DOCN Earnings Prediction
The chart below shows how DOCN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DOCN sees a +2.43% change in stock price 10 days leading up to the earnings, and a +4.03% change 10 days following the report. On the earnings day itself, the stock moves by +3.44%. This data can give you a slight idea of what to expect for the next quarter's release.
DOCN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
198.48M
12.10%
3.12%
Gross Margin
60.18%
-0.17%
-1.28%
Operating Margin
14.09%
51.34%
1.88%
Net Margin
16.60%
53.28%
67.00%
EPS
0.32
68.42%
60.00%
No Data Available
DOCN Earnings Analysis
DigitalOcean Holdings, Inc. Corporation (DOCN.N) Earnings Conference Call
Positive
Steady Revenue Growth: Revenue growth remained steady in the third quarter at 12% year-over-year with solid performance in core cloud and continued growth in AI.
AIML Product Demand Surge: We continue to see momentum in demand for our AIML products, where Q3 ARR again grew close to 200% year-over-year.
Customer Growth Contributions: We saw revenue growth contributions from new customers and steady growth from core business as we continue to enhance our customer success and go-to-market motions.
Revenue Guidance Increase: Having delivered strong results through the first three quarters, we are increasing the lower end of our fully year revenue guide by $5 million and the top end by $2 million.
Strong EBITDA Margins: We also delivered strong adjusted EBITDA margins at 44% and have maintained our fully year free cash flow margin guidance as we continue to manage costs effectively while still investing to accelerate product innovation in cloud and AI.
Negative
Steady Revenue Growth: Revenue growth remained steady in the third quarter at 12% year-over-year with solid performance in core cloud and continued growth in AI, despite lapping difficult comps from our managed hosting price increase in April 2023 and from the Paperspace acquisition in July 2023.
AIML Product Demand Surge: We continue to see momentum in demand for our AIML products, where Q3 ARR again grew close to 200% year-over-year.
Revenue Guidance Update: We are increasing the lower end of our fully year revenue guide by $5 million and the top end by $2 million.
Strong EBITDA Margins: We are also delivering strong adjusted EBITDA margins at 44% and have maintained our fully year free cash flow margin guidance as we continue to manage costs effectively while still investing to accelerate product innovation in cloud and AI.
Net Dollar Retention Stability: Our Q3 net dollar retention rate was steady at 97%, but we continue to see consistent but below historical net expansion levels, while our churn levels have remained low for well over a year.
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DOCN Earning Call Sentiment
DigitalOcean Holdings, Inc. (DOCN) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
DOCN.N
-5.83%Positive
The earnings call reveals strong financial performance with 12% revenue growth, increased EBITDA margins, and significant AI platform growth. The Q&A highlights confidence in future growth, especially in AI/ML and managed hosting. The share repurchase program and strong cash position further support a positive outlook. Concerns about core business weakness and unclear management responses on margins are noted, but overall sentiment remains positive given robust financial metrics and optimistic guidance. Considering the market cap, a 2% to 8% stock price increase is likely.
