DigitalOcean Holdings Inc (DOCN)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 26,776 | -23,126 | -18,201 |
| Revenue | US$ in thousands | 692,884 | 576,322 | 428,561 |
| Pretax margin | 3.86% | -4.01% | -4.25% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $26,776K ÷ $692,884K
= 3.86%
The pretax margin of DigitalOcean Holdings Inc has shown a positive trend over the past three years. In 2021, the pretax margin was -4.25%, indicating that the company incurred losses before taxes. However, there was a significant improvement in 2022 as the pretax margin improved to -4.01%. This suggests that the company's profitability increased and losses narrowed compared to the previous year.
By the end of 2023, DigitalOcean Holdings Inc was able to achieve a pretax margin of 3.86%, signifying a return to profitability. This positive pretax margin indicates that the company's profitability has improved significantly, with earnings exceeding expenses before taxes.
Overall, the positive trend in pretax margin from negative figures in 2021 and 2022 to a positive pretax margin in 2023 reflects an improvement in the company's financial performance and efficiency in generating profits relative to its revenue.
Peer comparison
Dec 31, 2023