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For the second quarter, DOCN anticipates revenues to be between $188 million and $189 million. It projects earnings in the 38-40 cents per share range.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $188.64 million, suggesting growth of 11.09% year over year.
The consensus mark for second-quarter earnings remained unchanged at 39 cents in the past 30 days, suggesting a year-over-year decline of 11.36%.
DigitalOcean Holdings, Inc. Price and EPS Surprise
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the earnings surprise being 16.08%, on average.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
DigitalOcean’s second-quarter performance is likely to have been driven by the benefits of a robust product portfolio, strong demand for its IaaS and PaaS offerings and the availability of new automated tools.
DOCN’s growing efforts to enhance its platform with features like Droplet data protection, global load balancing, data resiliency, identity and access management and storage enhancements are expected to have been tailwinds for the company in the to-be-reported quarter.
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 to DigitalOcean’s performance in the said quarter.
DigitalOcean benefits from the growing demand for AI-related services on the back of its recent integration of Paperspace's AI/ML capabilities.
Expanding managed services to cater to customers seeking robust scaling capabilities reflects DigitalOcean's commitment to providing tailored experiences. Autonomous, a new cloud-based offering, demonstrates this commitment and is likely to have driven growth in the quarter under review.
The introduction of horizontal scaling for Managed Kafka is expected to have contributed to DOCN’s clientele growth in second-quarter 2024. Horizontal scaling for Kafka helps customers manage large volumes of streaming data and prioritizes scaling bandwidth and highly performant end-user experiences.
In first-quarter 2024, Annual Recurring Revenue (ARR) rose to $19 million, most of which was from DOCN’s platform-as-a-service offering, a 128% annualized increase from the December 2023 tally driven by demand for AI model training and inferencing.
The growing adoption of DigitalOcean’s AI platform-as-a-service and infrastructure-as-a-service platform for various use cases, including text and video generation, AI coding co-pilots, recommendation algorithms and model hosting services, is expected to have driven Annual Recurring Revenue (ARR) growth.
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. That’s the exact case here.
DigitalOcean has an Earnings ESP of +2.19% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases:
Image: Bigstock
DigitalOcean (DOCN) to Post Q2 Earnings: What's in Store?
DigitalOcean (DOCN - Free Report) is scheduled to report second-quarter 2024 results on Aug 8.
For the second quarter, DOCN anticipates revenues to be between $188 million and $189 million. It projects earnings in the 38-40 cents per share range.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $188.64 million, suggesting growth of 11.09% year over year.
The consensus mark for second-quarter earnings remained unchanged at 39 cents in the past 30 days, suggesting a year-over-year decline of 11.36%.
DigitalOcean Holdings, Inc. Price and EPS Surprise
DigitalOcean Holdings, Inc. price-eps-surprise | DigitalOcean Holdings, Inc. Quote
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the earnings surprise being 16.08%, on average.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
DigitalOcean’s second-quarter performance is likely to have been driven by the benefits of a robust product portfolio, strong demand for its IaaS and PaaS offerings and the availability of new automated tools.
DOCN’s growing efforts to enhance its platform with features like Droplet data protection, global load balancing, data resiliency, identity and access management and storage enhancements are expected to have been tailwinds for the company in the to-be-reported quarter.
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 to DigitalOcean’s performance in the said quarter.
DigitalOcean benefits from the growing demand for AI-related services on the back of its recent integration of Paperspace's AI/ML capabilities.
Expanding managed services to cater to customers seeking robust scaling capabilities reflects DigitalOcean's commitment to providing tailored experiences. Autonomous, a new cloud-based offering, demonstrates this commitment and is likely to have driven growth in the quarter under review.
The introduction of horizontal scaling for Managed Kafka is expected to have contributed to DOCN’s clientele growth in second-quarter 2024. Horizontal scaling for Kafka helps customers manage large volumes of streaming data and prioritizes scaling bandwidth and highly performant end-user experiences.
In first-quarter 2024, Annual Recurring Revenue (ARR) rose to $19 million, most of which was from DOCN’s platform-as-a-service offering, a 128% annualized increase from the December 2023 tally driven by demand for AI model training and inferencing.
The growing adoption of DigitalOcean’s AI platform-as-a-service and infrastructure-as-a-service platform for various use cases, including text and video generation, AI coding co-pilots, recommendation algorithms and model hosting services, is expected to have driven Annual Recurring Revenue (ARR) growth.
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. That’s the exact case here.
DigitalOcean has an Earnings ESP of +2.19% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases:
OptimizeRx (OPRX - Free Report) has an Earnings ESP of +17.24% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
OptimizeRx’s shares have declined 38.3% year to date. OPRX is scheduled to release second-quarter 2024 results on Aug 8.
Ess Tech (GWH - Free Report) has an Earnings ESP of +11.54% and a Zacks Rank #3.
Ess Tech’s shares have declined 42.1% year to date. GWH is set to report its second-quarter 2024 results on Aug 14.
Snowflake (SNOW - Free Report) has an Earnings ESP of +9.68% and a Zacks Rank #3 at present.
Snowflake shares have plunged 42.3% year to date. SNOW is set to release second-quarter fiscal 2025 results on Aug 21.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.