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What To Expect From DigitalOcean’s (DOCN) Q1 Earnings

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Cloud computing platform DigitalOcean (NYSE: DOCN) will be reporting earnings this Tuesday before market hours. Here’s what you need to know.

DigitalOcean beat analysts’ revenue expectations last quarter, reporting revenues of $242.4 million, up 18.3% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations significantly.

Is DigitalOcean a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting DigitalOcean’s revenue to grow 18.5% year on year, improving from the 14.1% increase it recorded in the same quarter last year.

DigitalOcean Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. DigitalOcean has a history of exceeding Wall Street’s expectations.

Looking at DigitalOcean’s peers in the data and analytics software segment, only Commvault has reported results so far. It exceeded analysts’ revenue estimates, delivering year-on-year sales growth of 13.3%. The stock traded up 14.4% on the results.

Read our full analysis of Commvault’s earnings results here.

There has been positive sentiment among investors in the data and analytics software segment, with share prices up 8.7% on average over the last month. DigitalOcean is up 20% during the same time and is heading into earnings with an average analyst price target of $100.08 (compared to the current share price of $104.50).

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