DigitalOcean Holdings, Inc.DOCNEarnings & Financial Report

CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) December 31, 2024 December 31, 2023 Current assets: Cash and cash equivalents $ 428,446 $ 317,236 Marketable securities — 94,532 Accounts receivable, less allowance for credit losses of $5,940 and $5,848, respectively 72,486 62,186 Prepaid expenses and other current assets 40,786 29,040 Total current assets 541,718 502,994 Property and equipment, net 432,544 305,444 Restricted cash 1,747 1,747 Goodwill 348,674 348,322 Intangible assets, net 117,718 140,151 Operating lease right-of-use assets, net 187,877 155,201 Deferred tax assets 200 1,994 Other assets 8,537 5,114 Total assets $ 1,639,015 $ 1,460,967 Current liabilities: Accounts payable $ 54,565 $ 3,957 Accrued other expenses 38,156 31,046 Deferred revenue 5,397 5,340 Operating lease liabilities, current 75,785 81,320 Other current liabilities 47,052 70,982 Total current liabilities 220,955 192,645 Deferred tax liabilities 4,123 3,533 Long-term debt 1,485,366 1,477,798 Operating lease liabilities, non-current 130,431 91,161 Other long-term liabilities 1,095 9,528 Total liabilities 1,841,970 1,774,665 Commitments and Contingencies (Note 10) Preferred stock ($0.000025 par value per share; 10,000,000 shares authorized; 0 shares issued and outstanding as of December 31, 2024 and 2023) — — Common stock ($0.000025 par value per share; 750,000,000 shares authorized; 92,234,517 and 90,243,442 issued and outstanding as of December 31, 2024 and 2023, respectively) 2 2 Additional paid-in capital 57,282 30,989 Accumulated other comprehensive loss (1,497) (452) Accumulated deficit (258,742) (344,237) Total stockholders’ deficit (202,955) (313,698) Total liabilities and stockholders’ deficit $ 1,639,015 $ 1,460,967 See accompanying notes to consolidated financial statements 71 DIGITALOCEAN HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Year Ended December 31, 2024 2023 2022 Revenue $ 780,615 $ 692,884 $ 576,322 Cost of revenue 314,672 295,387 211,927 Gross profit 465,943 397,497 364,395 Operating expenses: Research and development 142,499 136,917 143,885 Sales and marketing 71,570 65,055 81,022 General and administrative 160,867 162,742 165,185 Restructuring and other charges — 20,887 — Total operating expenses 374,936 385,601 390,092 Income (loss) from operations 91,007 11,896 (25,697) Other income (expense): Interest expense (9,113) (8,945) (8,396) Loss on extinguishment of debt — — (407) Interest income and other income, net 15,805 23,825 10,615 Other income, net 6,692 14,880 1,812 Income (loss) before income taxes 97,699 26,776 (23,885) Income tax expense (13,207) (7,367) (3,919) Net income (loss) attributable to common stockholders $ 84,492 $ 19,409 $ (27,804) Net income (loss) per share attributable to common stockholders Basic $ 0.92 $ 0.22 $ (0.28) Diluted $ 0.89 $ 0.20 $ (0.28) Weighted-average shares used to compute net income (loss) per share attributable to common stockholders Basic 91,634 90,141 100,806 Diluted 94,503 96,415 100,806 See accompanying notes to consolidated financial statements 72 DIGITALOCEAN HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands) Year Ended December 31, 2024 2023 2022 Net income (loss) attributable to common stockholders $ 84,492 $ 19,409 $ (27,804) Other comprehensive (loss) income: Foreign currency translation adjustments, net of taxes (1,057) 345 (411) Unrealized gain (loss) on marketable securities, net of taxes 12 1,251 (1,263) Other comprehensive (loss) income (1,045) 1,596 (1,674) Comprehensive income (loss) $ 83,447 $ 21,005 $ (29,478) See accompanying notes to consolidated financial statements 73 DIGITALOCEAN HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ (DEFICIT) EQUITY (in thousands, except share amounts) Common Stock Treasury Stock Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Shares Amount Shares Amount Balance at December 31, 2021 109,175,863 $ 2 (1,968,228) $ (4,598) $ 769,705 $ (374) $ (186,538) $ 578,197 Issuance of common stock under equity incentive plan, net of taxes withheld 2,894,748 — — — (16,626) — — (16,626) Issuance of common stock under employee stock purchase plan, net of taxes withheld 256,718 — — — 7,925 — — 7,925 Repurchase and retirement of common stock (13,626,594) — — — (600,000) — — (600,000) Retirement of treasury stock (1,968,228) — 1,968,228 4,598 (4,598) — — — Stock-based compensation — — — — 107,551 — — 107,551 Other comprehensive loss — — — — — (1,674) — (1,674) Net loss attributable to common stockholders — — — — — — (27,804) (27,804) Balance at December 31, 2022 96,732,507 2 — — 263,957 (2,048) (214,342) 47,569 Issuance of common stock under equity incentive plan, net of taxes withheld 7,785,464 — — — 16,307 — — 16,307 Issuance of common stock under employee stock purchase plan, net of taxes withheld 212,980 — — — 4,977 — — 4,977 Repurchase and retirement of common stock including related costs (14,487,509) — — — (344,035) — (149,304) (493,339) Stock-based