DigitalOcean Holdings, Inc. Stock Research

Market Summary

USD35.13-0.36

Delayed

-1.01%

DOCN Alerts

5 major insider sales recently.
Big jump in Revenue (Y/Y)
Losses in recent quarter

DOCN Stock Price

DOCN RSI Chart

DOCN Valuation

Market Cap

3.4B

Price/Earnings (Trailing)

-139.94

Price/Sales (Trailing)

5.9

EV/EBITDA

37.78

Price/Free Cashflow

38.28

DOCN Price/Sales (Trailing)

DOCN Profitability

Operating Margin

63.23%

EBT Margin

-4.23%

Return on Equity

-47.53%

Return on Assets

-1.34%

Free Cashflow Yield

2.61%

DOCN Fundamentals

DOCN Revenue

Revenue (TTM)

576.3M

Revenue Y/Y

36.22%

Revenue Q/Q

7.15%

DOCN Earnings

Earnings (TTM)

-24.3M

Earnings Y/Y

16.98%

Earnings Q/Q

-199.69%

Price Action

52 Week Range

23.3863.17

(Low)(High)

Last 7 days

0.2%

Last 30 days

5.3%

Last 90 days

41.9%

Trailing 12 Months

-41.8%

DOCN Financial Health

Current Ratio

5.76

Debt/Equity

30.3

Debt/Cashflow

0.1

DOCN Investor Care

Buy Backs (1Y)

9.77%

Diluted EPS (TTM)

-0.24

Financials for DigitalOcean Holdings

* denotes actual numbers (not divided by Millions)
Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Revenue	8.1%	576	533	492	462	429
Gross Profit	7.2%	364	340	310	284	258
Operating Expenses	8.1%	391	361	343	312	269
S&GA Expenses	13.7%	82.00	72.00	66.00	60.00	51.00
R&D Expenses	2.3%	144	141	140	131	116
EBITDA	5.3%	86.00	82.00	64.00	57.00	-
EBITDA Margin	-2.6%	0.15*	0.15*	0.13*	0.12*	-
Earnings Before Taxes	-7.0%	-24.41	-22.81	-35.34	-30.64	-18.20
EBT Margin	1.0%	-0.04*	-0.04*	-0.07*	-0.07*	-
Interest Expenses	14.2%	8.00	7.00	5.00	4.00	4.00
Net Income	7.8%	-24.28	-26.34	-38.29	-34.29	-19.50
Net Income Margin	14.7%	-0.04*	-0.05*	-0.08*	-0.07*	-
Free Cahsflow	63.1%	89.00	54.00	50.00	46.00	-

* denotes actual numbers (not divided by Millions)
Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Assets	11.8%	1,816	1,624	1,591	1,957	2,101
Current Assets	4.2%	947	908	1,231	1,612	1,770
Cash Equivalents	483.8%	141	24.00	72.00	465	1,713
Net PPE	0.8%	273	271	268	259	250
Goodwill	-0.5%	314	315	32.00	32.00	32.00
Liabilities	10.8%	1,765	1,593	1,542	1,529	1,523
Current Liabilities	66.3%	164	99.00	74.00	62.00	58.00
Long Term Debt	-	1,463	-	-	-	-
LT Debt, Current	-	-	-	-	-	-
LT Debt, Non Current	0.1%	1,470	1,468	1,467	1,465	1,463
Shareholder's Equity	69.1%	51.00	30.00	48.00	428	578
Retained Earnings	-5.0%	-210	-200	-210	-204	-186
Additional Paid-In Capital	12.2%	264	235	269	639	770
Accumulated Depreciation	6.6%	322	302	283	265	-
Shares Outstanding	0.5%	97.00	96.00	97.00	106	107

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Cashflow From Operations	19.9%	195	163	149	144	133
Share Based Compensation	3.8%	106	102	97.00	81.00	62.00
Cashflow From Investing	6.8%	-1,148	-1,232	-1,223	-1,210	-113
Cashflow From Financing	-219.1%	-610	513	569	972	1,593
Buy Backs	-36.8%	600	950	900	500	350

Risks for DOCN

What is the probability of a big loss on DOCN?

