DigitalOcean Holdings, Inc. (DOCN) Surpasses Q1 Earnings and Revenue Estimates

Core Insights - DigitalOcean Holdings, Inc. (DOCN) reported quarterly earnings of $0.56 per share, exceeding the Zacks Consensus Estimate of $0.45 per share, and up from $0.43 per share a year ago, representing an earnings surprise of 24.44% [1] - The company achieved revenues of $210.7 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.92% and increasing from $184.73 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 $0.48 on revenues of $216.78 million, and for the current fiscal year, it is $1.90 on revenues of $881.58 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 in the near future [6] Industry Context - The Internet - Software industry, to which DigitalOcean belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]