Datadog Inc. (DDOG) shares surge by 24% in premarket trading following the release of its latest quarterly results and better-than-expected forecast.
Company’s Financial Performance
In the third quarter, Datadog reported a net income of $22.6 million, or 6 cents per share, a significant improvement compared to a net loss of $26.0 million, or 8 cents per share, in the same period last year. Adjusted earnings per share stood at 45 cents, surpassing the FactSet consensus estimate of 34 cents.
Moreover, the company’s revenue for the quarter reached $547.5 million, exceeding the $436.5 million generated in the previous year and beating analysts’ projected revenue of $524.7 million.
Datadog anticipates continued growth, as it forecasts revenue between $564 million and $568 million for the fourth quarter. Additionally, adjusted earnings per share are projected to range from 42 cents to 44 cents. Analysts had predicted lower figures of $545 million in revenue and 35 cents in earnings per share.
This positive outlook reflects Datadog Inc.’s consistent progress and their ability to exceed market expectations. As a leading creator of infrastructure and application performance monitoring tools, their strong performance underscores their position in the industry.
Datadog Inc. (DDOG) is an innovative software company specializing in tools for monitoring infrastructure and application performance.