DigitalOcean (DOCN) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, May 5, 2026 astatine 11:10 AM CDT 50 min read

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Date

Tuesday, May 5, 2026 astatine 8 a.m. ET

Call participants

• Chief Executive Officer — Padmanabhan Srinivasan

• Chief Financial Officer — Matt Steinfort

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Full Conference Call Transcript

Padmanabhan Srinivasan: Thank you, Raju. Good morning, everyone, and convey you for joining america today. We had an outstanding Q1 2026, and I'll commencement with 4 headlines. First, our momentum is accelerating. Q1 gross was $258 cardinal up 22% year-over-year, with cardinal dollar positive customers increasing 179% year-over-year to $183 cardinal successful ARR. AI lawsuit ARR grew 221% to $170 million, and we bushed each fiscal people we shared successful our past call. Number two, we launched the DigitalOcean AI autochthonal unreality past week, the astir important merchandise motorboat successful our history. With much than 15 caller merchandise launches crossed 5 afloat integrated layers built into a modern, unfastened unified stack, intent built for the [ inferencing ] and Agentic Era.

Third, we are investing to conscionable our increasing lawsuit request and to prehend the worldly accidental successful beforehand of us. We raised $888 cardinal successful equity during Q1 to fortify our equilibrium expanse and rapidly utilize that flexibility to unafraid 60 megawatts of incremental capableness that is slated to ramp passim 2027, bringing our full committed capableness to 135 megawatts. And finally, we are again raising our near- and medium-term guidance connected the spot of lawsuit request and the incrementally committed capacity. For 2026, we are expanding our afloat twelvemonth gross maturation projection from 21% and to astir 26% year-over-year and expect to exit Q4 approaching 30%.

And this revised 2026 maturation is wholly driven by our antecedently committed capacity, without immoderate apical enactment payment successful 2026 from the caller 60 megawatts. With the projected ramp of the incremental 60 megawatts successful 2027, we are present projecting gross maturation of 50% oregon much successful 2027, meaningfully higher than the 30% maturation we communicated conscionable past quarter. I'll present walk a fewer minutes drilling down connected each of these 4 headlines. The momentum we are generating is wide grounds of some our differentiated presumption and our beardown execution crossed the board. It starts with the accelerating apical enactment growth.

Q1 gross was $258 million, up 22% year-over-year and up implicit 400 ground points implicit Q4 2025 already beardown 18% exit maturation rate. We are delivering this maturation by continuing to delight our apical unreality and AI autochthonal customers. Our AI lawsuit ARR reached $170 million, increasing 221% year-over-year. Our $1 cardinal lawsuit ARR rates $183 million, increasing 179% year-over-year. These are not conscionable customers experimenting connected our platform. These are unreality and AI autochthonal companies scaling their businesses connected DigitalOcean. Our complaint of acceleration is besides increasing. We delivered a grounds $62 cardinal successful incremental integrated ARR, the highest successful the company's history. Customers spot our differentiated worth and are leaning into our platform.