The upcoming report from DigitalOcean Holdings, Inc. (DOCN) is expected to reveal quarterly earnings of $0.40 per share, indicating a decline of 9.1% compared to the year-ago period. Analysts forecast revenues of $196.59 million, representing an increase of 11% year over year.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

Given this perspective, it's time to examine the average forecasts of specific DigitalOcean metrics that are routinely monitored and predicted by Wall Street analysts.

The collective assessment of analysts points to an estimated 'Net Dollar Retention Rate' of 97.7%. The estimate compares to the year-ago value of 96%.

It is projected by analysts that the 'Total Customers' will reach 639,082. The estimate compares to the year-ago value of 633,000.

According to the collective judgment of analysts, 'Average Revenue Per Customer (ARPU)' should come in at $101.08. Compared to the present estimate, the company reported $92.06 in the same quarter last year.

Analysts' assessment points toward 'Annual Run-Rate Revenue (ARR)' reaching $796.60 million. Compared to the present estimate, the company reported $713 million in the same quarter last year.

View all Key Company Metrics for DigitalOcean here>>>

Over the past month, DigitalOcean shares have recorded returns of +6.7% versus the Zacks S&P 500 composite's +1.8% change. Based on its Zacks Rank #4 (Sell), DOCN will likely underperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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