DigitalOcean Results Presentation Deck slide image

DigitalOcean Results Presentation Deck

ņ Non-GAAP Diluted Net Income per Share Three Months Ended June 30, (In thousands, except per share amounts) GAAP Net income (loss) per share attributable to common stockholders, diluted Stock-based compensation Acquisition related compensation Amortization of acquired intangible assets Acquisition and integration related costs Impairment of long-lived assets Restructuring and other charges Restructuring related charges Non-cash charges related to convertible notes Income tax effects of non-GAAP adjustments Non-GAAP Net income per share, diluted GAAP weighted-average shares used to compute net income (loss) per share, diluted Weighted-average dilutive effect of potentially dilutive securities Non-GAAP weighted-average shares used to compute net income per share, diluted 2023 0.01 $ 0.35 0.07 0.04 0.01 0.01 0.01 (0.06) 0.44 $ 96,247 8,403 104,650 2022 (0.07) $ 0.23 0.01 0.01 0.02 0.20 $ 102,502 17,353 119.855 Six Months Ended June 30, 2023 (0.17) S 0.60 0.14 0.07 0.03 0.01 0.20 0.03 0.03 (0.22) 0.72 S 92,327 15,583 107,910 2022 (0.24) 0.45 0.01 0.02 0.03 0.27 104,697 18,534 123,231 (1) Primarily consists of salary continuation charges. (2) 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 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. (3) Consists of non-cash interest expense for amortization of deferred financing fees related to the Convertible Notes. (4) Consists of the potentially dilutive effects of our stock options, RSUS, PRSUS, and Convertible Notes. In periods with a GAAP net loss position, these are excluded from GAAP weighted-average shares. digitalocean.com 21
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