DigitalOcean (NASDAQ:DOCN) Issues FY24 Earnings Guidance

DigitalOcean (NASDAQ:DOCN) issued an update on its FY24 earnings guidance on Friday morning. The company provided earnings per share guidance of $1.60-$1.67 for the period, compared to the consensus earnings per share estimate of $1.64. The company issued revenue guidance of $760-$775 million, compared to the consensus revenue estimate of $766.79 million. DigitalOcean also updated its Q2 guidance to $0.38-$0.40 EPS.

DigitalOcean Stock Performance

DOCN stock opened at $32.58 on Friday. DigitalOcean has a fifty-two week low of $19.39 and a fifty-two week high of $51.69. The company has a market capitalization of $2.97 billion, a price-to-earnings ratio of 3,260.76, a price-to-earnings-growth ratio of 2.94 and a beta of 1.83. The business’s 50 day moving average price is $36.68 and its two-hundred day moving average price is $33.91.

DigitalOcean (NASDAQ:DOCN) last announced its earnings results on Wednesday, February 21st. The company reported $0.31 EPS for the quarter, beating analysts’ consensus estimates of $0.08 by $0.23. DigitalOcean had a net margin of 0.12% and a negative return on equity of 19.85%. The firm had revenue of $180.87 million for the quarter, compared to analysts’ expectations of $178.26 million. Sell-side analysts forecast that DigitalOcean will post 0.77 earnings per share for the current year.

Analyst Ratings Changes

DOCN has been the topic of a number of recent research reports. Barclays increased their target price on DigitalOcean from $37.00 to $43.00 and gave the stock an overweight rating in a research note on Friday, January 12th. Oppenheimer increased their price target on shares of DigitalOcean from $37.00 to $46.00 and gave the company an outperform rating in a report on Thursday, February 22nd. JMP Securities restated a market outperform rating and issued a $47.00 price objective on shares of DigitalOcean in a report on Thursday, March 21st. Finally, Piper Sandler boosted their price target on DigitalOcean from $35.00 to $38.00 and gave the stock a neutral rating in a research note on Thursday, February 22nd. One analyst has rated the stock with a sell rating, three have assigned a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat, the stock has an average rating of Hold and a consensus price target of $36.78.

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).