DigitalOcean Files Q3 2024 10-Q

TL;DR

DO's Q3 2024 10-Q is in. Check financials.

AI Summary

DigitalOcean Holdings, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter of 2024. Key financial data and disclosures relevant to investors are presented.

Why It Matters

This filing provides investors with the latest financial results and operational details for DigitalOcean, crucial for understanding the company's performance and future outlook.

Risk Assessment

Risk Level: medium — 10-Q filings are standard disclosures for public companies, but the specific financial details and market conditions can introduce varying levels of risk.

Key Numbers

• 2024 Q3 — Reporting Period (Indicates the specific quarter for which financial information is provided.)
• 2023-12-31 — Previous Fiscal Year End (Provides a point of comparison for the current fiscal year.)
• 2024-09-30 — Current Fiscal Year End (Marks the end of the reporting period for the current fiscal year.)

Key Players & Entities

• DigitalOcean Holdings, Inc. (company) — Filer of the 10-Q
• 20240930 (date) — Period of report
• 20241104 (date) — Filing date
• 101 AVENUE OF THE AMERICAS (address) — Company's business and mailing address
• NEW YORK (location) — Company's city

FAQ

Key Financial Figures

• $0.000025 — ich registered Common stock, par value $0.000025 per share DOCN The New York Stock Excha

Filing Documents

• docn-20240930.htm (10-Q) — 1310KB
• exhibit311-2024xq3.htm (EX-31.1) — 12KB
• exhibit312-2024xq3.htm (EX-31.2) — 12KB
• exhibit321-2024xq3.htm (EX-32.1) — 9KB
• 0001582961-24-000155.txt ( ) — 7180KB
• docn-20240930.xsd (EX-101.SCH) — 49KB
• docn-20240930_cal.xml (EX-101.CAL) — 74KB
• docn-20240930_def.xml (EX-101.DEF) — 265KB
• docn-20240930_lab.xml (EX-101.LAB) — 712KB
• docn-20240930_pre.xml (EX-101.PRE) — 488KB
• docn-20240930_htm.xml (XML) — 895KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Page

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 2 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 3 Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2024 and 2023 4 Condensed Consolidated Statements of Stockholders' Deficit for the Three and Nine Months Ended September 30, 2024 and 2023 5 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 7 Notes to Condensed Consolidated Financial Statements 9 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 36 Item 4.

Controls and Procedures

Controls and Procedures 36

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 38 Item 1A.

Risk Factors

Risk Factors 38 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 3. Defaults Upon Senior Securities 38 Item 4. Mine Safety Disclosures 38 Item 5. Other Information 39 Item 6. Exhibits 40

Signatures

Signatures 41 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q 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 Quarterly Report on Form 10-Q, 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 Quarterly Report on Form 10-Q 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 our 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 Quarterly Report on Form 10-Q. 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

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS DIGITALOCEAN HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) (unaudited) September 30, 2024 December 31, 2023 Current assets: Cash and cash equivalents $ 439,872 $ 317,236 Marketable securities — 94,532 Accounts receivable, less allowance for credit losses of $ 5,664 and $ 5,848 , respectively 68,936 62,186 Prepaid expenses and other current assets 43,198 29,040 Total current assets 552,006 502,994 Property and equipment, net 371,000 305,444 Restricted cash 1,747 1,747 Goodwill 348,674 348,322 Intangible assets, net 123,110 140,151 Operating lease right-of-use assets, net 121,430 155,201 Deferred tax assets 2,035 1,994 Other assets 6,476 5,114 Total assets $ 1,526,478 $ 1,460,967 Current liabilities: Accounts payable $ 12,946 $ 3,957 Accrued other expenses 28,065 31,046 Deferred revenue 5,575 5,340 Operating lease liabilities, current 68,113 81,320 Other current liabilities 61,311 70,982 Total current liabilities 176,010 192,645 Deferred tax liabilities 3,518 3,533 Long-term debt 1,483,470 1,477,798 Operating lease liabilities, non-current 73,556 91,161 Other long-term liabilities 1,627 9,528 Total liabilities 1,738,181 1,774,665 Commitments and Contingencies (Note 8) Preferred stock ($ 0.000025 par value per share; 10,000,000 shares authorized; 0 shares issued and outstanding as of September 30, 2024 and December 31, 2023) — — Common stock ($ 0.000025 par value per share; 750,000,000 shares authorized; 92,397,303 and 90,243,442 issued and outstanding as of September 30, 2024 and December 31, 2023, respectively) 2 2 Additional paid-in capital 65,701 30,989 Accumulated other comprehensive loss ( 398 ) ( 452 ) Accumulated deficit ( 277,008 ) ( 344,237 ) Total stockholders' deficit ( 211,703 ) ( 313,698 ) Total liabilities and stockholders' deficit $ 1,526,478 $ 1,460,967 See accompanying notes to condensed consolidated financial statements 2 DI

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View this 10-Q filing on SEC EDGAR