NYSE$DOCN
DigitalOcean Holdings Inc. · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
DigitalOcean's Q2 2023 financial results were announced, demonstrating solid revenue growth and accelerating profitability margins.
DigitalOcean reported a 27% year-over-year increase in revenue, reaching $170 million for Q2 2023. The company's ARR grew by 25% year-over-year, ending the quarter at $682 million. While a loss from operations was reported at $1.5 million, adjusted EBITDA stood at $72 million. The company also announced an agreement to acquire Paperspace.
- Revenue increased by 27% year-over-year to $170 million.
- ARR reached $682 million, a 25% increase year-over-year.
- Gross profit was $102 million, representing 60% of revenue.
- Adjusted EBITDA was $72 million, with a 43% margin.
Headline financials
Revenue & EPS history
DigitalOcean · Revenue · Quarterly
$170M
Forward guidance
For Q3 2023, DigitalOcean expects revenue between $172.5 to $174.0 million and an adjusted EBITDA margin of 38% to 39%. For the full year 2023, they anticipate revenue of $680 to $685 million and an adjusted EBITDA margin of 38% to 39%.
Tailwinds
- Total revenue of $172.5 to $174.0 million is expected for Q3 2023.
- Adjusted EBITDA margin of 38% to 39% is expected for Q3 2023.
- Fully diluted weighted average shares outstanding of approximately 105 to 106 million shares is expected for Q3 2023.
- Total revenue of $680 to $685 million is expected for the full year 2023.
- Adjusted EBITDA margin of 38% to 39% is expected for the full year 2023.
Headwinds
- The company is still evaluating the impact of tax errors for Q2 results and the Q3 and full year forecast.
- Q3 2023 and full year 2023 non-GAAP diluted net income per share estimates are not yet available.
- A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.
- Stock-based compensation expense-related charges are impacted by the timing of employee stock transactions.
- The future fair market value of our common stock, and our future hiring and retention needs are difficult to predict and subject to constant change.
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 Q2 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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