DigitalOcean announced results for its second quarter ended June 30. According to the announcement, revenue grew 35% to $103.8 million and ARR Increased to $426 million, up 36% year-over-year. During the quarter, the company also announced Managed MongoDB, a new, fully-managed database as a service offering.
Q2 financial highlights
- Revenue was $103.8 million, an increase of 35% year-over-year.
- Annual Run-Rate Revenue (ARR) ended the quarter at $426 million, an increase of 36% year-over-year.
- GAAP Gross Profit of $60.7 million or 58% of revenue and adjusted Gross Profit of $81.1 million or 78% of revenue.
- Loss from operations was $2.6 million and operating margin was (3)% as compared to income from operations of $1.8 million and operating margin of 2% in the prior year period.
- Adjusted EBITDA was $31.4 million and adjusted EBITDA margin was 30% of revenue as compared to adjusted EBITDA of $23.9 million and adjusted EBITDA margin of 31% in the prior year period.
- Capital expenditures were $26.0 million or 25% of revenue as compared to $30.8 million or 40% of revenue in the prior year period.
- Cash, cash equivalents, and restricted cash were $579.4 million with zero debt as of June 30, 2021.
Yancey Spruill, CEO of DigitalOcean said,
“We had an outstanding second quarter with strong revenue growth acceleration and continued improvement in our capital efficiency. We are excited about the progress we have made in leveraging simplicity across our business to better serve our customers and believe we have a path to a durable 30%+ growth rate for 2021 and next year. Adding to the strong quarter, we introduced Managed MongoDB which will continue to drive the revenue growth from our managed service offerings.”