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The upcoming report from DigitalOcean Holdings, Inc. (DOCN) is expected to reveal quarterly earnings of $0.45 per share, indicating an increase of 4.7% compared to the year-ago period. Analysts forecast revenues of $208.77 million, representing an increase of 13% year over year.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
With that in mind, let's delve into the average projections of some DigitalOcean metrics that are commonly tracked and projected by analysts on Wall Street.
The collective assessment of analysts points to an estimated 'Total Customers' of 679,773. The estimate is in contrast to the year-ago figure of 637,000.
Analysts predict that the 'Net Dollar Retention Rate' will reach 99.1%. The estimate is in contrast to the year-ago figure of 97%.
Analysts' assessment points toward 'Average Revenue Per Customer (ARPU)' reaching $106.34. Compared to the present estimate, the company reported $95.13 in the same quarter last year.
View all Key Company Metrics for DigitalOcean here>>>
Shares of DigitalOcean have experienced a change of +13.7% in the past month compared to the +0.4% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), DOCN is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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DigitalOcean Holdings, Inc. (DOCN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).