DigitalOcean Holdings, Inc.

DOCNInfrastructure

DigitalOcean is a cloud infrastructure provider built for developers, startups, and small-to-medium-sized businesses.

Key figures

Data as of Jun 2026 · Pills compare vs Mar 2026

ARR Multiple

12.0x

-2.7x

ARR

$1.1B

+9.0%

YoY Growth

28.6%

+6.2pp

Market Cap

$13.5B

-18.4%

Revenue (Q)

$281M

+9.0%

Gross Margin

55.0%

-1.1pp

Op. Margin

10.4%

-3.7pp

Rule of 40

39.0

+12.7

Magic Number

4.30

+1.54

Revenue, margins & ratios from SEC filings; market cap & ARR multiple from market data. Market cap & ARR multiple use the close of 13 Oct 2026; their pills compare vs the Jun 2026 quarter-end (14.7x).

Valuation by quarter

Current ARR Multiple: 14.7x

Calculated valuation

FRAMEWORK EST.

Valuation data is not available for this company.

Strategy recommendations

Levers ranked by valuation impact

No recommendations for this company.

AI Replacement RiskMODERATE

19/ 100

LowModerateElevatedHigh

Estimated likelihood that general-purpose AI replaces this product.

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Why this rating

From the AI Risk Calculator model

Structural moats (regulation, integration depth, or proprietary data) make AI-only replacement unlikely in the near term.

What's driving the score

InfrastructureCategory baseline

low base

Workflow complexity5/5

-12 risk

Data moat3/5

-1 risk

Integration depthHigh

-10 risk

SegmentSmb

+10 risk

IndustryOther

neutral

Own AI integration2/5

+1.6 risk

Company overview

DigitalOcean is a cloud infrastructure provider built for developers, startups, and small-to-medium-sized businesses. It offers a simpler and more affordable alternative to hyperscale platforms like AWS, Azure, and Google Cloud. Ben and Moisey Uretsky founded it in 2012 in New York City. The developer-friendly approach and transparent pricing have made it one of the most popular cloud platforms for individual developers and growing businesses.

The platform provides compute (Droplets), managed Kubernetes, app platform, managed databases for PostgreSQL, MySQL, Redis, and MongoDB, object storage (Spaces), block storage, load balancers, VPC networking, serverless functions, and a container registry. The marketplace offers one-click deployment of popular open-source apps. Cloudways, acquired in 2022, is a managed hosting platform for agencies and e-commerce businesses running WordPress, WooCommerce, and Magento.

GPU Droplets provide access to NVIDIA GPUs for AI training and inference workloads. This targets the growing demand for AI compute among smaller organizations that don't need the complexity of AWS or Azure. DigitalOcean also offers GenAI capabilities and a managed AI agent platform for developers building AI-powered apps.

About 600,000 customers across 185+ countries use the platform. Self-serve, product-led growth drives most adoption, with a significant presence in emerging markets. Annual revenue is roughly $1.0 billion. The company is GAAP profitable and produces strong free cash flow. Gross margins sit around 60%, reflecting the infrastructure-heavy nature of the business. About 1,200 employees work across 15 data center regions worldwide.