Where Will DigitalOcean Stock Be in 5 Years?
With a market valuation of about $3 billion, DigitalOcean (NYSE: DOCN) is one of the smaller players in the cloud-computing space. It's a good business with plenty of customers, steady revenue growth, and strong margins, but not everything is going according to plan.
In June 2022, management set financial goals for 2024: revenue of $1 billion, revenue growth of greater than 30%, and a free-cash-flow margin of 20%.
However, as of the first quarter of 2024, DigitalOcean is calling for full-year revenue of just $775 million at the high end of its range, which would represent 12% growth. That said, it does expect to deliver an adjusted free-cash-flow margin of 19% to 21% this year.
Source Fool.com
