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DigitalOcean (DOCN) to Post Q4 Earnings: What's in Store?
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DigitalOcean (DOCN - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 24.
For the fourth quarter, DigitalOcean projects revenues between $117 million and $119 million. The Zacks Consensus Estimate for quarterly revenues stands at $118.7 million.
The consensus mark for fourth-quarter earnings is pegged at $1.19 per share.
Factors to Note
DigitalOcean's fourth-quarter performance is likely to have benefited from effective cost control and a reduction in bad debt. Aggressive approach toward managing the cost structure is anticipated to have contributed to the company’s to-be-reported quarter bottom-line performance.
The company’s fourth-quarter top line is likely to reflect benefits from continued growth in customer acquisitions due to recent investments in paid advertising and refreshed brand campaign.
DigitalOcean might have gained from attracting larger and rapidly growing businesses into their platform. The larger customers represent 15% of the entire customer base, however, generate more than 85% of total revenues. The company’s net dollar retention and revenue per customer (ARPU) are expected to have benefited from the ongoing trend.
The company’s top line is expected to have witnessed growth in the fourth quarter due to development of additional offerings such as DigitalOcean app platform, and future launch of the recently acquired Nimbella.
However, DigitalOcean’s increased hiring might have weighed on the fourth-quarter bottom-line performance.
DigitalOcean Holdings, Inc. Price and EPS Surprise
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. However, that is 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:
Zscaler’s shares have gained 19.6% in the past year compared with the Zacks Internet – Services industry’s growth of 3.9%. The Zacks Computer and Technology Sector witnessed a fall of 0.8%.
Ambarella (AMBA - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #3. The company is scheduled to release fourth-quarter 2022 results on Feb 28.
Ambarella’s shares have returned 11% in the past year compared with the Zacks Electronics-Semiconductors industry’s rally of 9.1%. The Zacks Computer and Technology Sector witnessed a fall of 0.8%.
Docebo (DCBO - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank #3. The company is scheduled to release fourth-quarter 2021 results on Mar 10.
Docebo’s shares have fallen 0.4% in the past year compared with the Zacks Internet - Software industry’s decline of 50.6%.
Image: Shutterstock
DigitalOcean (DOCN) to Post Q4 Earnings: What's in Store?
DigitalOcean (DOCN - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 24.
For the fourth quarter, DigitalOcean projects revenues between $117 million and $119 million. The Zacks Consensus Estimate for quarterly revenues stands at $118.7 million.
The consensus mark for fourth-quarter earnings is pegged at $1.19 per share.
Factors to Note
DigitalOcean's fourth-quarter performance is likely to have benefited from effective cost control and a reduction in bad debt. Aggressive approach toward managing the cost structure is anticipated to have contributed to the company’s to-be-reported quarter bottom-line performance.
The company’s fourth-quarter top line is likely to reflect benefits from continued growth in customer acquisitions due to recent investments in paid advertising and refreshed brand campaign.
DigitalOcean might have gained from attracting larger and rapidly growing businesses into their platform. The larger customers represent 15% of the entire customer base, however, generate more than 85% of total revenues. The company’s net dollar retention and revenue per customer (ARPU) are expected to have benefited from the ongoing trend.
The company’s top line is expected to have witnessed growth in the fourth quarter due to development of additional offerings such as DigitalOcean app platform, and future launch of the recently acquired Nimbella.
However, DigitalOcean’s increased hiring might have weighed on the fourth-quarter bottom-line performance.
DigitalOcean Holdings, Inc. Price and EPS Surprise
DigitalOcean Holdings, Inc. price-eps-surprise | DigitalOcean Holdings, Inc. Quote
What Our Model Unveils
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. However, that is 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:
Zscaler (ZS - Free Report) has an Earnings ESP of +3.60% and a Zacks Rank #2. The company is scheduled to release second-quarter 2022 results on Feb 24. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zscaler’s shares have gained 19.6% in the past year compared with the Zacks Internet – Services industry’s growth of 3.9%. The Zacks Computer and Technology Sector witnessed a fall of 0.8%.
Ambarella (AMBA - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #3. The company is scheduled to release fourth-quarter 2022 results on Feb 28.
Ambarella’s shares have returned 11% in the past year compared with the Zacks Electronics-Semiconductors industry’s rally of 9.1%. The Zacks Computer and Technology Sector witnessed a fall of 0.8%.
Docebo (DCBO - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank #3. The company is scheduled to release fourth-quarter 2021 results on Mar 10.
Docebo’s shares have fallen 0.4% in the past year compared with the Zacks Internet - Software industry’s decline of 50.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.