DigitalOcean Holdings Inc (NYSE:DOCN) Share Performance

DigitalOcean Holdings Inc experienced a share decline of over 6% during premarket trading on Monday after its fourth-quarter guidance failed to meet analyst expectations.

Q3 Fiscal 2024 Results

• Earnings Per Share (EPS): $0.52 (vs. consensus estimate of $0.40)
• Revenue: $198 million (vs. estimated $196.68 million)
• Adjusted EBITDA: $86.7 million (14% increase YoY, exceeding estimated $74.2 million)
• Adjusted EBITDA Margin: 44% (compared to 43% last year)

Paddy Srinivasan, CEO of DigitalOcean, stated, "We had a successful quarter, enabling us to raise our full-year revenue guidance while still maintaining full-year free cash flow margin guidance."

Additionally, the company introduced 42 new product features in Q3, focusing on their Cloud and AI platforms to cater to larger customers, with an aim to democratize AI infrastructure.

Fourth Quarter 2024 Outlook

• Expected EPS: $0.27 to $0.32 (below consensus estimate of $0.38)
• Projected Revenue: $199 million to $201 million (closely aligned with consensus of $200.1 million)
• Anticipated Adjusted EBITDA Margin: Between 34% and 38%

Full Fiscal Year 2024 Forecast

• Expected EPS: $1.70 to $1.75 (above consensus of $1.67)
• Projected Full-Year Revenue: $775 million to $777 million (higher than estimated $773.9 million)