DigitalOcean (NYSE:DOCN) Updates Q4 2024 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its fourth quarter 2024 earnings guidance on Monday morning. The company provided earnings per share guidance of 0.270-0.320 for the period, compared to the consensus earnings per share estimate of 0.380. The company issued revenue guidance of $199.0 million-$201.0 million, compared to the consensus revenue estimate of $200.1 million. DigitalOcean also updated its FY 2024 guidance to 1.700-1.750 EPS.

DigitalOcean Stock Performance

NYSE DOCN opened at $40.83 on Monday. The firm has a market capitalization of $3.76 billion, a P/E ratio of 56.71, a PEG ratio of 3.14 and a beta of 1.83. DigitalOcean has a fifty-two week low of $20.21 and a fifty-two week high of $44.80. The stock has a 50-day simple moving average of $40.45 and a two-hundred day simple moving average of $36.64.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings data on Thursday, August 8th. The company reported $0.48 EPS for the quarter, topping the consensus estimate of $0.39 by $0.09. The business had revenue of $192.00 million for the quarter, compared to analyst estimates of $188.63 million. DigitalOcean had a negative return on equity of 31.71% and a net margin of 9.30%. The business’s quarterly revenue was up 13.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.11 EPS. As a group, analysts forecast that DigitalOcean will post 0.86 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. JPMorgan Chase & Co. lifted their price objective on shares of DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a report on Friday, October 25th. Canaccord Genuity Group increased their price target on DigitalOcean from $42.00 to $48.00 and gave the stock a “buy” rating in a research report on Friday, October 4th. Stifel Nicolaus boosted their price objective on DigitalOcean from $32.00 to $35.00 and gave the company a “hold” rating in a research report on Friday, August 9th. Piper Sandler decreased their target price on DigitalOcean from $38.00 to $34.00 and set a “neutral” rating on the stock in a research report on Monday, July 15th. Finally, UBS Group cut their price target on shares of DigitalOcean from $40.00 to $34.00 and set a “neutral” rating for the company in a report on Friday, August 9th. Five equities research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $40.56.

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).