Norsk Hydro ASA (NHYDY) Q2 2025 Earnings Call Highlights: Strong Financial Performance Amid ...
Free Cash Flow: NOK5 billion in Q2 2025.
Adjusted RoaCE: 12%, above the target of 10% over the cycle.
Revenue: Increased by 4% year over year to NOK53 billion for Q2 2025.
Net Income: Positive net income of around NOK2.5 billion for Q2 2025.
Adjusted Net Income: NOK3.6 billion in Q2 2025.
Adjusted EPS: NOK1.68 per share for Q2 2025.
Net Debt: Increased by NOK400 million since Q1 2025, ending at NOK23 billion.
Capital Expenditure Guidance: Reduced by NOK1.5 billion for 2025.
Impairment Charges: NOK400 million in Brazilian energy assets.
Extrusion Sales Volumes: Increased by 1% year over year in Q2 2025.
Aluminum Prices: Three-month aluminum price increased from USD2,507 to USD2,598 per ton during Q2 2025.
US Midwest Premium: Increased from USD844 to USD1,432 per ton during Q2 2025.
Energy Adjusted EBITDA: Increased to NOK1.1 billion in Q2 2025 from NOK611 million in Q2 2024.
Warning! GuruFocus has detected 10 Warning Signs with AKZOF.
Release Date: July 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Norsk Hydro ASA (NHYDY) reported a strong adjusted EBITDA of NOK7.8 billion for Q2 2025, with a free cash flow of NOK5 billion and an adjusted RoaCE of 12%, surpassing the target of 10%.
The company has successfully maintained a low number of injuries, demonstrating a strong safety culture that contributes to operational stability and efficiency.
Norsk Hydro ASA (NHYDY) is ahead of its 2030 improvement program targets, with significant progress in greener sales, including a 50% increase in sales of greener products compared to 2024.
The company has implemented a hiring freeze for white-collar positions to enhance flexibility and resilience in response to market volatility.
Norsk Hydro ASA (NHYDY) continues to see strong demand for low carbon and recycled products, supported by regulatory momentum for sustainability and climate action in Europe.
Negative Points
Geopolitical risks and trade tensions, particularly following Russia's invasion of Ukraine, are affecting Norsk Hydro ASA (NHYDY)'s entire value chain and global market conditions.
The company has faced challenges in the wind and solar markets, particularly in Brazil and the Nordics, due to grid constraints and regulatory uncertainty.
Norsk Hydro ASA (NHYDY) reported NOK400 million in impairments in its Brazilian energy assets due to adjusted return requirements amid ongoing challenges.
The extrusion market in North America is expected to decline by 2% in 2025 compared to 2024, driven by weak demand in the commercial transport and automotive segments.
Norsk Hydro ASA (NHYDY) has terminated a Nordic power purchase agreement due to undelivered volumes, resulting in potential compensations of up to EUR90 million.
Q & A Highlights
Q: On the CapEx, can you elaborate on which projects, expansion plans you have cut or delayed in 2025? And also, can we assume a similar cut to 2026 if downstream demand remains weak? A: Eivind Kallevik, President and CEO: Most of the CapEx reductions are focused on the recycling and extrusion businesses. The 2026 guidance remains at NOK15 billion, and we will review this as the market develops, providing an update at the Investor Day later this year.
Q: Is the more than 100 FTE reduction within extrusion predominantly blue collar? And is the potential of 300 to 350 a mix of white and blue collar? A: Eivind Kallevik, President and CEO: The automation project in extrusions is predominantly focused on the blue-collar workforce and does not overlap with the white-collar review currently underway.
Q: Can you give a guidance on your expectations for eliminations in EBITDA into Q3? A: Trond Christophersen, CFO: We don't have specific guidance for eliminations next quarter, but we expect a significant portion of the remaining NOK400 million to NOK500 million to be realized in Q3.
Q: You have said IRR of more than 10% needed to deliver projects. Does [Turija and Karmy] deliver in the current environment? A: Eivind Kallevik, President and CEO: Yes, both the Spanish recycler and the wire rod investments at Karmy are solid projects, supported by long-term agreements with leading cable producers in Europe.
Q: What has changed on your return requirements that drove the impairment in Brazil? A: Eivind Kallevik, President and CEO: We updated the return requirements for energy investments due to grid constraints and potential regulatory challenges in Brazil, leading to a NOK400 million impairment.
Q: In alumina, prices are declining for Q3, and you are guiding for higher bauxite costs. Do you expect to avoid a loss-making quarter at the current price cost spread? A: Trond Christophersen, CFO: The realized alumina prices for Q3 are not expected to differ significantly from Q2, and the bauxite price increase is temporary due to maintenance at Paragominas.
Q: Your revenue from green products has increased by 50% year over year. Can you give us some more color on how volumes and premiums have developed? A: Eivind Kallevik, President and CEO: We see growth in both volume and premiums for green products, with positive developments in the US market following the European trend.
