DigitalOcean posted first-quarter results surpassing expectations but saw its shares drop by more than 13% in trading.
The drop in share price was attributed to the company's guidance for the next quarter, which fell short of analyst expectations.
Despite the drop in share price, DigitalOcean's revenue grew by 14% year-over-year in the first quarter to $211 million, with increased demand from AI developers and large customers.
The company introduced new features, including graphics card servers and platform enhancements, to support the growth in AI and large customer segments.