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Unveiling DigitalOcean (DOCN) Q2 Outlook: Wall Street Estimates for Key Metrics

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The upcoming report from DigitalOcean Holdings, Inc. (DOCN - Free Report) is expected to reveal quarterly earnings of $0.47 per share, indicating a decline of 2.1% compared to the year-ago period. Analysts forecast revenues of $216.62 million, representing an increase of 12.5% year over year.

Over the last 30 days, there has been a downward revision of 1.8% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

That said, let's delve into the average estimates of some DigitalOcean metrics that Wall Street analysts commonly model and monitor.

The combined assessment of analysts suggests that 'Total Customers' will likely reach 672,811 . Compared to the current estimate, the company reported 638,000 in the same quarter of the previous year.

The average prediction of analysts places 'Net Dollar Retention Rate' at 100.0%. The estimate is in contrast to the year-ago figure of 97.0%.

The consensus among analysts is that 'Average Revenue Per Customer (ARPU)' will reach $109.66 . The estimate compares to the year-ago value of $99.45 .

View all Key Company Metrics for DigitalOcean here>>>

Over the past month, DigitalOcean shares have recorded returns of -11.9% versus the Zacks S&P 500 composite's +0.6% change. Based on its Zacks Rank #3 (Hold), DOCN will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .


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