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For the first quarter, DigitalOcean anticipates revenues between $182 million and $183 million.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $182.7 million, suggesting growth of 10.64% year over year.
The company projects earnings in the range of 37-39 cents. The consensus mark for first-quarter earnings remained unchanged in the past 30 days at 38 cents per share, suggesting growth of 35.71% year over year.
DigitalOcean Holdings, Inc. Price and EPS Surprise
DOCN beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 11.92%.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
DigitalOcean’s first-quarter performance is likely to have been driven by the benefits of a robust product portfolio and strong demand for its IaaS and PaaS offerings.
DOCN’s growing efforts to enhance its platform with features like global load balancing, data resiliency, identity and access management and storage enhancements are expected to have been tailwinds for the company.
Growing investments in network and infrastructure aimed at improving performance, reducing latency, and increasing speed to make its platform more appealing to customers and facilitate workload migration from other providers are expected to have contributed well in the to-be-reported quarter.
DigitalOcean’benefits from growing demand for AI-related services on the back of its recent integration of Paperspace's AI/ML capabilities. This is expected to have bolstered DOCN’s revenue growth during the quarter under review.
Expanding managed services to cater to customers seeking robust scaling capabilities reflects DigitalOcean's commitment to providing help and tailored experiences. The recent introduction of Autonomous, a new cloud-based offering, which demonstrates this commitment, is likely to have driven growth in the quarter under review.
The launch of a new Managed Kafka in the fourth quarter provided customers with a fully managed data streaming platform as a service, simplifying operational complexities while enabling real-time data stream access and processing. This offering is expected to have contributed to DOCN’s revenue growth 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. But that’s not the case here.
DigitalOcean has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Image: Bigstock
DigitalOcean (DOCN) to Post Q1 Earnings: What's in Store?
DigitalOcean (DOCN - Free Report) is scheduled to report first-quarter 2024 results on May 10.
For the first quarter, DigitalOcean anticipates revenues between $182 million and $183 million.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $182.7 million, suggesting growth of 10.64% year over year.
The company projects earnings in the range of 37-39 cents. The consensus mark for first-quarter earnings remained unchanged in the past 30 days at 38 cents per share, suggesting growth of 35.71% year over year.
DigitalOcean Holdings, Inc. Price and EPS Surprise
DigitalOcean Holdings, Inc. price-eps-surprise | DigitalOcean Holdings, Inc. Quote
DOCN beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 11.92%.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
DigitalOcean’s first-quarter performance is likely to have been driven by the benefits of a robust product portfolio and strong demand for its IaaS and PaaS offerings.
DOCN’s growing efforts to enhance its platform with features like global load balancing, data resiliency, identity and access management and storage enhancements are expected to have been tailwinds for the company.
Growing investments in network and infrastructure aimed at improving performance, reducing latency, and increasing speed to make its platform more appealing to customers and facilitate workload migration from other providers are expected to have contributed well in the to-be-reported quarter.
DigitalOcean’benefits from growing demand for AI-related services on the back of its recent integration of Paperspace's AI/ML capabilities. This is expected to have bolstered DOCN’s revenue growth during the quarter under review.
Expanding managed services to cater to customers seeking robust scaling capabilities reflects DigitalOcean's commitment to providing help and tailored experiences. The recent introduction of Autonomous, a new cloud-based offering, which demonstrates this commitment, is likely to have driven growth in the quarter under review.
The launch of a new Managed Kafka in the fourth quarter provided customers with a fully managed data streaming platform as a service, simplifying operational complexities while enabling real-time data stream access and processing. This offering is expected to have contributed to DOCN’s revenue growth 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. But that’s not the case here.
DigitalOcean has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
NVIDIA (NVDA - Free Report) has an Earnings ESP of +2.50% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA’s shares have surged 82.9% year to date. NVDA is scheduled to release first-quarter fiscal 2025 results on May 22.
Agilent Technologies (A - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank #3.
Agilent Technologies’ shares have inched up 1.7% year to date. A is set to report its second-quarter fiscal 2024 results on May 29.
Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.31% and a Zacks Rank #3 at present.
Applied Materials’ shares have gained 27.9% year to date. AMAT is set to report second-quarter fiscal 2024 results on May 16.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.