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DigitalOcean Holdings (DOCN)
NYSE:DOCN
Earnings Data
Report Date
May 01, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
0.44Last Year’s EPS
0.43Same Quarter Last Year
Moderate Buy
Based on 13 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Feb 25, 2025
|% Change Since: 15.28%
|Next Earnings Date:May 01, 2025
Earnings Call Sentiment|Positive
The earnings call depicted a strong performance by DigitalOcean in Q4 2024, with significant revenue growth and improvements in net dollar retention. The company's strategic focus on product innovation and AI/ML platform success was highlighted as key drivers for future growth. Despite initial gross margin impacts due to new data center investments, profitability remained strong. The overall sentiment is positive, driven by growth achievements and strategic progress.Company Guidance
In the recent earnings call for DigitalOcean's fourth quarter and full year 2024, the company reported strong financial performance and provided guidance for 2025. Key metrics included a revenue growth of 13% year-over-year in Q4, reaching $205 million, with a net dollar retention (NDR) improving to 99% from 96% in the previous year. The company also highlighted the growth of their Scalers+ customer cohort, which increased by 17% year-over-year and accounted for 22% of total revenue, with a 37% increase in revenue from these customers. DigitalOcean's AI/ML platform exceeded expectations, contributing over 160% ARR growth in Q4. The company maintained healthy profitability, delivering 42% adjusted EBITDA margins both for Q4 and the full year. Looking ahead, DigitalOcean's 2025 guidance projects full-year revenue growth in the low to mid-teens and free cash flow margins above 15% to 17%, driven by both customer acquisition and expansion efforts, alongside ongoing investments in key growth initiatives such as their AI/ML platform and new data center in Atlanta.Record Revenue Growth in Q4 2024
Revenue growth accelerated in the fourth quarter to 13% year-over-year, reaching $205 million. Annual run rate revenue (ARR) reached $820 million, showing an increase in incremental ARR from $24 million in Q3 to $26 million in Q4.
Net Dollar Retention Improvement
Net dollar retention (NDR) improved to 99% in Q4 2024, up from 96% in Q4 of the prior year. The NDR for traditional cloud services reached 100% for the first time since June 2023.
Strong Growth in Scalers+ Cohort
The Scalers+ customer cohort, representing 22% of overall revenue, grew 37% year-over-year. The number of Scalers+ customers increased by 17% year-over-year, with a revenue increase of 37%.
AI/ML Platform Success
AI/ML platform exceeded expectations with Q4 showing over 160% ARR growth. AI-related solutions contributed significantly to revenue growth.
Profitability and Cash Flow
Adjusted EBITDA margin was healthy at 42% for both Q4 and the full year, with adjusted free cash flow margin at 18% for Q4.
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DOCN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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DOCN Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Feb 25, 2025 | $37.17 | $40.83 | +9.85% |
| Nov 04, 2024 | $40.83 | $35.33 | -13.47% |
| Aug 08, 2024 | $29.10 | $32.57 | +11.92% |
| May 10, 2024 | $32.58 | $35.91 | +10.22% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does DigitalOcean Holdings (DOCN) report earnings?
DigitalOcean Holdings (DOCN) is schdueled to report earning on May 01, 2025, TBA Not Confirmed.
What is DigitalOcean Holdings (DOCN) earnings time?
DigitalOcean Holdings (DOCN) earnings time is at May 01, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is DOCN EPS forecast?
DOCN EPS forecast for the fiscal quarter 2025 (Q1) is 0.44.
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