NYSE$DOCN
DigitalOcean Holdings Inc. · Q4 2024 earnings
Q4 2024 earnings · · Before market open · Investor relations
Briefing
DigitalOcean delivered strong revenue growth and profitability in Q4 2024.
DigitalOcean reported Q4 2024 revenue of $205 million, up 13% year-over-year, with net income rising to $18 million. Adjusted EBITDA margin reached 42%, demonstrating operational efficiency. The company's focus on higher-spend customers and AI-powered solutions contributed to its strong performance.
- Revenue grew 13% year-over-year to $205 million.
- Net income increased to $18 million, representing a 9% net margin.
- Adjusted EBITDA reached $86 million, a 42% margin.
- Net dollar retention rate improved to 99% from 97% in the previous quarter.
Headline financials
Revenue & EPS history
DigitalOcean · Revenue · Quarterly
$205M
Forward guidance
DigitalOcean anticipates continued growth in 2025, with projected revenue between $870 million and $890 million. The company expects adjusted EBITDA margin between 37% and 40% while maintaining strong free cash flow generation.
Tailwinds
- Projected full-year 2025 revenue of $870M-$890M.
- Expected adjusted EBITDA margin of 37%-40%.
- Non-GAAP diluted EPS guidance of $1.85-$1.95.
- Expansion of AI-powered solutions to drive growth.
- Continued focus on higher-spend customers for sustained revenue increase.
Headwinds
- Potential macroeconomic headwinds affecting customer spending.
- Foreign exchange fluctuations could impact revenue growth.
- Increased competition in the cloud services industry.
- Higher capital expenditures to support infrastructure expansion.
- Regulatory challenges in key international markets.
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 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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