DigitalOcean tops second quarter expectations amid surging AI demand
DigitalOcean Holdings Inc. today posted second quarter earnings that topped analyst expectations across the board.
The company also raised its third quarter guidance.
DigitalOcean launched in 2011 to provide an alternative to the industry’s three leading public clouds. The company says that its platform is easier to use and provides lower pricing across some services. DigitalOcean has more than 680,000 customers, many of whom are developers who use it for small projects.
The company’s revenue jumped 29% year-over-year in the second quarter to $281 million, topping the consensus estimate by about $2.6 million. The company’s growth was driven by a surge in demand for its artificial intelligence services. According to DigitalOcean, annualized recurring revenue from AI customers jumped 212% on a year-over-year basis to $234 million.
