DigitalOcean Results Presentation Deck
ņ Non-GAAP Diluted Net Income per Share
(In thousands, except per share amounts)
GAAP Net income (loss) per share attributable to
common stockholders, diluted
$
Stock-based compensation(¹)
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(2)
Non-cash charges related to convertible
notes (4)
Non-GAAP income tax adjustment (3)
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 (5)
Non-GAAP weighted-average shares used to
compute net income per share, diluted
$
Three Months Ended
September 30,
2022
2023
0.20 S
0.27
0.07
0.05
0.02
(0.28)
0.02
0.09
0.44 $
102,674
102,674
0.08 $
0.21
0.02
0.01
0.02
0.01
0.01
0.36 $
104,931
8,403
113,334
Nine Months Ended
September 30,
2022
2023
0.04 $
0.87
0.21
0.12
0.05
0.01
0.20
(0.25)
0.04
(0.13)
1.16 S
97,747
8,403
106,150
(0.17)
0.69
0.02
0.02
0.04
0.01
0.04
0.01
0.66
102,134
12,375
114,509
(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.
(4) Consists of non-cash interest expense for
amortization of deferred financing fees related to the
Convertible Notes.
(5) 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
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