DigitalOcean Holdings Inc (DOCN)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Operating income | US$ in thousands | 91,007 | 11,896 | -25,697 | -11,186 |
| Revenue | US$ in thousands | 780,615 | 692,884 | 576,322 | 428,561 |
| Operating profit margin | 11.66% | 1.72% | -4.46% | -2.61% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $91,007K ÷ $780,615K
= 11.66%
The operating profit margin of DigitalOcean Holdings Inc has shown a fluctuating trend over the period from December 31, 2021, to December 31, 2024.
In December 31, 2021, the company had an operating profit margin of -2.61%, indicating that its operating expenses exceeded its operating income, resulting in a negative margin.
By December 31, 2022, the operating profit margin declined further to -4.46%, suggesting a worsening financial performance in managing operating costs relative to revenue.
However, there was a notable improvement by December 31, 2023, with the operating profit margin rising to 1.72%. This may indicate better cost control or increased revenue generation during that period.
The most significant improvement was seen by December 31, 2024, with the operating profit margin soaring to 11.66%, indicating a significant enhancement in operational efficiency and profitability.
In summary, DigitalOcean Holdings Inc experienced a turnaround in its operating profit margin, transitioning from negative margins to a positive and healthy margin by the end of the analyzed period, demonstrating improved operating performance and potentially more sustainable profitability.
Peer comparison
Dec 31, 2024