Q: Are you seeing an impact on scrap availability in Europe from higher US tariffs? A: Eivind Kallevik, President and CEO: The scrap market in Europe remains tight due to exports to Southeast Asia and the US, along with low economic activity in Europe, leading to elevated scrap prices.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Se produjo un error al recuperar la información
Inicia sesión para acceder a tu portafolio
Se produjo un error al recuperar la información
Se produjo un error al recuperar la información
Se produjo un error al recuperar la información
Se produjo un error al recuperar la información
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
DigitalOcean Announces Second Quarter 2025 Financial Results
Q2 2025 Revenue of $219 million, up 14% year-over-year; Raised full year revenue guidance to $888 to $892 million Q2 2025 Net Income was $37 million, up 93% year-over-year, at 17% margin and Adjusted EBITDA was $89 million, up 10% year-over-year, at 41% margin; Raised full year Adjusted EBITDA margin guidance to 39% to 40% Q2 2025 Incremental ARR of $32 million, the highest incremental ARR since Q4 of 2022 BROOMFIELD, Colo., August 05, 2025--(BUSINESS WIRE)--DigitalOcean Holdings, Inc. (NYSE: DOCN), the simplest scalable cloud for digital native enterprises, today announced results for its second quarter ended June 30, 2025. "We delivered another quarter of solid performance across both AI and core cloud. Total revenue grew 14% year-over-year, we achieved the highest incremental ARR since Q4 of 2022, and we more than doubled our AI/ML revenue year-over-year." said Paddy Srinivasan, CEO of DigitalOcean. "Our strategic focus on higher spending digital native enterprises and key strategic partners drove Scalers+ revenue up 35% year-over-year, reaching 24% of total revenue. We also continue to effectively balance higher growth and attractive free cash flow margins, which is reflected in our increased guidance on both full year revenue and profitability metrics." Second Quarter 2025 Financial Highlights: Revenue was $219 million, an increase of 14% year-over-year. Annual Run-Rate Revenue (ARR)(1) ended the quarter at $875 million, an increase of 14% year-over-year. Gross profit(2) was $131 million, an increase of 15% year-over-year, and gross profit margin was 60%. Net income attributable to common stockholders was $37 million, an increase of 93% year-over-year, and net income margin was 17%. Adjusted EBITDA was $89 million, an increase of 10% year-over-year, and adjusted EBITDA margin was 41%. Diluted net income per share was $0.39 and non-GAAP diluted net income per share was $0.59. Net cash from operating activities was $92 million as compared to $71 million in the second quarter 2024. Adjusted free cash flow was $57 million at 26% margin, as compared to $37 million at 19% margin adjusted free cash flow generated in the second quarter 2024. Cash and cash equivalents was $388 million as of June 30, 2025. Remaining Performance Obligation was $53 million compared to $3 million in the second quarter 2024. Second Quarter 2025 Operational Highlights: The number of Scalers+(1) within our Higher Spend Customers cohort grew 23%, while the revenue from these customers, which now represents 24% of total revenue, grew 35% year-over-year. Net Dollar Retention Rate (NDR) increased to 99% from 97% in the second quarter 2024. Average Revenue Per Customer (ARPU) was $111.70, an increase of 12% over the second quarter 2024. ARPU for our Scalers+ customer category was $30 thousand, an increase of 9% over the second quarter 2024. The Company released more than 60 new products and features during the quarter. The Company announced a collaboration with AMD that provides DigitalOcean customers with access to AMD Instinct™ GPUs as DigitalOcean GPU Droplets to power their AI workloads. Customers will also have access to the AMD Developer Cloud, a new platform powered by DigitalOcean that is purpose-built for rapid, high-performance AI development. The Company announced the General Availability of the DigitalOcean Gradient™ AI Platform, which brings simplicity and scale to digital native enterprises building with AI. The Company's Gradient AI Platform is a managed AI platform that enables developers to combine their data with foundation models from Anthropic, Meta, Mistral and OpenAI to add customized Generative AI agents to their applications. The Company's Gradient AI Platform is a fully managed service where customers do not need to manage infrastructure and can deploy Generative AI capabilities in minutes to their applications. The Company repurchased 0.7 million shares during the quarter; our cumulative share repurchases since IPO are $1.6 billion and 34.8 million shares through June 30, 2025. ___________________ (1) Beginning in the fourth quarter of 2024, we changed our methodology for calculating customer count and ARR, and changed our customer categories. Prior periods have been recast to reflect the effects of the changes. Refer to our Annual Report on Form 10-K for the year ended December 31, 2024 for further details. (2) Beginning in the fourth quarter of 2024, we reclassified certain costs from sales and marketing and research and development to cost of revenue. Amounts for the three and six months ended June 30, 2024 have been recast to conform with current period presentation. Refer to our Annual Report on Form 10-K for the year ended December 31, 2024 for further details. Financial Outlook: DigitalOcean is initiating guidance for the third quarter ending September 30, 2025 as follows: Total revenue of $226 to $227 million. Adjusted EBITDA margin of 39% to 40%. Non-GAAP diluted net income per share of $0.45 to $0.50. Fully diluted weighted average shares outstanding of approximately 102 to 103 million shares. For the full year 2025, we expect: Total revenue of $888 to $892 million. Adjusted EBITDA