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Investing.com -- DigitalOcean Holdings , Inc. (NYSE:DOCN) reported first quarter earnings that surpassed analyst expectations on Tuesday.
The company’s shares slipped 0.79% in premarket trading following the release.
The cloud infrastructure provider posted adjusted earnings per share of $0.56, beating the consensus estimate of $0.42. Revenue came in at $211 million, up 14% YoY and above the $208.53 million analysts had projected.
"The momentum we generated in 2024 in both core cloud and AI continued into Q1, as we grew total revenue 14% YoY, our highest quarterly growth rate since Q3 2023," said CEO Paddy Srinivasan.
For the second quarter, DigitalOcean expects revenue between $215.5 million and $217.5 million, compared to analyst estimates of $217.1 million. The company forecasts Q2 adjusted EPS of $0.42-$0.47, versus the $0.47 consensus.
Full-year 2025 guidance was reaffirmed, with revenue projected at $870-$890 million and adjusted EPS of $1.85-$1.95.
The company reported net income of $38 million for Q1, up 170% YoY. Adjusted EBITDA rose 16% to $86 million.
DigitalOcean said revenue from customers spending over $100,000 annually grew 41% YoY and now represents 23% of total revenue. The company released over 50 new products and features in Q1, a five-fold increase from the same period last year.