DigitalOcean (NYSE:DOCN) Updates FY 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its FY 2025 earnings guidance on Tuesday. The company provided EPS guidance of 1.850-1.950 for the period, compared to the consensus EPS estimate of 1.840. The company issued revenue guidance of $870.0 million-$890.0 million, compared to the consensus revenue estimate of $877.7 million. DigitalOcean also updated its FY25 guidance to $1.85-1.95 EPS.

Analyst Upgrades and Downgrades

DOCN has been the subject of several research reports. Stifel Nicolaus lifted 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. Morgan Stanley raised DigitalOcean from an “equal weight” rating to an “overweight” rating and lifted their target price for the stock from $40.00 to $41.00 in a report on Thursday, January 16th. Cantor Fitzgerald initiated coverage on shares of DigitalOcean in a research note on Friday, January 17th. They issued a “neutral” rating and a $39.00 price target on the stock. JMP Securities lifted their price objective on shares of DigitalOcean from $47.00 to $55.00 and gave the stock a “market outperform” rating in a research note on Monday, January 27th. Finally, Needham & Company LLC restated a “hold” rating on shares of DigitalOcean in a research report on Tuesday, November 5th. Six analysts have rated the stock with a hold rating and five have given a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $42.40.

DigitalOcean Stock Up 14.7 %

Shares of DOCN traded up $5.45 during midday trading on Tuesday, hitting $42.62. The company’s stock had a trading volume of 977,750 shares, compared to its average volume of 1,199,800. DigitalOcean has a one year low of $26.63 and a one year high of $47.02. The stock has a market capitalization of $3.93 billion, a price-to-earnings ratio of 49.53, a price-to-earnings-growth ratio of 3.12 and a beta of 1.81. The company’s fifty day simple moving average is $38.64 and its two-hundred day simple moving average is $39.05.

DigitalOcean (NYSE:DOCN) last released its earnings results on Tuesday, February 25th. The company reported $0.49 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.34 by $0.15. The firm had revenue of $204.90 million for 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%. The business’s revenue for the quarter was up 13.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.44 earnings per share. On average, research analysts predict that DigitalOcean will post 1.01 earnings per share for the current year.

Insider Activity at DigitalOcean

In other DigitalOcean news, insider Bratin Saha sold 4,289 shares of the company’s stock in a transaction dated Tuesday, January 21st. The stock was sold at an average price of $36.80, for a total value of $157,835.20. Following the completion of the transaction, the insider now owns 372,762 shares of the company’s stock, valued at $13,717,641.60. This represents a 1.14 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Matt Steinfort sold 12,498 shares of DigitalOcean stock in a transaction dated Wednesday, December 4th. The shares were sold at an average price of $40.00, for a total value of $499,920.00. Following the sale, the chief financial officer now directly owns 517,498 shares in the company, valued at $20,699,920. The trade was a 2.36 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 20,255 shares of company stock valued at $790,163 in the last quarter. Insiders own 0.74% of the company’s stock.

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).