margin of 39% to 40%. Adjusted free cash flow margin in the range of 17% to 19% of revenue. Non-GAAP diluted net income per share of $2.05 to $2.10. Fully diluted weighted average shares outstanding of approximately 103 to 104 million shares. A reconciliation of non-GAAP outlook measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. For example, stock-based compensation expense-related charges are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. Accordingly, a reconciliation is not available without unreasonable effort and we are unable to assess the probable significance of the unavailable information, although it is important to note that these factors could be material to our results computed in accordance with GAAP. Conference Call Information: DigitalOcean will host a conference call today, August 5, 2025, at 8:00 a.m. ET to review its results. The conference call and presentation can be accessed by registering for the webcast at A live webcast and replay of the conference call in addition to the presentation can be accessed from the DigitalOcean investor relations website at About DigitalOcean DigitalOcean is the simplest scalable cloud platform that democratizes cloud and AI for digital native enterprises around the world. Our mission is to simplify cloud and AI so builders can spend more time creating software that changes the world. More than 600,000 customers trust DigitalOcean to deliver the cloud, AI, and ML infrastructure they need to build and scale their organizations. To learn more about DigitalOcean, visit Forward‑Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding our performance, including but not limited to statements in the section titled "Financial Outlook." The forward-looking statements contained in this release and the accompanying earnings call referenced in this release are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to: (1) fluctuations in our financial results make it difficult to project future results; (2) our ability to sustain profitability in the future; (3) our ability to expand usage of our platform by existing customers and/or attract new customers and/or retain existing customers; (4) the speed at which the market for our platform and solutions develops; (5) the success of the development and use of our artificial intelligence and machine learning (AI/ML) product offerings or use of third-party AI/ML-based tools; (6) our ability to release updates and new features to our platform and adapt and respond effectively to rapidly changing technology or customer needs; (7) our ability to control costs, including our operating expenses, and the timing of payment for expenses; (8) the amount and timing of non-cash expenses, including stock-based compensation, goodwill impairments and other non-cash charges; (9) breaches in our security measures allowing unauthorized access to our platform, our data, or our customers' data; (10) the competitive markets in which we participate; (11) our ability to effectively integrate and retain new members of our executive leadership team and senior management; (12) the effects of acquisitions and their integration; (13) general market, political, economic, and business conditions, including changes in trade policies, such as trade wars, tariffs and other restrictions or the threat of such actions; (14) the impact of new accounting pronouncements; (15) our ability to control fraudulent registrations and usage of our platform, reduce bad debt and lessen capacity constraints on our data centers, servers and equipment; and (16) our customers' ability to have continued and unimpeded access to our platform, including as a result of evolving laws and industry standards. Further information on these and additional risks, uncertainties, assumptions and other factors that could cause actual results or outcomes to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption "Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent filings and reports we make with the SEC. We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this release. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. We assume no obligation to, and do not currently intend to, update any such forward-looking statements after the date of this release. About Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States, or GAAP, we provide investors with non-GAAP financial measures including: (i) adjusted EBITDA and adjusted EBITDA margin; (ii) non-GAAP net income and non-GAAP diluted net income per share; and (iii) adjusted free cash flow and adjusted free cash flow margin. These measures are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In particular, adjusted free cash flow is not a substitute for cash provided by operating activities. Additionally, the utility of adjusted free cash flow as a measure of our financial performance and liquidity is further limited as it does not represent the total increase or decrease in our cash balance for a given period. Our calculations of each of these measures may differ from the calculations of measures with the same or similar titles by other companies and therefore comparability may be limited. Because of these limitations, when evaluating our performance, you should consider each of these non-GAAP financial measures alongside other financial performance measures, including the most directly comparable financial measure calculated in accordance with GAAP and our other GAAP results. A reconciliation of each of our non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP is set forth in the tables in the section "Reconciliation of GAAP to Non-GAAP Data." Adjusted EBITDA and Adjusted EBITDA Margin We define adjusted EBITDA as net income attributable to common stockholders, adjusted to exclude depreciation and amortization, stock-based compensation, interest expense, acquisition related compensation, acquisition and integration related costs, income tax expense (benefit), restructuring and other charges, restructuring related charges, impairment of certain long-lived assets, interest income and other income, net, revaluation of warrants, loss on extinguishment of debt, release of a VAT reserve, and other charges. