DigitalOcean (NYSE:DOCN) Updates FY25 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its FY25 earnings guidance on Tuesday morning. 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.

DigitalOcean Price Performance

NYSE:DOCN traded up $5.05 during trading hours on Tuesday, reaching $42.22. 2,224,734 shares of the company were exchanged, compared to its average volume of 1,234,331. The firm has a market cap of $3.90 billion, a price-to-earnings ratio of 49.37, a PEG ratio of 3.12 and a beta of 1.81. The stock has a 50 day simple moving average of $38.64 and a 200 day simple moving average of $39.05. DigitalOcean has a 52-week low of $26.63 and a 52-week high of $47.02.

DigitalOcean (NYSE:DOCN) last issued its earnings results on Tuesday, February 25th. The company reported $0.49 earnings per share for the quarter, topping the consensus estimate of $0.35 by $0.14. DigitalOcean had a negative return on equity of 43.11% and a net margin of 10.86%. The business had revenue of $204.90 million for the quarter, compared to analyst estimates of $200.54 million. During the same period last year, the company posted $0.44 EPS. The business’s quarterly revenue was up 13.3% on a year-over-year basis. On average, analysts predict that DigitalOcean will post 1.01 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

DOCN has been the subject of a number of research analyst reports. Citigroup started coverage on shares of DigitalOcean in a research report on Friday, January 24th. They set a “buy” rating and a $45.00 target price for the company. Needham & Company LLC reissued a “hold” rating on shares of DigitalOcean in a research report on Tuesday, November 5th. Morgan Stanley raised shares of DigitalOcean from an “equal weight” rating to an “overweight” rating and raised their target price for the company from $40.00 to $41.00 in a research note on Thursday, January 16th. Stifel Nicolaus upped their price target on shares of DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a research report on Wednesday, December 18th. Finally, Cantor Fitzgerald initiated coverage on DigitalOcean in a report on Friday, January 17th. They issued a “neutral” rating and a $39.00 price target for the company. Six research analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat.com, DigitalOcean currently has a consensus rating of “Hold” and a consensus target price of $42.40.

Insiders Place Their Bets

In other DigitalOcean news, CFO Matt Steinfort sold 12,498 shares of DigitalOcean stock in a transaction that occurred on Wednesday, December 4th. The stock was sold at an average price of $40.00, for a total transaction 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Bratin Saha sold 3,468 shares of the company’s stock in a transaction that occurred on Wednesday, December 18th. The shares were 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 directly owns 379,795 shares in the company, valued at approximately $14,500,573.10. The trade was a 0.90 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 20,255 shares of company stock worth $790,163 in the last quarter. 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).