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 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 Trading Down 2.1 %

Shares of DigitalOcean stock opened at $39.99 on Monday. DigitalOcean has a 12-month low of $23.65 and a 12-month high of $44.80. The firm’s 50 day simple moving average is $40.45 and its two-hundred day simple moving average is $36.64. The firm has a market capitalization of $3.68 billion, a price-to-earnings ratio of 56.71, a PEG ratio of 3.14 and a beta of 1.83.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings results on Thursday, August 8th. The company reported $0.48 EPS for the quarter, topping analysts’ consensus estimates of $0.39 by $0.09. The company had revenue of $192.00 million during the quarter, compared to analysts’ expectations of $188.63 million. DigitalOcean had a negative return on equity of 31.71% and a net margin of 9.30%. The firm’s revenue was up 13.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.11 EPS. On average, sell-side analysts predict that DigitalOcean will post 0.86 EPS for the current fiscal year.

Analyst Ratings Changes

Several brokerages have commented on DOCN. UBS Group decreased their price objective on shares of DigitalOcean from $40.00 to $34.00 and set a “neutral” rating for the company in a research note on Friday, August 9th. Stifel Nicolaus upped their price target on shares of DigitalOcean from $32.00 to $35.00 and gave the company a “hold” rating in a report on Friday, August 9th. Barclays increased their price target on DigitalOcean from $38.00 to $48.00 and gave the stock an “overweight” rating in a research report on Friday, October 11th. Canaccord Genuity Group upped their target price on DigitalOcean from $42.00 to $48.00 and gave the stock a “buy” rating in a research note on Friday, October 4th. Finally, JPMorgan Chase & Co. lifted their price target on DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a research report on Friday, October 25th. Five investment analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target 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).