DigitalOcean is a cloud infrastructure provider that focuses on simplifying cloud computing for developers and businesses
By offering a range of services such as cloud hosting, virtual servers, and managed databases, DigitalOcean enables users to build, deploy, and scale applications seamlessly. The company is particularly known for its user-friendly platform, which provides intuitive tools and resources that cater to developers of all skill levels, helping them to create scalable solutions quickly and efficiently. With a strong emphasis on community support and educational resources, DigitalOcean fosters a collaborative environment for developers to enhance their skills and optimize their cloud infrastructure.
DigitalOcean's financial results and strategic push into artificial intelligence position the company for continued expansion in the cloud computing market.
Shares of cloud computing provider DigitalOcean (NYSEDOCN)
jumped 21% in the pre-market session after the company reported strong fourth-quarter 2024 results, surpassing analysts' expectations for revenue, EPS, and EBITDA. Revenue grew 13% y/y, driven by a sharp rise in spending from its top-tier customers, whose contribution to overall revenue jumped 37%. Additionally, full-year EPS guidance came in above Wall Street estimates. Overall, we think this was still a solid quarter with some key areas of upside.
Cloud computing provider DigitalOcean (NYSEDOCN) announced better-than-expected revenue in Q4 CY2024, with sales up 13.3% year on year to $204.9 million. The company expects next quarter’s revenue to be around $208 million, close to analysts’ estimates. Its non-GAAP profit of $0.49 per share was 43.7% above analysts’ consensus estimates.
Although Wall Street is expected to have a mixed Q4, analysts at Goldman Sachs raised their price target for the DigitalOcean stock from $40 to $44 while maintaining a ‘Buy’ rating.
DigitalOcean Holdings, Inc. (NYSEDOCN), the simplest scalable cloud for growing tech companies, today announced results for its fourth quarter and fiscal year ended December 31, 2024.
Shares of cloud computing provider DigitalOcean (NYSEDOCN)
fell 6.1% in the morning session as markets continued to struggle following the broad selloff triggered by weak economic data in the previous week. On Friday, February 21, 2025, the S&P 500 dropped 1.7%, and the Nasdaq fell 2.2% after PMI numbers showed the U.S. services sector contracted, and the University of Michigan's consumer sentiment index came in below expectations.
