DigitalOcean Holdings (DOCN)

The sleeper story is that DigitalOcean quietly stopped updating the two numbers it told investors to watch most, ARR per megawatt and the demand-to-capacity ratio, right as RPO exploded 12x to $894M on the back of a single new nine-figure commitment. The obvious headline, 29% revenue growth with a beat-and-raise and 40% EBITDA margins, is real, but it is increasingly powered by GPU price hikes and mega-deal concentration rather than broad usage growth. The binding constraint remains data center and capacity delivery timing, which management itself cited as the reason it will not quantify 2027 upside despite record RPO and pricing power. Management is trading precision for conviction, and the reappearance of NDR at a three-year high only to be immediately demoted as a key metric suggests they are managing the narrative around concentration risk before the Street asks. My view changes if next quarter they re-disclose a specific ARR-per-megawatt figure and an updated demand ratio instead of qualitative language, or if the nine-figure customer's terms show genuine diversification rather than concentration.