DigitalOcean vs Netlify: Revenue, Profit and Business Model
DigitalOcean had $901.4M of annual revenue in FY2025 and $259.3M of net income. Netlify had $46.3M (unaudited) of annual revenue in FY2024.
Latest financial snapshot
DigitalOcean
- Latest annual revenue
- $901.4M (FY2025)
- Net income
- $259.3M
- Net margin
- 28.8%
- Revenue growth
- +23.4% a year, FY2019–FY2025
Netlify
- Latest annual revenue
- $46.3M (unaudited) (FY2024)
- Net income
- Unavailable here
- Net margin
- —
- Revenue growth
- —
Financial summary
DigitalOcean
DigitalOcean grew revenue from $255 million in 2019 to $901 million in 2025. It turned GAAP-profitable in 2023 ($19 million), earned $84 million in 2024, and reported $259 million of net income in 2025, with adjusted EBITDA of $375 million (42% margin) and adjusted free cash flow of $168 million (19% margin). Growth then accelerated: Q1 2026 revenue was $258 million (up 22%) and Q2 2026 revenue was $281 million (up 29%), with Q2 net income of $35 million, adjusted EBITDA of $114 million, and $767 million in cash at June 30, 2026. Management guided to about 30% revenue growth for 2026. DigitalOcean Holdings, Inc. is a prominent cloud infrastructure provider for developers, holding a market valuation generally exceeding $3 billion.
Netlify
Netlify is private and does not publish revenue, profit or ARR. The verifiable financial facts are its funding history (about $212 million raised, including a $105 million Series D led by Bessemer Venture Partners in November 2021 at a $2 billion valuation) and company statements such as Europe contributing about 30% of revenue (2022). Third-party revenue estimates vary widely and are not confirmed by the company.
Revenue and profit by year
DigitalOcean
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $901.4M | $259.3M | 28.8% | +15.5% | Source |
| FY2024 | $780.6M | $84.5M | 10.8% | +12.7% | Source |
| FY2023 | $692.9M | $19.4M | 2.8% | +20.2% | Source |
| FY2022 | $576.3M | -$27.8M | -4.8% | +34.5% | Source |
| FY2021 | $428.6M | -$19.5M | -4.6% | +34.6% | Source |
| FY2020 | $318.4M | -$43.6M | -13.7% | +24.9% | Source |
| FY2019 | $254.8M | -$40.4M | -15.9% | — | Source |
Netlify
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2024 (unaudited) | $46.3M | — | — | — | Source |
| FY2023 (unaudited) | $33M | — | — | — | Source |
| FY2022 run-rate | $24M | — | — | — | Source |
Where the revenue comes from
DigitalOcean
- Core cloud (Droplets, Kubernetes, storage, databases)
Not disclosed
Usage-based and monthly billing for compute and platform services.
- AI and inference
AI customer ARR $234M (~21% of ARR, Q2 2026)
GPU Droplets, bare metal GPUs, serverless inference, and the Inference Engine.
- Cloudways managed hosting
Not disclosed
Monthly managed hosting plans for agencies and SMBs.
Netlify
- Pro plan
$20 per month
Unlimited seats with a monthly credit allowance. Extra credit packs cost $10 per 1,500 credits.
- Enterprise contracts
Not formally reported
Add SSO, compliance, SLAs and dedicated support.
- Usage credits
Not formally reported
Spent on five meters: bandwidth, compute, web requests, AI inference and production deploys. Netlify dropped per-seat charges in April 2026.
Business model and strategy
DigitalOcean
How it makes money
DigitalOcean sells cloud infrastructure on usage-based and monthly pricing. Customers pay for Droplet virtual machines, GPU instances, managed Kubernetes, managed databases, object and block storage, bandwidth, App Platform, Cloudways managed hosting plans, and AI inference (billed by usage or tokens).
Growth strategy
DigitalOcean's strategy under Paddy Srinivasan has two tracks. First, move upmarket: its number of $100K+ customers grew 9% in Q2 2026 while their revenue grew 98%, and $1M+ customers generated 23% of revenue. Second, become an inference and agentic AI platform: it combines GPU Droplets (NVIDIA and AMD), serverless inference, the Inference Engine, and agent tooling with its existing compute, storage, and databases.
Competitive advantage
DigitalOcean's edge is simplicity for small teams: a clean control panel, predictable pricing with bundled bandwidth, and products that launch in minutes without hyperscaler-style configuration. Its free community tutorials rank highly for common Linux, Docker, and Kubernetes queries, giving it a low-cost acquisition funnel.
Netlify
How it makes money
Netlify makes money from subscriptions and usage on a freemium model. A free plan brings in individual developers and AI-app builders; the Pro plan costs $20 a month with unlimited seats and includes a monthly credit allowance, with extra credit packs at $10 per 1,500 credits; and Enterprise contracts add SSO, compliance, SLAs and dedicated support.
Growth strategy
Netlify is betting that AI agents will turn billions of non-developers into software builders. Its 2025-2026 strategy centers on Agent Runners, AI Gateway, 'Netlify for Agents', a Stripe integration and seat-free pricing, aiming to capture the roughly 40,000 daily sign-ups, most of them new to web development, and convert their usage into credit revenue.
Competitive advantage
Netlify's advantage is a simple path from code or an AI prompt to a live site: connect a repository or agent, and Netlify builds, previews and deploys it globally with no server setup. That workflow, plus framework neutrality and flat $20/month Pro pricing with unlimited seats, has made it a default deploy target for AI builders like Bolt.new.
Questions about DigitalOcean vs Netlify
Which company has higher revenue — DigitalOcean or Netlify?
DigitalOcean had $901.4M (FY2025), while Netlify had $46.3M (unaudited) (FY2024). By latest annual revenue, DigitalOcean is the larger business, with Netlify showing a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of DigitalOcean vs Netlify?
DigitalOcean has a market capitalisation of $16.0B. A public market cap figure for Netlify was not available (it may be privately held).
How does revenue per employee compare for DigitalOcean and Netlify?
DigitalOcean has $617k / employee in revenue per employee, while Netlify has $190k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do DigitalOcean and Netlify make money?
DigitalOcean and Netlify generate revenue in fundamentally different ways. DigitalOcean: DigitalOcean sells cloud infrastructure on usage-based and monthly pricing. Netlify: Netlify makes money from subscriptions and usage on a freemium model.
Is DigitalOcean bigger than Netlify?
By last reported revenue, DigitalOcean ($901.4M (FY2025)) is the larger company compared to Netlify ($46.3M (unaudited) (FY2024)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the DigitalOcean vs Netlify overview