DigitalOcean (NYSE:DOCN) Issues Q1 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its first quarter 2025 earnings guidance on Tuesday. The company provided earnings per share guidance of 0.410-0.460 for the period, compared to the consensus earnings per share 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 14.7 %

Shares of DOCN traded up $5.45 during mid-day trading on Tuesday, hitting $42.62. 977,750 shares of the company traded hands, compared to its average volume of 1,199,800. The business has a 50 day moving average of $38.64 and a 200 day moving average of $39.05. The company has a market capitalization of $3.93 billion, a PE ratio of 49.53, a price-to-earnings-growth ratio of 3.12 and a beta of 1.81. DigitalOcean has a 1-year low of $26.63 and a 1-year high of $47.02.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings results on Tuesday, February 25th. The company reported $0.49 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.34 by $0.15. The business had revenue of $204.90 million during the quarter, compared to analysts’ expectations of $200.54 million. DigitalOcean had a net margin of 10.86% and a negative return on equity of 43.11%. The business’s quarterly revenue was up 13.3% on a year-over-year basis. During the same quarter last year, the company posted $0.44 earnings per share. As a group, research analysts expect that DigitalOcean will post 1.01 EPS for the current fiscal year.

Analysts Set New Price Targets

Several brokerages have recently issued reports on DOCN. Citigroup assumed coverage on DigitalOcean in a report on Friday, January 24th. They set a “buy” rating and a $45.00 target price for the company. Morgan Stanley upgraded shares of DigitalOcean from an “equal weight” rating to an “overweight” rating and lifted their price objective for the company from $40.00 to $41.00 in a research note on Thursday, January 16th. JMP Securities increased 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. Needham & Company LLC reissued a “hold” rating on shares of DigitalOcean in a report on Tuesday, November 5th. Finally, 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 on the stock. Six analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $42.40.

Insider Activity at DigitalOcean

In other DigitalOcean news, insider Bratin Saha sold 4,289 shares of the firm’s stock in a transaction on Tuesday, January 21st. The stock was sold at an average price of $36.80, for a total value of $157,835.20. Following the transaction, the insider now owns 372,762 shares in the company, valued at approximately $13,717,641.60. This trade represents a 1.14 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Matt Steinfort sold 12,498 shares of DigitalOcean stock in a transaction 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 approximately $20,699,920. This trade represents a 2.36 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 20,255 shares of company stock worth $790,163. 0.74% of the stock is owned by company insiders.

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).