Latest news with #DOCN
Yahoo
2 days ago
- Business
- Yahoo
Why DigitalOcean Stock Skyrocketed Today
Key Points DigitalOcean reported second-quarter results before the market opened this morning, and it beat Wall Street's expectations. Increased sales from services connected to artificial intelligence and machine learning played a significant role in the performance beat. DigitalOcean also raised its full-year sales outlook. 10 stocks we like better than DigitalOcean › DigitalOcean (NYSE: DOCN) stock posted massive gains in Tuesday's trading. The cloud service specialists' share price rose 28.8% in a daily session that saw the S&P 500 index dip 0.5% and the Nasdaq Composite index fall 0.7%. DigitalOcean published its second-quarter results before the market opened this morning, and sales and earnings in the quarter beat Wall Street's expectations. In addition to artificial intelligence (AI) catalysts leading to better-than-expected performance in Q2, the company issued a significant raise for its full-year performance outlook. DigitalOcean's Q2 results have changed the valuation picture DigitalOcean's recent business momentum has proven to be significantly stronger than Wall Street expected. The company posted earnings per share of $0.59 on revenue of $218.7 million in the second quarter. Earnings were $0.12 per share better than the average analyst target, and sales were roughly $2.1 million ahead of the consensus analyst target. Revenue was up roughly 13.6% year over year, and management pointed to sales more than doubling for AI and machine learning services as a key driver for the performance beats in Q2. What's next for DigitalOcean? DigitalOcean expects strong sales momentum to continue in the near term. The company set guidance for Q3 sales to be between $226 million and $227 million -- good for growth of roughly 14% at the midpoint of the target range. Meanwhile, full-year sales are projected to come in between $888 million and $892 million, up from its previous guidance for sales of between $870 million and $890 million. The midpoint of the new guidance range suggests annual revenue growth of roughly 14% year over year, representing a meaningful increase from the previous midpoint target for sales growth of 13%. Even better, the bump up in expected sales is being driven by the highly valued AI and machine learning categories. Should you buy stock in DigitalOcean right now? Before you buy stock in DigitalOcean, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and DigitalOcean wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $631,505!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,103,313!* Now, it's worth noting Stock Advisor's total average return is 1,039% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DigitalOcean. The Motley Fool has a disclosure policy. Why DigitalOcean Stock Skyrocketed Today was originally published by The Motley Fool
Yahoo
3 days ago
- Business
- Yahoo
DigitalOcean (DOCN) Jumps 29% on Strong Q2, H1 Earnings
We recently published . DigitalOcean Holdings, Inc. (NYSE:DOCN) is one of the best-performing stocks on Tuesday. DigitalOcean soared by 28.88 percent on Tuesday to close at $34.81 apiece as investors cheered its strong earnings performance for both the second quarter and first half of the year. In its updated report, DigitalOcean Holdings, Inc. (NYSE:DOCN) said net income attributable to shareholders in the second quarter jumped by 95 percent to $37 million from $19 million in the same period last year, while revenues grew by 13.6 percent to $218.7 million from $192.5 million year-on-year. Attributable net income in the first half also increased by 127 percent to $75 million from $33 million year-on-year, while revenues grew by 13.8 percent to $429 million from $377 million year-on-year. Photo by Caspar Camille Rubin on Unsplash Amid the encouraging results, DigitalOcean Holdings, Inc. (NYSE:DOCN) raised its full-year revenue guidance to $892 million from $888 million, and targeted revenues in the third quarter to be at $226 million to $227 million. While we acknowledge the potential of DOCN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
Yahoo
4 days ago
- Business
- Yahoo
DigitalOcean (NYSE:DOCN) Beats Q2 Sales Targets, Stock Jumps 12.8%
Cloud computing provider DigitalOcean (NYSE: DOCN) announced better-than-expected revenue in Q2 CY2025, with sales up 13.6% year on year to $218.7 million. Guidance for next quarter's revenue was better than expected at $226.5 million at the midpoint, 1.4% above analysts' estimates. Its non-GAAP profit of $0.59 per share was 26.2% above analysts' consensus estimates. Is now the time to buy DigitalOcean? Find out in our full research report. DigitalOcean (DOCN) Q2 CY2025 Highlights: Revenue: $218.7 million vs analyst estimates of $216.6 million (13.6% year-on-year growth, 1% beat) Adjusted EPS: $0.59 vs analyst estimates of $0.47 (26.2% beat) Adjusted EBITDA: $89.47 million vs analyst estimates of $85.17 million (40.9% margin, 5% beat) The company lifted its revenue guidance for the full year to $890 million at the midpoint from $880 million, a 1.1% increase Management raised its full-year Adjusted EPS guidance to $2.08 at the midpoint, a 9.2% increase Operating Margin: 16.3%, up from 11.6% in the same quarter last year Free Cash Flow was $57.02 million, up from -$821,000 in the previous quarter Net Revenue Retention Rate: 99%, down from 100% in the previous quarter Annual Recurring Revenue: $875 million at quarter end, up 13.6% year on year Market Capitalization: $2.46 billion 'We delivered another quarter of solid performance across both AI and core cloud. Total revenue grew 14% year-over-year, we achieved the highest incremental ARR since Q4 of 2022, and we more than doubled our AI/ML revenue year-over-year.' said Paddy Srinivasan, CEO of DigitalOcean. Company Overview Started by brothers Ben and Moisey Uretsky, DigitalOcean (NYSE: DOCN) provides a simple, low-cost platform that allows developers and small and medium-sized businesses to host applications and data in the cloud. