DigitalOcean Holdings, Inc. (NYSE:DOCN) reported its Q2 results, with EPS of $0.20 coming in better than the Street estimate of $0.10. Revenue was $133.9 million, compared to the Street estimate of $134.51 million.
The company added almost 3,000 high-spend customers, bringing the total customer base spending $50+ per month to 105,000, up 16% year-over-year. Revenue from this cohort is up 34% year-over-year and continues to drive overall growth—now accounting for 85% of total revenue.
According to the analysts at Oppenheimer, net dollar retention dipped to Q2/21 levels at 112% from 117% in Q1/22 and ARPU growth slowed to 24% from 28%, all likely due to weak macro which is just begging, but both metrics should see a major one-time bounce in Q3 from a 20% price increase. Operating margins are the focus now expanding 480 bps sequentially, as management slashes spending on macro uncertainty.
The company provided its full 2022-year guidance, expecting EPS to be in the range of $0.74-$0.75, compared to the Street estimate of $0.66, and revenue in the range of $564-568 million, compared to the Street estimate of $566 million.