DigitalOcean (NYSE:DOCN) Releases FY25 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its FY25 earnings guidance on Tuesday. The company provided earnings per share guidance of $1.85-1.95 for the period, compared to the consensus earnings per share estimate of $1.84. The company issued revenue guidance of $870-890 million, compared to the consensus revenue estimate of $877.68 million. DigitalOcean also updated its FY 2025 guidance to 1.850-1.950 EPS.

Analyst Ratings Changes

DOCN has been the subject of several recent research reports. Citigroup assumed coverage on DigitalOcean in a report on Friday, January 24th. They set a “buy” rating and a $45.00 price target for the company. JMP Securities lifted their target price 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. Cantor Fitzgerald initiated coverage on shares of DigitalOcean in a research report on Friday, January 17th. They issued a “neutral” rating and a $39.00 price objective for the company. Needham & Company LLC reiterated a “hold” rating on shares of DigitalOcean in a research report on Tuesday, November 5th. Finally, Stifel Nicolaus lifted their price target on DigitalOcean from $35.00 to $40.00 and gave the company a “hold” rating in a research note on Wednesday, December 18th. Six equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $42.40.

DigitalOcean Stock Up 13.6 %

Shares of DOCN traded up $5.05 on Tuesday, reaching $42.22. The stock had a trading volume of 2,224,734 shares, compared to its average volume of 1,234,331. The firm has a 50-day moving average of $38.64 and a 200 day moving average of $39.05. The firm has a market capitalization of $3.90 billion, a PE ratio of 49.37, a PEG ratio of 3.12 and a beta of 1.81. DigitalOcean has a twelve month low of $26.63 and a twelve month high of $47.02.

DigitalOcean (NYSE:DOCN) last posted its earnings results on Tuesday, February 25th. The company reported $0.49 earnings per share for the quarter, beating the consensus estimate of $0.35 by $0.14. The company 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%. DigitalOcean’s revenue was up 13.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.44 earnings per share. On average, sell-side analysts anticipate that DigitalOcean will post 1.01 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Matt Steinfort sold 12,498 shares of the company’s stock in a transaction that occurred on Wednesday, December 4th. The shares were sold at an average price of $40.00, for a total transaction of $499,920.00. Following the transaction, the chief financial officer now owns 517,498 shares of the company’s stock, valued at approximately $20,699,920. This represents a 2.36 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Bratin Saha sold 4,289 shares of DigitalOcean stock in a transaction that occurred on Tuesday, January 21st. The stock was sold at an average price of $36.80, for a total transaction of $157,835.20. Following the completion of the sale, the insider now directly owns 372,762 shares of the company’s stock, valued at $13,717,641.60. The trade was a 1.14 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 20,255 shares of company stock valued at $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).