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DigitalOcean Holdings, Inc. DOCN
Technology - Software - Infrastructure - NYSE - US
Watchlist
$ 27.36
-1.62 %
$ 2.49 B
Market Cap
24.21
P/E
1. INTRINSIC VALUE

This DCF valuation model was last updated on Jun, 21, 2025.

The intrinsic value of one DOCN stock under the worst case scenario is HIDDEN Compared to the current market price of 27.4 USD, DigitalOcean Holdings, Inc. is HIDDEN

DOCN Intrinsic Value
HIDDEN
SHOW

This DCF valuation model was last updated on Jun, 21, 2025.

The intrinsic value of one DOCN stock under the base case scenario is HIDDEN Compared to the current market price of 27.4 USD, DigitalOcean Holdings, Inc. is HIDDEN

DOCN Intrinsic Value
HIDDEN
SHOW

This DCF valuation model was last updated on Jun, 21, 2025.

The intrinsic value of one DOCN stock under the best case scenario is HIDDEN Compared to the current market price of 27.4 USD, DigitalOcean Holdings, Inc. is HIDDEN

DOCN Intrinsic Value
HIDDEN
SHOW
2. FUNDAMENTAL ANALYSIS

Price Chart DOCN

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1M -2%
6M -30%
1Y -22%
3Y -71%
5Y --%
All
$50.0$50.0$45.0$45.0$40.0$40.0$35.0$35.0$30.0$30.0$25.0$25.0Jan '25Jan '2515 Jan15 JanFeb '25Feb '2515 Feb15 FebMar '25Mar '2515 Mar15 MarApr '25Apr '2515 Apr15 AprMay '25May '2515 May15 MayJun '25Jun '2515 Jun15 Jun
FINANCIALS
781 M REVENUE
12.66%
Growth Rates
1Year 12.66%
3Years 22.13%
5Years 25.09%
7Years 0.00%
10Years 0.00%
91 M OPERATING INCOME
665.02%
Growth Rates
1Year 665.02%
3Years 117.27%
5Years 38.02%
7Years 0.00%
10Years 0.00%
84.5 M NET INCOME
0.00%
Growth Rates
1Year 0.00%
3Years 25.99%
5Years 14.87%
7Years 0.00%
10Years 0.00%
283 M OPERATING CASH FLOW
20.34%
Growth Rates
1Year 20.34%
3Years 28.54%
5Years 47.94%
7Years 0.00%
10Years 0.00%
-94.8 M INVESTING CASH FLOW
-23.63%
Growth Rates
1Year -23.63%
3Years 5.85%
5Years -1.64%
7Years 0.00%
10Years 0.00%
-76.4 M FINANCING CASH FLOW
83.70%
Growth Rates
1Year 83.70%
3Years -1.57%
5Years -20.45%
7Years 0.00%
10Years 0.00%
211 M REVENUE
2.82%
Growth Rates
1Year 12.66%
3Years 22.13%
5Years 25.09%
7Years 0.00%
10Years 0.00%
37.6 M OPERATING INCOME
15.70%
Growth Rates
1Year 665.02%
3Years 117.27%
5Years 38.02%
7Years 0.00%
10Years 0.00%
38.2 M NET INCOME
109.15%
Growth Rates
1Year 0.00%
3Years 25.99%
5Years 14.87%
7Years 0.00%
10Years 0.00%
64.1 M OPERATING CASH FLOW
-10.16%
Growth Rates
1Year 20.34%
3Years 28.54%
5Years 47.94%
7Years 0.00%
10Years 0.00%
-65 M INVESTING CASH FLOW
-37.82%
Growth Rates
1Year -23.63%
3Years 5.85%
5Years -1.64%
7Years 0.00%
10Years 0.00%
-67.2 M FINANCING CASH FLOW
-89.63%
Growth Rates
1Year 83.70%
3Years -1.57%
5Years -20.45%
7Years 0.00%
10Years 0.00%
Balance Sheet DigitalOcean Holdings, Inc.
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Current Assets 542 M
Cash & Short-Term Investments 428 M
Receivables 91.1 M
Other Current Assets 22.2 M
Non-Current Assets 1.1 B
Long-Term Investments 0
PP&E 620 M
Other Non-Current Assets 477 M
26.14 %5.56 %37.85 %29.10 %Total Assets$1.6b
Current Liabilities 221 M
Accounts Payable 54.6 M
Short-Term Debt 0
Other Current Liabilities 166 M
Non-Current Liabilities 1.62 B
Long-Term Debt 1.62 B
Other Non-Current Liabilities 5.22 M
2.96 %9.03 %87.72 %Total Liabilities$1.8b
EFFICIENCY
Earnings Waterfall DigitalOcean Holdings, Inc.
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Revenue 781 M
Cost Of Revenue 315 M
Gross Profit 466 M
Operating Expenses 375 M
Operating Income 91 M
Other Expenses 6.52 M
Net Income 84.5 M
800m800m700m700m600m600m500m500m400m400m300m300m200m200m100m100m00781m(315m)466m(375m)91m(7m)84mRevenueRevenueCost Of RevenueCost Of RevenueGross ProfitGross ProfitOperating ExpensesOperating ExpensesOperating IncomeOperating IncomeOther ExpensesOther ExpensesNet IncomeNet Income
RATIOS
59.69% GROSS MARGIN
59.69%
Averages
1Year 59.69%
3Years 60.64%
5Years 59.28%
7Years 57.24%
10Years 0.00%
11.66% OPERATING MARGIN
11.66%
Averages
1Year 11.66%
3Years 3.56%
5Years -0.19%
7Years -3.75%
10Years 0.00%
10.82% NET MARGIN
10.82%
Averages
1Year 10.82%
3Years 3.14%
5Years -1.76%
7Years -6.06%
10Years 0.00%
-41.63% ROE
-41.63%
Averages
1Year -41.63%
3Years -31.78%
5Years -7.66%
7Years 11.56%
10Years 0.00%
5.16% ROA
5.16%
Averages
1Year 5.16%
3Years 1.72%
5Years -1.18%
7Years -4.85%
10Years 0.00%
5.55% ROIC
5.55%
Averages
1Year 5.55%
3Years 1.76%
5Years -0.68%
7Years -4.25%
10Years 0.00%
FREE CASH FLOW ANALYSIS
Free Cash Flow Analysis DigitalOcean Holdings, Inc.
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120m120m100m100m80m80m60m60m40m40m20m20m00(20m)(20m)(40m)(40m)(60m)(60m)20192019202020202021202120222022202320232024202420252025
Net Income 84.5 M
Depreciation & Amortization 130 M
Capital Expenditures -187 M
Stock-Based Compensation 90.5 M
Change in Working Capital -57.3 M
Others 32.6 M
Free Cash Flow 96.2 M
3. WALL STREET ANALYSTS ESTIMATES
Wall Street Analysts Price Targets DigitalOcean Holdings, Inc.
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Wall Street analysts predict an average 1-year price target for DOCN of $37.9 , with forecasts ranging from a low of $33 to a high of $42 .
DOCN Lowest Price Target Wall Street Target
33 USD 20.61%
DOCN Average Price Target Wall Street Target
37.9 USD 38.37%
DOCN Highest Price Target Wall Street Target
42 USD 53.51%
Price
Max Price Target
Min Price Target
Average Price Target
