Datadog on Tuesday reported first quarter earnings and revenue that topped estimates. The software maker's guidance edged by views while the company said Amit Agarwal will step down as president at the end of 2024. Datadog stock fell on the news.
New York-based Datadog reported earnings before the market open. On the stock market today, Datadog stock tumbled 11.5% to close at 112.40.
Datadog earnings for the March quarter came in at 44 cents per share on an adjusted basis, up 29% from a year earlier. The enterprise software maker's revenue jumped 27% to $611 million, with growth slightly accelerating for a second straight quarter.
Meanwhile, analysts expected Datadog to report profit of 34 cents a share on revenue of $590 million. A year earlier, Datadog earned 28 cents on revenue of $482 million.
Billings, a sales growth metric, rose 21% to $618 million, missing estimates of $623 million.
"Despite the positive results, billings slightly missed consensus estimates, which management attributed to general seasonality and large
multiyear deals that took place in the fourth quarter of 2023," said William Blair analyst Jake Roberge in a report.
Datadog Guidance Underwhelms
For the current quarter ending in June, Datadog said it expects revenue of $622 million at the midpoint of guidance. Wall Street analysts predicted Q2 sales of $617 million. Datadog forecast earnings of 35 cents versus estimates of 34 cents.
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.
Datadog Stock
Heading into the Datadog earnings report, the software stock had gained 2% in 2024 and 62% over the past year. Shares had closed Monday in a base with a 138.61 buy point. Shares are set to gap below the 50-day line and the low of the consolidation.
Datadog stock holds a Relative Strength Rating of 86 out of a best-possible 99, according to IBD Stock Check-up.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