66.7%

Probability that DigitalOcean Holdings stock will be more than 20% underwater in next one year

65.7%

Probability that DigitalOcean Holdings stock will be more than 30% underwater in next one year.

63.8%

Probability that DigitalOcean Holdings stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does DOCN drawdown profile look like?

Y-axis is the maximum loss one would have experienced if DigitalOcean Holdings was unfortunately bought at previous high price.

Drawdowns

Returns for DOCN

Cumulative Returns on DOCN

Which funds bought or sold DOCN recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-03-15	B. Riley Wealth Advisors, Inc.	sold off	-100	-298,000	-	-%
2023-03-10	VICTORY CAPITAL MANAGEMENT INC	reduced	-10.16	-10,078,200	17,356,800	0.02%
2023-03-06	Rockefeller Capital Management L.P.	added	67.11	14,000	93,000	-%
2023-03-02	OLIVER LAGORE VANVALIN INVESTMENT GROUP	sold off	-100	-	-	-%
2023-02-28	Voya Investment Management LLC	reduced	-2.27	-328,844	725,156	-%
2023-02-27	Parallax Volatility Advisers, L.P.	reduced	-1.34	-2,098,580	4,776,420	0.01%
2023-02-21	MACQUARIE GROUP LTD	sold off	-100	-63,000	-	-%
2023-02-21	NORTHWESTERN MUTUAL WEALTH MANAGEMENT CO	reduced	-0.24	-1,111,970	2,626,030	-%
2023-02-17	TRUIST FINANCIAL CORP	reduced	-51.14	-655,072	342,928	-%
2023-02-16	DZ BANK AG Deutsche Zentral Genossenschafts Bank, Frankfurt am Main	new	-	458,409	458,409	-%

Latest Funds Activity

Are funds buying DOCN calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own DOCN

No. of Funds

DigitalOcean Holdings News

Schedule 13G FIlings of DigitalOcean Holdings

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 14, 2023	andreessen horowitz fund iii, l.p.	0.0%	0	SC 13G/A
Feb 09, 2023	vanguard group inc	6.39%	6,153,572	SC 13G
Feb 09, 2023	ia venture strategies fund ii, lp	7.7%	7,404,482	SC 13G/A
Feb 03, 2023	blackrock inc.	5.6%	5,345,991	SC 13G
Feb 14, 2022	andreessen horowitz fund iii, l.p.	4.9%	5,378,994	SC 13G

DOCN Fair Value

DigitalOcean Holdings fair value in different scenarios

The table shows the Fair Value estimates for DigitalOcean Holdings for various scenarios. Disclaimer: These are just estimations from a model. None of the models are good at predicting the future. Please dont buy or sell stocks based on these outputs.

Fair Value	Very Pessimistic	Pessimistic	Base Case	Optimistic	Very Optimistic
Very Low Inflation	- -	0.97 -97.24%	4.72 -86.56%	9.67 -72.47%	14.05 -60.01%
Current Inflation	- -	0.75 -97.87%	4.01 -88.59%	8.25 -76.52%	11.99 -65.87%
Very High Inflation	- -	0.48 -98.63%	3.16 -91.00%	6.58 -81.27%	9.60 -72.67%

Historical DigitalOcean Holdings Fair Value Estimates

Very Pessimistic Case

Pessimistic Case

Fair Value

Optimistic Case

Very Optimistic Case

Closing Stock Price

Recent SEC filings of DigitalOcean Holdings

View All Filings

Date Filed	Form Type	Document
Mar 16, 2023	8-K	Current Report
Mar 14, 2023	4	Insider Trading
Mar 10, 2023	4	Insider Trading
Mar 03, 2023	4	Insider Trading
Mar 03, 2023	4	Insider Trading
Mar 03, 2023	4	Insider Trading
Mar 03, 2023	4	Insider Trading
Mar 03, 2023	4	Insider Trading
Mar 03, 2023	4	Insider Trading
Mar 03, 2023	4	Insider Trading

