DigitalOcean (NYSE:DOCN) Updates FY 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its FY 2025 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 1.850-1.950 for the period, compared to the consensus 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.

DigitalOcean Trading Up 12.6 %

DOCN stock traded up $4.67 during mid-day trading on Tuesday, hitting $41.84. The stock had a trading volume of 2,655,444 shares, compared to its average volume of 1,245,432. The firm has a fifty day simple moving average of $38.64 and a 200 day simple moving average of $39.05. The firm has a market capitalization of $3.86 billion, a P/E ratio of 49.42, a P/E/G ratio of 3.12 and a beta of 1.81. DigitalOcean has a 52 week low of $26.63 and a 52 week high of $47.02.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings data 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. DigitalOcean had a net margin of 10.86% and a negative return on equity of 43.11%. The business had revenue of $204.90 million for the quarter, compared to analysts’ expectations of $200.54 million. During the same period last year, the firm posted $0.44 earnings per share. The firm’s quarterly revenue was up 13.3% compared to the same quarter last year. As a group, equities analysts expect that DigitalOcean will post 1.01 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the company. JMP Securities upped their price objective on DigitalOcean from $47.00 to $55.00 and gave the stock a “market outperform” rating in a research report on Monday, January 27th. Morgan Stanley upgraded shares of DigitalOcean from an “equal weight” rating to an “overweight” rating and raised their price target for the company from $40.00 to $41.00 in a research note on Thursday, January 16th. Needham & Company LLC reaffirmed a “hold” rating on shares of DigitalOcean in a report on Tuesday, November 5th. Citigroup started coverage on shares of DigitalOcean in a research note on Friday, January 24th. They issued a “buy” rating and a $45.00 price objective for the company. Finally, Cantor Fitzgerald began coverage on shares of DigitalOcean in a research note on Friday, January 17th. They set a “neutral” rating and a $39.00 target price on the stock. Six analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $42.40.

Insider Activity

In other news, insider Bratin Saha sold 4,289 shares of the firm’s stock in a transaction dated 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 transaction, the insider now directly owns 372,762 shares in the company, valued at $13,717,641.60. This trade represents a 1.14 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, 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 value of $499,920.00. Following the completion of the sale, the chief financial officer now 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. Over the last 90 days, insiders sold 20,255 shares of company stock valued at $790,163. 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).