NYSE$DOCN
DigitalOcean Holdings Inc. · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
DigitalOcean reported strong first-quarter results, demonstrating a compelling balance of growth and profitability, and returned capital to shareholders through buybacks.
DigitalOcean announced its Q1 2023 financial results, with revenue growing 30% year-over-year to $165.1 million. The company reported a net loss of $34.9 million, or $(0.37) per share, and a non-GAAP diluted net income per share of $0.28. They generated $36 million in operating cash flow and $26 million in adjusted free cash flow. Additionally, DigitalOcean returned $266 million to shareholders by repurchasing nearly 8 million shares.
- Revenue was $165.1 million, up 30% year-over-year.
- ARR ended the quarter at $669.1 million, representing 28% year-over-year growth.
- Net loss attributable to common stockholders was $34.9 million.
- Non-GAAP diluted net income per share was $0.28.
Headline financials
Revenue & EPS history
DigitalOcean · Revenue · Quarterly
$165M
Forward guidance
Based on information available as of May 9, 2023, DigitalOcean expects for the second quarter of 2023 total revenue of $169.5 to $170.5 million, adjusted EBITDA margin of 37% to 38%, non-GAAP diluted net income per share of $0.40 to $0.41, and fully diluted weighted average shares outstanding of approximately 103 million shares. For the full year 2023, the company expects total revenue of $700 to $720 million, adjusted EBITDA margin of 38% to 39%, adjusted free cash flow margin in the range of 21% to 22% of revenue, non-GAAP diluted net income per share of $1.70 to $1.73 and fully diluted weighted average shares outstanding of approximately 103 to 105 million shares.
Tailwinds
- Total revenue of $169.5 to $170.5 million for Q2 2023.
- Adjusted EBITDA margin of 37% to 38% for Q2 2023.
- Non-GAAP diluted net income per share of $0.40 to $0.41 for Q2 2023.
- Total revenue of $700 to $720 million for full year 2023.
- Adjusted EBITDA margin of 38% to 39% for full year 2023.
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.
- The future fair market value of our common stock is difficult to predict.
- Our future hiring and retention needs are difficult to predict and subject to constant change.
- 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 2023
+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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