DigitalOcean set for another quarter of strong growth

DigitalOcean Holdings Inc. (NYSE: DOCN), a cloud infrastructure provider focused on developers, startups and small and mid-sized businesses, is expected to deliver another quarter of robust growth when it reports second-quarter results on August 4, reflecting continued demand for its cloud computing and AI services.

Visible Alpha consensus shows revenue of $278 million, up 27% year-over-year, while annual recurring revenue (ARR) is projected to climb 26% to $1.1 billion, driven the company's expanding base of subscription revenue.

Growth is increasingly being driven by larger, higher-spending customers. Revenue from customers paying more than $50 a month is expected to rise 24% compared to last year to $242 million, accounting for the vast majority of total revenue. Total billings are forecast to increase 25% to $279 million, pointing to sustained customer demand heading into the second half of the year.

While the total customer base is expected to expand 11% to 667,000, average revenue per user is forecast to decline 4% year-over-year to $139, although up from $129 last quarter.

This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.