In New York, Datadog reported its first-quarter earnings that exceeded expectations. The company’s stock dropped more than 10% to below 114 on the stock market following this news. For the March quarter, Datadog 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. However, 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.
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 news that Amit Agarwal would be stepping down as president.
Despite this setback, Datadog stock currently holds a Relative Strength Rating of 86 out of a best-possible 99, as reported by IBD Stock Check-up. For more updates on artificial intelligence, cybersecurity, and cloud computing, follow Reinhardt Krause on Twitter @reinhardtk_tech. Interested in trading options or learning more about market strategies? Unlock IBD’s premium stock lists
