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DigitalOcean (DOCN) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
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For the quarter ended September 2024, DigitalOcean Holdings, Inc. (DOCN - Free Report) reported revenue of $198.48 million, up 12.1% over the same period last year. EPS came in at $0.52, compared to $0.44 in the year-ago quarter.
The reported revenue represents a surprise of +0.96% over the Zacks Consensus Estimate of $196.59 million. With the consensus EPS estimate being $0.40, the EPS surprise was +30.00%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how DigitalOcean performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Dollar Retention Rate: 97% versus the three-analyst average estimate of 97.7%.
Total Customers: 638,000 versus 639,082 estimated by three analysts on average.
Average Revenue Per Customer (ARPU): $102.51 versus the two-analyst average estimate of $101.08.
Annual Run-Rate Revenue (ARR): $798 million versus $796.60 million estimated by two analysts on average.
Shares of DigitalOcean have returned -4.8% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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DigitalOcean (DOCN) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
For the quarter ended September 2024, DigitalOcean Holdings, Inc. (DOCN - Free Report) reported revenue of $198.48 million, up 12.1% over the same period last year. EPS came in at $0.52, compared to $0.44 in the year-ago quarter.
The reported revenue represents a surprise of +0.96% over the Zacks Consensus Estimate of $196.59 million. With the consensus EPS estimate being $0.40, the EPS surprise was +30.00%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how DigitalOcean performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Net Dollar Retention Rate: 97% versus the three-analyst average estimate of 97.7%.
- Total Customers: 638,000 versus 639,082 estimated by three analysts on average.
- Average Revenue Per Customer (ARPU): $102.51 versus the two-analyst average estimate of $101.08.
- Annual Run-Rate Revenue (ARR): $798 million versus $796.60 million estimated by two analysts on average.
View all Key Company Metrics for DigitalOcean here>>>Shares of DigitalOcean have returned -4.8% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.