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DigitalOcean (DOCN) Reports Q1 Earnings: What Key Metrics Have to Say

Zacks Equity Research
·2-min read

For the quarter ended March 2024, DigitalOcean Holdings, Inc. (DOCN) reported revenue of $184.73 million, up 11.9% over the same period last year. EPS came in at $0.43, compared to $0.28 in the year-ago quarter.

The reported revenue represents a surprise of +1.11% over the Zacks Consensus Estimate of $182.7 million. With the consensus EPS estimate being $0.38, the EPS surprise was +13.16%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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Here is how DigitalOcean performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net Dollar Retention Rate: 97% versus 96.9% estimated by two analysts on average.

  • Total Customers: 637,000 versus the two-analyst average estimate of 648,345.

  • Average Revenue Per Customer (ARPU): $95.13 versus the two-analyst average estimate of $93.09.

View all Key Company Metrics for DigitalOcean here>>>

Shares of DigitalOcean have returned -10.7% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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DigitalOcean Holdings, Inc. (DOCN) : Free Stock Analysis Report

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Zacks Investment Research