We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
For the second quarter, DigitalOcean anticipates revenues between $169.5 million and $170.5 million. The Zacks Consensus Estimate for quarterly revenues stands at $169.82 million, suggesting growth of 26.85% year over year.
The company projects earnings in the range of 40 cents to 41 cents. The consensus mark for second-quarter earnings remained unchanged over the past 30 days at 40 cents per share, suggesting growth of 100% year over year.
DOCN beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 52.29%.
DigitalOcean Holdings, Inc. Price and EPS Surprise
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
DigitalOcean’s second-quarter performance will likely reflect the benefits of a robust product portfolio and strong demand for its IaaS, PaaS and SaaS offerings.
DigitalOcean has been riding on strong customer growth and the Cloudways acquisition. It has been deriving synergies through continued investments in Cloudways managed hosting capabilities and addition of new product capabilities. This is likely to have driven its second-quarter top line.
The company’s second-quarter top line is likely to reflect benefits from enabling sustained growth for Builders and Scalers, courtesy of recent investments to expand its product capabilities. DOCN expects to enhance its storage offerings to meet the needs of its Builder and Scaler customers. This is likely to have helped with customer acquisition and propelled ARPU growth.
DigitalOcean’s approach towards go-to-market and product monetization initiatives might have contributed to the to-be-reported quarter’s performance. Its differentiated offerings and customer loyalty are expected to have maintained the churn rate despite a challenging macro environment.
DigitalOcean may have gained from the introduction of GPU and AI/ML offerings and data center expansion to meet the growing customer demand. These factors would complement its existing capabilities, widening its total addressable market in the to-be-reported quarter.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s exactly the case here.
DigitalOcean has an Earnings ESP of +4.03% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:
Image: Bigstock
DigitalOcean (DOCN) to Post Q2 Earnings: What's in Store?
DigitalOcean (DOCN - Free Report) is scheduled to report second-quarter 2023 results on Aug 3.
For the second quarter, DigitalOcean anticipates revenues between $169.5 million and $170.5 million. The Zacks Consensus Estimate for quarterly revenues stands at $169.82 million, suggesting growth of 26.85% year over year.
The company projects earnings in the range of 40 cents to 41 cents. The consensus mark for second-quarter earnings remained unchanged over the past 30 days at 40 cents per share, suggesting growth of 100% year over year.
DOCN beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 52.29%.
DigitalOcean Holdings, Inc. Price and EPS Surprise
DigitalOcean Holdings, Inc. price-eps-surprise | DigitalOcean Holdings, Inc. Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
DigitalOcean’s second-quarter performance will likely reflect the benefits of a robust product portfolio and strong demand for its IaaS, PaaS and SaaS offerings.
DigitalOcean has been riding on strong customer growth and the Cloudways acquisition. It has been deriving synergies through continued investments in Cloudways managed hosting capabilities and addition of new product capabilities. This is likely to have driven its second-quarter top line.
The company’s second-quarter top line is likely to reflect benefits from enabling sustained growth for Builders and Scalers, courtesy of recent investments to expand its product capabilities. DOCN expects to enhance its storage offerings to meet the needs of its Builder and Scaler customers. This is likely to have helped with customer acquisition and propelled ARPU growth.
DigitalOcean’s approach towards go-to-market and product monetization initiatives might have contributed to the to-be-reported quarter’s performance. Its differentiated offerings and customer loyalty are expected to have maintained the churn rate despite a challenging macro environment.
DigitalOcean may have gained from the introduction of GPU and AI/ML offerings and data center expansion to meet the growing customer demand. These factors would complement its existing capabilities, widening its total addressable market in the to-be-reported quarter.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s exactly the case here.
DigitalOcean has an Earnings ESP of +4.03% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:
Perion Network (PERI - Free Report) has an Earnings ESP of +5.14% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
PERI’s shares have gained 44.6% year-to-date. Perion Network is set to report its second-quarter 2023 results on Aug 2.
Sabre (SABR - Free Report) has an Earnings ESP of +13.04% and a Zacks Rank of 3 at present.
Sabre’s shares have lost 33.6% year to date. SABR is set to report its second-quarter 2023 results on Aug 3.
Etsy (ETSY - Free Report) has an Earnings ESP of +2.82% and a Zacks Rank #3.
Etsy’s shares have declined 15.1% year to date. ETSY is set to report second-quarter 2023 results on Aug 2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.