DigitalOcean (DOCN) Jumps 18% on Strong Q3, Upbeat Outlook

Core Insights - DigitalOcean Holdings, Inc. (NYSE:DOCN) experienced a significant stock surge of 18.01% to close at $45.81, driven by strong Q3 earnings and an optimistic growth outlook for 2025 [1][3]. Financial Performance - The net income attributable to shareholders increased by 380% to $158 million, up from $32.9 million year-on-year, reflecting robust growth in its unified agentic cloud business [2]. - Revenues rose by 15.7% to $229.6 million, compared to $198.5 million in the same quarter last year, while the annual run-rate revenue increased by 16% to $919 million [3]. - DigitalOcean has revised its revenue outlook for the full-year 2025, now targeting total revenues between $896 million and $897 million, an increase from the previous forecast of $888 million to $892 million [3]. Margin and Earnings Outlook - The adjusted EBITDA margin is expected to improve to 40.7% to 41%, surpassing the earlier target of 39% to 40% [4]. - However, the outlook for diluted net income per share has been adjusted downward to a range of $2.00 to $2.05, from the previous estimate of $2.05 to $2.10 [4].