Cloud computing provider DigitalOcean (NYSE: DOCN) will be announcing earnings results this Tuesday before market hours. Here’s what investors should know.
DigitalOcean beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $210.7 million, up 14.1% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
Is DigitalOcean a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting DigitalOcean’s revenue to grow 12.5% year on year to $216.6 million, in line with the 13.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.47 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. DigitalOcean has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.3% on average.
Looking at DigitalOcean’s peers in the data and analytics software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Commvault Systems delivered year-on-year revenue growth of 25.5%, beating analysts’ expectations by 5.2%, and MicroStrategy reported revenues up 2.7%, topping estimates by 1.2%. Commvault Systems traded up 18.2% following the results while MicroStrategy was down 8.7%.
Read our full analysis of Commvault Systems’s results here and MicroStrategy’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the data and analytics software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. DigitalOcean is down 10.1% during the same time and is heading into earnings with an average analyst price target of $38.82 (compared to the current share price of $25.95).
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