compensation — — — — 89,783 — — 89,783 Other comprehensive income — — — — — 1,596 — 1,596 Net income attributable to common stockholders — — — — — — 19,409 19,409 Balance at December 31, 2023 90,243,442 2 — — 30,989 (452) (344,237) (313,698) Issuance of common stock under equity incentive plan, net of taxes withheld 3,332,573 — — — (15,249) — — (15,249) Issuance of common stock under employee stock purchase plan, net of taxes withheld 170,411 — — — 4,095 — — 4,095 Repurchase and retirement of common stock including related costs (1,511,909) — — — (55,904) — 1,003 (54,901) Stock-based compensation — — — — 93,351 — — 93,351 Other comprehensive loss — — — — — (1,045) — (1,045) Net income attributable to common stockholders — — — — — — 84,492 84,492 Balance at December 31, 2024 92,234,517 $ 2 — $ — $ 57,282 $ (1,497) $ (258,742) $ (202,955) See accompanying notes to consolidated financial statements 74 DIGITALOCEAN HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2024 2023 2022 Operating activities Net income (loss) attributable to common stockholders $ 84,492 $ 19,409 $ (27,804) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 130,052 117,866 102,232 Stock-based compensation 90,545 88,347 105,829 Provision for expected credit losses 16,446 15,357 16,551 Operating lease right-of-use assets and liabilities, net 324 5,709 11,417 Loss on extinguishment of debt — — 407 Net accretion of discounts and amortization of premiums on investments 2,569 1,866 (6,135) Non-cash interest expense 7,987 7,949 7,880 Impairment of certain long-lived assets 356 1,140 1,635 Deferred income taxes 2,337 (67) (1,835) Release of VAT reserve — (819) — Other 4,921 627 166 Changes in operating assets and liabilities: Accounts receivable (26,746) (22,668) (26,645) Prepaid expenses and other current assets (12,099) (9,593) (1,424) Accounts payable and accrued expenses 7,423 (11,077) 5,500 Deferred revenue 57 (315) (290) Other assets and liabilities (25,939) 21,211 7,668 Net cash provided by operating activities 282,725 234,942 195,152 Investing activities Capital expenditures - property and equipment (178,167) (119,299) (106,389) Capital expenditures - internal-use software development (8,356) (5,514) (8,913) Purchase of intangible assets — — (4,915) Cash paid for acquisition of businesses, net of cash acquired — (99,023) (305,170) Cash paid for asset acquisitions — (2,500) (5,400) Purchase of marketable securities — (352,313) (1,695,165) Sales of marketable securities — — 19,992 Maturities of marketable securities 91,675 979,565 956,847 Purchased interest on marketable securities — (151) (1,575) Proceeds from interest on marketable securities — 151 1,549 Proceeds from sale of equipment 43 236 981 Net cash (used in) provided by investing activities (94,805) 401,152 (1,148,158) Financing activities Payment of debt issuance costs — — (1,520) Proceeds related to the issuance of common stock under equity incentive plan 13,069 38,410 11,509 Proceeds from the issuance of common stock under employee stock purchase plan 4,095 4,977 7,926 Principal repayments of finance leases (5,475) (2,260) — Employee payroll taxes paid related to net settlement of equity awards (28,347) (21,575) (28,278) Repurchase and retirement of common stock including related costs (59,788) (488,455) (600,000) See accompanying notes to consolidated financial statements 75 DIGITALOCEAN HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2024 2023 2022 Net cash used in financing activities (76,446) (468,903) (610,363) Effect of exchange rate changes on cash, cash equivalents, and restricted cash (264) (15) (249) Increase (decrease) in cash, cash equivalents and restricted cash 111,210 167,176 (1,563,618) Cash, cash equivalents and restricted cash - beginning of period 318,983 151,807 1,715,425 Cash, cash equivalents and restricted cash - end of period $ 430,193 $ 318,983 $ 151,807 Supplemental disclosures of cash flow information: Cash paid for interest $ 1,048 $ 916 $ 475 Cash paid for taxes, net of refunds 19,667 2,723 4,567 Operating cash flows paid for operating leases 83,070 74,248 49,870 Non-cash investing and financing activities: Capitalized stock-based compensation $ 2,807 $ 1,440 $ 1,722 Property and equipment received but not yet paid, included in Accounts payable and Accrued other expenses 55,260 4,826 15,689 Operating right-of-use assets obtained in exchange for operating lease liabilities 113,230 73,440 204,105 Finance right-of-use assets obtained in exchange for finance lease liabilities 324 11,938 — See accompanying notes to consolidated financial statements 76 DIGITALOCEAN HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except share and per share amounts) Note 1. Nature of the Business and Organization DigitalOcean Holdings , Inc. and its subsidiaries (collectively, the Company, we, our, us) is a leading cloud computing platform, offering simple, scalable and approachable on-demand infrastructure and platform services for developers at growing technology companies.

