DigitalOcean Holdings Inc (DOCN)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 97,699 | 26,776 | -23,126 | -18,201 |
| Revenue | US$ in thousands | 780,615 | 692,884 | 576,322 | 428,561 |
| Pretax margin | 12.52% | 3.86% | -4.01% | -4.25% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $97,699K ÷ $780,615K
= 12.52%
The pretax margin of DigitalOcean Holdings Inc has shown notable fluctuations over the past few years. In December 31, 2021 and December 31, 2022, the company reported negative pretax margins of -4.25% and -4.01% respectively, indicating that its expenses exceeded its revenues before considering taxes. However, in December 31, 2023, the pretax margin improved significantly to 3.86%, reflecting a more efficient cost management and stronger revenue generation. By December 31, 2024, the company further improved its performance, achieving a pretax margin of 12.52%, which signifies a substantial increase in profitability before tax expenses. Overall, the upward trend in pretax margin from 2021 to 2024 suggests that DigitalOcean Holdings Inc has been able to enhance its operational efficiency and financial performance.
Peer comparison
Dec 31, 2024