DigitalOcean Q1 Earnings Call Highlights

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DigitalOcean (NYSE:DOCN) reported what executives repeatedly described arsenic a beardown archetypal 4th of 2026, citing accelerating request from ample unreality and AI-native customers, the motorboat of a caller “AI-Native Cloud” platform, and expanded information halfway commitments intended to enactment maturation into 2027 and beyond.

On the company’s net call, CEO Paddy Srinivasan said Q1 gross was $258 million, up 22% year-over-year, and that DigitalOcean “beat each fiscal people we shared successful our past call.” He besides highlighted maturation successful larger lawsuit cohorts, with “+$1 cardinal customers increasing 179% year-over-year to $183 cardinal successful ARR,” and “AI lawsuit ARR” increasing 221% year-over-year to $170 million.

Q1 results and lawsuit metrics

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CFO Matt Steinfort said DigitalOcean exceeded its anterior guidance “on each cardinal metrics,” attributing the gross outperformance chiefly to “strong retention successful our apical D&E cohorts and from enlargement successful our apical unreality and AI autochthonal customers.” He noted the Richmond information center, which began ramping gross successful March, contributed little than $500,000 successful Q1 and “less than 20 ground points” of year-over-year growth, indicating the quarter’s results were not driven by caller capacity.

Profitability metrics highlighted connected the telephone included:

• Adjusted EBITDA: $105 million, up 21% year-over-year, with a 41% margin.

• GAAP operating income: $37 million, representing a 14% operating margin.

• Adjusted operating income: $64 million, representing a 25% adjusted operating margin.

• Trailing 12-month adjusted escaped currency flow: $171 million, oregon 18% of revenue.

• Trailing 12-month adjusted escaped currency travel little lease main payments: $154 million, oregon 16% of revenue, including $17 cardinal successful financed instrumentality main payments.

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Srinivasan besides cited a “record $62 cardinal successful incremental integrated ARR” and said remaining show obligations (RPO) reached $243 million, “up an bonzer 1,700% year-over-year.” He added that inference and halfway unreality “pull-through accrued to much than 80% of full AI lawsuit ARR, up from 70% successful Q4,” arguing this showed the institution is “not a GPU rental business,” but alternatively “a afloat stack unreality platform” supporting accumulation AI workloads.

AI-Native Cloud motorboat and merchandise absorption

Srinivasan said DigitalOcean launched the DigitalOcean AI-Native Cloud astatine its Deploy league successful San Francisco, calling it “the astir important merchandise motorboat successful our history,” with “more than 15 caller merchandise launches crossed 5 afloat integrated layers.” He described marketplace shifts underpinning the strategy, including inference overtaking grooming workloads, open-source AI moving into production, the emergence of reasoning models, and agentic systems shifting “from experimentation to production.”