% increase. During the earnings call, analysts from Goldman Sachs, William Blair, Citi, Bank of America, and Morgan Stanley questioned management on scaling for larger customers, the impact of recent price increases, adoption of additional platform layers, the 2027 growth outlook, and drivers of revenue per megawatt. CEO Padmanabhan Srinivasan highlighted that inference services grew nearly 800% year-over-year and that most major AI customers are already integrating core cloud services beyond inference. CFO Matt Steinfort noted that the impact of price increases on Q2 revenue was modest and that new pricing is already reflected in forward guidance.
DigitalOcean Holdings IncQ2 beat and raised guidance