NYSE$DOCN
DigitalOcean Holdings Inc. · Q3 2024 earnings
Q3 2024 earnings · · Investor relations
Briefing
DigitalOcean's financial performance in Q3 2024 showed revenue growth and profitability.
DigitalOcean announced its Q3 2024 financial results, reporting a 12% year-over-year revenue increase to $198 million. The company's net income was $33 million, representing a 17% margin, and adjusted EBITDA reached $87 million, a 44% margin. DigitalOcean raised its full-year revenue guidance while maintaining its free cash flow margin guidance.
- Revenue increased by 12% year-over-year, reaching $198 million.
- ARR increased by 12% year-over-year, ending the quarter at $798 million.
- Net income attributable to common stockholders was $33 million, a 72% year-over-year increase.
- Average Revenue Per Customer (ARPU) increased by 11% year-over-year to $102.51.
Headline financials
Revenue & EPS history
DigitalOcean · Revenue · Quarterly
$198M
Forward guidance
DigitalOcean provided guidance for the fourth quarter ending December 31, 2024, and updated its full-year 2024 guidance.
Tailwinds
- Total revenue of $199 to $201 million for Q4 2024.
- Adjusted EBITDA margin of 34% to 38% for Q4 2024.
- Non-GAAP diluted net income per share of $0.27 to $0.32 for Q4 2024.
- Increasing total revenue guidance of $775 to $777 million for full year 2024.
- Adjusted EBITDA margin of 40% to 41% for full year 2024.
Headwinds
- Adjusted free cash flow margin in the range of 15% to 17% of revenue for full year 2024.
- Fully diluted weighted average shares outstanding of approximately 103 to 104 million shares for Q4 2024.
- Fully diluted weighted average shares outstanding of approximately 103 to 104 million shares for full year 2024.
- Uncertainty regarding expenses that may be incurred in the future.
- 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.
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 2024
+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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