DigitalOcean Holdings, Inc. (DOCN) Surpasses Q4 Earnings and Revenue Estimates

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]