NYSE$DOCN
DigitalOcean Holdings Inc. · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Revenue increased by 16% year-over-year, ARR grew by 11%, and net income was $19 million.
DigitalOcean reported a 16% increase in revenue to $177 million for Q3 2023. The company's ARR reached $713 million, representing 11% year-over-year growth. GAAP net income was $19 million, with adjusted EBITDA at $76 million. The company also closed the acquisition of Paperspace.
- Revenue was $177 million, up 16% year-over-year.
- ARR reached $713 million, an 11% increase year-over-year.
- GAAP net income was $19 million, with a net income margin of 11%.
- Adjusted EBITDA was $76 million, a 23% increase year-over-year, with a margin of 43%.
Headline financials
Revenue & EPS history
DigitalOcean · Revenue · Quarterly
$177M
Forward guidance
For Q4 2023, DigitalOcean is targeting revenue of $178 million, an adjusted EBITDA margin of 36% to 37%, and non-GAAP diluted net income per share of $0.36 to $0.37. For the full year 2023, the company expects revenue of $690 million, an adjusted EBITDA margin of 38% to 39%, and non-GAAP diluted net income per share of $1.52 to $1.54.
Tailwinds
- Targeting total revenue of $178 million for Q4 2023.
- Anticipating an adjusted EBITDA margin of 36% to 37% for Q4 2023.
- Expecting non-GAAP diluted net income per share of $0.36 to $0.37 for Q4 2023.
- Targeting total revenue of $690 million for the full year 2023.
- Expecting an adjusted EBITDA margin of 38% to 39% for the full year 2023.
Headwinds
- Non-GAAP diluted net income per share of $0.36 to $0.37 for Q4 2023.
- Fully diluted weighted average shares outstanding of approximately 100 to 101 million shares for Q4 2023.
- Adjusted free cash flow margin in the range of 21% to 22% of revenue for the full year 2023.
- Non-GAAP diluted net income per share of $1.52 to $1.54 for the full year 2023.
- Fully diluted weighted average shares outstanding of approximately 102 to 103 million shares for the full year 2023.
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 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% |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro