Earnings GuidanceA stark q-o-q decline in EBITDA margins implied by the Q4 guidance suggests to some a potential crack in the highly profitable armor investors have come to expect from DOCN.
Investor SentimentWhen DigitalOcean announced it intended to acquire Paperspace in July 2023, investor reactions were mixed. There is clearly a massive opportunity in providing AI compute, but it wasn't obvious how DigitalOcean would be able to differentiate itself amidst a sea of other firms throwing massive amounts of capital into building out GPU farms.
Revenue GrowthNDR remains at 97%, net new ARR was down QoQ and YoY, and revenue growth YoY in Q3 decelerated compared to Q2.