DigitalOcean (NASDAQ:DOCN) Issues Q3 2024 Earnings Guidance

DigitalOcean (NASDAQ:DOCN) issued an update on its third quarter 2024 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 0.390-0.410 for the period, compared to the consensus estimate of 0.410. The company issued revenue guidance of $196.0 million-$197.0 million, compared to the consensus revenue estimate of $195.2 million. DigitalOcean also updated its FY 2024 guidance to 1.600-1.700 EPS.

DigitalOcean Trading Up 11.9 %

Shares of DOCN traded up $3.47 during trading hours on Friday, reaching $32.57. The company had a trading volume of 5,162,423 shares, compared to its average volume of 1,272,406. DigitalOcean has a 12-month low of $19.39 and a 12-month high of $41.58. The firm has a 50 day simple moving average of $33.59 and a 200-day simple moving average of $35.62. The company has a market capitalization of $2.97 billion, a price-to-earnings ratio of 61.45, a PEG ratio of 3.01 and a beta of 1.81.

DigitalOcean (NASDAQ:DOCN) last released its quarterly earnings results on Friday, May 10th. The company reported $0.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.18 by $0.06. DigitalOcean had a negative return on equity of 26.29% and a net margin of 7.01%. The business had revenue of $184.73 million during the quarter, compared to the consensus estimate of $182.70 million. Sell-side analysts forecast that DigitalOcean will post 0.78 earnings per share for the current year.

Wall Street Analyst Weigh In

Several brokerages have commented on DOCN. Piper Sandler dropped their price target on DigitalOcean from $38.00 to $34.00 and set a neutral rating for the company in a research note on Monday, July 15th. Needham & Company LLC reiterated a hold rating on shares of DigitalOcean in a research note on Monday, May 13th. Barclays decreased their price target on shares of DigitalOcean from $43.00 to $38.00 and set an overweight rating for the company in a research report on Friday. Canaccord Genuity Group boosted their price objective on DigitalOcean from $41.00 to $42.00 and gave the stock a buy rating in a research note on Monday, May 13th. Finally, Stifel Nicolaus increased their target price on DigitalOcean from $32.00 to $35.00 and gave the company a hold rating in a research note on Friday. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and five have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of Hold and a consensus price target of $36.40.

Insider Buying and Selling

In other DigitalOcean news, Director Amy Butte sold 5,220 shares of the company’s stock in a transaction dated Friday, June 7th. The shares were sold at an average price of $37.46, for a total value of $195,541.20. Following the completion of the transaction, the director now owns 36,417 shares in the company, valued at approximately $1,364,180.82. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 0.74% of the stock is owned by company 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).