Earlier this month, DigitalOcean (NYSE: DOCN) announced its second-quarter results that surpassed market expectations. The company continues to expand its market base through partnerships that focus on making app development easier.

DigitalOcean’s Financials

For the second quarter of the year, revenues grew 35% to $103.8 million. Annual Run-Rate Revenue (ARR) grew 36% to $426 million. Adjusted EBITDA was $31.4 million, compared to adjusted EBITDA of $23.9 million a year ago. The market was looking for revenues of $98.29 million and a break-even quarter.

Among other key metrics, total customers grew 9% to 602,000. Net Dollar Retention (NDR) rate grew to 113%, and Average Revenue Per Customer (ARPU) grew 25% to $58.07.

For the third quarter, DigitalOcean forecast revenues of $106-$109 million. For the fiscal year, it forecast revenues of $419-$423 million. The market forecast revenues of $103.81 million for the quarter and $419.99 million for the fiscal year.

DigitalOcean’s Product Expansion

Recently, DigitalOcean announced its partnership with MongoDB and the launch of Managed MongoDB, a fully-managed Database-as-a-Service offering. DigitalOcean’s managed services help simplify the cloud so customers can easily transform their ideas into powerful applications. MongoDB is one of the most popular and fastest-growing NoSQL database technologies used by developers, start-ups, and SMBs today.

This partnership with MongoDB expands its portfolio of curated, managed offerings tailored specifically to the developer, startups, SMB markets, and even those without database experience or expertise. Developers of all skill levels can spin up MongoDB clusters on DigitalOcean. The database administration is also simplified by seamlessly managing, scaling, and securing clusters, providing developers with more time to build apps and develop businesses. This new product offering is consistent with its strategy to enhance its core infrastructure and managed services offerings to provide relevant choices for the customers as their businesses evolve.

DigitalOcean is also focusing on improving its customer retention and growth rate. Historically, it has been found that the majority of its churn occurs within the first 12 months of the customer signing up with DigitalOcean. It has deployed teams specifically on improving the onboarding experience of customers and is leveraging data science and proactive measures in order to identify improvement opportunities in the process. While it is seeing improvement in retention, it is now focusing on managing customer growth to 10% or better on a sustained basis.

Its stock is currently trading at $55.51 with a market capitalization of $5.95 billion. It was trading at a 52-week high of $63.48 in July this year.

DigitalOcean had raised $775.5 million from its IPO where it sold its stock at $47 apiece.

Prior to listing in March this year, it had raised $455.6 million in 13 rounds of funding, with the most recent round being held in May last year. Its investors include Andreessen Horowitz, Access Industries, EquityZen, Kliwla Family Office AG, Viaduct Ventures, Mighty Capital, Opus Bank, Barclays Investment Bank, East West Bank, and HSBC Bank.