DigitalOcean Holdings, Inc. (DOCN) reported $204.93 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 13.3%. EPS of $0.49 for the same period compares to $0.44 a year ago.

The reported revenue represents a surprise of +2.35% over the Zacks Consensus Estimate of $200.22 million. With the consensus EPS estimate being $0.35, the EPS surprise was +40.00%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how DigitalOcean performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Net Dollar Retention Rate: 99% versus the three-analyst average estimate of 97.7%.
• Average Revenue Per Customer (ARPU): $105.75 versus $102.85 estimated by two analysts on average.
• Annual Run-Rate Revenue (ARR): $820 million versus $819.18 million estimated by two analysts on average.

View all Key Company Metrics for DigitalOcean here>>>

Shares of DigitalOcean have returned -7.4% over the past month versus the Zacks S&P 500 composite's -1.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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