DigitalOcean (DOCN) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

DigitalOcean Holdings, Inc. (DOCN) reported $204.93 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 13.3%. EPS of $0.49 for the same period compares to $0.44 a year ago.The reported revenue represents a surprise of +2.35% over the Zacks Consensus Estimate of $200.22 million. With the consensus EPS estimate being $0.35, the EPS surprise was +40.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.Here is how DigitalOcean performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Dollar Retention Rate: 99% versus the three-analyst average estimate of 97.7%. Average Revenue Per Customer (ARPU): $105.75 versus $102.85 estimated by two analysts on average. Annual Run-Rate Revenue (ARR): $820 million versus $819.18 million estimated by two analysts on average. View all Key Company Metrics for DigitalOcean here>>>Shares of DigitalOcean have returned -7.4% over the past month versus the Zacks S&P 500 composite's -1.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DigitalOcean Holdings, Inc. (DOCN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks