DigitalOcean Holdings, Inc. (DOCN) Earnings Call Transcripts
DigitalOcean Holdings, Inc.'s Latest Earnings Call - June 3, 2026
In the June 3, 2026 earnings call, DigitalOcean Holdings, Inc. (DOCN:US) showcased significant growth and strategic shifts, indicating a robust future outlook. The company reported a revenue increase driven by a 220% growth in AI customer revenues and a 180% growth in $1 million-plus customers, leading to an upward revision of guidance to a 4% to 50% growth for the next fiscal year. This performance reflects a successful transition from a developer-focused cloud to a more comprehensive AI-native cloud service provider, positioning DigitalOcean favorably in a competitive landscape.
Reported metrics
| Metric | Value |
|---|---|
| Revenue Growth | 220% (beat) |
| Customer Growth | 180% (beat) |
| Guidance for Next Year | 4% to 50% (beat) |
| Capacity Expansion | 60 megawatts (inline) |
| Cost per Megawatt | $20 million to $25 million (negative) |
| ARR per Megawatt | $13 million (positive) |
Guidance from management
Management raised revenue growth guidance to 4% to 50% for the next fiscal year, reflecting strong customer traction and demand signals. They indicated ongoing evaluation for additional capacity beyond the 60 megawatts planned for 2027.
What analysts pressed on
Analysts expressed concerns regarding the rising costs associated with capacity expansion and the potential impact on margins. There was also apprehension about the competitive landscape and how quickly DigitalOcean can scale without over-leveraging.
Main topics on the call
- AI Customer Revenue Growth — DigitalOcean reported a remarkable 220% growth in AI customer revenues, indicating strong demand for its AI-native cloud services. CFO Matt Steinfort noted, "we've developed a very compelling full-stack AI native cloud t...
- Customer Retention Improvement — The company has successfully addressed customer churn, with $1 million-plus customers growing by 180% and no churn reported in the last four quarters. Steinfort stated, "we hadn't had any churn in the last 4 quarters in ...
- Capacity Expansion Plans — DigitalOcean plans to bring 60 megawatts of capacity online in 2027, with a mix of existing facilities and new data centers. Steinfort emphasized the operational execution risk is low, stating, "this is existing faciliti...
- Cost Pressures on Capacity Expansion — While the company is expanding capacity, it faces rising component costs, particularly for GPUs and CPUs. Steinfort mentioned, "the costs are higher now," indicating that inflationary pressures could impact margins.
Read the full DigitalOcean Holdings, Inc. transcript (June 3, 2026) → Summary generated from the call transcript; every figure above is stated by management on the record.
About DigitalOcean Holdings, Inc.
DigitalOcean Holdings, Inc. (DOCN) is a publicly listed company in the IT Services industry, within the Information Technology sector. It trades on NYSE and is based in US. EarningsCalls.dev maintains a free, full-text archive of its earnings call transcripts — 46 calls on record spanning May 6, 2021 to June 3, 2026. Every transcript is split into speaker-by-speaker segments with headline metrics, free to read or available through our REST API.
Earnings Call History
EarningsCalls.dev has 46 DigitalOcean Holdings, Inc. earnings call transcripts on record, spanning May 6, 2021 to June 3, 2026. Based on this history, DigitalOcean Holdings, Inc. reports quarterly. The most recent call on file is dated June 3, 2026. The full list is below — each row opens the complete, free-to-read transcript.
- Ticker
- DOCN
- Exchange
- NYSE
- Country
- US
- Sector
- Information Technology
- Industry
- IT Services
- Calls on record
- 46
- First call
- May 6, 2021
- Most recent
- June 3, 2026
- Reporting cadence
- quarterly