NYSE$DOCN
DigitalOcean Holdings Inc. · Q3 2021 earnings
Q3 2021 earnings · · Investor relations
Briefing
Revenue growth accelerated, net dollar retention rate increased, and average revenue per customer grew year-over-year.
DigitalOcean announced strong third-quarter results with revenue growth accelerating to 37% year-over-year and a net dollar retention rate of 116%. The company is building a foundation for durable 30%+ revenue growth with strong free cash flow generation.
- Revenue was $111.4 million, an increase of 37% year-over-year.
- ARR ended the quarter at $455 million, an increase of 36% year-over-year.
- Net Dollar Retention Rate was 116%, an increase of 1,200 basis points from the third quarter 2020.
- Average Revenue Per Customer in the quarter was $61.97, an increase of 28% over the third quarter 2020.
Headline financials
Revenue & EPS history
DigitalOcean · Revenue · Quarterly
$111M
Forward guidance
For the fourth quarter of 2021, DigitalOcean expects total revenue of $117 to $119 million and an adjusted EBITDA margin of 30% to 31%. For the full year 2021, the company expects total revenue of $426 to $428 million and an adjusted EBITDA margin of 30% to 31%.
Tailwinds
- Total revenue of $117 to $119 million is expected for Q4 2021.
- Adjusted EBITDA margin of 30% to 31% is expected for Q4 2021.
- Total revenue of $426 to $428 million is expected for the full year 2021.
- Adjusted EBITDA margin of 30% to 31% is expected for the full year 2021.
- Capital expenditures as a percentage of revenue of 25% to 26%.
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 Q3 2021
+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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