NYSE$DOCN
DigitalOcean Holdings Inc. · Q1 2022 earnings
Q1 2022 earnings · · Investor relations
Briefing
DigitalOcean's Q1 2022 performance reflected strong growth and free cash flow amidst an uncertain macro environment.
DigitalOcean reported a strong start to 2022 with revenue of $127.3 million, a 36% year-over-year increase. The company's ARR reached $524 million, representing a 35% year-over-year growth. DigitalOcean generated a 4% free cash flow margin and net dollar retention rate of 117%.
- Revenue increased by 36% year-over-year, reaching $127.3 million.
- ARR grew by 35% year-over-year, ending the quarter at $524 million.
- Net Dollar Retention Rate was 117%, up from 107% in Q1 2021.
- Average Revenue Per Customer increased by 28% year-over-year to $68.90.
Headline financials
Revenue & EPS history
DigitalOcean · Revenue · Quarterly
$127M
Forward guidance
DigitalOcean expects revenue between $133 to $135 million, non-GAAP operating margin of 10% to 11%, and non-GAAP diluted net income per share of $0.09 to $0.10 for the second quarter of 2022. For the full year 2022, the company expects revenue of $564 to $568 million, non-GAAP operating margin of 13% to 15%, free cash flow in the range of 8% to 10% of revenue, and non-GAAP diluted net income per share of $0.70 to $0.71.
Tailwinds
- Total revenue of $133 to $135 million is expected for Q2 2022.
- Non-GAAP operating margin of 10% to 11% is expected for Q2 2022.
- Non-GAAP diluted net income per share of $0.09 to $0.10 is expected for Q2 2022.
- Total revenue of $564 to $568 million is expected for full year 2022.
- Free cash flow in the range of 8% to 10% of revenue is expected for full year 2022.
Headwinds
- A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort.
- Stock-based compensation expense-related charges are impacted by the timing of employee stock transactions.
- Future fair market value of our common stock can affect guidance.
- Future hiring and retention needs can affect guidance.
- These factors could be material to our results computed in accordance with GAAP.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2022
+3.4%
Avg return
Earnings day
+6.1%
Avg return
5 days after
+9.3%
Avg return
30 days after
56%
14 / 25 earnings
Positive
+40.8%
Q1 2026
Best reaction
-25.3%
Q2 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +40.8% | +51.1% | +66.1% | |
| Q4 2025 | +8.2% | -5.4% | +44.5% | |
| Q3 2025 | +17.1% | +33.1% | +24.4% | |
| Q1 2025 | -13.3% | -11.0% | -15.2% | |
| Q4 2024 | +9.8% | +15.3% | -4.4% | |
| Q3 2024 | -12.2% | -5.7% | -2.2% | |
| Q2 2024 | +17.6% | +29.6% | +31.4% | |
| Q1 2024 | +15.6% | +19.0% | +14.6% | |
| Q4 2023 | +5.3% | -2.2% | +6.2% | |
| Q3 2023 | +24.9% | +32.5% | +55.7% | |
| Q2 2023 | -25.3% | -23.3% | -43.1% | |
| Q1 2023 | -1.8% | -2.6% | +28.8% | |
| Q4 2022 | +7.1% | +2.0% | +3.3% | |
| Q3 2022 | -7.8% | +8.3% | -8.9% | |
| Q2 2022 | +2.9% | +6.4% | -11.7% | |
| Q1 2022 | -13.4% | -21.8% | +15.8% | |
| Q4 2019 | +6.6% | +13.9% | +3.4% | |
| Q4 2021 | +27.6% | +29.4% | +22.7% | |
| Q3 2020 | +6.9% | +2.3% | -20.2% | |
| Q3 2021 | +8.5% | +23.4% | -11.1% | |
| Q2 2020 | -7.1% | -2.8% | +27.9% | |
| Q2 2021 | -8.2% | -2.0% | +24.9% | |
| Q4 2020 | -9.1% | -11.5% | -5.2% | |
| Q1 2020 | -9.1% | -11.5% | -5.2% | |
| Q1 2021 | -5.6% | -14.5% | -10.6% |
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