DigitalOcean Holdings, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>DigitalOcean Holdings, Inc. has filed its 2023 10-K, detailing its financial performance and corporate information for the fiscal year ending December 31, 2023.</b>

AI Summary

DigitalOcean Holdings, Inc. (DOCN) filed a Annual Report (10-K) with the SEC on February 21, 2024. DigitalOcean Holdings, Inc. filed its 2023 Annual Report on Form 10-K on February 21, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business address is 101 Avenue of the Americas, 10th Floor, New York, NY 10013. DigitalOcean Holdings, Inc. was formerly known as Digital Ocean, Inc., with a name change effective July 31, 2013. The filing includes detailed financial information for the fiscal years 2021, 2022, and 2023.

Why It Matters

For investors and stakeholders tracking DigitalOcean Holdings, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of DigitalOcean's financial health and operational status for the past fiscal year, crucial for investors to assess performance and future outlook. The detailed financial statements and disclosures within the 10-K are essential for understanding the company's revenue streams, expenses, assets, liabilities, and equity, informing investment decisions.

Risk Assessment

Risk Level: medium — DigitalOcean Holdings, Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains significant financial data, it does not present new, unexpected, or alarming information that would immediately elevate the risk profile beyond a medium level without further analysis of the detailed financial statements and business discussions within the full report.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-K to identify trends in revenue growth, profitability, and cash flow to inform investment strategy.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period covered by the report)
• 2024-02-21 — Filing Date (Date the 10-K was filed)
• 001-40252 — SEC File Number (SEC registration number)
• 0001582961 — Central Index Key (Company identifier)

Key Players & Entities

• DigitalOcean Holdings, Inc. (company) — Filer and subject of the report
• Digital Ocean, Inc. (company) — Former name of the company
• New York (location) — Business and mailing address city
• DE (location) — State of incorporation

FAQ

Industry Context

DigitalOcean operates in the cloud computing industry, providing Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) solutions.

Regulatory Implications

The filing is a standard Form 10-K, a mandatory annual report required by the U.S. Securities and Exchange Commission (SEC) for publicly traded companies.

What Investors Should Do

1. Analyze the revenue and net income trends for fiscal years 2021-2023.
2. Examine the company's balance sheet for assets, liabilities, and equity as of December 31, 2023.
3. Review any disclosed risk factors or legal proceedings that could impact future performance.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K
• 2024-02-21: Filing Date — Date the 10-K was officially submitted to the SEC

Year-Over-Year Comparison

This is the initial analysis of the 2023 10-K filing. A comparison to the previous year's filing (2022 10-K) would require access to that document.

Key Financial Figures

• $0.000025 — ich registered Common stock, par value $0.000025 per share DOCN The New York Stock Excha
• $50 — e a monthly spend less than or equal to $50 and have been on our platform for more
• $500 — at have a monthly spend between $50 and $500) and Scalers (users that have a monthly
• $113.8 billion — is estimated to grow from approximately $113.8 billion in 2024 to $213.1 billion in 2027, repr
• $213.1 billion — approximately $113.8 billion in 2024 to $213.1 billion in 2027, representing a 23.3% compound
• $65.83 — uilders and Scalers, has increased from $65.83 in 2021 to $82.76 in 2022 to $90.99 in
• $82.76 — s, has increased from $65.83 in 2021 to $82.76 in 2022 to $90.99 in 2023. See Part II,
• $90.99 — rom $65.83 in 2021 to $82.76 in 2022 to $90.99 in 2023. See Part II, Item 7. "Manageme

