𝐃𝐢𝐠𝐢𝐭𝐚𝐥𝐎𝐜𝐞𝐚𝐧: 𝐐𝟑 𝐄𝐚𝐫𝐧𝐢𝐧𝐠𝐬 𝐚𝐧𝐝 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐁𝐞𝐚𝐭 𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞𝐬, 𝐀𝐈 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐒𝐮𝐫𝐠𝐞𝐬 𝟐𝟖𝟖%,

$DOCN (-1,38%)

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📊 𝐑𝐞𝐬𝐮𝐥𝐭𝐬

• Non-GAAP EPS: $0.45 (Est. $0.32) ✅.

• Revenue: $321M (Est. $306.74M) ✅, +40% YoY.

• GAAP EPS: -$0.37.

• ARR: $1.285B, +40% YoY.

• AI Customer ARR: $376M, +288% YoY.

• Adjusted EBITDA: $144M, +45% YoY.

• Adjusted EBITDA Margin: 45%.

• Adjusted Free Cash Flow: $130M, +53% YoY.

• Cash & Equivalents: $666M.

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🎯 𝐆𝐮𝐢𝐝𝐚𝐧𝐜𝐞

• Q4 Revenue: $348M–$351M, midpoint $349.5M (Est. $333.44M) ✅.

• Q4 Non-GAAP EPS: $0.30–$0.32, midpoint $0.31 (Est. $0.27) ✅.

• Q4 Revenue Growth: +44%–45% YoY.

• FY2026 Revenue: $1.208B–$1.211B, midpoint $1.2095B (Est. $1.18B) ✅.

• FY2026 Non-GAAP EPS: $1.60–$1.62 (Est. $1.45) ✅.

• FY2027 Revenue Growth: 60%+ YoY, implying at least ~$1.93B (Est. $1.82B) ✅.

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📌 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬

• Q3 adjusted EPS beat consensus by ~40.6%, while revenue exceeded estimates by ~4.6%.

• Revenue growth accelerated for the fifth consecutive quarter, reaching 40% YoY.

• Added a record $160M in incremental ARR, +266% YoY.

• AI customer ARR surged 288% to $376M, representing ~29% of total ARR.

• Customers spending over $100K annually now generate 41% of revenue, with their revenue growing 133% YoY.

• Revenue from $1M+ customers surged 273% YoY to $386M in ARR.

• Inference Engine token volume increased ~10x QoQ, supported by new Managed Agents and Agent Learning Services.

• Secured 20 MW of additional data center capacity for 2028, bringing committed capacity to ~180 MW.

• Remaining Performance Obligations surged to $800M from $61M YoY.

• Secured a $785M equipment lease facility to finance infrastructure expansion.

• Repurchased ~$472M of 2030 convertible notes, reducing leverage.

• Q3 GAAP net loss included a $57M induced conversion charge related to debt restructuring.

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💬 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐂𝐨𝐦𝐦𝐞𝐧𝐭𝐚𝐫𝐲

“Revenue growth accelerated year-over-year to 40%, our fifth consecutive quarter of acceleration, and we added a record $160 million of ARR.”