#1• DigitalOcean Investor Day: June 9, 2022#2→ 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," "estimate," "believe," "predict," "potential" or "continue" or the negative 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. While we believe all third party information to be reliable, such information 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 and they do not guarantee the accuracy or completeness of such information. Our estimates of the potential market opportunities for our products include several key assumptions. 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. 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 and at the end of this presentation. A reconciliation of non-GAAP measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Accordingly, we are unable to assess the probable significance of the unavailable information, although it is important to note that these factors could be material to our results computed in accordance with GAAP. 2#3DigitalOcean Yancey Spruill Chief Executive Officer#4Agenda Yancey Spruill- Chief Executive Officer Gabe Monroy - Chief Product Officer Customer Testimonials - Atom Learning, BlockSpaces Carly Brantz - Chief Marketing Officer Customer Testimonials - Sonar, Qencode Jeff Guy - Chief Operating Officer Customer Testimonial - Datacake GmbH Bill Sorenson - Chief Financial Officer Q&A 4#5Low friction High volume & efficiency Low price Great products 01 5#6Simplify cloud computing so builders can spend more time creating software that changes the world.#7$72Bn $25Bn $47Bn 2022 III 27% CAGR Source: IDC: Public Cloud Service Spending Guide (January 2022) PaaS laaS $145Bn $54Bn $91Bn 2025 *SMBS - Individuals and Companies with <500 Employees 7#8Revenue Growth ARPU Growth Net Dollar Retention GAAP Gross Profit Margin Non-GAAP Operating Margin Capex As Percentage of Revenue Free Cash Flow 2020 2021 25% 19% 103% 54% 4% 36% 35% 25% 113% 60% 12% 25% Negative $24M 8#9New Products Nurture Customers Vertical Targeting New Partnerships Increase Website Traffic Improve Website Conversions Pricing & Packaging Updates Strategic M&A 9#10VIEW ALL NEWS → News Details DigitalOcean Announces New $300 Million Share Repurchase Program 05/24/2022 NEW YORK--(BUSINESS WIRE)-- DigitalOcean Holdings, Inc. (NYSE: DOCN), the cloud for developers, startups and SMBS, today announced that its board of directors has approved a new plan for the repurchase of up to an aggregate of $300 million of its common stock. This plan is in addition to the $300 million program that was announced in February 2022 and completed in May 2022. "We are committed to delivering 30% + revenue growth with robust free cash flow coupled with an efficient capital structure to deliver compelling returns for our investors," said Yancey Spruill, CEO of DigitalOcean. "This announcement demonstrates the confidence we have in our ability to generate free cash flow while still maintaining a strong balance sheet to support our commitment to invest in our organic and inorganic growth." The repurchases will be made om to time in the open market at prevailing market prices or in negotiated tran: ctions the rket. Open market repurchases will be structured to occur within the pricing and volume requirements of Rule 10b-18. The company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. This program does not obligate the company to acquire any particular amount of common stock and the program may be extended, modified, suspended or discontinued at any time at the company's discretion. 10#11DigitalOcean Gabe Monroy Chief Product Officer#12700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 6K Users 2012 2013 2014 2015 Customer Growth 2016 2017 2018 2019 2020 2021 623K Users 2022 12#132011 Droplets 2012 2013 New Control Panel 2014 2015 + Highly Available Droplets Floating IPS API V2 2016 O AND T Spaces 2017 High CPU Droplets Firewalls Team Accounts High Memory Droplets Monitoring Load balancers Block Storage 2018 Docs Managed Kubernetes 2019 New Droplet Plans Managed Databases + General Purpose Droplets Spaces CDN Dashboard Projects Marketplace App Platform VPC 2020 2021 {} Functions Premium Droplets MongoDB 2022 2023+ 13#14Multiple # of products Single Learners Builders MRR ($) Scalers 14#15Welcome to the DigitalOcean Community! DigitalOcean's community offers thousands of tutorials, videos, and answers to questions on a wide range of topics. Unsure where to start? On this page we've laid out a few easy ways for you to jump in. 4 Hacktober 20 fest 21 Education DigitalOcean + CSS-TRICKS Student Teacher ✓ Schools Benefits Events Where future developers meet GitHub Global Campus helps students, teachers, and schools access the tools and events they need to shape the next generation of software development. Join Global Campus > Sign in 15#16$4/mo All-new Droplet