505045454040353530302525Aug '24Aug '24Oct '24Oct '24Nov '24Nov '2420252025Feb '25Feb '25Apr '25Apr '25Jun '25Jun '25Jul '25Jul '25Aug '25Aug '25Oct '25Oct '25Nov '25Nov '2520262026Feb '26Feb '26Apr '26Apr '26Jun '26Jun '26
4. DIVIDEND ANALYSIS
5. COMPETITION
slide 2 of 7
6. Ownership
Insider Ownership DigitalOcean Holdings, Inc.
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Sold
0-3 MONTHS
102 M USD 3
3-6 MONTHS
1.49 M USD 3
6-9 MONTHS
1.38 M USD 2
9-12 MONTHS
500 K USD 1
Bought
0 USD 0
0-3 MONTHS
0 USD 0
3-6 MONTHS
0 USD 0
6-9 MONTHS
0 USD 0
9-12 MONTHS
7. News
The Market Is Missing DigitalOcean's Inflection Point DigitalOcean Holdings, Inc. has capitalized on underserved SMB and individual segments and is now successfully expanding into the mid-market for higher revenue durability and improved retention. A strategic shift to leasing infrastructure will accelerate growth, boost free cash flow, and better align with demand, signaling management's bullish outlook. Valuation is attractive, especially on a cash flow basis, with growth prospects and DOCN multiples more favorable than peers. seekingalpha.com - 1 week ago
DigitalOcean Stock Is Crashing, but AI Demand Is Red Hot Shares of cloud-computing company DigitalOcean (DOCN 2.41%) are down 17% in 2025 even though business is booming more than expected and management expects record-high revenue for the year. This juxtaposition creates an interesting situation for investors. fool.com - 1 week ago
DigitalOcean and AMD Collaborate to Advance AI Using Cloud-Based GPUs NEW YORK--(BUSINESS WIRE)--DigitalOcean Holdings, Inc. (NYSE: DOCN), the simplest scalable cloud for digital native enterprises, today announced a collaboration with AMD that provides DigitalOcean customers with access to AMD Instinct™ GPUs as DigitalOcean GPU Droplets to power their AI workloads starting with the AMD MI300X GPUs. Later this year, DigitalOcean will offer AMD Instinct™ MI325X GPUs, further expanding access to powerful and affordable GPU models. AMD Instinct™ MI325X GPU accelerat. businesswire.com - 2 weeks ago
Prediction: This Magnificent Artificial Intelligence (AI) Stock Will Be Worth More Than SoundHound AI by 2026 SoundHound AI (SOUN -2.29%) is a leader in conversational artificial intelligence (AI), which is capable of understanding voice prompts and responding in kind. The company's revenue is soaring, but it's burning through significant amounts of cash to fuel its growth. fool.com - 2 weeks ago
Prediction: 2 AI Stocks That Will Be Worth More Than C3.ai 2 Years From Now C3.ai (AI 2.37%) went public four and a half years ago to some enthusiasm, but it now trades nearly 40% below its IPO price. The enterprise AI software maker initially impressed investors with its catchy ticker symbol, the flexibility of its modules (which can be integrated into an organization's existing software), and its rapid growth rates. fool.com - 2 weeks ago
1 Growth Stock Down 40% to Buy Hand Over Fist Right Now Shares of DigitalOcean (DOCN -1.10%) experienced a sharp pullback in the past three months after a bright start to the year. The drop seems quite surprising considering the company delivered a couple of solid quarterly reports so far in 2025. fool.com - 3 weeks ago
Is the Options Market Predicting a Spike in DigitalOcean Holdings (DOCN) Stock? Investors need to pay close attention to DigitalOcean Holdings (DOCN) stock based on the movements in the options market lately. zacks.com - 1 month ago
1 Super Stock Down 76% You'll Regret Not Buying on the Dip in 2025 The cloud computing industry is dominated by giants like Amazon, Microsoft, and Alphabet, but those providers typically focus on the largest and highest-spending enterprises. Tailoring their cloud services to small and medium-sized businesses (SMBs) wouldn't be an economical strategy, because those customers wouldn't contribute enough revenue to move the needle. fool.com - 1 month ago
DigitalOcean Has a Smart Strategy for a Tough Economy Cloud computing platform DigitalOcean (DOCN -13.43%) has carved out a niche for itself in the industry by focusing on simplicity. While Amazon Web Services and other hyperscale cloud platforms offer expansive product lists and complicated pricing schemes, DigitalOcean focuses more on core offerings and keeps pricing transparent. fool.com - 1 month ago
DigitalOcean Holdings, Inc. (DOCN) Q1 2025 Earnings Call Transcript DigitalOcean Holdings, Inc. (NYSE:DOCN ) Q1 2025 Earnings Conference Call May 6, 2025 8:00 AM ET Company Participants Melanie Strate - Head of IR Paddy Srinivasan - CEO Matt Steinfort - CFO Conference Call Participants Jason Ader - William Blair Pinjalim Bora - JPMorgan Gabriela Borges - Goldman Sachs James Fish - Piper Sandler Tom Blakey - Cantor Kingsley Crane - Canaccord Genuity Josh Baer - Morgan Stanley Mark Zhang - Citi Operator Good day, and welcome to the DigitalOcean Q1 '25 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. seekingalpha.com - 1 month ago
DigitalOcean Growth Rate Ticks Higher Here's our initial take on DigitalOcean's (DOCN -8.91%) fiscal 2025 first-quarter financial results. fool.com - 1 month ago
DigitalOcean Holdings, Inc. (DOCN) Surpasses Q1 Earnings and Revenue Estimates DigitalOcean Holdings, Inc. (DOCN) came out with quarterly earnings of $0.56 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.43 per share a year ago. zacks.com - 1 month ago
8. Profile Summary

