1 Impressive Metric Shows How Well DigitalOcean Is Doing -- Is the Stock a Buy?
Many expected DigitalOcean (NYSE: DOCN) to disappoint in the second half of 2022. With global economic conditions worsening, this small cloud computing infrastructure service could easily have shrunk back. After all, it focuses on small businesses -- which many investors view as getting hit hardest by a deteriorating economy (versus larger and slower-moving big businesses). And DigitalOcean's high rate of international revenue was never going to help either, not with the U.S. dollar on a record run-up (which lowers the value of overseas sales).
Instead, DigitalOcean surprised the naysayers during its Q3 2022 report and showed it is more than keeping up with its cloud titan peers. In fact, this one metric shows just how well it's doing right now.
DigitalOcean reported total revenue growth of 37% in Q3 2022, or 33% on an organic basis (excluding the acquisition of cloud hosting service Cloudways back in September). What's impressive about the 33% rise is that it was an acceleration from 29% in Q2. That stands in contrast to the cloud titans Amazon (NASDAQ: AMZN) Web Services and Microsoft (NASDAQ: MSFT) Azure, both of which decelerated in the third quarter of the calendar year compared to earlier in the year. Alphabet's (NASDAQ: GOOGL)(NASDAQ: GOOG) Google Cloud, also far smaller than AWS and Azure, also notched a healthy acceleration in cloud infrastructure growth in Q3.
Source Fool.com
