DigitalOcean Holdings Inc (DOCN)

Net 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
Net income (ttm)	US$ in thousands	49,918	19,409	-6,596	-17,868	-25,292	-27,045	-29,104	-38,859	-34,287	-19,503
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
Net profit margin		7.01%	2.80%	-0.98%	-2.75%	-4.12%	-4.69%	-5.46%	-7.89%	-7.42%	-4.55%

March 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $49,918K ÷ $712,480K
= 7.01%

The net profit margin of DigitalOcean Holdings Inc has shown improvement over the past quarters, reflecting the company's ability to effectively manage its costs and generate profits from its operations. The net profit margin increased from negative figures in the first two quarters of 2022 to positive figures in the subsequent quarters of 2022 and 2023. This positive trend indicates that the company has been able to increase its profitability and efficiency in converting revenue into net income. In the most recent quarter ended March 31, 2024, the net profit margin stood at 7.01%, a substantial improvement compared to the earlier quarters. This indicates that DigitalOcean is effectively controlling its expenses and operating more efficiently, resulting in a healthier bottom line. It is essential for investors and stakeholders to monitor this key financial metric to assess the company's profitability and long-term sustainability.