DigitalOcean Holdings, Inc. (NYSE:DOCN) Q2 2022 Earnings Conference Call August 8, 2022 4:30 PM ET

Company Participants

Rob Bradley – Vice President of Investor Relations

Yancey Spruill – Chief Executive Officer

Bill Sorenson – Chief Financial Officer

Conference Call Participants

Tim Horan – Oppenheimer

Pinjalim Bora – J.P. Morgan

James Breen – William Blair

Vinod Srinivasaraghavan – Barclays

Michael Turits – Keybanc

Eric Heath – KeyBanc

DJ Hynes – Canaccord

Wamsi Mohan – Bank of America

Quinton Gabrielli – Piper Sandler

Patrick Walravens – JMP Securities

Gabriela Borges – Goldman Sachs

Josh Baer – Morgan Stanley

Operator

Good and welcome to the DigitalOcean Second Quarter 2022 Earnings Conference call. Please note today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

At this time, I will turn the call over to Rob Bradley, Vice President of Investor Relations.

Rob Bradley

Thank you, and welcome, everyone, to DigitalOcean's second quarter 2022 earnings call. Joining me today is Yancey Spruill, our Chief Executive Officer; and Bill Sorenson, our Chief Financial Officer. Before we begin, I want to cover our safe harbor statement. During this 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. Also we will be discussing non-GAAP financial measures on our call. And reconciliations between our GAAP and our non-GAAP financial results can be found in our earnings press release, which was issued earlier this afternoon and in the investor presentation on our IR website.

With that, I would now like to turn the call over to our CEO, Yancey Spruill. Yancey?

Yancey Spruill

Thanks, Rob, good afternoon and thank you for joining us today. I am pleased to review a quarter that had its share of challenges where nonetheless we demonstrated our ability to deliver against our financial targets despite the macro headwinds we are all facing. Our performance alongside our improved financial outlook for the balance of the year highlights that we are positioning DigitalOcean for strong revenue growth, coupled with rapidly scaling free cash flow, despite operating within uncertain – within an uncertain and challenging economic environment. The durability and resiliency of our business is prominently on display right now. The simplicity of our business, including our consumption revenue model, allows our customers to automatically align strength or weakness in their business to what they pay us. For the market segment we serve, we believe that this is a critical strength as it supports our early stage business customers through good times and bad with the highly transparent economic model that builds loyalty with them.