DigitalOcean (NYSE:DOCN) Releases FY25 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its FY25 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of $1.85-1.95 for the period, compared to the consensus estimate of $1.84. The company issued revenue guidance of $870-890 million, compared to the consensus revenue estimate of $877.68 million. DigitalOcean also updated its Q1 guidance to $0.41-0.46 EPS.

Analyst Upgrades and Downgrades

DOCN has been the subject of a number of recent research reports. Cantor Fitzgerald began coverage on DigitalOcean in a research note on Friday, January 17th. They issued a “neutral” rating and a $39.00 target price for the company. Needham & Company LLC reaffirmed a “hold” rating on shares of DigitalOcean in a research report on Tuesday, November 5th. Stifel Nicolaus lifted their price objective on shares of DigitalOcean from $35.00 to $40.00 and gave the company a “hold” rating in a research note on Wednesday, December 18th. Morgan Stanley upgraded shares of DigitalOcean from an “equal weight” rating to an “overweight” rating and upped their target price for the company from $40.00 to $41.00 in a research note on Thursday, January 16th. Finally, JMP Securities lifted their price target on shares of DigitalOcean from $47.00 to $55.00 and gave the stock a “market outperform” rating in a research note on Monday, January 27th. Six investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat, DigitalOcean currently has a consensus rating of “Hold” and an average price target of $42.40.

DigitalOcean Stock Down 5.4 %

Shares of DigitalOcean stock opened at $37.18 on Tuesday. The business has a 50-day moving average price of $38.64 and a 200 day moving average price of $39.05. DigitalOcean has a fifty-two week low of $26.63 and a fifty-two week high of $47.02. The firm has a market cap of $3.43 billion, a P/E ratio of 43.74, a P/E/G ratio of 3.12 and a beta of 1.81.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings results on Tuesday, February 25th. The company reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.34 by $0.15. DigitalOcean had a negative return on equity of 43.11% and a net margin of 10.86%. The business had revenue of $204.90 million for the quarter, compared to analyst estimates of $200.54 million. During the same period in the prior year, the company posted $0.44 EPS. The business’s revenue was up 13.3% compared to the same quarter last year. As a group, equities research analysts anticipate that DigitalOcean will post 1.01 earnings per share for the current year.

Insider Transactions at DigitalOcean

In other news, insider Bratin Saha sold 4,289 shares of the stock in a transaction that occurred on Tuesday, January 21st. The stock was sold at an average price of $36.80, for a total transaction of $157,835.20. Following the sale, the insider now directly owns 372,762 shares in the company, valued at approximately $13,717,641.60. This represents a 1.14 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Matt Steinfort sold 12,498 shares of the business’s stock in a transaction that occurred on Wednesday, December 4th. The shares were sold at an average price of $40.00, for a total value of $499,920.00. Following the transaction, the chief financial officer now owns 517,498 shares of the company’s stock, valued at $20,699,920. This represents a 2.36 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 20,255 shares of company stock worth $790,163. 0.74% of the stock is currently owned by insiders.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company’s platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).