DOCN Reports Tomorrow After Close

Currently DOCN is holding down a 2% Scout Team position on the Portfolio Roster and is scheduled to report tomorrow after the close.

DOCN: https://www.digitalocean.com/

Here is their last report:

https://seekingalpha.com/pr/18684452?source=content_type%3Ar…

Highlights:

  • 37% Revenue Growth Y/Y

  • Revenue Per Customer Increased 29% Y/Y

  • Net Dollar Retention 116%

  • Board Approved a $300M Stock Repurchase program.

Here is a SA Earnings Preview:

https://seekingalpha.com/news/3831363-digitalocean-q1-2022-e…

The company projected Q1 Revenue at $126-126.5M. So they are basically shooting for +35% growth Y/Y.

All the Best,

DOCN reported with 36% Y/Y Revenue Growth. Here is the Press Release:

https://seekingalpha.com/pr/18778449-digitalocean-announces-…

Guidance was reasonably in-line.

The problem is - at least for me, the Y/Y Revenue Growth is not accelerating and in fact is slightly waning. The bottom line for me is that I wanted to see Y/Y Revenue Growth reaching higher. Since that is not the case I am likely to sell. Gonna read the CC Transcript first and then make a decision.

DOCN is a good little company and it’s growing just fine - but to hold a spot on the Scout Team a company has to be gaining traction in growth - not just treading water.

All the Best,

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