DigitalOcean Holdings, Inc. (DOCN) reported $242.39 million in revenue for the quarter ended December 2025, representing a year-over-year increase of 18.3%. EPS of $0.44 for the same period compares to $0.49 a year ago.
The reported revenue represents a surprise of +1.99% over the Zacks Consensus Estimate of $237.66 million. With the consensus EPS estimate being $0.38, the EPS surprise was +16.8%.
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: 101% compared to the 99.5% average estimate based on two analysts.
- Total Customers: 640,000 versus the two-analyst average estimate of 684,623.
- Annual Run-Rate Revenue (ARR): $970 million compared to the $951.27 million average estimate based on two analysts.
View all Key Company Metrics for DigitalOcean here>>>
Shares of DigitalOcean have returned +4.1% over the past month versus the Zacks S&P 500 composite's -0.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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DigitalOcean Holdings, Inc. (DOCN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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