Q3 Earnings Presentation

Earnings Presentation

Q3 2021

SAFE HARBOR

This presentation contains forward-looking statements that involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "estimate," "believe," "predict," "potential" or "continue" or the negative of these terms or other similar expressions intended to identify statements about the future. These statements speak only as of the date of this presentation and involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward- looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations.

We cannot assure you that the forward-looking statements in this presentation will prove to be accurate.

Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise. You should, however, review the factors and risks and other information we describe in the reports we file from time to time with the SEC.

This presentation includes statistical and other industry and market data that we obtained from industry publications and research, surveys and studies conducted by third parties as well as our own estimates of potential market opportunities. All of the market data used involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such data. Industry publications and third- party research, surveys and studies generally indicate that their information has been obtained from sources believed to be reliable, although they do not guarantee the accuracy or completeness of such information. Our estimates of the potential market opportunities for our product candidates include several key assumptions based on our industry knowledge, industry publications, third-party research and other surveys, which may be based on a small sample size and may fail to accurately reflect market opportunities. While we believe that our internal assumptions are reasonable, no independent source has verified such assumptions.

In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA Margin. These non-GAAP measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. The non-GAAP financial measures used by DigitalOcean Holdings, Inc. may differ from the non-GAAP financial measures used by other companies. A reconciliation of these measures to the most directly comparable U.S. GAAP measure is included in our filings with the SEC.

OUR MISSION

DigitalOcean simplifies cloud computing so developers and businesses can spend more time creating software that changes the world.

Key Performance Indicators Driving 30%+ Revenue Growth

	Q3'20	Q3'21	IMPROVING
	METRICS
Accelerating Revenue Growth:	$81M	$111M	+37%
Scaling ARR:	$335M	$455M	+36%
Healthy Customer Growth:	559K	598K	+7%
Strong ARPU Increase:	$48.58	$61.97	+28%
Improving Net Dollar Retention:	104%	116%	+1200 bps

LARGE AND RAPIDLY GROWING MARKET OPPORTUNITY

Individuals and Companies with <500 Employees

IaaS

PaaS

$116Bn

$31Bn

$44Bn	27%
CAGR	$84Bn
$12Bn
$32Bn

2020

2024

SOURCE: IDC: PUBLIC CLOUD SERVICES SPENDING GUIDE (J UNE 2020)