DigitalOcean (NASDAQ:DOCN) Releases Q2 Earnings Guidance

DigitalOcean (NASDAQ:DOCN) updated its second quarter earnings guidance on Friday. The company provided earnings per share (EPS) guidance of $0.38-$0.40 for the period, compared to the consensus estimate of $0.39. The company issued revenue guidance of $188-$189 million, compared to the consensus revenue estimate of $187.07 million. DigitalOcean also updated its FY 2024 guidance to 1.600-1.670 EPS.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. JMP Securities reissued a market outperform rating and issued a $47.00 price objective on shares of DigitalOcean in a research note on Thursday, March 21st. Oppenheimer raised their price objective on DigitalOcean from $37.00 to $46.00 and gave the company an outperform rating in a research note on Thursday, February 22nd. Finally, Piper Sandler raised their price objective on DigitalOcean from $35.00 to $38.00 and gave the company a neutral rating in a research note on Thursday, February 22nd. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and five have issued a buy rating to the company. According to MarketBeat, DigitalOcean currently has a consensus rating of Hold and a consensus price target of $36.78.

DigitalOcean Stock Up 10.2 %

NASDAQ DOCN traded up $3.33 during trading on Friday, hitting $35.91. The company’s stock had a trading volume of 4,144,274 shares, compared to its average volume of 1,826,863. DigitalOcean has a 52 week low of $19.39 and a 52 week high of $51.69. The firm has a market cap of $3.27 billion, a P/E ratio of 43.27, a price-to-earnings-growth ratio of 3.08 and a beta of 1.83. The firm has a 50 day moving average price of $36.53 and a 200 day moving average price of $34.09.

DigitalOcean (NASDAQ:DOCN) last announced its quarterly earnings data on Wednesday, February 21st. The company reported $0.31 earnings per share for the quarter, topping the consensus estimate of $0.08 by $0.23. DigitalOcean had a negative return on equity of 19.85% and a net margin of 0.12%. The company had revenue of $180.87 million for the quarter, compared to analyst estimates of $178.26 million. On average, equities analysts expect that DigitalOcean will post 0.77 earnings per share for the current year.

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).