DigitalOcean (NYSE:DOCN) Releases Q1 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its first quarter 2025 earnings guidance on Tuesday. The company provided EPS guidance of 0.410-0.460 for the period, compared to the consensus EPS 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 Stock Up 12.6 %

NYSE DOCN traded up $4.67 on Tuesday, reaching $41.84. The company had a trading volume of 2,655,444 shares, compared to its average volume of 1,245,432. DigitalOcean has a 52 week low of $26.63 and a 52 week high of $47.02. The stock has a market cap of $3.86 billion, a price-to-earnings ratio of 49.42, a PEG ratio of 3.12 and a beta of 1.81. The stock’s 50 day moving average is $38.64 and its 200-day 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 analysts’ consensus estimates of $0.34 by $0.15. The company had revenue of $204.90 million during the quarter, compared to analysts’ expectations of $200.54 million. DigitalOcean had a negative return on equity of 43.11% and a net margin of 10.86%. DigitalOcean’s revenue was up 13.3% on a year-over-year basis. During the same period in the prior year, the business posted $0.44 EPS. As a group, analysts forecast that DigitalOcean will post 1.01 EPS for the current year.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. Cantor Fitzgerald assumed coverage on shares of DigitalOcean in a report on Friday, January 17th. They issued a “neutral” rating and a $39.00 price target for the company. Stifel Nicolaus increased their price target on DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a report on Wednesday, December 18th. Citigroup assumed coverage on DigitalOcean in a report on Friday, January 24th. They issued a “buy” rating and a $45.00 price target for the company. Morgan Stanley raised DigitalOcean from an “equal weight” rating to an “overweight” rating and increased their target price for the stock from $40.00 to $41.00 in a research note on Thursday, January 16th. Finally, JMP Securities upped their price target on shares of DigitalOcean from $47.00 to $55.00 and gave the company a “market outperform” rating in a report on Monday, January 27th. Six investment analysts have rated the stock with a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $42.40.

Insider Transactions at DigitalOcean

In other news, insider Bratin Saha sold 3,468 shares of the firm’s stock in a transaction dated Wednesday, December 18th. The stock was 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 $14,500,573.10. This trade represents a 0.90 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, 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 value of $499,920.00. Following the sale, the chief financial officer now owns 517,498 shares in the company, valued at $20,699,920. The trade was a 2.36 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 20,255 shares of company stock valued at $790,163 over the last 90 days. 0.74% of the stock is owned by corporate insiders.

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).