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Countdown to DigitalOcean (DOCN) Q4 Earnings: A Look at Estimates Beyond Revenue and EPS

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Wall Street analysts forecast that DigitalOcean Holdings, Inc. (DOCN - Free Report) will report quarterly earnings of $0.35 per share in its upcoming release, pointing to a year-over-year decline of 20.5%. It is anticipated that revenues will amount to $200.22 million, exhibiting an increase of 10.7% compared to the year-ago quarter.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

That said, let's delve into the average estimates of some DigitalOcean metrics that Wall Street analysts commonly model and monitor.

Analysts expect 'Net Dollar Retention Rate' to come in at 97.7%. The estimate is in contrast to the year-ago figure of 96%.

According to the collective judgment of analysts, 'Total Customers' should come in at 658,455. The estimate is in contrast to the year-ago figure of 644,000.

The combined assessment of analysts suggests that 'Average Revenue Per Customer (ARPU)' will likely reach $102.85. The estimate is in contrast to the year-ago figure of $92.63.

The average prediction of analysts places 'Annual Run-Rate Revenue (ARR)' at $819.18 million. Compared to the current estimate, the company reported $730 million in the same quarter of the previous year.

View all Key Company Metrics for DigitalOcean here>>>

Shares of DigitalOcean have demonstrated returns of +15.7% over the past month compared to the Zacks S&P 500 composite's +2.6% change. With a Zacks Rank #3 (Hold), DOCN is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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