The Company’s platform simplifies cloud computing, enabling its customers to rapidly accelerate innovation and productivity.

The Company continues to invest in its platform to further penetrate the growing markets in which it operates. The Company has adopted a holding company structure and the primary operations are performed globally through its wholly owned operating subsidiaries. Note 2.

Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and include accounts of the Company and all wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Prior Period Reclassification Beginning in the fourth quarter of 2024, the Company reclassified personnel costs including salaries, bonuses, benefits, and stock-based compensation related to customer support employees, and certain other costs from sales and marketing and research and development to cost of revenue in order to better reflect the cost of supporting its growing customer base, and to improve comparability with peers.

The Company has reclassified $7,972 and $3,448 from sales and marketing and research and development, respectively, to cost of revenue for the year ended December 31, 2023.We believe this refined methodology better reflects the nature of the costs and financial performance of the Company as it operates.

As a result, the Consolidated Statements of Operations have been recast for prior periods presented to reflect the effects of the changes in cost of revenue, gross profit, sales and marketing, research and development and total operating expenses.

There was no change in income from operations, net income attributable to common stockholders or net income per share attributable to common stockholders for the year ended December 31, 2023 as a result of these reclassifications.

The Consolidated Balance Sheets, Consolidated Statements of Comprehensive Income, Consolidated Statements of Changes in Stockholders’ Equity, and the Consolidated Statements of Cash Flows were not affected by changes in the presentation of these costs. Use of Estimates The preparation of these consolidated financial statements in conformity with U.S.

GAAP requires management to make, on an ongoing basis, estimates, judgments and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Such estimates include, but are not limited to, those related to revenue recognition, accounts receivable and related reserves, useful lives and realizability of long-lived assets, capitalized internal-use software development costs, accounting for stock-based compensation including estimation of the probability of performance vesting conditions, the incremental borrowing rate used to determine lease liabilities, valuation allowances against deferred tax assets, fair value of financial instruments, and the fair value and useful lives of tangible and intangible assets acquired and liabilities assumed resulting from business combinations.

Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Estimates are periodically reviewed to consider changes in circumstances, facts and experience.

Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments in money market funds. As of the year ended December 31, 2023, cash and cash equivalents also consisted of commercial paper and certificates of deposit. Cash 77 equivalents have original maturities from the date of purchase of three months or less.

The carrying amounts of cash and cash equivalents approximate fair value because of the short-term maturity and highly liquid nature of these instruments. Marketable Securities The Company does not hold marketable securities as of December 31, 2024, as they were reallocated to cash and cash equivalents during the three months ended March 31, 2024.

As of December 31, 2023, the Company’s marketable securities consisted of commercial paper, U.S. treasury securities and commercial debt securities. The Company determines the appropriate classification of its marketable securities at the time of purchase and reevaluates such designation at each balance sheet date.

The Company classifies and accounts for its marketable securities as available-for-sale securities as the Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. As a result, the Company classifies its marketable securities within Current assets on the Consolidated Balance Sheets.

Available-for-sale securities are recorded at fair value each reporting period. Premiums and discounts are amortized or accreted over the life of the related available-for-sale security as an adjustment to yield using the effective interest method. Interest income is recognized when earned.

Unrealized gains and losses on these marketable securities are presented net of tax and reported as a separate component of Accumulated other comprehensive loss until realized. Realized gains and losses are determined based on the specific identification method and are reported in interest income and other income, net in the Consolidated Statements of Operations.

The Company periodically evaluates its marketable securities to assess whether an investment’s fair value is less than its amortized cost basis and if the decline in the fair value is attributable to a credit loss.

Declines in fair value judged to be related to credit loss are reported in interest income and other income, net in the Consolidated Statements of Operations. Foreign Currency The reporting currency of the Company is the United States dollar (USD).

The functional currency of the Company is USD, and the functional currency of the Company’s subsidiaries is primarily the local currency of the jurisdiction in which the foreign subsidiary is located. The assets and liabilities of the Company’s subsidiaries are translated to USD at exchange rates in effect at the balance sheet date.

All income statement accounts are translated at monthly average exchange rates. Resulting foreign currency translation adjustments are recorded directly in Accumulated other comprehensive loss.

Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in interest income and other income, net on the Consolidated Statements of Operations when realized.

Restricted Cash The following table reconciles cash, cash equivalents and restricted cash per the Consolidated Statements of Cash Flows: December 31, 2024 2023 Cash and cash equivalents $ 428,446 $ 317,236 Restricted cash (1) 1,747 1,747 Total cash, cash equivalents and restricted cash $ 430,193 $ 318,983 ___________________ (1) Includes deposits in financial institutions related to a letter of credit used to secure a lease agreement.

Accounts Receivable Net of Allowance for Expected Credit Losses Accounts receivable primarily represents revenue recognized that was not invoiced at the balance sheet date and is primarily billed and collected in the following month. Trade accounts receivable are carried at the original invoiced amount less an estimated allowance for expected credit losses based on the probability of future collection.

Management determines the adequacy of the allowance based on historical loss patterns, the number of days that customer invoices are past due, reasonable and supportable forecasts of future economic conditions to inform adjustments over historical loss data, and an evaluation of the potential risk of loss associated with specific accounts.

When management becomes aware of circumstances that may further decrease the likelihood of collection, it records a specific allowance against amounts due, which reduces the receivable to the amount that management reasonably believes will be collected.

The Company records 78 changes in the estimate to the allowance for expected credit losses through provision for expected credit losses and reverses the accounts receivable and related allowance after the potential for recovery is considered remote.

The following table presents the changes in our allowance for expected credit losses for the period presented: December 31, 2024 2023 Beginning balance $ 5,848 $ 6,099 Provision for expected credit losses 16,446 15,357 Write-offs and other (16,354) (15,608) Ending balance $ 5,940 $ 5,848 Fair Value of Financial Instruments Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, the Company considers the principal or most advantageous market in which to transact and the market-based risk.

The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued expenses due to their short-term nature.

Property and Equipment Property and equipment is stated at cost, net of accumulated depreciation. Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets and is included in depreciation and amortization expense in the Consolidated Statements of Operations.

The Company includes the amortization of assets that are recorded under finance leases in depreciation expense. The Company periodically reviews the estimated useful lives of property and equipment.