DigitalOcean (NYSE:DOCN) Releases Q4 2024 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its fourth quarter 2024 earnings guidance on Monday morning. The company provided EPS guidance of 0.270-0.320 for the period, compared to the consensus EPS 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 Up 8.3 %

DigitalOcean stock opened at $38.82 on Thursday. DigitalOcean has a twelve month low of $24.07 and a twelve month high of $44.80. The company has a market capitalization of $3.57 billion, a P/E ratio of 53.92, a PEG ratio of 3.24 and a beta of 1.83. The stock’s 50 day moving average is $40.37 and its 200 day moving average is $36.69.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings data 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. The business had revenue of $198.50 million during the quarter, compared to analyst estimates of $196.64 million. DigitalOcean had a net margin of 9.30% and a negative return on equity of 31.71%. DigitalOcean’s revenue was up 12.1% compared to the same quarter last year. During the same period last year, the business earned $0.17 EPS. As a group, equities analysts expect that DigitalOcean will post 0.86 EPS for the current year.

Analyst Ratings Changes

Several research firms recently commented on DOCN. Barclays increased their price objective on DigitalOcean from $38.00 to $48.00 and gave the company an “overweight” rating in a research report on Friday, October 11th. Canaccord Genuity Group lifted their price target on shares of DigitalOcean from $42.00 to $48.00 and gave the stock a “buy” rating in a research note on Friday, October 4th. Stifel Nicolaus increased their price objective on shares of DigitalOcean from $32.00 to $35.00 and gave the company a “hold” rating in a research report on Friday, August 9th. Piper Sandler cut their target price on shares of DigitalOcean from $38.00 to $34.00 and set a “neutral” rating for the company in a research report on Monday, July 15th. Finally, Needham & Company LLC reissued a “hold” rating on shares of DigitalOcean in a report on Tuesday. Five investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $40.56.

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).