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. We believe that adjusted EBITDA, when taken together with our GAAP financial results, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of adjusted EBITDA is helpful to our investors as it is a measure used by management in assessing the health of our business, evaluating our operating performance, and for internal planning and forecasting purposes. Our calculation of adjusted EBITDA and adjusted EBITDA margin may differ from the calculations of adjusted EBITDA and adjusted EBITDA margin by other companies and therefore comparability may be limited. Because of these limitations, when evaluating our performance, you should consider adjusted EBITDA and adjusted EBITDA margin alongside other financial performance measures, including our net income attributable to common stockholders and other GAAP results. Non-GAAP Net Income and Non-GAAP Diluted Net Income Per Share We define non-GAAP net income as net income attributable to common stockholders, excluding stock-based compensation, acquisition related compensation, amortization of acquired intangibles, acquisition and integration related costs, restructuring and other charges, restructuring related charges, impairment of certain long-lived assets, loss on extinguishment of debt, revaluation of warrants, release of a VAT reserve, and other charges. We define non-GAAP diluted net income per share as non-GAAP net income divided by the weighted-average diluted shares outstanding, which includes the potentially dilutive effect of our stock options, RSUs, PRSUs, and Convertible Notes. We believe non-GAAP diluted net income per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this metric generally eliminates the effects of unusual or non-recurring items from period to period for reasons unrelated to overall operating performance. Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin Adjusted free cash flow is a non-GAAP financial measure that we define as Net cash provided by operating activities less purchases of property and equipment, capitalized internal-use software costs, purchase of intangible assets, and excluding cash paid for restructuring and other charges, acquisition related compensation, restructuring related charges, and acquisition and integration related costs. Adjusted free cash flow margin is calculated as adjusted free cash flow divided by total revenue. We believe that adjusted free cash flow and adjusted free cash flow margin are useful indicators of liquidity that provide information to management and investors about the amount of cash generated from our core operations that can be used for strategic initiatives, including investing in our business and selectively pursuing acquisitions and strategic investments. We further believe that historical and future trends in adjusted free cash flow and adjusted free cash flow margin, even if negative, provide useful information about the amount of Net cash provided by operating activities that is available (or not available) to be used for strategic initiatives. One limitation of adjusted free cash flow and adjusted free cash flow margin is that they do not reflect our future contractual commitments. Additionally, adjusted free cash flow does not represent the total increase or decrease in our cash balance for a given period. Key Business Metrics: We utilize the key metrics set forth below to help us evaluate our business and growth, identify trends, formulate financial projections and make strategic decisions. Customers We calculate customer count as the average number of customers as of the last day of the month for each month in the most recent quarter. Customers are classified in the following categories based on the amount of their spend in a given month and individual customers may fall within different categories within a reporting period: Testers: users that both (i) spend less than or equal to $50 in a month and (ii) have been on our platform for three months or less. Learners: users that both (i) spend less than or equal to $50 in a month and (ii) have been on our platform for more than three months. Builders: users that spend more than $50 and less than or equal to $500 in a month. Scalers: users that spend more than $500 and less than or equal to $8,333 in a month. Scalers+: users that spend more than $8,333 in a month. We refer to our Builders, Scalers and Scalers+ customers collectively as our Higher Spend Customers. ARPU We calculate ARPU on a monthly basis as our total revenue from Learners, Builders, Scalers and Scalers+ in that period divided by the total number of Learners, Builders, Scalers and Scalers+ customers determined as of the last day of that month. For a quarterly or annual period, ARPU is determined as the weighted average monthly ARPU over such three or 12-month period. ARR We calculate ARR by multiplying the revenue for the most recent quarter by four. For our ARR calculations, we include the total revenue from all customers, including Testers, Learners, Builders, Scalers, and Scalers+. Net Dollar Retention Rate We calculate net dollar retention rate monthly by starting with the revenue from all customers, including Testers, Learners, Builders, Scalers and Scalers+ for our IaaS and PaaS/SaaS offerings during the corresponding month 12 months prior, or the Prior Period Revenue. We then calculate the revenue from these same customers as of the current month, or the Current Period Revenue, including any expansion and net of any contraction or attrition from these customers over the last 12 months. The calculation also includes