Core Insights - DigitalOcean's stock surged over 20% after Q4 results exceeded analysts' expectations, with a current increase of 12.6% [1] - The company reported earnings of $0.49 per share on sales nearing $205 million, surpassing the anticipated $0.34 per share and $200.5 million in sales [1][2] - Year-over-year sales growth was 13%, consistent with earlier growth rates, and the annual run-rate revenue also increased by 13%, indicating strong growth potential for 2025 [2] Financial Performance - For the full year 2024, DigitalOcean achieved revenue of $781 million, maintaining a 13% growth rate, with GAAP profits at $0.89 per share, significantly lower than the non-GAAP figure of $1.92 per share [3] - The company forecasts Q1 2025 sales of approximately $208 million and non-GAAP earnings of about $0.44 per share, both slightly above Wall Street expectations [4] - For the entirety of 2025, DigitalOcean anticipates revenue of around $880 million and non-GAAP profits of about $1.90 per share, again exceeding market expectations [4] Cash Flow and Valuation - DigitalOcean's 2024 free cash flow was reported at $96.1 million, a 13% decline from $110.1 million in 2023, with no guidance provided for GAAP net income or free cash flow [5] - The stock is currently trading at 46.5 times trailing earnings and 35.7 times trailing free cash flow, raising concerns about its valuation given the decline in free cash flow [6]

Core Insights - DigitalOcean Holdings, Inc. (DOCN) reported revenue of $204.93 million for Q4 2024, marking a year-over-year increase of 13.3% and exceeding the Zacks Consensus Estimate by 2.35% [1] - The company achieved an EPS of $0.49, which is a 40.00% surprise over the consensus estimate of $0.35, compared to $0.44 a year ago [1] Financial Performance Metrics - The Net Dollar Retention Rate was reported at 99%, surpassing the three-analyst average estimate of 97.7% [4] - Average Revenue Per Customer (ARPU) was $105.75, exceeding the estimated $102.85 by two analysts [4] - Annual Run-Rate Revenue (ARR) reached $820 million, slightly above the estimated $819.18 million by two analysts [4] Stock Performance - DigitalOcean's shares have returned -7.4% over the past month, in contrast to the Zacks S&P 500 composite's -1.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - DigitalOcean Holdings, Inc. (DOCN) reported quarterly earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, and showing an increase from $0.44 per share a year ago, representing a 40% earnings surprise [1] - The company achieved revenues of $204.93 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.35% and up from $180.87 million year-over-year [2] - DigitalOcean has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $207.02 million, and for the current fiscal year, it is $1.81 on revenues of $874.7 million [7] - The estimate revisions trend for DigitalOcean is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Market Performance - DigitalOcean shares have increased approximately 9.1% since the beginning of the year, compared to a 1.7% gain in the S&P 500 [3] - The outlook for the Internet - Software industry, where DigitalOcean operates, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Earnings Presentation Q4 2024 February 25, 2025 Safe Harbor This presentation contains forward-looking statements that involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "estimate," "believe," "predict," "potential" or "continue" or the negative terms or other similar expressions intended to identify statements about the future. These statements speak on ...

or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number: 001-40252 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 DigitalOcean Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 45-5207470 ( State or other jur ...

Exhibit 99.1 DigitalOcean Announces Fourth Quarter and Fiscal Year 2024 Financial Results Q4 2024 Revenue of $205 million, up 13% year-over-year; Full year 2024 revenue of $781 million, up 13% year-over-year 2024 Net Income was $84 million, up 335% year-over-year, at 11% margin and Adjusted EBITDA was $328 million, up 19% year- over-year, at 42% margin NEW YORK, February 25, 2025 – DigitalOcean Holdings, Inc. (NYSE: DOCN), the simplest scalable cloud for growing tech companies, today announced results for i ...

Needham analyst Mike Cikos reiterated a Hold rating on the shares of DigitalOcean Holdings Inc DOCN.The analyst has a favorable outlook on DigitalOcean ahead of its earnings report, as the analyst notes the increased pace of product development under CEO Paddy Srinivasan will lead to stronger growth among Scalers & Builders, while improving customer retention before they transition to Hyperscalers.Net Dollar Retention is expected to stay below 100%, but the comparison will become easier as the analyst anniv ...

Core Viewpoint - DigitalOcean Holdings, Inc. (DOCN) is expected to report a quarterly earnings per share (EPS) of $0.35, reflecting a year-over-year decline of 20.5%, while revenues are anticipated to reach $200.22 million, marking a 10.7% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not reassessed their initial estimates during this period [2]. - Changes in earnings estimates are crucial for predicting potential investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock price performance [3]. Key Metrics - Analysts project a 'Net Dollar Retention Rate' of 97.7%, up from 96% in the previous year [4]. - The estimated 'Total Customers' is expected to be 658,455, an increase from 644,000 year-over-year [5]. - The 'Average Revenue Per Customer (ARPU)' is anticipated to reach $102.85, compared to $92.63 in the same quarter last year [5]. - The average prediction for 'Annual Run-Rate Revenue (ARR)' is $819.18 million, up from $730 million reported in the same quarter of the previous year [6]. Stock Performance - DigitalOcean shares have returned +15.7% over the past month, outperforming the Zacks S&P 500 composite, which saw a +2.6% change [7].

Company Overview - DigitalOcean Holdings, Inc. (DOCN) shares increased by 5.2% to close at $42.95, with notable trading volume indicating higher activity than usual [1] - The stock has gained 16.9% over the past four weeks, driven by a strong portfolio of innovative solutions and an expanding partner base [1] Earnings Expectations - DigitalOcean is expected to report quarterly earnings of $0.35 per share, reflecting a year-over-year decline of 20.5% [2] - Revenue is projected to be $200.22 million, which is an increase of 10.7% compared to the same quarter last year [2] Stock Performance Insights - The consensus EPS estimate for DigitalOcean has remained unchanged over the last 30 days, indicating stability in earnings expectations [3] - The stock's price typically does not continue to rise without trends in earnings estimate revisions, suggesting that monitoring future earnings revisions is crucial [3] Industry Context - DigitalOcean is part of the Zacks Internet - Software industry, which includes other companies like Synchronoss (SNCR) [3] - Synchronoss has a consensus EPS estimate of $0.10, representing a significant year-over-year increase of 111.8% [4] - Synchronoss currently holds a Zacks Rank of 1 (Strong Buy), indicating strong market confidence [4]

Core Viewpoint - DigitalOcean (DOCN) demonstrates strong cash flow growth, but this alone does not indicate that it is an undervalued investment [1] Group 1 - The stock prices referenced were from the afternoon of January 28, 2025 [1] - The video discussing this information was published on January 30, 2025 [1]