Surprise Earnings Beat, Guidance Misses Mark: Inside Datadog’s Q1 Report
Datadog (DDOG) announced its first-quarter earnings and revenue results that exceeded expectations, but the company also provided guidance that was slightly below expectations. As a result, Datadog stock experienced a decline.
Based in New York, Datadog disclosed its earnings before the market opened. For the March quarter, the company reported earnings of 44 cents per share on an adjusted basis, reflecting a 29% increase from the previous year. The company’s revenue also saw a 27% surge to $611 million, with growth accelerating for the second consecutive quarter.
Analysts had anticipated Datadog to report a profit of 34 cents per share on revenue of $590 million. The company’s earnings for the same period last year were 28 cents, with revenue amounting to $482 million. Datadog’s guidance for the current quarter ending in June includes an expected revenue of $622 million at the midpoint, slightly higher than Wall Street analysts’ prediction of $617 million. The company also forecasted earnings of 35 cents compared to the estimated 34 cents.
Launched in 2010, Datadog specializes in a monitoring and analytics platform designed for software developers and information-technology departments. The company has a partnership with Amazon Web Services, the cloud computing division of Amazon.com (AMZN). Going into the earnings report, Datadog’s stock had gained 2% in 2024 and 62% over the past year. Despite closing Monday within a base including a 138.61 buy point, shares were set to open below the 50-day line and the low of the consolidation period due to Amit Agarwal stepping down as president.
Datadog stock currently holds a Relative Strength Rating (RSR) of 86 out of a best-possible score of 99 as reported by IBD Stock Check-up
