----------------      --------------- 
      Total current assets                      552,006              502,994 
 
  Property and equipment, net                   371,000              305,444 
  Restricted cash                                 1,747                1,747 
  Goodwill                                      348,674              348,322 
  Intangible assets, net                        123,110              140,151 
  Operating lease right-of-use 
   assets, net                                  121,430              155,201 
  Deferred tax assets                             2,035                1,994 
  Other assets                                    6,476                5,114 
                                       ----------------      --------------- 
      Total assets                  $         1,526,478   $        1,460,967 
                                       ================      =============== 
 
Current liabilities: 
  Accounts payable                  $            12,946   $            3,957 
  Accrued other expenses                         28,065               31,046 
  Deferred revenue                                5,575                5,340 
  Operating lease liabilities, 
   current                                       68,113               81,320 
  Other current liabilities                      61,311               70,982 
                                       ----------------      --------------- 
      Total current liabilities                 176,010              192,645 
 
Deferred tax liabilities                          3,518                3,533 
Long-term debt                                1,483,470            1,477,798 
Operating lease liabilities, 
 non-current                                     73,556               91,161 
Other long-term liabilities                       1,627                9,528 
                                       ----------------      --------------- 
    Total liabilities                         1,738,181            1,774,665 
 
Preferred stock ($0.000025 par 
value per share; 10,000,000 
shares authorized; 0 shares 
issued and outstanding as of 
September 30, 2024 and December 
31, 2023)                                            --                   -- 
Common stock ($0.000025 par value 
 per share; 750,000,000 shares 
 authorized; 92,397,303 and 
 90,243,442 issued and 
 outstanding as of September 30, 
 2024 and December 31, 2023, 
 respectively)                                        2                    2 
Additional paid-in capital                       65,701               30,989 
Accumulated other comprehensive 
 loss                                             (398)                (452) 
Accumulated deficit                           (277,008)            (344,237) 
                                       ----------------      --------------- 
    Total stockholders' deficit               (211,703)            (313,698) 
 
      Total liabilities and 
       stockholders' deficit        $         1,526,478   $        1,460,967 
                                       ================      =============== 
 
 
                        DIGITALOCEAN HOLDINGS, INC. 
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
                 (in thousands, except per share amounts) 
                                (unaudited) 
 
                         Three Months Ended          Nine Months Ended 
                           September 30,               September 30, 
                     --------------------------  -------------------------- 
                         2024          2023          2024          2023 
                      -----------   -----------   -----------   ----------- 
Revenue              $    198,484  $    177,062  $    575,690  $    512,010 
Cost of revenue            79,043        70,329       226,826       209,562 
                      -----------   -----------   -----------   ----------- 
Gross profit              119,441       106,733       348,864       302,448 
Operating expenses: 
    Research and 
     development           37,377        32,627       105,388       109,468 
    Sales and 
     marketing             17,036        19,015        57,970        53,346 
    General and 
     administrative        40,422        20,064       127,034       117,861 
    Restructuring 
     and other 
     charges                   --         (441)            --        20,862 
                      -----------   -----------   -----------   ----------- 
Total operating 
 expenses                  94,835        71,265       290,392       301,537 
 
Income from 
 operations                24,606        35,468        58,472           911 
 
Other income 
(expense): 
    Interest 
     expense              (2,262)       (2,333)       (6,887)       (6,634) 
    Interest income 
     and other 
     income, net            7,297         3,979        17,120        18,967 
                      -----------   -----------   -----------   ----------- 
Other income, net           5,035         1,646        10,233        12,333 
 
Income before 
 income taxes              29,641        37,114        68,705        13,244 
Income tax benefit 
 (expense)                  3,308      (17,939)       (2,479)       (9,774) 
                      -----------   -----------   -----------   ----------- 
Net income 
 attributable to 
 common 
 stockholders        $     32,949  $     19,175  $     66,226  $      3,470 
                      ===========   ===========   ===========   =========== 
Net income per share attributable to common stockholders 
    Basic            $       0.36  $       0.22  $       0.72  $       0.04 
    Diluted          $       0.33  $       0.20  $       0.70  $       0.04 
Weighted-average shares used to compute net income per share attributable 
to common stockholders 
    Basic                  92,145        87,667        91,413        90,769 
    Diluted               102,591       102,674       102,678        97,747 
 
 
 
                        DIGITALOCEAN HOLDINGS, INC. 
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
                               (in thousands) 
                                (unaudited) 
 
                                          Nine Months Ended September 30, 
                                       ------------------------------------- 
                                                2024               2023 
                                           --------------      ------------- 
Operating activities 
Net income attributable to common 
 stockholders                           $          66,226   $          3,470 
Adjustments to reconcile net income 
to net cash provided by operating 
activities: 
    Depreciation and amortization                 100,825             87,085 
    Stock-based compensation                       67,659             65,589 
    Provision for expected credit 
     losses                                        12,018             11,416 
    Operating lease right-of-use 
     assets and liabilities, net                    2,861              5,783 
    Net accretion of discounts and 
     amortization of premiums on 
     investments                                    2,569            (2,262) 
    Non-cash interest expense                       5,987              5,958 
    Loss on impairment of long-lived 
     assets                                           356              1,140 
    Deferred income taxes                              --                561 
    Release of VAT reserve                             --              (819) 
    Other                                         (2,572)                484 
Changes in operating assets and 
liabilities: 
    Accounts receivable                          (18,768)           (16,777) 
    Prepaid expenses and other 
     current assets                              (13,594)            (7,569) 
    Accounts payable and accrued 
     expenses                                       1,136           (15,870) 
    Deferred revenue                                  235              (561) 
    Other assets and liabilities                 (13,552)             16,798 
                                           --------------      ------------- 
      Net cash provided by operating 
       activities                                 211,386            154,426 
 
Investing activities 
Capital expenditures - property and 
 equipment                                      (132,886)           (67,077) 
Capital expenditures - internal-use 
 software development                             (6,492)            (4,075) 
Cash paid for acquisition of 
 businesses, net of cash acquired                      --           (99,340) 
Cash paid for asset acquisitions                       --            (2,500) 
Purchase of marketable securities                      --          (352,313) 
Maturities of marketable securities                91,675            773,335 
Purchased interest on marketable 
 securities                                            --              (151) 
Proceeds from interest on marketable 
 securities                                            --                151 
Proceeds from sale of equipment                        42                236 
                                           --------------      ------------- 
      Net cash (used in) provided by 
       investing activities                      (47,661)            248,266 
 
Financing activities 
Proceeds related to the issuance of 
 common stock under equity incentive 
 plan                                              11,890             15,358 
Proceeds from the issuance of common 
 stock under employee stock purchase 
 plan                                               2,231              2,797 
Principal repayments of finance 
 leases                                           (4,097)              (947) 
Employee payroll taxes paid related 
 to net settlement of equity awards              (21,166)           (15,594) 
Repurchase and retirement of common 

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