DigitalOcean (NYSE:DOCN) Updates Q1 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its first quarter 2025 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 0.410-0.460 for the period, compared to the consensus estimate of 0.420. The company issued revenue guidance of $207.0 million-$209.0 million, compared to the consensus revenue estimate of $207.7 million. DigitalOcean also updated its FY 2025 guidance to 1.850-1.950 EPS.

DigitalOcean Trading Up 14.7 %

DigitalOcean stock traded up $5.45 during midday trading on Tuesday, hitting $42.62. 977,750 shares of the stock were exchanged, compared to its average volume of 1,199,800. The stock has a market capitalization of $3.93 billion, a price-to-earnings ratio of 49.53, a PEG ratio of 3.12 and a beta of 1.81. DigitalOcean has a fifty-two week low of $26.63 and a fifty-two week high of $47.02. The stock’s 50-day simple moving average is $38.64 and its 200 day simple moving average is $39.05.

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

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. Stifel Nicolaus lifted their price target on shares of DigitalOcean from $35.00 to $40.00 and gave the company a “hold” rating in a research report on Wednesday, December 18th. Cantor Fitzgerald initiated coverage on shares of DigitalOcean in a report on Friday, January 17th. They issued a “neutral” rating and a $39.00 target price for the company. Morgan Stanley upgraded DigitalOcean from an “equal weight” rating to an “overweight” rating and upped their price target for the stock from $40.00 to $41.00 in a research note on Thursday, January 16th. Needham & Company LLC reaffirmed a “hold” rating on shares of DigitalOcean in a research note on Tuesday, November 5th. Finally, Citigroup began coverage on DigitalOcean in a report on Friday, January 24th. They issued a “buy” rating and a $45.00 price objective on the stock. Six equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to MarketBeat.com, DigitalOcean has an average rating of “Hold” and a consensus price target of $42.40.

Insider Activity

In other news, CFO Matt Steinfort sold 12,498 shares of the company’s stock in a transaction dated Wednesday, December 4th. The stock was sold at an average price of $40.00, for a total transaction of $499,920.00. Following the completion of the transaction, the chief financial officer now directly owns 517,498 shares of the company’s stock, valued at approximately $20,699,920. This represents a 2.36 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Bratin Saha sold 3,468 shares of the stock in a transaction dated Wednesday, December 18th. The shares were sold at an average price of $38.18, for a total value of $132,408.24. Following the completion of the transaction, the insider now owns 379,795 shares in the company, valued at approximately $14,500,573.10. The trade was a 0.90 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 20,255 shares of company stock worth $790,163. Corporate insiders own 0.74% of the company’s stock.

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).