revenue from customers that generated revenue before, but not in, the corresponding month 12 months prior, but subsequently generated revenue in the current month and are therefore reflected in the Current Period Revenue. We include this group of re-engaged customers in this calculation because some of our customers use our platform for projects that stop and start over time. We then divide the total Current Period Revenue by the total Prior Period Revenue to arrive at the net dollar retention rate for the relevant month. For a quarterly or annual period, the net dollar retention rate is determined as the average monthly net dollar retention rates over such three or 12-month period. Other Metrics: Remaining Performance Obligation Remaining performance obligation ("RPO") represents commitments in customer contracts for future services that have not yet been recognized in the condensed consolidated financial statements. We have applied the optional exemption to exclude contracts with an original expected term of one year or less from this amount. RPO is not necessarily indicative of future revenue growth because it does not account for the timing of customers' consumption or their usage beyond their contracted capacity. Additionally, RPO may increase when customers transition from usage-based to commitment-based agreements, which does not always reflect incremental revenue growth. RPO is influenced by a number of factors, including the timing and size of renewals, the timing and size of purchases of additional capacity and average contract term. Due to these factors, it is important to review RPO in conjunction with revenue and other financial metrics contained in this release and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent filings and reports we make with the SEC. DIGITALOCEAN HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) (unaudited) June 30, 2025 December 31, 2024 Current assets: Cash and cash equivalents $ 387,745 $ 428,446 Accounts receivable, less allowance for credit losses of $6,066 and $5,940, respectively 81,260 72,486 Prepaid expenses and other current assets 40,768 40,786 Total current assets 509,773 541,718 Property and equipment, net 465,521 432,544 Restricted cash 1,747 1,747 Goodwill 348,674 348,674 Intangible assets, net 109,332 117,718 Operating lease right-of-use assets, net 269,133 187,877 Deferred tax assets 586 200 Other assets 15,042 8,537 Total assets $ 1,719,808 $ 1,639,015 Current liabilities: Accounts payable $ 31,349 $ 54,565 Accrued other expenses 34,764 38,156 Deferred revenue 11,264 5,397 Operating lease liabilities, current 98,223 75,785 Other current liabilities 48,931 47,052 Total current liabilities 224,531 220,955 Deferred tax liabilities 4,580 4,123 Long-term debt 1,489,164 1,485,366 Operating lease liabilities, long-term 176,196 130,431 Other long-term liabilities 554 1,095 Total liabilities 1,895,025 1,841,970 Preferred stock ($0.000025 par value per share; 10,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2025 and December 31, 2024) — — Common stock ($0.000025 par value per share; 750,000,000 shares authorized; 91,114,675 and 92,234,517 issued and outstanding as of June 30, 2025 and December 31, 2024, respectively) 2 2 Additional paid-in capital 8,883 57,282 Accumulated other comprehensive loss (591 ) (1,497 ) Accumulated deficit (183,511 ) (258,742 ) Total stockholders' deficit (175,217 ) (202,955 ) Total liabilities and stockholders' deficit $ 1,719,808 $ 1,639,015 DIGITALOCEAN HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Revenue $ 218,700 $ 192,476 $ 429,403 $ 377,206 Cost of revenue 87,755 78,328 169,014 153,910 Gross profit 130,945 114,148 260,389 223,296 Operating expenses: Research and development 39,644 32,984 79,238 65,911 Sales and marketing 19,288 17,997 38,689 36,907 General and administrative 36,394 40,839 69,201 86,612 Total operating expenses 95,326 91,820 187,128 189,430 Income from operations 35,619 22,328 73,261 33,866 Other income (expense): Interest expense (2,239 ) (2,321 ) (4,447 ) (4,625 ) Loss on extinguishment of debt (269 ) — (269 ) — Interest income and other income, net 9,337 4,802 15,283 9,823 Other income, net 6,829 2,481 10,567 5,198 Income before income taxes 42,448 24,809 83,828 39,064 Income tax expense (5,421 ) (5,671 ) (8,597 ) (5,787 ) Net income attributable to common stockholders $ 37,027 $ 19,138 $ 75,231 $ 33,277 Net income per share attributable to common stockholders Basic $ 0.41 $ 0.21 $ 0.82 $ 0.37 Diluted $ 0.39 $ 0.20 $ 0.77 $ 0.35 Weighted-average shares used to compute net income per share attributable to common stockholders Basic 91,097 91,318 91,538 91,049 Diluted 100,617 93,832 101,521 94,005 ______________ (1) Amounts for the three and six months ended June 30, 2024 have been recast to conform with current period presentation. Refer to Note 2. Summary of Significant Accounting Policies, Prior Period Reclassification, in Item 8. in the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2024 for further details. DIGITALOCEAN HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Six Months Ended June 30, 2025 2024 Operating activities Net income attributable to common stockholders $ 75,231 $ 33,277 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 61,975 65,016 Stock-based compensation 40,513 44,710 Provision for expected credit losses 8,607 7,985 Operating lease right-of-use assets and liabilities, net (13,816 ) 1,423 Loss on extinguishment of debt 269 — Net accretion of discounts and amortization of premiums on investments — 2,569 Non-cash interest expense 4,005 3,988 Impairment of certain long-lived assets — 356 Other (7,853 ) 361 Changes in operating assets and liabilities: Accounts receivable (17,064 ) (13,234 ) Prepaid expenses and other current assets 1,201 (4,346 ) Accounts payable and accrued expenses (3,029 ) (3,655 ) Deferred revenue 5,867 1,462 Other assets and