DigitalOcean Poised for 16% Q4 Revenue Growth After Beating Q3 Estimates
DigitalOcean reported $229.6 million revenue in Q3, up 15.7% year-over-year, beating EBITDA estimates while next-quarter EPS guidance undershot forecasts. Investors expect 16% year-over-year revenue growth in Q4, compared with a 13.3% increase last year, as the company reports tomorrow.
1. Q3 Performance and Q4 Outlook
DigitalOcean closed Q3 with $229.6 million in revenue, a 15.7% year-over-year increase, outperforming EBITDA projections but issuing softer-than-expected EPS guidance for the upcoming quarter. Analysts now project 16% revenue growth for Q4 versus last year’s 13.3% gain, with results due before markets open tomorrow.
2. Peer Comparisons and Share Trends
In the data and analytics segment, Commvault posted 19.5% revenue growth and Palantir saw a 70% increase, yet Commvault shares fell 30.5% while Palantir rose 6.8% post-results. Over the past month, sector stocks are down 17.1% on average, while DigitalOcean shares have climbed 8.3%, trading near an average analyst target of $60.83 compared to current levels around $64.