pricing Choose a plan SHARED CPU Basic CPU options: $4/mo $0.006/hour Regular with SSD General Purpose 512 MB 1 CPU 10 GB SSD Disk 500 GB transfer Basic virtual machines with a mix of memory and compute resources. Best for small projects that can handle variable levels of CPU performance, like blogs, web apps. and dev/test environments. Premium Intel with NVMe SSD $5/mo $0.007/hour 1 GB/1 CPU 25 GB SSD Disk 1000 GB transfer CPU-Optimized NEW Premium AMD with NVMe SSD $10/mo $0.015/hour DEDICATED CPU 2 GB/1 CPU 50 GB SSD Disk 2 TB transfer NEW Memory-Optimized $15/mo $0.022/hour 2 GB/2 CPUs 60 GB SSD Disk 3 TB transfer $20/mo $0.030/hour Help me choose 4 GB/2 CPUs 80 GB SSD Disk 4 TB transfer Storage-Optimized $40/mo $0.060/hour 8 GB 4 CPUs 160 GB SSD Disk 5 TB transfer Show all plans 16#17Hatch DO's global startup program. Deploy DO's virtual conference for startups and developers. ED Marketplace Curated pre-configured solutions targeted at builders. 17#1895% Revenue growth Managed Databases Note: Growth stats are Q1'22 vs. Q1'21 47% Revenue growth Kubernetes ÷ 120% User growth App Platform 18#19Cerberus Unrivalled IP Video Expertise FOR 24/7 CHANNELS, SPORTS, LIVE EVENTS & PRODUCTION ABOUT SOLUTIONS CASE STUDIES NEWS CONTACT kea. how it works about us request demo careers Own the relationship with your customers using voice technology kea. "Hello, Bea! What can tx Large Pizza Jalapelo Large Pizza 50 you today?" "What toppings do you want on the first pizza? $41.00 request demo | 1 "2 Large pizzas for delivery, please." "Pineapple and Jalapeño 19#20Multiple # of products Single Growing Scalers is central to our product strategy Learners MRR ($) Scalers 20#21Tweet Lydia Leong @cloudpundit APIs are the core of a good developer experience. The inconsistency is what makes AWS feels like a bajillion mildly-cooperating startups who share a food court, rather than a fully integrated platform. Lydia Leong, Gartner analyst on using AWS 21#22first-project DEFAULT Update your project information under Settings Resources Activity Settings DROPLETS (2) ubuntu-s-4vcpu-8gb-amd-sfo3-01 164.92.106.200 Best Practices for Your Data If you store data on this Droplet, we recommend these features: Mount a block storage volume Store more data for less and seamlessly move data between Droplets. ubuntu-s-4vcpu-8gb-amd-sfo3-01 164.92.106.155 → Move Resources +8 +0 +6 Enable automatic backups Add security with weekly disk images for easy restoration, no configuration required. Don't Show Again ... +0 : 22#23Amazon Web Services Viewing 411 of 411 available instances a Instance name a1.medium a1.large a1.xlarge a1.2xlarge a1.4xlarge a1.metal t4g.nano t4g.micro t4g.small t4g.medium t4g.large t4g.xlarge t4g.2xlarge t3.nano t3.micro t3.small t3.medium t3.large t3.xlarge t3.2xlarge On-Demand hourly rate $0.0255 $0.051 $0.102 $0.204 $0.408 $0.408 $0.0042 $0.0084 $0.0168 $0.0336 $0.0672 $0.1344 $0.2688 $0.0052 $0.0104 $0.0208 $0.0416 $0.0832 $0.1664 $0.3328 G VCPU V 1 2 4 8 16 16 2 2 2 2 2 4 8 2 2 2 2 2 4 8 Memory v 2 GiB 4 GiB 8 GiB 16 GiB 32 GiB 32 GiB 0.5 GiB 1 GiB 2 GiB 4 GiB 8 GiB 16 GiB 32 GiB 0.5 GIB 1 GiB 2 GiB 4 GiB 8 GiB 16 GiB < 1 2 3 4 5 6 7 ... 21 > 32 GiB Storage v EBS Only EBS Only EBS Only EBS Only EBS Only EBS Only EBS Only EBS Only EBS Only EBS Only EBS Only EBS Only EBS Only EBS Only EBS Only EBS Only EBS Only EBS Only EBS Only EBS Only Network performance Up to 10 Gigabit Up to 10 Gigabit Up to 10 Gigabit Up to 10 Gigabit Up to 10 Gigabit Up to 10 Gigabit Up to 5 Gigabit Up to 5 Gigabit Up to 5 Gigabit Up to 5 Gigabit Up to 5 Gigabit Up to 5 Gigabit Up to 5 Gigabit Up to 5 Gigabit Up to 5 Gigabit Up to 5 Gigabit Up to 5 Gigabit Up to 5 Gigabit Up to 5 Gigabit Up to 5 Gigabit 411 Instances + Micro-Billing + Hourly Rates Customer Pain 23#24? DigitalOcean Get expert guidance and resources to confidently migrate your workloads to DigitalOcean → C DigitalOcean Products Solutions Marketplace Community Pricing Droplets Virtual Machines $4 /month* Sign up with email Simple, predictable pricing Always know what you'll pay with monthly caps and flat pricing. Most used ✓Deploy in seconds ✓Scale up on demand. ✓ Run any workload - from mission critical apps low traffic sites Sign up with Google Choose the cloud solutions you need Kubernetes Managed Kubernetes clusters $12 /month* ✓ Simple, managed Kubernetes We're hiring! Blog Docs Get support Sales ✔Free control plane ✓Scale automatically, increase availability Sign up with Github App Platform Get apps to market faster $5 /month* Log in ✔ Highly scalable Sign up Newly added ✔Build, deploy and scale apps quickly ✔ Fully managed solution, zero infrastructure management Simple +Predictable Customer Love 24#25Future product strategy#26Application Accelerators Geo-distributed applications Large data sets AI / ML insights 26#27IDC: Worldwide Edge