DigitalOcean Holdings (DigitalOcean Holdings) EBIT : $77.9 Mil (TTM As of Mar. 2024)

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What is DigitalOcean Holdings EBIT?

DigitalOcean Holdings's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2024 was $16.6 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2024 was $77.9 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. DigitalOcean Holdings's annualized ROC % for the quarter that ended in Mar. 2024 was 4.17%. DigitalOcean Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 14.11%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. DigitalOcean Holdings's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 1.68%.

DigitalOcean Holdings EBIT Historical Data

The historical data trend for DigitalOcean Holdings's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

DigitalOcean Holdings EBIT Chart

DigitalOcean Holdings Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

EBIT

Get a 7-Day Free Trial

-30.24

-29.05

-14.46

-15.49

35.72

DigitalOcean Holdings Quarterly Data
	Dec18	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
EBIT	Get a 7-Day Free Trial														-25.66	6.09	39.45	15.84	16.56

Competitive Comparison of DigitalOcean Holdings's EBIT

For the Software - Infrastructure subindustry, DigitalOcean Holdings's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

DigitalOcean Holdings's EV-to-EBIT Distribution in the Software Industry

For the Software industry and Technology sector, DigitalOcean Holdings's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where DigitalOcean Holdings's EV-to-EBIT falls into.

DigitalOcean Holdings EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $77.9 Mil.

DigitalOcean Holdings (NYSE:DOCN) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

DigitalOcean Holdings's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	46.152 * ( 1 - 0.81% )	/	( (1065.844	+	1129.777)	/ 2 )
=	45.7781688	/	1097.8105
=	4.17 %

where

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1460.967	-	84.774	-	( 411.768	-	max(0, 192.645	-	502.994	+	411.768	))
=	1065.844

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1485.573	-	28.934	-	( 419.063	-	max(0, 188.951	-	515.813	+	419.063	))
=	1129.777

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

DigitalOcean Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Mar. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	66.236	/	( ( (460.645 + max(-14.878, 0))	+	(478.054 + max(-10.983, 0)) )	/	2 )
=	66.236	/	( ( 460.645	+	478.054 )	/	2 )
=	66.236	/	469.3495
=	14.11 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(62.186	+	0	+	29.04)	-	(84.774	+	5.34	+	15.99)
=	-14.878

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(63.866	+	0	+	32.884)	-	(28.934	+	5.477	+	73.322)
=	-10.983

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

DigitalOcean Holdings's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Mar. 2024 )
	=	77.942	/	4636.544
	=	1.68 %

DigitalOcean Holdings EBIT Related Terms

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DigitalOcean Holdings (DigitalOcean Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » DigitalOcean Holdings Inc (NYSE:DOCN) » Definitions » EBIT

Comparable Companies

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Traded in Other Exchanges

0SU:Germany 0SU:Germany

Address

101 6th Avenue, New York, NY, USA, 10013

Website

https://www.digitalocean.com

DigitalOcean Holdings Inc is a cloud computing platform offering on-demand infrastructure and platform tools for developers, start-ups and small and medium-sized businesses. The customers use the platform for a wide range of cases, such as web and mobile applications, website hosting, e-commerce, media and gaming, personal web projects, and managed services, among many others. The group has a business presence in North America, Europe, Asia and Other countries.

Executives

Yancey L. Spruill	director, officer: Chief Executive Officer	1601 DRY CREEK DRIVE, SUITE 260, LONGMONT CO 80503
Megan Wood	officer: Chief Strategy Officer	C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Jeffrey Scott Guy	officer: Chief Operating Officer	C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Warren Jenson	director	30 FREDRICK AVE, ATHERTON CA 94027
Harold Matthew Norman	officer: Chief People Officer	C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Christopher Merritt	director	C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Carly D Brantz	officer: Chief Marketing Officer	C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Alan Shapiro	officer: General Counsel
Amy S Butte	director	C/O L CATTERTON MANAGEMENT, 599 WEST PUTNAM AVENUE, GREENWICH CT 06830
Matt Steinfort	officer: Chief Financial Officer	1805 29TH STREET SUITE 2050, BOULDER CO 80301
Muhammad Aaqib Gadit	officer: Chief Revenue Officer	C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Gabriel Monroy	officer: Chief Product Officer	C/O DIGITALOCEAN HOLDINGS, INC., 101 6TH AVENUE, NEW YORK NY 10013
Adrienne Elizabeth Calderone	officer: SVP, Chief Accounting Officer	101 6TH AVENUE, NEW YORK NY 10013
Andreessen Horowitz Fund Iii, L.p.	10 percent owner	2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Ah Capital Management, L.l.c.	10 percent owner	2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025