DigitalOcean (NYSE:DOCN) Updates Q1 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its first quarter 2025 earnings guidance on Tuesday. The company provided EPS guidance of 0.410-0.460 for the period, compared to the consensus EPS 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 Trading Up 12.6 %

DOCN stock traded up $4.67 during midday 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 market capitalization of $3.86 billion, a price-to-earnings ratio of 49.42, a P/E/G ratio of 3.12 and a beta of 1.81. The stock has a 50-day simple moving average of $38.64 and a 200 day simple moving average of $39.05. DigitalOcean has a 52 week low of $26.63 and a 52 week high of $47.02.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings data on Tuesday, February 25th. The company reported $0.49 EPS for the quarter, topping analysts’ consensus estimates of $0.34 by $0.15. The company had revenue of $204.90 million during the quarter, compared to the consensus estimate of $200.54 million. DigitalOcean had a net margin of 10.86% and a negative return on equity of 43.11%. The firm’s revenue for the quarter was up 13.3% compared to the same quarter last year. During the same period last year, the firm earned $0.44 EPS. On average, equities analysts forecast that DigitalOcean will post 1.01 EPS for the current year.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on DOCN shares. JMP Securities increased their target price on DigitalOcean from $47.00 to $55.00 and gave the stock a “market outperform” rating in a report on Monday, January 27th. Morgan Stanley upgraded DigitalOcean from an “equal weight” rating to an “overweight” rating and increased their price objective for the stock from $40.00 to $41.00 in a research note on Thursday, January 16th. Cantor Fitzgerald started coverage on shares of DigitalOcean in a research note on Friday, January 17th. They issued a “neutral” rating and a $39.00 target price on the stock. Needham & Company LLC reiterated a “hold” rating on shares of DigitalOcean in a research report on Tuesday, November 5th. Finally, Stifel Nicolaus boosted their price target on shares of DigitalOcean from $35.00 to $40.00 and gave the company a “hold” rating in a research report on Wednesday, December 18th. Six research analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $42.40.

Insiders Place Their Bets

In related news, CFO Matt Steinfort sold 12,498 shares of DigitalOcean stock in a transaction dated Wednesday, December 4th. The stock was 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 directly owns 517,498 shares in the company, valued at $20,699,920. This trade represents a 2.36 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Bratin Saha sold 4,289 shares of the company’s stock in a transaction dated Tuesday, January 21st. The shares were sold at an average price of $36.80, for a total transaction of $157,835.20. Following the transaction, the insider now owns 372,762 shares in the company, valued at approximately $13,717,641.60. The trade was a 1.14 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, 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).