By Chris Wack
DigitalOcean shares were up 11% to $41.23 after the company reported fourth-quarter earnings that beat analysts' expectations.
The cloud-technology company said it had quarterly net income of $18.3 million, or 19 cents a share, up from $15.9 million, or 17 cents a share, in the same quarter last year. Analysts polled by FactSet were looking for earnings of $9.2 million, or 16 cents a share.
Revenue for the quarter was $204.9 million, compared with last year's $108.9 million and the $200.6 million analysts were expecting.
The company said that its average revenue per customer was $105.75, an increase of 14% over the fourth quarter of 2023, and its net dollar retention rate increased to 99% from 97% in the prior quarter.
DigitalOcean said is expecting first-quarter revenue of $207 million to $209 million, and adjusted earnings of 41 cents to 46 cents a share. Analysts are looking for quarterly revenue of $207.7 million, and adjusted earnings of 42 cents a share. For 2025, the company is expecting revenue of $870 million to $890 million, while analysts are expecting revenue of $877.7 million.
DigitalOcean stock hit its 52-week high of $47.02 on Feb. 18, and is up 12% in the past 12 months.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
February 25, 2025 11:02 ET (16:02 GMT)
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