DigitalOcean Holdings, Inc.DOCN
DigitalOcean Holdings, Inc. Revenue Disclosure
Revenue
Revenue Disaggregation
Based on the information provided to and reviewed by the Company’s Chief Executive Officer (“CEO”), its chief operating decision maker, the Company believes that the nature, amount, timing and uncertainty of its revenue and cash flows and how they are affected by economic factors is most appropriately depicted based on the category of its customers. Customers are classified in categories based on the amount of their spend in a given month and individual customers may fall within different categories within a reporting period.
Beginning in the fourth quarter of 2025, the Company revised its customer category naming and classification into the following annual run-rate revenue (“ARR”) categories (customer spend in a month in whole dollars):
•Digital Native Enterprise (“DNE”) Customers: users that spend more than $500 in a month. DNE Customers include the following categories:
◦Above $6K and under $100K Customers: users that spend more than $500 and less than or equal to $8,333 in a month.
◦Above $100K and under $500K Customers: users that spend more than $8,333 and less than or equal to $41,667 in a month.
◦Above $500K and under $1M Customers: users that spend more than $41,667 and less than or equal to $83,333 in a month.
◦Above $1M Customers: users that spend more than $83,333 in a month.
•Developers: users that spend less than or equal to $500 in a month, except that users that spend less than or equal to $50 in a month and have been on the Company’s platform for three months or less are excluded.
Additionally, revenue from customers using certain legacy Bare Metal CPU offerings is reported in the Developers and other category from the former Scalers+ category. Prior periods have been recast to reflect the effect of these changes.
Revenue by customer ARR category, as determined based on the customers’ spend in a given month, was as follows:
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
Amount | Percentage of Revenue | Amount | Percentage of Revenue(1) | Amount | Percentage of Revenue(1) | ||||||||||||||||||||||||||||||
Above $6K and under $100K Customers | $ | 321,189 | 36 | % | $ | 284,352 | 36 | % | $ | 253,066 | 37 | % | |||||||||||||||||||||||
Above $100K and under $500K Customers | 91,975 | 10 | % | 77,902 | 10 | % | 64,155 | 9 | % | ||||||||||||||||||||||||||
Above $500K and under $1M Customers | 30,428 | 3 | % | 25,327 | 3 | % | 18,657 | 3 | % | ||||||||||||||||||||||||||
Above $1M Customers | 96,250 | 11 | % | 46,739 | 6 | % | 29,422 | 4 | % | ||||||||||||||||||||||||||
Digital Native Enterprise Customers | 539,842 | 60 | % | 434,320 | 55 | % | 365,300 | 53 | % | ||||||||||||||||||||||||||
Developers and other(2) | 361,585 | 40 | % | 346,295 | 45 | % | 327,584 | 47 | % | ||||||||||||||||||||||||||
Total Revenue | $ | 901,427 | 100 | % | $ | 780,615 | 100 | % | $ | 692,884 | 100 | % | |||||||||||||||||||||||
___________________
(1) May not recalculate due to rounding.
(2) Beginning in the fourth quarter of 2025, Developers and other includes revenue from users that spend less than or equal to $500 in a given month, revenue from certain legacy Bare Metal CPU offerings, miscellaneous revenue and other reserve adjustments. Prior periods have been recast to reflect the effect of this change.
Prior to the fourth quarter of 2025, the Company classified customers in the following categories (customer spend in a month whole dollars):
•Builders: users that spend more than $50 and less than or equal to $500 in a month.
•Scalers: users that spend more than $500 and less than or equal to $8,333 in a month.
•Scalers+: users that spend more than $8,333 in a month.
•Learners and Testers: users that spend less than or equal to $50 in a month. Learners are users that have been on the Company’s platform for more than three months. Testers are users that have been on the Company’s platform for three months or less.
Under the prior classification, revenue by customer category, as determined based on the customers’ spend in a given month, was as follows:
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
Amount | Percentage of Revenue(1) | Amount | Percentage of Revenue(1) | Amount | Percentage of Revenue(1) | ||||||||||||||||||||||||||||||
Builders | $ | 252,072 | 28 | % | $ | 236,384 | 30 | % | $ | 219,506 | 32 | % | |||||||||||||||||||||||
Scalers | 321,404 | 36 | % | 284,575 | 36 | % | 253,336 | 37 | % | ||||||||||||||||||||||||||
Scalers+ | 231,050 | 26 | % | 160,836 | 21 | % | 122,543 | 18 | % | ||||||||||||||||||||||||||
Learners, Testers and Other(2) | 96,901 | 10 | % | 98,820 | 13 | % | 97,499 | 13 | % | ||||||||||||||||||||||||||
| Total | $ | 901,427 | 100 | % | $ | 780,615 | 100 | % | $ | 692,884 | 100 | % | |||||||||||||||||||||||
___________________
(1) May not recalculate due to rounding.
(2) Other includes miscellaneous revenue and other reserve adjustments.
Geographical Information
Revenue, as determined based on the Company’s customers’ billing address, was as follows:
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Amount | Percentage of Revenue(1) | Amount | Percentage of Revenue(1) | Amount | Percentage of Revenue(1) | ||||||||||||||||||||||||||||||
| North America | $ | 346,504 | 38 | % | $ | 295,403 | 38 | % | $ | 256,142 | 37 | % | |||||||||||||||||||||||
| Europe | 243,063 | 28 | % | 222,004 | 28 | % | 202,855 | 29 | % | ||||||||||||||||||||||||||
| Asia | 211,251 | 23 | % | 182,391 | 23 | % | 162,505 | 24 | % | ||||||||||||||||||||||||||
Rest of the world | 100,609 | 11 | % | 80,817 | 11 | % | 71,382 | 10 | % | ||||||||||||||||||||||||||
| Total | $ | 901,427 | 100 | % | $ | 780,615 | 100 | % | $ | 692,884 | 100 | % | |||||||||||||||||||||||
___________________
(1) May not recalculate due to rounding.
Revenue derived from customers in the United States was 33%, 32% and 30% of total revenue for the years ended December 31, 2025, 2024 and 2023, respectively.
No country outside of the United States had revenue greater than 10% of total consolidated revenue in any period presented.
Deferred Revenue
Revenue recognized during the years ended December 31, 2025, 2024 and 2023, which was included in the deferred revenue balances at the beginning of each respective period, was $3,451, $3,645 and $3,674, respectively.
Remaining Performance Obligations
The Company has performance obligations associated with commitments in customer contracts for future services that have not yet been recognized in the consolidated financial statements. As of December 31, 2025, the aggregate transaction price allocated to the remaining performance obligations, which includes contracts with expected term of one year or less, is $134,085 with a weighted-average life of 2.0 years. As of December 31, 2025, the Company expects to recognize $72,799 of its remaining performance obligations as revenue over the next 12 months, with the remainder recognized thereafter over the remaining life of the contracts.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.