DigitalOcean (DOCN) Reports Q2 Earnings: What Key Metrics Have to Say
For the quarter ended June 2024, DigitalOcean Holdings, Inc. (DOCN) reported revenue of $192.48 million, up 13.4% over the same period last year. EPS came in at $0.48, compared to $0.44 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $188.64 million, representing a surprise of +2.04%. The company delivered an EPS surprise of +23.08%, with the consensus EPS estimate being $0.39.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how DigitalOcean performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total Customers
: 638,000 versus 638,530 estimated by three analysts on average.
Net Dollar Retention Rate
: 97% versus 98% estimated by two analysts on average.
Average Revenue Per Customer (ARPU)
: $99.45 versus the two-analyst average estimate of $97.11.
View all Key Company Metrics for DigitalOcean here>>>
Shares of DigitalOcean have returned -11.7% over the past month versus the Zacks S&P 500 composite's -6.5% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
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DigitalOcean Holdings, Inc. (DOCN) : Free Stock Analysis Report