DigitalOcean Holdings Inc (DOCN)

Gross profit margin

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021
Gross profit (ttm)	US$ in thousands	427,748	408,917	405,265	393,917	377,525	364,395	336,840	309,377	283,974	257,966
Revenue (ttm)	US$ in thousands	712,480	692,884	675,008	650,061	614,129	576,322	532,986	492,299	462,227	428,561
Gross profit margin		60.04%	59.02%	60.04%	60.60%	61.47%	63.23%	63.20%	62.84%	61.44%	60.19%

March 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $427,748K ÷ $712,480K
= 60.04%

DigitalOcean Holdings Inc has demonstrated a stable gross profit margin over the past 10 quarters, ranging from a low of 59.02% to a high of 63.23%. The gross profit margin peaked in the fourth quarter of 2022 at 63.23% and has shown a slight decline in subsequent quarters. Despite this decline, the gross profit margin remains relatively healthy, indicating that the company is efficiently managing its production costs and generating a significant portion of revenue as gross profit. The average gross profit margin over the period is approximately 61.27%, reflecting the company's ability to maintain a consistent level of profitability from its core operations. Overall, the trend suggests that DigitalOcean Holdings Inc has been able to sustain a competitive position in terms of its cost structure and pricing strategies.