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.
DigitalOcean (DOCN - Free Report) recently introduced scalable storage for DigitalOcean PostgreSQL and MySQL Managed Databases.
The new offerings will empower businesses of all sizes to tailor their data resources precisely to their needs, avoiding the inefficiencies of underutilized cloud resources and optimizing budget allocation.
DigitalOcean's scalable storage, priced at just $2/month for 10 GB increments, offers precise storage matching to real-time demand. With a storage capacity of 15 TB, it ensures database readiness for demanding production workloads. Robust monitoring optimizes costs by scaling resources when needed and ensures optimal performance and cost efficiency for startups and small and medium-size businesses (SMBs).
Expanding Portfolio Aids Prospect
DigitalOcean’s shares have declined 12.1% year to date, underperforming the Zacks Computer and Technology sector’s growth of 32%. The underperformance can be attributed to the intensifying competition in the cloud infrastructure market.
DigitalOcean’s expanding portfolio is expected to help it recover in the rest of 2023. The company recently expanded its offerings with Managed Kafka, a streamlined Apache Kafka service, catering to SMBs with scalability, security, and budget-friendly pricing, expanding its offerings for small and medium-sized businesses.
DigitalOcean's acquisition of Paperspace enhances its cloud offerings, making graphic processing unit (GPU)-powered artificial intelligence and machine learning (AI/ML) capabilities for small and medium-sized businesses (SMBs) and startups, streamlining AI/ML experimentation and production across a range of applications.
It is benefiting from an expanding clientele. Builders and Scalers (accounted for 86% of revenues), representing customers spending more than $50 per month, witnessed an impressive 42% year-over-year growth in the second quarter of 2023.
DigitalOcean added more than 3,600 builders and scalers in the second quarter compared with approximately 2,300 it added in the first quarter of 2023.
This surge in Builders and Scalers clientele played a pivotal role in achieving a remarkable 28% year-over-year growth in revenues. Average Revenue Per Customer (ARPU) was $90.84, reflecting a 14% increase.
For the third quarter of fiscal 2023, DigitalOcean expects total revenues between $172.5 million and $174 million. The Zacks Consensus Estimate for the third quarter is currently pegged at $173.51 million, suggesting a year-over-year growth of 14.06%.
For fiscal 2023, DOCN anticipates total revenues between $680 million and $685 million.
Image: Bigstock
DigitalOcean's (DOCN) Expandable Storage Boosts Efficiency
DigitalOcean (DOCN - Free Report) recently introduced scalable storage for DigitalOcean PostgreSQL and MySQL Managed Databases.
The new offerings will empower businesses of all sizes to tailor their data resources precisely to their needs, avoiding the inefficiencies of underutilized cloud resources and optimizing budget allocation.
DigitalOcean's scalable storage, priced at just $2/month for 10 GB increments, offers precise storage matching to real-time demand. With a storage capacity of 15 TB, it ensures database readiness for demanding production workloads. Robust monitoring optimizes costs by scaling resources when needed and ensures optimal performance and cost efficiency for startups and small and medium-size businesses (SMBs).
Expanding Portfolio Aids Prospect
DigitalOcean’s shares have declined 12.1% year to date, underperforming the Zacks Computer and Technology sector’s growth of 32%. The underperformance can be attributed to the intensifying competition in the cloud infrastructure market.
DigitalOcean Holdings, Inc. Price and Consensus
DigitalOcean Holdings, Inc. price-consensus-chart | DigitalOcean Holdings, Inc. Quote
DigitalOcean’s expanding portfolio is expected to help it recover in the rest of 2023. The company recently expanded its offerings with Managed Kafka, a streamlined Apache Kafka service, catering to SMBs with scalability, security, and budget-friendly pricing, expanding its offerings for small and medium-sized businesses.
DigitalOcean's acquisition of Paperspace enhances its cloud offerings, making graphic processing unit (GPU)-powered artificial intelligence and machine learning (AI/ML) capabilities for small and medium-sized businesses (SMBs) and startups, streamlining AI/ML experimentation and production across a range of applications.
It is benefiting from an expanding clientele. Builders and Scalers (accounted for 86% of revenues), representing customers spending more than $50 per month, witnessed an impressive 42% year-over-year growth in the second quarter of 2023.
DigitalOcean added more than 3,600 builders and scalers in the second quarter compared with approximately 2,300 it added in the first quarter of 2023.
This surge in Builders and Scalers clientele played a pivotal role in achieving a remarkable 28% year-over-year growth in revenues. Average Revenue Per Customer (ARPU) was $90.84, reflecting a 14% increase.
For the third quarter of fiscal 2023, DigitalOcean expects total revenues between $172.5 million and $174 million. The Zacks Consensus Estimate for the third quarter is currently pegged at $173.51 million, suggesting a year-over-year growth of 14.06%.
For fiscal 2023, DOCN anticipates total revenues between $680 million and $685 million.
Zacks Rank & Stocks to Consider
Currently, DOCN carries a Zacks Rank #4 (Sell).
Dell Technologies (DELL - Free Report) , NVIDIA (NVDA - Free Report) and Splunk are some better-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DELL, NVDA and SPLK shares have returned 67.1%, 201% and 70.3%, respectively, year-to-date.
Long-term earnings growth rates for Dell Technologies, NVIDIA and SPLUNK are pegged at 12%,13.5% and 29.55%, respectively.