DigitalOcean Holdings Inc (DOCN)

Net profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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	84,492	82,164	68,390	49,917	19,408	-6,596	-17,868	-25,292	-27,045	-29,104	-38,859	-34,287	-19,503
Revenue (ttm)	US$ in thousands	780,615	756,564	735,142	712,480	692,884	675,008	650,061	614,129	576,322	532,986	492,299	462,227	428,561
Net profit margin		10.82%	10.86%	9.30%	7.01%	2.80%	-0.98%	-2.75%	-4.12%	-4.69%	-5.46%	-7.89%	-7.42%	-4.55%

December 31, 2024 calculation

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

The net profit margin of DigitalOcean Holdings Inc has shown a notable improvement over the analyzed periods, as the company managed to turn negative margins into positive ones. The margin was negative in the range of -7.89% to -4.12% from June 2022 to March 2023. However, from December 2023 onwards, the net profit margin turned positive, increasing from 2.80% to 10.82% by December 2024.

This improvement in the net profit margin indicates that DigitalOcean has been able to control its costs and increase its profitability over time. A positive net profit margin is a good sign for investors as it shows that the company is generating more profit for every dollar of revenue earned. Overall, the trend of increasing net profit margins from negative to positive values demonstrates the company's ability to enhance operational efficiency and drive profitability in the long term.