Key Takeaways
- Datadog stock is up nearly 30% on the day following a 5% revenue beat in quarterly earnings.
- The cloud cybersecurity company revised its full-year guidance slightly higher as it continues growing its customer base.
- GAAP operating losses of $4.2 million were significantly smaller than in the second quarter when DDOG lost $22 million.
Datadog (DDOG) stock leaped nearly 30% higher on Tuesday following third quarter earnings that handily beat out analysts’ low expectations.
Third-quarter revenue of $547.5 million came in ahead of the company’s August forecast of $525 million. That marks year-over-year revenue growth of 25% and prompted the company to raise its full-year guidance from $2.0 billion to $2.1 billion.
“We were pleased with our execution in the third quarter,” Datadog cofounder and CEO Olivier Pomel said in a prepared statement, citing “25% year-over-year revenue growth, robust new logo bookings, and a continued focus on solving our customers’ DevSecOps pain points.”
Datadog continues to grow its customer base, ending the quarter with 3,130 customers worth $100,000 in annual recurring revenue (ARR). That’s 140 more customers than last quarter, and 530 more than the company had a little over a year ago, at the end of September 2022.
GAAP operating losses of $4.2 million are significantly lower than second quarter losses of $22 million, taking the company from GAAP losses of 1 cent per diluted share last quarter to GAAP income of 6 cents per share. Quarter-to-quarter, operating cash flow and cash equivalents both remained steady.
