DigitalOcean posted solid earnings and AI/ML growth, but I remain cautious due to its leveraged balance sheet and competitive challenges. Despite a revenue beat and positive AI momentum, DOCN is growing slower than cloud titans and faces tough competition from larger peers. Valuation isn't excessive, but the stock still benefits from an overheated tech market and carries significant balance sheet risk.
DigitalOcean Holdings, Inc. (NYSE:DOCN ) Q2 2025 Earnings Conference Call August 5, 2025 8:00 AM ET Company Participants Melanie Strate - Investor Relations Padmanabhan T. Srinivasan - CEO & Director W.
DigitalOcean Holdings, Inc. (DOCN) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.48 per share a year ago.
3 Nov 2025 (In 2 months) Date | | 0.47 Cons. EPS | - EPS |
30 Oct 2025 (In 2 months) Date | | 0.47 Cons. EPS | - EPS |
5 Aug 2025 Date | | 0.47 Cons. EPS | - EPS |
5 Aug 2025 Date | | 0.47 Cons. EPS | 0.59 EPS |
31 Jul 2025 Date | | 0.47 Cons. EPS | - EPS |
3 Nov 2025 (In 2 months) Date | | 0.47 Cons. EPS | - EPS |
30 Oct 2025 (In 2 months) Date | | 0.47 Cons. EPS | - EPS |
5 Aug 2025 Date | | 0.47 Cons. EPS | - EPS |
5 Aug 2025 Date | | 0.47 Cons. EPS | 0.59 EPS |
31 Jul 2025 Date | | 0.47 Cons. EPS | - EPS |
Software - Infrastructure Industry | Technology Sector | Padmanabhan T. Srinivasan CEO | XSTU Exchange | US25402D1028 ISIN |
US Country | 1,210 Employees | - Last Dividend | - Last Split | 24 Mar 2021 IPO Date |
DigitalOcean Holdings, Inc. is a prominent player in the cloud computing industry, operating a comprehensive platform across North America, Europe, Asia, and other global locations. Founded in 2012 and headquartered in New York, New York, DigitalOcean caters primarily to developers, start-ups, and small to medium-sized businesses, offering a range of cloud computing solutions designed to facilitate seamless digital operations. Its infrastructure is designed with simplicity and scalability in mind, addressing the needs of software engineers, data scientists, system administrators, and hobbyists across various industry verticals. The platform supports a wide array of use cases, from web and mobile applications development to e-commerce, media, gaming, and artificial intelligence/machine learning (AI/ML) applications.
DigitalOcean's IaaS offerings include compute and storage services, empowering users with scalable and flexible computing infrastructure. The portfolio also features networking projects, such as Cloud Firewalls for securing applications, Managed Load Balancers to distribute traffic, and Virtual Private Cloud (VPC) for network isolation.
The company's PaaS solutions streamline application development and deployment. These services include managed databases for hassle-free database administration, managed Kubernetes for orchestrating containerized applications, a container registry, and an application platform that simplifies building, deploying, and scaling applications. Additionally, DigitalOcean offers Functions, a serverless compute solution for executing code without managing servers, and Uptime, a monitoring tool providing real-time uptime and latency alerts.
Under its SaaS model, DigitalOcean provides managed hosting services, simplifying the web hosting experience for users. Additionally, the DigitalOcean Marketplace offers a curated selection of pre-configured applications and solutions, enabling developers to find and deploy software quickly.
DigitalOcean's AI/ML offerings facilitate the scaling of AI applications through GPU virtual machines, Notebooks for interactive data exploration and machine learning model training, and Deployments, which allow users to deploy machine learning models as API endpoints. These solutions are geared toward researchers, data scientists, and businesses looking to leverage AI and ML for their projects.