Cloud computing platform DigitalOcean (NYSE: DOCN) will be announcing earnings results this Tuesday before market open. Here’s what you need to know.
DigitalOcean beat analysts’ revenue expectations last quarter, reporting revenues of $229.6 million, up 15.7% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
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 16% year on year, improving from the 13.3% 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 to 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 Q4 results, giving us a hint as to what we can expect. Commvault delivered year-on-year revenue growth of 19.5%, beating analysts’ expectations by 4.9%, and Palantir Technologies reported revenues up 70%, topping estimates by 4.9%. Commvault traded down 30.5% following the results while Palantir Technologies was up 6.8%.
Read our full analysis of Commvault’s results here and Palantir Technologies’s results here.
Questions about potential tariffs and corporate tax changes have caused much volatility in 2025. Investors in data and analytics software stocks have been spared in this environment as share prices are down 17.1% on average over the last month. DigitalOcean is up 8.3% during the same time and is heading into earnings with an average analyst price target of $60.83 (compared to the current share price of $64).
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