Net Income per Share Attributable to Common Stockholders
The following table presents the calculation of basic and diluted net income per share:
Year Ended December 31,
(In thousands, except per share amounts)202520242023
Basic net income per share:
Numerator:
Net income attributable to common stockholders$259,262 $84,492 $19,409 
Denominator:
Weighted-average shares used to compute net income (loss) per share
91,481 91,634 90,141 
Basic net income per share attributable to common stockholders$2.83 $0.92 $0.22 
Diluted net income per share:
Numerator:
Net income attributable to common stockholders$259,262 $84,492 $19,409 
Interest expense on dilutive convertible notes, net of tax5,693 — — 
Net income used in diluted calculation
$264,955 $84,492 $19,409 
Denominator:
Number of shares used in basic calculation 91,481 91,634 90,141 
Weighted-average effect of dilutive securities:
Stock Options750 1,414 5,698 
RSUs 1,068 1,370 495 
PRSUs98 85 81 
2026 Convertible Notes5,869 — — 
2030 Convertible Notes6,077 — — 
Number of shares used in diluted calculation105,343 94,503 96,415 
Diluted net income per share attributable to common stockholders$2.52 $0.89 $0.20 
Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows:
Year Ended December 31,
202520242023
Stock Options— 41 
RSUs1,724 1,200 1,574 
PRSUs— — 14 
2026 Convertible Notes
— 8,403 8,403 
Total1,724 9,604 10,032 
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Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 25, 2025
2023Feb 21, 2024
2021Feb 25, 2022

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.