Digitalocean Holdings, Inc.

Technology
Computer Software: Programming, Data Processing
www.digitalocean.com

Earnings Score
Safety Score

Market Cap $2.61B
Debt $1.49B
Cash $430.19M
EV $3.66B
FCF $104.56M

Earnings

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Sales & Net Margins

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Earnings	$84.49M
EBIT	$97.70M
ROA	6%
FCF	$104.56M
Equity	-$202.96M
Growth Stability	1
PE	30.85
PEG	20.31
PB	-12.84
P/FCF	24.93
P/S	3.34
Price/Cash	0.17
Debt/Equity	-7.32
Debt/FCF	14.21
Net Margins	11%
Gross Margins	60%
Op. Margins	13%
Earnings CAGR	1%
Sales Growth YoY	13%
Sales Growth QoQ	3%
Sales CAGR	26%
FCF CAGR	82%
Equity CAGR	-5%
Earnings Stability	-0.67
Earnings Growth YoY	15%

Earnings Growth QoQ	-45%
Earnings CAGR 5Y	2%
Sales CAGR 5Y	26%
FCF CAGR 5Y	87%
Equity CAGR 5Y	-5%
Earnings CAGR 3Y	21%
Sales CAGR 3Y	21%
FCF CAGR 3Y	40%
Equity CAGR 3Y	-4%
Market Cap	$2.61B
Revenue	$780.62M
Assets	$1.64B
Total Debt	$1.49B
Cash	$430.19M
Shares Outstanding	91.63M
EV	3.66B
Earnings Score	6%
Safety Score	51%
Working Capital	320.76M
Current Ratio	2.45
Gross Profit	$465.94M
Shares Growth 3y	-4%
Equity Growth QoQ	-4%
Equity Growth YoY	-35%

Assets & ROA

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Stockholders Equity & ROE

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DigitalOcean Holdings Inc is a cloud computing platform offering on-demand infrastructure and platform tools for developers, start-ups and small and medium-sized businesses. The customers use the platform for a wide range of cases, such as web and mobile applications, website hosting, e-commerce, media and gaming, personal web projects, and managed services, among many others. The group has a business presence in North America, Europe, Asia and Other countries.

SEC Filings

Direct access to Digitalocean Holdings, Inc. (DOCN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Digitalocean Holdings, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Digitalocean Holdings, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 1%

Stability -67%

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Digitalocean Holdings, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Digitalocean Holdings, Inc..

Years

Calculation mode

= $196B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$105M	$190M	$344M	$625M	$1.1B	$2.1B	$3.7B	$6.8B	$12B	$22B	$41B	$406B
DCF		$173M	$285M	$470M	$775M	$1.3B	$2.1B	$3.5B	$5.7B	$9.5B	$16B	$156B
Value	$196B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	-16%	-14%	-5%	-4%	3%	11%	11%
ROA	-	-4%	-1%	-1%	2%	6%	6%
ROE	-	60%	-3%	-48%	-6%	-42%	-

Good Net Margins (10.82%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	-6.91	40.58	16.56	12.78	14.21	14.21
Debt over Equity	-	-3.84	2.53	28.78	-4.71	-7.32	-7.32
Growth Stability	-	-	-	-	-	-	1

Bad Debt/FCF ratio (14.21)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (-7.32)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	25%	35%	34%	20%	13%	26%
Earnings YoY growth	-	8%	-55%	25%	-180%	335%	2%
Equity YoY growth	-	-0%	-902%	-91%	-714%	-35%	-5%
FCF YoY growth	-	195%	-190%	146%	30%	-10%	87%