liabilities 631 (1,879 ) Net cash provided by operating activities 156,537 138,033 Investing activities Capital expenditures - property and equipment (95,160 ) (75,534 ) Capital expenditures - internal-use software development (3,412 ) (4,046 ) Purchase of intangible assets (1,835 ) — Maturities of marketable securities — 91,675 Net cash (used in) provided by investing activities (100,407 ) 12,095 Financing activities Payment of debt issuance costs (4,081 ) — Proceeds related to the issuance of common stock under equity incentive plan 2,771 7,948 Proceeds from the issuance of common stock under employee stock purchase plan 2,660 2,231 Principal repayments of finance leases (2,733 ) (2,720 ) Employee payroll taxes paid related to net settlement of equity awards (16,294 ) (13,469 ) Repurchase and retirement of common stock including related costs (79,199 ) (18,183 ) Net cash used in financing activities (96,876 ) & (24,193 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash 45 (61 ) (Decrease) increase in cash, cash equivalents and restricted cash (40,701 ) 125,874 Cash, cash equivalents and restricted cash - beginning of period 430,193 318,983 Cash, cash equivalents and restricted cash - end of period $ 389,492 $ 444,857 DIGITALOCEAN HOLDINGS, INC. RECONCILIATION OF GAAP TO NON-GAAP DATA (unaudited) Adjusted EBITDA and Adjusted EBITDA Margin Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2025 2024 2025 2024 GAAP Net income attributable to common stockholders $ 37,027 $ 19,138 $ 75,231 $ 33,277 Adjustments: Depreciation and amortization 32,765 33,129 61,975 65,016 Stock-based compensation(1) 21,081 21,833 40,513 44,563 Interest expense 2,239 2,321 4,447 4,625 Acquisition related compensation — 3,716 — 8,246 Acquisition and integration related costs — (19 ) — — Income tax expense 5,421 5,671 8,597 5,787 Loss on extinguishment of debt 269 — 269 — Restructuring related charges(1)(2) — 243 — 3,863 Impairment of certain long-lived assets — 356 — 356 Interest income and other income, net(3) (9,337 ) (4,802 ) (15,283 ) (9,823 ) Adjusted EBITDA $ 89,465 $ 81,586 $ 175,749 $ 155,910 As a percentage of revenue: Net income margin 17 % 10 % 18 % 9 % Adjusted EBITDA margin 41 % 42 % 41 % 41 % ___________________ (1) For the six months ended June 30, 2024, non-GAAP stock-based compensation excludes $0.1 million as it is presented in restructuring related charges. (2) For the three and six months ended June 30, 2024, primarily consists of executive reorganization charges. (3) For the three and six months ended June 30, 2025, primarily consists of interest income from our cash and cash equivalents. For the three and six months ended June 30, 2024, primarily consists of interest and accretion income from our cash and cash equivalents and marketable securities. Non-GAAP Net Income and Non-GAAP Diluted Net Income Per Share Three Months Ended Six Months Ended June 30, June 30, (In thousands, except per share amounts) 2025 2024 2025 2024 GAAP Net income attributable to common stockholders $ 37,027 $ 19,138 $ 75,231 $ 33,277 Stock-based compensation(1) 21,081 21,833 40,513 44,563 Acquisition related compensation — 3,716 — 8,246 Amortization of acquired intangible assets 5,031 5,735 10,228 11,470 Acquisition and integration related costs — (19 ) — — Loss on extinguishment of debt 269 — 269 — Restructuring related charges(1)(2) — 243 — 3,863 Impairment of certain long-lived assets — 356 — 356 Non-GAAP income tax adjustment(3) (5,593 ) (3,397 ) (12,977 ) (11,423 ) Non-GAAP Net income $ 57,815 $ 47,605 $ 113,264 $ 90,352 Non-cash charges related to convertible notes(4) $ 1,596 $ 1,588 $ 3,191 $ 3,174 Non-GAAP Net income used to compute net income per share, diluted $ 59,411 $ 49,193 $ 116,455 $ 93,526 GAAP Net income per share attributable to common stockholders, diluted $ 0.39 $ 0.20 $ 0.77 $ 0.35 Stock-based compensation(1) 0.21 0.21 0.40 0.44 Acquisition related compensation — 0.04 — 0.08 Amortization of acquired intangible assets 0.05 0.06 0.10 0.11 Acquisition and integration related costs — — — — Loss on extinguishment of debt — — — — Restructuring related charges(1)(2) — — — 0.04 Impairment of certain long-lived assets — — — — Non-cash charges related to convertible notes(4) 0.02 0.02 0.03 0.03 Non-GAAP income tax adjustment(3) (0.08 ) (0.03 ) (0.15 ) (0.11 ) Non-GAAP Net income per share, diluted(5) $ 0.59 $ 0.48 $ 1.15 $ 0.91 GAAP Weighted-average shares used to compute net income per share, diluted 100,617 93,832 101,521 94,005 Weighted-average dilutive effect of potentially dilutive securities — 8,403 — 8,403 Non-GAAP Weighted-average shares used to compute net income per share, diluted 100,617 102,235 101,521 102,408 ______________ (1) For the six months ended June 30, 2024, non-GAAP stock-based compensation excludes $0.1 million as it is presented in restructuring related charges. (2) For the three and six months ended June 30, 2024, primarily consists of executive reorganization charges. (3) For the periods in fiscal year 2025 and 2024, we used a tax rate of 16%, which we believe is a reasonable estimate of our long-term effective tax rate applicable to non-GAAP pre-tax income for each respective year. (4) Consists of non-cash interest expense for amortization of deferred financing fees related to the Convertible Notes. (5) May not foot due to rounding. Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2025 2024 2025 2024 GAAP Net cash provided by operating activities $ 92,447 $ 71,340 $ 156,537 $ 138,033 Adjustments: Capital expenditures - property and equipment (33,197 ) (31,869 ) (95,160 ) (75,534 ) Capital expenditures - internal-use software development (1,383 ) (2,483 ) (3,412 ) (4,046 ) Purchase of intangible assets (852 ) — (1,835 ) — Restructuring and other charges — — 64 61 Restructuring related charges(1) — 437 — 4,630 Acquisition related compensation — — — 8,326 Acquisition and integration related costs — 4 — 302 Adjusted free cash flow $ 57,015 $ 37,429 $ 56,194 $ 71,772 As a percentage of revenue: GAAP Net cash provided by operating activities 42 % 37 % 36 % 37 % Adjusted free cash flow margin 26 % 19 % 13 % 19 % ________________ (1) For the three and six months ended June 30, 2024, primarily consists of executive reorganization charges. View source version on Contacts Investor Melanie Strateinvestors@ Media Ken Lotichpress@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
