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Company Analysis

DigitalOcean Holdings, Inc. DOCN

A comprehensive view of key metrics, scores, and financial health for DigitalOcean Holdings, Inc.

Overview of DigitalOcean Holdings, Inc.

DOCN NYQ
Technology Software - Infrastructure Framework: Software & SaaS Large Cap
DigitalOcean Holdings, Inc. (DOCN), is a Large Cap company, in the Software - Infrastructure industry, last closed at $89.79, about 62.1% overvalued vs fair value, +90.7% 1Y return, placing in the top 10% of its sector.
Metrics P/E 19.6× Rev Growth 15.5% ROE -223.8% Gross Margin 59.9%
USD 89.79
0.16%
(Delayed)
• Vol 90d: 89.0%
52-Week Range
Market Cap
$10.56B
Enterprise Value
$10.71B
Overall Score
View breakdown
Overall
Growth
Fair
Profitability
Good
Health
Fair
Efficiency
Fair
Valuation
Good
Growth
Fair
Profitability
Good
Health
Fair
Efficiency
Fair
Valuation
Good
Completeness: 88%
Confidence: 93%
Updated: Oct 31
Top Beats

Quick Facts

Website https://www.digitalocean.com
HQ Broomfield, CO
Employees 1,462
Fiscal year Dec 31

Next Events

Earnings Nov 3 Call: Nov 3

Fair Value Snapshot

Bear Base Bull
$31
$34
$37
Current: $89.79 -62% vs base

Engine Room Money Flow™

Large Cap

Software & SaaS - Where revenue goes and how value is created

Flow Steps
Total Revenue
$901.4M
15.5%%
Gross Profit
$539.6M
15.8%%
Operating Income (GAAP)
$157.0M
72.5%%
Operating Cash Flow
$309.6M
9.5%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Software & SaaS

Quality & Reliability Indicators

Gross Margin
59.9%
Good

Gross Profit / Revenue — pricing power and product moat (SaaS benchmark: >70%)

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Where It Leaks

Cash Flow Health critical
Significant cash flow inefficiencies identified. Multiple high-impact leaks require attention.
6
Active Leaks
2/6
Improving
0
High Impact
2
Critical
Locked Leak
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Moat Analysis Software & SaaS Specialized

Competitive Advantage Assessment

Evaluating DigitalOcean Holdings, Inc.'s durable competitive advantages across 6 defense dimensions

Overall Moat Strength
59
/100
Moderate
Scores based on quantitative metrics and qualitative factors
Full moat analysis

Key strengths

  • Asset-Light Returns Return profile is strong (score 0.71), supporting a capital-efficient model.
  • Consistent Subscription Growth Revenue consistency is strong (score 0.69), pointing to a sticky customer base.

Key risks

  • FCF Trend Is Softening FCF trend is weak (score 0.33), suggesting cash scalability is deteriorating.
  • Liquidity Cushion Looks Thin Liquidity position is weak (score 0.22), leaving less room for error.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Recurring Revenue Stickiness

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Signals, strengths and risks for Innovation Engine

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Signals, strengths and risks for Cash Scalability

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Balance Sheet Resilience

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

Software SaaS vs Industry Peers 94% Coverage
Trade-Off Triangle Visualization A ternary plot showing DOCN's balance between Growth (41.3%), Profitability (37.5%), and Safety (21.2%). Growth 41% Safety 21% Profitability 37%

Click axes to expand details. Marker shows current allocation.

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Growth

67th percentile vs peers
67
Key Signals
Rev Growth YoY 15.5% 63p Revenue CAGR 3Y 16.1% 67p TSR 46.0% 79p Def Rev Growth 9.0% 52p EPS Growth YoY 1.75 88p
Strengths
  • Growth above peer median with strong metric coverage (100%)
  • EPS Growth YoY in top 20% of peers (1.75, 88th percentile)
  • Operating Cash Flow Margin in top 20% of peers (34.4%, 90th percentile)
  • Operating Margin in top 20% of peers (17.4%, 85th percentile)
Risks

No significant risks identified for this axis.

Profitability

60th percentile vs peers
61
Key Signals
Strengths
Risks
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Safety

34th percentile vs peers
34
Key Signals
Strengths
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Two Futures

Scenario-based fair value ranges for DigitalOcean Holdings, Inc..

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Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

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  • Shell companies or holding companies
  • Companies that haven't filed recent financials
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Bear
-
- - -
- upside
-
Base
$34.03
- - -
-62.1% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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