Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at DigitalOcean (NYSE:DOCN) and the best and worst performers in the data storage industry.
Data is the lifeblood of the internet and software in general, and the amount of data created is accelerating. As a result, the importance of storing the data in scalable and efficient formats continues to rise, especially as its diversity and associated use cases expand from analyzing simple, structured datasets to high-scale processing of unstructured data such as images, audio, and video.
The 5 data storage stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 4.2% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.2% since the latest earnings results.
Best Q4: DigitalOcean (NYSE:DOCN)
Started by brothers Ben and Moisey Uretsky, DigitalOcean (NYSE: DOCN) provides a simple, low-cost platform that allows developers and small and medium-sized businesses to host applications and data in the cloud.
DigitalOcean reported revenues of $204.9 million, up 13.3% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.
"We are entering 2025 with increasing momentum - in Q4 alone, we released more than four times as many products and features than we did in Q4 of the prior year, increased net dollar retention to 99%, grew revenue 13% year-over-year and delivered 18% adjusted free cash flow margin,” said Paddy Srinivasan, CEO of DigitalOcean.
DigitalOcean delivered the weakest performance against analyst estimates of the whole group. The stock is up 1.4% since reporting and currently trades at $37.70.
Is now the time to buy DigitalOcean? Access our full analysis of the earnings results here, it’s free.
MongoDB (NASDAQ:MDB)
Started in 2007 by the team behind Google’s ad platform, DoubleClick, MongoDB offers database-as-a-service that helps companies store large volumes of semi-structured data.
MongoDB reported revenues of $548.4 million, up 19.7% year on year, outperforming analysts’ expectations by 5.6%. The business performed better than its peers, but it was unfortunately a mixed quarter with an impressive beat of analysts’ billings estimates but full-year EPS guidance missing analysts’ expectations.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 30.9% since reporting. It currently trades at $182.90.
Is now the time to buy MongoDB? Access our full analysis of the earnings results here, it’s free.
Snowflake (NYSE:SNOW)
Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake (NYSE:SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.
Snowflake reported revenues of $986.8 million, up 27.4% year on year, exceeding analysts’ expectations by 3%. It was a satisfactory quarter as it also posted a solid beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.
As expected, the stock is down 10.1% since the results and currently trades at $149.44.
Read our full analysis of Snowflake’s results here.
Couchbase (NASDAQ:BASE)
Formed in 2011 with the merger of Membase and CouchOne, Couchbase (NASDAQ:BASE) is a database-as-a-service platform that allows enterprises to store large volumes of semi-structured data.
Couchbase reported revenues of $54.92 million, up 9.6% year on year. This number surpassed analysts’ expectations by 3.1%. Zooming out, it was a satisfactory quarter as it also logged an impressive beat of analysts’ billings estimates but full-year guidance of slowing revenue growth.
Couchbase had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is down 1.1% since reporting and currently trades at $16.08.
Read our full, actionable report on Couchbase here, it’s free.
Commvault Systems (NASDAQ:CVLT)
Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ: CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention, and compliance.
Commvault Systems reported revenues of $262.6 million, up 21.1% year on year. This print topped analysts’ expectations by 6.9%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.
Commvault Systems scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is down 5.3% since reporting and currently trades at $150.20.
Read our full, actionable report on Commvault Systems here, it’s free.
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