Denmark Pharmaceutical Market Forecast and Company Analysis Report 2025-2033 Featuring Novo Nordisk, H. Lundbeck, Leo, Orifarm, ALK-Abell, Xellia, Takeda, Sandoz, Ferring Pharmaceuticals, FUJIFILM
Denmark's pharmaceutical market is projected to grow from US$ 3.81 billion in 2024 to US$ 5.20 billion by 2033, with a CAGR of 3.52%. Key drivers include advanced health data infrastructure, supportive government policies, heavy R&D investment, and contributions from pharmaceutical giants like Novo Nordisk and Lundbeck. The aging population, rise in chronic diseases, and demand for innovative treatments further fuel growth. However, challenges such as regulatory complexity and sustainability pressures persist. The market encompasses a wide range of therapeutic classes and distribution channels, making Denmark a competitive hub for pharmaceutical R&D and innovation. Danish Pharmaceutical Market Dublin, Aug. 05, 2025 (GLOBE NEWSWIRE) -- The "Denmark Pharmaceutical Market - Drug Development & Forecast 2025-2033" report has been added to Pharmaceutical Market is expected to reach US$ 5.20 billion by 2033 from US$ 3.81 billion in 2024, with a CAGR of 3.52% from 2025 to 2033 Heavy R&D spending, government assistance, well-developed healthcare system, aging population, growth in the incidence of chronic diseases, advances in biotechnology, world demand for exports, and the location of world-class pharmaceutical giants such as Novo Nordisk and Lundbeck are all determinants of Denmark's expanding pharmaceutical market. Investigation, research, production, and promotion of drugs and therapies utilized to cure, prevent, or control disease fall within the pharmaceutical sector. Through the provision of innovative medical treatments and increased life expectancy and quality of life, it plays an important role in world medicine. Scientific breakthroughs, government approvals, and the ongoing demand for effective treatments drive this industry. Both small biotech firms and international corporations are prominent players. Prescription drugs, vaccines, and over-the-counter drugs are all pharmaceuticals. The sector often collaborates with research and clinical institutions to accelerate development and is highly regulated to ensure safety and efficacy of R&D expenditures, a collaborative academic and health environment, and supportive government regulations are the primary impetus for Denmark's pharmaceutical industry. Major contributions are made by leading global companies such as Novo Nordisk and Lundbeck through specialty medicine creation and global exports. Demand within the domestic market is also boosted by an aging population and the spread of chronic diseases such as diabetes. Innovation through personalized therapy and real-world evidence creation are enabled by advanced health data infrastructure in Denmark. Its global competitiveness is enhanced by an open regulatory system and access to EU markets. These combine to offer a robust, future-proof pharmaceutical sector with scope to Drivers for the Denmark Pharmaceutical Market Advanced Health Data InfrastructureOne of the key drivers for Denmark's pharmaceutical market's growth is its advanced heath data infrastructure. With biobanks, illness registries, and population-level electronic health records, the country boasts one of the most advanced and unified systems of healthcare data in the world. Since every Danish citizen is assigned a personal identification number, medical records can be exactly correlated between clinics, hospitals, and pharmacies. The approach opens up real-world data to academics and pharma companies to facilitate post-marketing surveillance, drug development, and clinical trials. Such access reduces the cost and time-to-market of research as well as speeds up pharmacovigilance and personalized treatment innovation. It also enhances the quality and efficiency of clinical trials by enabling long-term follow-up and targeted patient recruitment. In addition, Denmark is a safe destination for international collaboration due to the stringent data protection legislation that ensures patient confidentiality. This technological advantage enhances Denmark's competitiveness in the life sciences world and makes it a leading site for pharmaceutical R& Government PoliciesDenmark's pharma industry is growing largely due to the favorable government policies of the country. Denmark has established a comprehensive Life Sciences Growth Plan incorporating 36 initiatives across six key areas such as clinical trials, R&D, and regulatory environments. This strategic plan aims to further consolidate Denmark's reputation as a leading life sciences nation by fostering innovation and streamlining establishment of a "one-stop-shop" for drug companies that simplifies and quickens the regulatory approval process is an essential component of this program. By reducing administrative barriers, this program makes it easier for businesses to set up and expand production sites in Denmark. In addition, Denmark's climate agreement with the pharmaceutical industry illustrates its commitment to environmental responsibility. Consistent with international environmental aims, our partnership works to support green innovation and reduce CO2 emissions. Overall, taken as a package, all these beneficial government programs offer a good environment for pharmaceutical companies to expand, innovate, and become globally