DigitalOcean Holdings Inc (DOCN)

Net profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Net income US$ in thousands 84,492 19,409 -27,804 -19,503
Revenue US$ in thousands 780,615 692,884 576,322 428,561
Net profit margin 10.82% 2.80% -4.82% -4.55%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $84,492K ÷ $780,615K
= 10.82%

DigitalOcean Holdings Inc experienced a negative trend in net profit margin from December 31, 2021, to December 31, 2022, with values of -4.55% and -4.82% respectively. However, the company showed a notable improvement in profitability over the next two years, as the net profit margin rose to 2.80% on December 31, 2023, and further increased to 10.82% on December 31, 2024. This positive progression indicates that DigitalOcean effectively managed its costs and expenses relative to its revenue, resulting in stronger profitability in the later years.