DigitalOcean Holdings, Inc. DOCN

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COUNTRY US
INDUSTRY Software - Infrastructure
MARKET CAP $ 2.49 B
Dividend Yield 0.00%
Description DigitalOcean Holdings, Inc., through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. Its platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and medium size businesses. The company offers infrastructure solutions across compute, storage, and networking, as well as enables developers to extend the native capabilities of its cloud with fully managed application, container, and database offerings. Its users include software engineers, researchers, data scientists, system administrators, students, and hobbyists. The company's customers use its platform in various industry verticals and for a range of use cases, such as web and mobile applications, website hosting, e-commerce, media and gaming, personal web projects, managed services, and others. DigitalOcean Holdings, Inc. was incorporated in 2012 and is headquartered in New York, New York.
Contact 101 6th Avenue, New York City, NY, 10013 https://www.digitalocean.com
IPO Date March 24, 2021
Employees 1210
Officers Ms. Cynthia Carpenter Senior Vice President of People Mr. W. Matthew Steinfort Chief Financial Officer Mr. Bratin Saha Chief Product & Technology Officer Mr. Lawrence M. D'Angelo Chief Revenue Officer Mr. Padmanabhan T. Srinivasan Chief Executive Officer & Director Ms. Cherie Barrett Senior Vice President & Chief Accounting Officer Mr. Wade Wegner Chief Ecosystem & Growth Officer Mr. Alan Shapiro J.D. General Counsel & Secretary