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, DigitalOcean grew its sales at a 19.2% compounded annual growth rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the software sector, which enjoys a number of secular tailwinds. This quarter, DigitalOcean reported year-on-year revenue growth of 13.6%, and its $218.7 million of revenue exceeded Wall Street's estimates by 1%. Company management is currently guiding for a 14.1% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 13.1% over the next 12 months, a deceleration versus the last three years. Still, this projection is healthy and indicates the market is forecasting success for its products and services. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Annual Recurring Revenue While reported revenue for a software company can include low-margin items like implementation fees, annual recurring revenue (ARR) is a sum of the next 12 months of contracted revenue purely from software subscriptions, or the high-margin, predictable revenue streams that make SaaS businesses so valuable. DigitalOcean's ARR punched in at $875 million in Q2, and over the last four quarters, its growth slightly outpaced the sector as it averaged 13.3% year-on-year increases. This performance aligned with its total sales growth and shows the company is securing longer-term commitments. Its growth also contributes positively to DigitalOcean's revenue predictability, a trait long-term investors typically prefer. Customer Retention One of the best parts about the software-as-a-service business model (and a reason why they trade at high valuation multiples) is that customers typically spend more on a company's products and services over time. DigitalOcean's net revenue retention rate, a key performance metric measuring how much money existing customers from a year ago are spending today, was 98.8% in Q2. This means DigitalOcean's revenue would've decreased by 1.2% over the last 12 months if it didn't win any new customers. DigitalOcean has a weak net retention rate, signaling that some customers aren't satisfied with its products, leading to lost contracts and revenue streams. Key Takeaways from DigitalOcean's Q2 Results This was a beat and raise quarter. We were impressed by DigitalOcean's optimistic full-year EPS guidance, which blew past analysts' expectations. We were also glad its EBITDA outperformed Wall Street's estimates. On the other hand, its net revenue retention declined. Overall, we think this was still a solid quarter with some key areas of upside. The stock traded up 12.8% to $30.50 immediately following the results. DigitalOcean had an encouraging quarter, but one earnings result doesn't necessarily make the stock a buy. Let's see if this is a good investment. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
23-07-2025
- Business
- Yahoo
DigitalOcean (DOCN) Launches GradientAI to Simplify GenAI Development
DigitalOcean Holdings, Inc. (NYSE:DOCN) is one of the top AI stocks with huge upside potential. On July 9, the company launched DigitalOcean GradientAI Platform. The managed service allows developers to build artificial intelligence applications by combining data with foundation models. A close-up of a person using a laptop with cloud solutions in the background. Previously known as GenAI Platform, the new service allows users to deploy generative AI capabilities without managing infrastructure. Developers can create AI applications that leverage foundation models from Anthropic, Meta, Mistral, and OpenAI on the new DigitalOcean platform. Additionally, it facilitates seamless integration with third-party APIs and agent routing, enabling connections with other GenAI agents. 'We built DigitalOcean GradientAI because generative AI can be complex – and DigitalOcean has always focused on making the complex simple,' said Bratin Saha, Chief Product and Technology Officer at DigitalOcean. DigitalOcean GradientAI Platform also comes with customization features such as guardrails designed to block sensitive information. Its launch comes as digital-native enterprises explore ways to integrate generative capabilities into their operations. DigitalOcean Holdings, Inc. (NYSE:DOCN) provides cloud infrastructure and tools to support AI development, focusing on simplifying the process for businesses. It also offers GPU-powered virtual machines, known as GPU Droplets, and a managed Kubernetes service for AI/ML workloads. While we acknowledge the potential of DOCN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Chemical Stocks to Buy According to Billionaires and 7 Most Undervalued Pot Stocks To Buy According To Analysts. Disclosure: None. This article is originally published at Insider Monkey.
Globe and Mail
09-07-2025
- Business
- Globe and Mail
DigitalOcean Announces Date of Second Quarter 2025 Earnings Conference Call
DigitalOcean Holdings, Inc. (NYSE: DOCN), the simplest scalable cloud for digital native enterprises, announced today that it will report financial results for the second quarter ended June 30, 2025 before the market opens on Tuesday, August 5, 2025. The company will also hold a conference call on the same day at 8 a.m. ET / 5 a.m. PT to discuss its financial results and financial outlook with the investment community. Investors and analysts can pre-register for the webcast at The earnings release, webcast link and any accompanying materials will be posted to the DigitalOcean investor relations website at A live webcast and replay of the conference call will be accessible from the DigitalOcean investor relations website. About DigitalOcean DigitalOcean is the simplest scalable cloud platform that democratizes cloud and AI for digital native enterprises around the world. Our mission is to simplify cloud and AI so builders can spend more time creating software that changes the world. More than 600,000 customers trust DigitalOcean to deliver the cloud, AI, and ML infrastructure they need to build and scale their organizations. To learn more about DigitalOcean, visit
