DigitalOcean (NYSE:DOCN) Updates FY24 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its FY24 earnings guidance on Monday. The company provided earnings per share (EPS) guidance of $1.70-1.75 for the period, compared to the consensus estimate of $1.67. The company issued revenue guidance of $775-777 million, compared to the consensus revenue estimate of $773.92 million. DigitalOcean also updated its FY 2024 guidance to 1.700-1.750 EPS.

Analysts Set New Price Targets

A number of research firms recently commented on DOCN. Piper Sandler dropped their price objective on DigitalOcean from $38.00 to $34.00 and set a “neutral” rating for the company in a research report on Monday, July 15th. Canaccord Genuity Group raised their target price on DigitalOcean from $42.00 to $48.00 and gave the company a “buy” rating in a report on Friday, October 4th. JPMorgan Chase & Co. upped their target price on shares of DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a research note on Friday, October 25th. Stifel Nicolaus increased their price objective on shares of DigitalOcean from $32.00 to $35.00 and gave the stock a “hold” rating in a research note on Friday, August 9th. Finally, UBS Group decreased their target price on shares of DigitalOcean from $40.00 to $34.00 and set a “neutral” rating for the company in a research report on Friday, August 9th. Five investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat.com, DigitalOcean presently has a consensus rating of “Moderate Buy” and an average target price of $40.56.

DigitalOcean Stock Performance

NYSE:DOCN traded up $0.27 during mid-day trading on Thursday, reaching $39.09. 367,929 shares of the company’s stock were exchanged, compared to its average volume of 1,259,357. DigitalOcean has a one year low of $24.07 and a one year high of $44.80. The firm has a market capitalization of $3.60 billion, a PE ratio of 45.67, a price-to-earnings-growth ratio of 2.80 and a beta of 1.83. The business’s fifty day simple moving average is $40.43 and its two-hundred day simple moving average is $36.70.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings results on Monday, November 4th. The company reported $0.52 earnings per share for the quarter, beating analysts’ consensus estimates of $0.40 by $0.12. DigitalOcean had a net margin of 10.86% and a negative return on equity of 43.11%. The company had revenue of $198.50 million for the quarter, compared to the consensus estimate of $196.64 million. During the same period last year, the company posted $0.17 EPS. The firm’s quarterly revenue was up 12.1% compared to the same quarter last year. As a group, equities research analysts forecast that DigitalOcean will post 0.86 EPS for the current year.

About DigitalOcean

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).