DigitalOcean Holdings Inc (DOCN)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 465,943 | 397,497 | 364,395 | 257,966 |
| Revenue | US$ in thousands | 780,615 | 692,884 | 576,322 | 428,561 |
| Gross profit margin | 59.69% | 57.37% | 63.23% | 60.19% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $465,943K ÷ $780,615K
= 59.69%
Based on the data provided for DigitalOcean Holdings Inc, the gross profit margin has shown some fluctuations over the years.
In December 31, 2021, the gross profit margin was 60.19%, indicating that the company was able to retain 60.19% of its revenue after accounting for the cost of goods sold. This is a solid margin and suggests effective cost management.
The margin increased to 63.23% by December 31, 2022, which indicates an improvement in profitability as the company was able to generate more profit from each dollar of revenue.
However, by December 31, 2023, the gross profit margin decreased to 57.37%, which could indicate potential challenges in managing costs or pricing pressures that impacted profitability.
In the most recent period, December 31, 2024, the gross profit margin rebounded slightly to 59.69%, showing some improvement from the previous year but still below the peak in 2022.
Overall, fluctuations in the gross profit margin of DigitalOcean Holdings Inc suggest varying levels of efficiency in managing costs and generating profits over the years. It would be important for the company to analyze the factors influencing these changes and work towards maintaining a healthy and sustainable margin in the future.
Peer comparison
Dec 31, 2024