DigitalOcean Holdings Inc (DOCN)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Net income | US$ in thousands | 19,409 | -27,804 | -19,503 |
| Revenue | US$ in thousands | 692,884 | 576,322 | 428,561 |
| Net profit margin | 2.80% | -4.82% | -4.55% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $19,409K ÷ $692,884K
= 2.80%
DigitalOcean Holdings Inc's net profit margin has shown improvement over the past three years, reflecting a positive trend in the company's profitability. In 2023, the net profit margin stood at 2.80%, indicating that the company generated a profit of $2.80 for every $100 in revenue. This represents a significant improvement from the negative margins reported in both 2022 (-4.82%) and 2021 (-4.55%).
The positive net profit margin in 2023 suggests that DigitalOcean has been able to effectively control its costs and expenses in relation to its revenue, resulting in improved profitability. This may be attributed to various factors such as cost management initiatives, revenue growth, operational efficiencies, or other strategic actions taken by the company.
Overall, the consistent improvement in net profit margin demonstrates DigitalOcean's ability to enhance its bottom line performance and generate profits for its shareholders, which is a positive indicator of the company's financial health and operational effectiveness.
Peer comparison
Dec 31, 2023