NYSE$DOCN
DigitalOcean Holdings Inc. · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
DigitalOcean's Q3 2022 financial performance was marked by revenue growth, improved profitability, and a strong free cash flow margin.
DigitalOcean reported a 37% year-over-year revenue increase, reaching $152.1 million in Q3 2022. The company's profitability improved, driving a 15% free cash flow margin. The acquisition of Cloudways contributed to the revenue growth, and the company is committed to delivering durable 30% growth with increasing profitability and cash flow.
- Revenue was $152.1 million, up 37% year-over-year, including a $4.1 million contribution from Cloudways.
- ARR reached $640.6 million, a 41% increase year-over-year.
- Gross profit was $97.6 million, representing 64% of revenue, with a 300 basis point improvement year-over-year.
- Free cash flow was $22.4 million, compared to $13.5 million in Q3 2021.
Headline financials
Revenue & EPS history
DigitalOcean · Revenue · Quarterly
$152M
Forward guidance
DigitalOcean provided financial outlook for the fourth quarter and full year 2022.
Tailwinds
- Total revenue of $160 to $162 million for Q4 2022.
- Non-GAAP operating margin of 16% for Q4 2022.
- Non-GAAP diluted net income per share of $0.18 to $0.19 for Q4 2022.
- Total revenue of $573 to $575 million for the full year 2022.
- Non-GAAP operating margin of 17% for the full year 2022.
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 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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