Shares of cloud computing platform provider DigitalOcean Holdings (NYSE:DOCN) are nosediving today after it announced second-quarter numbers alongside a tepid financial outlook.
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Revenue rose 26.9% year-over-year to $170 million and was largely in line with estimates. Loss from operations stood at $1.5 million. ARR (annual run-rate revenue) at the end of the quarter stood at $682 million, pointing to a 25% year-over-year growth. Importantly, owing to tax expense errors, DOCN noted that it is not in a position to report net income per share on a non-GAAP basis for the quarter at present.
In Q2, the company saw a 14% increase in the average revenue per customer (ARPU) to $90.84. Additionally, the number of customers spending more than $50 per month also surged by 42% year-over-year. Looking ahead, revenue for the third quarter is anticipated between $172.5 million and $174 million. Revenue for full-year 2023 is expected between $680 million and $685 million alongside an adjusted EBITDA margin in the range of 38% and 39%.
Overall, the Street has a $45.44 consensus price target on DigitalOcean alongside a Moderate Buy consensus rating. Short interest in the stock remains sky-high at present at nearly 26%.
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