Shares of cloud computing infrastructure provider DigitalOcean (NYSE: DOCN) have surged 44% so far in 2023 thanks to the consistently solid growth the company delivered despite a slowdown in cloud spending. Its latest results gave investors another reason to hold on to this high-flying cloud play.

Potential new investors who fear they may have missed DigitalOcean's impressive rally might still want to consider buying as the stock is not too expensive right now, and it is likely to deliver more gains. Let's look at the reasons why.

DigitalOcean released its first-quarter results on May 9. Revenue jumped 30% year over year to $165 million, driven by a nice jump in the average revenue per user (ARPU) to $88.35 from $76.45 in the year-ago period. It was impressive to see an improvement in DigitalOcean's ARPU at a time when its customers are reportedly dialing back their spending due to macroeconomic headwinds.

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Source Fool.com