Latest Insider Trading transactions for DOCN

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-03-14	Guy Jeffrey Scott	sold	-196,000	35.00	-5,600	chief operating officer
2023-03-10	Guy Jeffrey Scott	sold	-224,064	35.01	-6,400	chief operating officer
2023-03-10	Guy Jeffrey Scott	acquired	40,320	6.72	6,000	chief operating officer
2023-03-08	Calderone Adrienne Elizabeth	acquired	-	-	23,993	svp, chief accounting officer
2023-03-03	Guy Jeffrey Scott	sold	-518,000	35.00	-14,800	chief operating officer
2023-03-02	Norman Harold Matthew	sold	-113,951	31.83	-3,580	chief people officer
2023-03-01	Calderone Adrienne Elizabeth	sold (taxes)	-27,598	31.98	-863	svp, chief accounting officer
2023-03-01	SHAPIRO ALAN	acquired	-	-	30,932	general counsel
2023-03-01	Norman Harold Matthew	acquired	-	-	25,051	chief people officer
2023-03-01	Norman Harold Matthew	sold (taxes)	-43,908	31.98	-1,373	chief people officer

About DigitalOcean Holdings

Yancey L. Spruill

www.digitalocean.com

790

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.

DOCN Income Statement

2022-12-31

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Statement [Abstract]
Revenue	$ 576,322	$ 428,561	$ 318,380
Cost of revenue	211,927	170,595	145,532
Gross profit	364,395	257,966	172,848
Operating expenses:
Research and development	143,885	115,684	74,970
Sales and marketing	81,544	50,878	33,472
General and administrative	165,185	102,590	80,197
Total operating expenses	390,614	269,152	188,639
Loss from operations	(26,219)	(11,186)	(15,791)
Other (income) expense:
Interest expense	8,396	3,744	13,610
Loss on extinguishment of debt	407	3,435	259
Other (income) expense, net	(10,615)	(164)	12,997
Other (income) expense	(1,812)	7,015	26,866
Loss before income taxes	(24,407)	(18,201)	(42,657)
Income tax (benefit) expense	(124)	1,302	911
Net loss attributable to common stockholders	$ (24,283)	$ (19,503)	$ (43,568)
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (0.24)	$ (0.21)	$ (1.05)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (0.24)	$ (0.21)	$ (1.05)
Weighted-average shares used to compute net loss per share, basic (in shares)	100,806,000	93,224,000	41,658,000
Weighted average shares used to compute net loss per share, diluted (in shares)			41,658,000

DOCN Balance Sheet

2022-12-31

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 140,772	$ 1,713,387
Marketable securities	723,462	0
Accounts receivable, less allowance for credit losses of $6,099 and $4,212, respectively	53,833	39,619
Prepaid expenses and other current assets	28,485	17,050
Total current assets	946,552	1,770,056
Noncurrent assets:
Property and equipment, net	273,170	249,643
Restricted cash	1,935	2,038
Goodwill	313,718	32,170
Intangible assets, net	118,928	42,915
Operating lease right-of-use assets, net	154,501	0
Deferred tax assets	751	88
Other assets	6,353	4,085
Total assets	1,815,908	2,100,995
Current liabilities:
Accounts payable	21,138	12,657
Accrued other expenses	33,987	31,907
Deferred revenue	5,550	4,826
Operating lease liabilities, current	57,682	0
Other current liabilities	45,913	8,849
Total current liabilities	164,270	58,239
Noncurrent liabilities:
Deferred tax liabilities	18,209	421
Long-term debt	1,470,270	1,462,676
Operating lease liabilities, non-current	108,243	0
Other long-term liabilities	3,826	1,462
Total liabilities	1,764,818	1,522,798
Commitments and Contingencies (Note 9)
Preferred stock ($0.000025 par value per share; 10,000,000 shares authorized; 0 shares issued and outstanding as of December 31, 2022 and December 31, 2021)	0	0
Common stock ($0.000025 par value per share; 750,000,000 shares authorized; 96,732,507 and 109,175,863 issued; and 96,732,507 and 107,207,635 outstanding as of December 31, 2022 and December 31, 2021, respectively)	2	2
Treasury stock, at cost (0 shares at December 31, 2022 and 1,968,228 shares at December 31, 2021)	0	(4,598)
Additional paid-in capital	263,957	769,705
Accumulated other comprehensive loss	(2,048)	(374)
Accumulated deficit	(210,821)	(186,538)
Total stockholders’ equity	51,090	578,197
Total liabilities and stockholders’ equity	$ 1,815,908	$ 2,100,995