DigitalOcean (DOCN) To Report Earnings Tomorrow: Here Is What To Expect

Cloud computing platform DigitalOcean (NYSE:DOCN) will be reporting earnings this Tuesday before market hours. Here’s what you need to know.

DigitalOcean beat analysts’ revenue expectations last quarter, reporting revenues of $257.9 million, up 22.4% year on year. It was a very strong quarter for the company, with full-year EPS guidance exceeding analysts’ expectations and revenue guidance for next quarter exceeding analysts’ expectations.

Is DigitalOcean a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting DigitalOcean’s revenue to grow 27.5% year on year, improving from the 13.6% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. DigitalOcean has a history of exceeding Wall Street’s expectations.

Looking at DigitalOcean’s peers in the data and analytics software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Commvault delivered year-on-year revenue growth of 11.4%, beating analysts’ expectations by 1.2%, and Strategy reported revenues up 6.9%, in line with consensus estimates. Commvault traded down 19.5% following the results while Strategy was also down 4.3%.

Read our full analysis of Commvault’s results here and Strategy’s results here.

There has been positive sentiment among investors in the data and analytics software segment, with share prices up 2.7% on average over the last month. DigitalOcean is down 11.7% during the same time and is heading into earnings with an average analyst price target of $176.86 (compared to the current share price of $117).

ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.

Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.