DigitalOcean Results Presentation Deck slide image

DigitalOcean Results Presentation Deck

ņ Non-GAAP Net Income (In thousands, except per share amounts) GAAP Net income (loss) attributable to common stockholders Stock-based compensation (¹) Acquisition related compensation Amortization of acquired intangible assets Acquisition and integration related costs Loss on extinguishment of debt Impairment of long-lived assets Restructuring and other charges Restructuring related charges(²) Non-GAAP income tax adjustment (3) Non-GAAP Net income $ Three Months Ended September 30, 2023 19,175 $ 28,731 7,995 5,651 2,366 587 (441) (29,484) 9,011 43,591 $ 2022 7,903 $ 23,594 2,361 1,661 2,700 24 710 38,953 $ Nine Months Ended September 30, 2023 3,470 $ 92,754 22,576 13,231 5,113 - 1,140 20,862 (26,757) (14,393) 117,996 $ 2022 (17,424) 77,758 2,361 2,687 2,868 407 1,615 992 71,264 (1) For the three and nine months ended September 30, 2023, non-GAAP stock-based compensation excludes the $31.3 million. reversal related to the forfeited MRSU award as it is presented in Restructuring related charges. (2) Primarily consists of salary continuation charges, executive reorganization charges including CEO search firm fees and other legal and professional service costs, and the $31.3 million reversal of stock-based compensation related to the forfeited MRSU award. (3) Previously, we calculated the income tax effects of non-GAAP adjustments based on the applicable statutory tax rate for the relevant jurisdiction, except for those items which were non-taxable or subject to valuation allowances for which the tax expense (benefit) was calculated at 0%. Prior to fiscal year 2023, U.S. income tax effects of non-GAAP adjustments were subject to a valuation allowance and, therefore, were taxed at 0%. Beginning January 1, 2023, the Company projects to be a U.S. taxpayer and will use a long term fixed forecasted rate of 17% on non-GAAP pre-tax income for 2023. digitalocean.com 20
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