Added to YB: 2026-05-12
Pitch date: 2026-05-09
DOCN [neutral]
DigitalOcean Holdings, Inc.
-0.08%
current return
Author Info
Company Info
DigitalOcean Holdings, Inc., through its subsidiaries, operates an agentic inference cloud platform in North America, Europe, Asia, and internationally.
Market Cap
$17.1B
Pitch Price
$162.85
Price Target
N/A
Dividend
N/A
EV/EBITDA
41.36
P/E
73.02
EV/Sales
18.85
Sector
IT Services
Category
growth
DigitalOcean (DOCN) - Q1 2026 Results
DOCN (earnings): Q1 rev $257.9M (+22% YoY), AI Customer ARR $170M (+221%), $1M+ customer ARR $183M (+179%), RPO $243M. FY26 rev guide raised to $1.13-1.15B (+25-27%), FY27 growth 50%+ on 60MW capacity add (135MW total). Adj EBITDA margin 41%, FCF margin 9-12%. Risk: 14.5x FY26 rev, 9.6x FY27 rev assumes flawless capacity ramp, no pricing compression, core cloud pull-through. Base case $2.3B 2028 rev at 10x = ~5% IRR from $150.43; 10% IRR needs $2.6B+ rev or sustained premium multiple. Lease obligations $1.27B+ limit flexibility if demand disappoints.
Read full article (7 min)