DigitalOcean (NYSE:DOCN) Updates Q4 2024 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its fourth quarter 2024 earnings guidance on Monday. 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 Up 1.5 %

Shares of NYSE DOCN opened at $35.86 on Wednesday. The business has a fifty day simple moving average of $40.40 and a 200 day simple moving average of $36.66. The firm has a market capitalization of $3.30 billion, a price-to-earnings ratio of 49.81, a PEG ratio of 3.24 and a beta of 1.83. DigitalOcean has a one year low of $23.65 and a one year high of $44.80.

DigitalOcean (NYSE:DOCN) last issued its earnings results on Monday, November 4th. The company reported $0.52 EPS 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 negative return on equity of 31.71% and a net margin of 9.30%. DigitalOcean’s revenue was up 12.1% on a year-over-year basis. During the same period in the prior year, the company posted $0.17 earnings per share. On average, research analysts anticipate that DigitalOcean will post 0.86 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of research analysts recently commented on DOCN shares. Needham & Company LLC restated a “hold” rating on shares of DigitalOcean in a research note on Tuesday. Stifel Nicolaus upped their price target on DigitalOcean from $32.00 to $35.00 and gave the company a “hold” rating in a research report on Friday, August 9th. Canaccord Genuity Group upped their price target on DigitalOcean from $42.00 to $48.00 and gave the company a “buy” rating in a research report on Friday, October 4th. Piper Sandler lowered their price target 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, JPMorgan Chase & Co. upped 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 research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. According to MarketBeat, the company presently has a consensus 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).