DigitalOcean sinks after it skips reporting Q2 income, cuts FY sales view
04/08/2023 11:33
** Shares of cloud service provider DigitalOcean DOCN.N
slide 22.84% to $36.02 premarket
** Co says it's not yet in position to report Q2 net income,
adj. EPS, or provide Q3 earnings guidance due to tax expense
errors
** DOCS says that due to the error, accrued taxes as of
March 31, 2023, were overstated and the income tax expense for
the quarter were overstated by around $18 mln
** "The correction of these errors will reduce the Company's
net loss and net loss per share attributable to common
stockholders," co says
** "As a result of the errors ... and the related
restatement, the Company has identified a material weakness in
its internal control over financial reporting" - co
** It cuts FY total rev guidance to $680-685 mln from prior
range of $700-720 mln
** Sees Q3 rev of $172.5-174 mln, below analysts' consensus
of $175.7 mln - Refinitiv
** Reports Q2 rev of $169.8 mln, marginally missing Wall
Street's consensus of $170.07 mln
** Up to last close, stock had risen more than 80% YTD
(Reporting by Shashwat Chauhan in Bengaluru)
((Shashwat.Chauhan@thomsonreuters.com;))