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

14.7x

+6.0x

ARR

$1.1B

+9.0%

YoY Growth

28.6%

+6.2pp

Market Cap

$16.5B

+84.3%

Revenue (Q)

$281M

+9.0%

Gross Margin

55.0%

-1.1pp

Op. Margin

10.4%

+6.5pp

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.

AI Replacement Risk

19/ 100

LowHigh

Estimated likelihood that general-purpose AI replaces this product.

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Valuation by quarter

Current ARR Multiple: 14.7x

Calculated valuation

FRAMEWORK EST.

Valuation data is not available for this company.

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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 $750 million. 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.