Added to YB: 2026-05-12
Pitch date: 2026-05-09
DOCN [neutral]
DigitalOcean Holdings, Inc.
-13.07%
current return
Author Info
No bio for this author
Company Info
DigitalOcean Holdings, Inc., through its subsidiaries, operates an agentic inference cloud platform in North America, Europe, Asia, and internationally.
Market Cap
$15.3B
Pitch Price
$162.85
Price Target
N/A
Dividend
N/A
EV/EBITDA
36.19
P/E
61.90
EV/Sales
16.33
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)