DigitalOcean Holdings, Inc. (NYSE:DOCN)

Q2 2023 Earnings Conference Call

August 3, 202316:30 ET

Company Participants

Rob Bradley - Vice President of Investor Relations

Yancey Spruill - Chief Executive Officer

Matt Steinfort - Chief Financial Officer

Conference Call Participants

Raimo Lenschow - Barclays

Patrick Walravens - JMP Securities

Mike Cikos - Needham

Pinjalim Bora - JP Morgan

Quinton Gabrielli - Piper Sandler

Timothy Horan - Oppenheimer

Operator

Hello and thank you for standing by. My name is Regina and I will be your conference operator today. At this time, I would like to welcome everyone to the DigitalOcean Second Quarter 2023 Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Rob Bradley, Vice President of Investor Relations. Please go ahead.

Rob Bradley

Thank you, Regina and welcome, everyone, to DigitalOcean's second quarter 2023 earnings call. Joining me today is Yancey Spruill, our Chief Executive Officer; and Matt Steinfort, our Chief Financial Officer.

Before we begin, I would like to cover our safe harbor statement. During this conference call, we will be making forward-looking statements, including our financial outlook for the third quarter and full year as well as statements about goals and business outlook, industry trends, market opportunities and expectations for future financial performance and similar items. All of these statements are subject to risks, uncertainties and assumptions. You can review more information about these in the Risk Factors section of our filings with the SEC. We remind everyone that our actual results may differ and we undertake no obligation to revise or update any forward-looking statements.

Finally, we will be discussing non-GAAP financial measures on our call today. Reconciliations between our non-GAAP and GAAP financial results can be found in our earnings press release which was issued earlier this afternoon and the investor presentation on our IR website.

With that, let me turn the call over to our CEO, Yancey Spruill. Yancey?

Yancey Spruill

Thanks, Rob. Good afternoon and thank you for joining us today. I'm pleased to share the results of another strong quarter for DigitalOcean. As discussed throughout this year, we made it a priority to position the company in 2023 to generate significantly higher free cash flow margins to create a durable platform that generates compelling shareholder returns regardless of the challenges of the macro growth environment.

We have also been focused on leveraging our balance sheet to accelerate our business with the acquisition of Paperspace which positions us with immediate offerings in the rapidly growing market for artificial intelligence and machine learning application development. In Q2, we delivered a quarter with an attractive combination of growth and profitability.