DigitalOcean saw a strong second quarter in 2024, with revenue jumping 13% year-over-year to $192 million. The cloud hosting provider is making waves in the AI and machine learning (ML) space, where its Annual Run-Rate Revenue (ARR) skyrocketed by over 200% compared to last year. CEO Paddy Srinivasan credited this surge to the company’s relentless focus on innovation and expanding its product lineup.
The quarter was packed with action. DigitalOcean rolled out 24 new product features, including VPC Peering in beta and GPU droplets, which make NVIDIA H100 instances more accessible to its 638,000 customers. These additions reflect the company’s mission to bring top-tier technology to developers and small businesses without the enterprise-level costs.
Financially, the company’s health is solid. Gross profit climbed 15% to $117 million, with a net income of $19 million, showing a 10% profit margin. Although adjusted free cash flow dipped slightly to $37 million, DigitalOcean still has a strong cash reserve of $443 million.
Looking forward, the company expects Q3 revenue to be between $196 million and $197 million. For the full year 2024, DigitalOcean is on track to pull in up to $775 million, with AI and ML continuing to play a key role in its growth.
DigitalOcean’s continued innovation and focus on serving tech-driven businesses keep it well-positioned in the competitive cloud space.
