Datadog Reports Strong Q3 Earnings

Investing.com — Datadog, Inc. (NASDAQ: DDOG) surpassed analyst expectations for third-quarter earnings, yet its stock fell 2.6% in premarket trading on Thursday.

The cloud monitoring and security platform provider reported adjusted earnings per share (EPS) of $0.46, outperforming the analyst consensus of $0.40. The company's revenue for the quarter was $690 million, reflecting a 26% year-over-year increase and exceeding the estimated $665.05 million.

Despite the solid performance, Datadog's stock saw a decline. The company's full-year 2024 guidance projected an EPS of $1.75 to $1.77, alongside expected revenue of $2.656 to $2.66 billion, which some investors found less impressive than hoped.

Olivier Pomel, co-founder and CEO of Datadog, praised the company’s performance: "Datadog executed well in the third quarter, with 26% year-over-year revenue growth. We continued to broaden our platform to help our customers observe, secure, and act on their mission-critical cloud applications."

The company also noted growth in its larger customer base, with around 3,490 customers generating annual recurring revenue of $100,000 or more, up from roughly 3,130 the previous year.

Datadog reported a strong cash position, with total cash, cash equivalents, and marketable securities of $3.2 billion as of September 30, 2024. The company generated operating cash flow of $229 million and free cash flow of $204 million during the quarter.

Looking ahead to the fourth quarter of 2024, Datadog expects revenue between $709 million and $713 million, with non-GAAP operating income projected between $163 million and $167 million.