DigitalOcean Growth Rate Ticks Higher
Here's our initial take on DigitalOcean's (NYSE: DOCN) fiscal 2025 first-quarter financial results.
Over the past year and a half, DigitalOcean's growth rates have slowed significantly, with revenue growth falling from 30% in the first quarter of 2023 to 12% revenue growth in Q1 of fiscal 2024. However, the cloud infrastructure-as-a-service platform operator is starting to build some momentum -- if modest -- in the right direction. After reporting 13% revenue growth in Q4 of 2024, a 2-percentage-point increase from 11% growth in the prior year, revenue increased 14% to start fiscal 2025, another 2-percentage-point acceleration year over year.
It's also doing a better job of retaining -- and growing -- customers and their spending. Net dollar retention rate (NRR) was 100%, up from 97% (indicating a certain degree of customer churn when combined with revenue growth) in the year-ago quarter. This was also the first quarter in nearly two years that DigitalOcean's NRR was 100% or above.
Source Fool.com
