Datadog on Tuesday reported fourth-quarter earnings and revenue that topped estimates but the software maker's 2024 guidance missed expectations. DDOG stock initially fell 9% then clawed back a bit after its earnings call with analysts.
New York-based Datadog reported earnings before the market open. On the stock market today, Datadog stock fell 2.4% to close at 131.68. One key for investors is whether DDOG stock finds support at its 50-day moving average.
"While the company's initial guidance plan for 2024 revenue growth came in slightly below the street, we believe this is primarily a result of conservatism — especially given the strong fourth-quarter billings performance and recent cloud optimization trends," said William Blair analyst Jake Roberge in a report.
Datadog earnings for the December quarter were 44 cents per share on an adjusted basis, up 70% from a year earlier. The enterprise software maker's revenue jumped 26% to $589.6 million.
Meanwhile, analysts expected Datadog to report profit of 43 cents a share on revenue of $568.7 million. A year earlier, Datadog earned 26 cents on revenue of $469.4 million.
DDOG Stock: 2024 Guidance Misses
For full-year 2024, Datadog forecast profit of $1.41 at the midpoint of guidance vs. estimates of 1.77 profit per share. Datadog said it expects revenue of $2.565 billion. Wall Street analysts called for 2024 sales of $2.586 billion, up 23% from a year earlier.
Datadog told analysts it plans to reaccelerate hiring across its sales and research and development teams.
An investor day is slated for Datadog stock on Feb. 15.
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.
Heading into the Datadog earnings report, the software stock had gained nearly 11% in 2024 and 67% over the past year.
DDOG stock holds a Relative Strength Rating of 94 out of a best-possible 99, according to IBD Stock Check-up.
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