Spending Guide $274B By 2025 Application Accelerators Geo-distributed applications Large data sets AI / ML insights 27#28175% NDR Advertising analytics company Application Accelerators Geo-distributed applications Large data sets AI / ML insights 28#29Application Accelerators Geo-distributed applications Increased brands on their Easysize platform by 10x in 12 months Large data sets AI / ML insights 29#30Additional product usage Application Accelerators Geo-distributed applications Large data sets AI / ML insights 30#31Source: IDC FutureScape: Worldwide IT Industry 2025 Predictions; Company estimates 500MM New digital applications projected to be deployed by 2023 16MM New developers entering the market by 2025 31#32DigitalOcean Carly Brantz Chief Marketing Officer#33Customer Outreach and Engagement#34Starting revenue of our > $500 customers in their second month 15% <$10 8% 13% $100-250 5% $10-50 25% 32% $250-500 $50-100 >$500 $$$$ 94% of customers spending more than $500/month started small from self service moat 34#35Attract Convert Retain & Expand 5 35#36Attract Convert Retain & Expand 36#37Millions per month 10 8 CO 4 2 0 Unique Visitors Excluding Customers (UVECs) 3.5MM Q1 '19 Monthly Average 3.8MM Q1 '20 Monthly Average 5.3MM Q1 '21 Monthly Average 9.4MM Q1 '22 Monthly Average 37#38♡ Welcome to the DigitalOcean Community! DigitalOcean's community offers thousands of tutorials, videos, and answers to questions on a wide range of topics. Unsure where to start? On this page we've laid out a few easy ways for you to jump in. + 6,000+ Tutorials DigitalOcean + CSS-TRICKS 7,000+ Tutorials 38#39Attract Convert Retain & expand 39#40Frictionless onboarding Deploy a Ubuntu server Select a different framework Create Droplet Servers on DigitalOcean are called Droplets. Like a local computer, you need to install the right software on your Droplet to run your project. Choose a location for your Droplet We believe New York to be the closest region to you. If we're wrong, feel free to modify the selection. New York Droplet Plan We've picked the best plan for your selected package Choose Processor type $5.00 Droplet ($0.007/hr) 1GB/1CPU/25 GB SSD/1000 GB Transfer NYC1 O Standard Effective, reliable hardware fit for most tasks. O Premium Cutting-edge hardware improves performance. Ubuntu V 18.04 OS Ubuntu Password The following disk image will be installed for you with the following contents Authentication Create a root password to access this droplet as the root user Type your password Change +$1.00/mo Password requirement x Must be at least 8 characters long x Must contain 1 uppercase (first and last characters don't count) x Must contain 1 number i x Cannot end with a number or special character Recommended additional services Add services that can be created in conjunction with your Droplet Databases (optional) +$15.00/mo Store your data on Managed Database Our scalable database cluster service includes daily backups with PITR, automated failover, and end-to-end SSL +Add a Database Q What are Droplets? Droplets are virtual machines. A virtual machine acts like a standalone computer, running an operating system which you can log into allowing you to install and run software. Learn more My Team Estimated costs: $4.09 ✓ Upgrade your CPU Premium Droplets are modern, lightning-fast NVMe SSDs that give you: - Enhanced memory to power all workloads -Lower latency -Disk performance faster than regular SSDS Learn more No Fuss Managed Databases Focus on programming, we'll handle the rest. Store your data and take the guesswork out of configuration with a managed database cluster. 40#41Abundant onboarding resources Welcome to DigitalOcean, let's get started! Jump into some of our most popular solutions Deploy a web application Deploy a database. DropletHostName IPA.DDR.ESS.ES Host a website or static site Deploy a virtual machine IS Get started Enable Backups Backups will automatically take snapshots on a reguar candece you can revert to. Not ready to jump in yet? Explore our control panel tag one Set up basic data protection for your Droplet As you are getting your Droplet set up you can quickly set up some data protection measures. Deploy a container-based app ●● Store static objects 2 .. +0 *** Close Mount an external volume Store your data on an external source in a more redundant manner 41#42Attract Convert Retain & Expand 42#43Average Revenue Per User (ARPU) $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 M5 M6 M7 2019 M8 2020 M9 2021 2021 M10 M11 2020 2019 M12 43#44Compute Droplets, DOKS, App Platform + Networking & Storage Spaces, DBaaS, LBaaS, Back-up, Storage, Others = 8 Frequent launches of new experiments to encourage growth 44#45Looking forward 01 Match use cases to evolving needs 02 Target activation and expansion interactions 03 Identify and nurture SMBs 45