Datadog (DDOG) on Tuesday reported September-quarter earnings and revenue that handily beat consensus estimates amid lowered expectations. DDOG stock soared on the news.
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For the quarter ending Sept. 30, Datadog earnings came in at 45 cents per share on an adjusted basis, up 95% from a year earlier. The enterprise software maker’s revenue jumped 25% to $525 million.
Meanwhile, analysts expected Datadog to report profit of 34 cents a share on revenue of $525 million. A year earlier, Datadog earned 23 cents on revenue of $436.5 million.
New York-based Datadog in August cut its full-year 2023 revenue prediction.
On the stock market today, Datadog stock skyrocketed more than 24% to 99.08.
Some other cloud-software names rose on the Datadog earnings news, including Snowflake (SNOW) and MongoDB (MDB).
DDOG Stock: Outlook Tops Views
For the current quarter ending in December, Datadog forecast profit in a range of 42 cents to 44 cents vs. estimates of 35 cents.
Datadog said it expects revenue of $566 million at the midpoint of its outlook. Wall Street called for sales of $545 million.
Started in 2010, Datadog operates a monitoring and analytics platform for software developers and information-technology departments. Datadog has a partnership with Amazon Web Services, the cloud computing unit of Amazon.com (AMZN).
Heading into the Datadog earnings report, the software stock had gained 8% in 2023. That lagged the Nasdaq’s gain of 29%.
Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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