NYSE$DOCN

DigitalOcean Holdings Inc. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

DigitalOcean announced its Q4 2023 earnings, demonstrating revenue growth and strategic investments.

DigitalOcean reported an 11% year-over-year increase in revenue, reaching $181 million for Q4 2023. The company's ARR reached $730 million, and it achieved a net income of $16 million, with diluted net income per share at $0.17 and non-GAAP diluted net income per share at $0.44.

  • Revenue increased by 11% year-over-year to $181 million.
  • ARR reached $730 million, representing an 11% year-over-year growth.
  • Net income was $16 million, with a net income margin of 9%.
  • Non-GAAP diluted net income per share was $0.44.

Headline financials

Total Revenue

$181M

Previous: $163M+11.0%
EPS (adj)

$0.44

Previous: $0.28+57.1%
Annual Run-Rate Revenue

$730M

Previous: $659M+10.8%
Net Dollar Retention Rate

96.0%

Previous: 112.0%-14.3%
Capital Expenditures

-$53.7M

Previous: $28.7M-287.2%
Net Income

$15.9M

Previous: -$10.1M+258.3%
Operating Income

$11M

Previous: -$15.1M+172.8%
Gross Profit

$106M

Previous: $99.6M+6.9%
R&D Expense

$30.9M

No prior period
Stock-Based Comp

$22.8M

Previous: $28.1M-18.9%

Revenue & EPS history

DigitalOcean · Revenue · Quarterly

$181M

Q4 2023+11%vs Q4 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

DigitalOcean provided financial outlook for Q1 2024 and full year 2024.

Tailwinds

  • Q1 2024 total revenue is expected to be $182 to $183 million.
  • Q1 2024 adjusted EBITDA margin is expected to be 37% to 38%.
  • Q1 2024 non-GAAP diluted net income per share is expected to be $0.37 to $0.39.
  • Full year 2024 total revenue is expected to be $755 to $775 million.
  • Full year 2024 adjusted EBITDA margin is expected to be 36% to 38%.

Headwinds

  • Adjusted free cash flow margin for full year 2024 is expected to be in the range of 19% to 21% of revenue.
  • Q1 2024 fully diluted weighted average shares outstanding of approximately 101 to 102 million shares.
  • Full year 2024 non-GAAP diluted net income per share of $1.60 to $1.67.
  • Full year 2024 fully diluted weighted average shares outstanding of approximately 102 to 103 million shares.
  • A reconciliation of non-GAAP outlook measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future.

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 Q4 2023

Historical avgQ4 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

Earnings price reactions
QuarterReport dateReaction (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