competitive for Denmark's pharmaceutical R&D InvestmentHigh investment in research and development (R&D) is one of the factors propelling the growth of the pharmaceutical market in Denmark. With a significant proportion being allocated to life sciences and pharmaceuticals, the country has some of the highest R&D expenditures per GDP of any nation globally. Both the public funding of the Danish government and substantial contributions from the private sector - particularly from major players such as Novo Nordisk and Lundbeck - funding this hospitals, and enterprise are in close collaboration to facilitate Denmark's R&D environment that encourages innovation in biotechnology, personalized medicine, and drug development. Tax reductions, subsidies, and strategic initiatives such as the Life Sciences Growth Plan are some of the government measures that actively encourage R&D. Contemporary research infrastructure and highly skilled staff are also available, which adds to Denmark's competitive edge. This robust R&D climate accelerates the development of novel treatments, attracts foreign partnerships, and makes Denmark a world leader in clinical excellence and pharmaceutical in the Denmark Pharmaceutical Market Regulatory Complexity and EU ComplianceEU compliance and regulatory complexity provide major obstacles for Denmark's pharmaceutical industry. Businesses have to deal with two sets of regulations: strict European Union guidelines and Danish state laws. This results in a complicated and frequently drawn-out approval process for new medications and clinical studies, which can raise expenses and postpone market entry. Startups and small and medium-sized businesses (SMEs) frequently find it difficult to satisfy these standards due to the resource requirements and administrative load. Furthermore, ongoing adaptation is necessary due to the EU's periodic revisions and harmonization initiatives. For Danish pharmaceutical businesses, sustaining innovation speed while balancing compliance is still a major and Green TransitionFor Denmark's pharmaceutical industry, sustainability and the green transition pose increasing obstacles. There is growing pressure on the business to lessen its environmental impact, which includes controlling water use in manufacturing processes, cutting carbon emissions, and limiting waste. Significant investments in cleaner technologies and process innovations are necessary to meet Denmark's aggressive climate targets and EU environmental requirements. Pharmaceutical businesses also need to strike a balance between sustainability measures and preserving cost-effectiveness and production efficiency. Changes in sourcing procedures and supply networks are also necessary for this shift. The Danish pharmaceutical industry must overcome the difficult task of successfully incorporating green practices while maintaining its competitiveness in order to keep up with worldwide sustainability trends. Key Players Analysis: Company Overview, Key Persons, Recent Development & Strategies, SWOT Analysis, Sales Analysis Novo Nordisk A/S H. Lundbeck A/S Leo Pharma A/S Orifarm Group A/S ALK-Abell A/S Xellia ApS Takeda Pharma A/S Sandoz A/S Ferring Pharmaceuticals A/S FUJIFILM Diosynth Biotechnologies Key Attributes: Report Attribute Details No. of Pages 200 Forecast Period 2024 - 2033 Estimated Market Value (USD) in 2024 $3.81 Billion Forecasted Market Value (USD) by 2033 $5.2 Billion Compound Annual Growth Rate 3.5% Regions Covered Denmark Key Topics Covered: 1. Introduction2. Research & Methodology2.1 Data Source2.1.1 Primary Sources2.1.2 Secondary Sources2.2 Research Approach2.2.1 Top-Down Approach2.2.2 Bottom-Up Approach2.3 Forecast Projection Methodology3. Executive Summary4. Market Dynamics4.1 Growth Drivers4.2 Challenges5. Denmark Pharmaceutical Market5.1 Historical Market Trends5.2 Market Forecast6. Market Share Analysis6.1 By Therapeutic Class6.2 By Drug Type6.3 By Prescription Type6.4 By Distribution Channel7. Therapeutic Class7.1 Cancer7.1.1 Market Analysis7.1.2 Market Size & Forecast7.2 Infectious Diseases7.3 Cardiovascular Diseases7.4 Diabetes7.5 Respiratory Diseases7.6 Central Nervous System Disorders7.7 Autoimmune Diseases7.8 Others8. Drug Type8.1 Branded8.1.1 Market Analysis8.1.2 Market Size & Forecast8.2 Generic9. Prescription Type9.1 OTC Drugs9.1.1 Market Analysis9.1.2 Market Size & Forecast9.2 Prescription Drugs10. Distribution Channel10.1 Hospital Pharmacy10.1.1 Market Analysis10.1.2 Market Size & Forecast10.2 Retail Pharmacy10.3 Others11. Value Chain Analysis12. Porter's Five Forces Analysis12.1 Bargaining Power of Buyers12.2 Bargaining Power of Suppliers12.3 Degree of Competition12.4 Threat of New Entrants12.5 Threat of Substitutes13. SWOT Analysis13.1 Strength13.2 Weakness13.3 Opportunity13.4 Threats14. Pricing Benchmark Analysis14.1 Novo Nordisk A/S14.2 H. Lundbeck A/S14.3 Leo Pharma A/S14.4 Orifarm Group A/S14.5 ALK-Abell A/S14.6 Xellia ApS14.7 Takeda Pharma A/S14.8 Sandoz A/S14.9 Ferring Pharmaceuticals A/S14.10 FUJIFILM Diosynth Biotechnologies15. Key Players Analysis For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Danish Pharmaceutical Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Bloomberg
3 hours ago
- Bloomberg
Norway Wealth Fund's Investment in Israeli Company Sparks Backlash
Reports of the Norwegian sovereign wealth fund's investments in an Israeli company linked to the war in Gaza have triggered a political squabble in the Nordic country. Prime Minister Jonas Gahr Store, speaking on a political talk show on Tuesday, said he was 'very worried' after a report by the Aftenposten newspaper about holdings by Norway's $1.9 trillion wealth fund in Bet Shemesh Engines Holdings, which the paper said is servicing fighter jets used in the attacks in Gaza. It also prompted Finance Minister Jens Stoltenberg to pledge a follow-up of investments in Israeli companies with the fund.