Filing Documents

• docn-20231231.htm (10-K) — 2315KB
• exhibit107-2023xq4.htm (EX-10.7) — 16KB
• exhibit1011-2023xq4.htm (EX-10.11) — 76KB
• exhibit1012-2023xq4.htm (EX-10.12) — 19KB
• exhibit1018-2023xq4.htm (EX-10.18) — 43KB
• exhibit1019-2023xq4.htm (EX-10.19) — 39KB
• exhibit211-2023xq4.htm (EX-21.1) — 11KB
• exhibit231-2023xq4.htm (EX-23.1) — 3KB
• exhibit232-2023xq4.htm (EX-23.2) — 4KB
• exhibit311-2023xq4.htm (EX-31.1) — 12KB
• exhibit312-2023xq4.htm (EX-31.2) — 12KB
• exhibit321-2023xq4.htm (EX-32.1) — 9KB
• exhibit971-2023xq4.htm (EX-97.1) — 41KB
• docn-20231231_g1.jpg (GRAPHIC) — 113KB
• docn-20231231_g2.jpg (GRAPHIC) — 184KB
• 0001582961-24-000031.txt (&nbsp;) — 13861KB
• docn-20231231.xsd (EX-101.SCH) — 80KB
• docn-20231231_cal.xml (EX-101.CAL) — 140KB
• docn-20231231_def.xml (EX-101.DEF) — 468KB
• docn-20231231_lab.xml (EX-101.LAB) — 1205KB
• docn-20231231_pre.xml (EX-101.PRE) — 824KB
• docn-20231231_htm.xml (XML) — 1840KB

Risk Factors

Item 1A. Risk Factors 18 Item 1B. Unresolved Staff Comments 47 Item 1C. Cybersecurity 47

Properties

Item 2. Properties 49

Legal Proceedings

Item 3. Legal Proceedings 49 Item 4. Mine Safety Disclosures 49 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 50 Item 6. Reserved 51 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 51

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 68

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 70

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 114

Controls and Procedures

Item 9A. Controls and Procedures 114

Other Information

Item 9B. Other Information 115

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 115 PART III Item 10. Directors, Executive Officers and Corporate Governance 117 Item 11.

Executive Compensation

Executive Compensation 117 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 117 Item 13. Certain Relationships and Related Transactions, and Director Independence 117 Item 14. Principal Accounting Fees and Services 117 PART IV Item 15. Exhibits, Financial Statement Schedules 118 1 Item 16. Form 10-K Summary 122

Signatures

Signatures 123 2 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Annual Report on Form 10-K, including statements regarding our future results of operations or financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will" or "would" or the negative of these words or other similar terms or expressions. You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Annual Report on Form 10-K primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in Part I, Item 1A. "Risk Factors" and elsewhere in this Annual Report on Form 10-K. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Annual Report on Form 10-K. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. In addition, statements that

BUSINESS

ITEM 1. BUSINESS Overview Our mission is to simplify cloud computing so businesses can spend more time creating software that changes the world. DigitalOcean is a leading cloud computing platform offering on-demand infrastructure and platform tools for developers at startups and growing digital businesses. We were founded with the guiding principle that the transformative benefits of the cloud should be easy to leverage, broadly accessible, reliable and affordable. Our platform simplifies cloud computing, enabling our customers to rapidly accelerate innovation and increase their productivity and agility. Our users include software engineers, researchers, data scientists, system administrators, students and hobbyists. Our customers use our platform across numerous industry verticals and for a wide range of use cases, such as web and mobile applications, website hosting, e-commerce, media and gaming, personal web projects, managed services, and, most recently, artificial intelligence and machine learning (AI/ML) applications, among many others. We believe that our focus on simplicity, community, open source and customer support are the four key differentiators of our business, driving a broad range of customers around the world to build their applications on our platform. As of December 31, 2023, we had collectively approximately 644,000 Learners (users that have a monthly spend less than or equal to $50 and have been on our platform for more than three months), Builders (users that have a monthly spend between $50 and $500) and Scalers (users that have a monthly spend greater than $500) using our platform to build, deploy and scale applications. We exclude Testers (users that spend less than or equal to $50 per month and utilize our platform for three months or less) from our customer count because we do not consider them to be a meaningful part of our customer base, given their short time on our platform and their relatively small individual and aggregate spend.

View Full Filing

View this 10-K filing on SEC EDGAR