For the quarter ended September 2024, DigitalOcean Holdings, Inc. (DOCN) reported revenue of $198.48 million, up 12.1% over the same period last year. EPS came in at $0.52, compared to $0.44 in the year-ago quarter.

The reported revenue represents a surprise of +0.96% over the Zacks Consensus Estimate of $196.59 million. With the consensus EPS estimate being $0.40, the EPS surprise was +30.00%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

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: 97% versus the three-analyst average estimate of 97.7%.

• Total Customers: 638,000 versus 639,082 estimated by three analysts on average.

• Average Revenue Per Customer (ARPU): $102.51 versus the two-analyst average estimate of $101.08.

• Annual Run-Rate Revenue (ARR): $798 million versus $796.60 million estimated by two analysts on average.

View all Key Company Metrics for DigitalOcean here>>>

Shares of DigitalOcean have returned -4.8% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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