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Unveiling DigitalOcean (DOCN) Q1 Outlook: Wall Street Estimates for Key Metrics
ZACKSยท 2025-05-05 14:21
Core Insights - DigitalOcean Holdings, Inc. (DOCN) is expected to report quarterly earnings of $0.45 per share, reflecting a 4.7% increase year over year [1] - Analysts forecast revenues of $208.77 million, indicating a 13% year-over-year growth [1] - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting stability in analyst expectations [1] Earnings Estimates and Market Reactions - Changes in earnings estimates are crucial for predicting investor reactions to stock performance [2] - Empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [2] Key Metrics Projections - Analysts estimate 'Total Customers' to be 679,773, up from 637,000 a year ago [4] - The 'Net Dollar Retention Rate' is projected to reach 99.1%, compared to 97% in the previous year [4] - 'Average Revenue Per Customer (ARPU)' is expected to be $106.34, an increase from $95.13 in the same quarter last year [4] Stock Performance - DigitalOcean shares have increased by 13.7% over the past month, outperforming the Zacks S&P 500 composite, which saw a 0.4% change [5] - With a Zacks Rank of 3 (Hold), DOCN is anticipated to reflect overall market performance in the near term [5]