On Tuesday, Datadog saw a significant rise in stock prices after the company published financial results and outlooks which surpassed expectations. Moreover, during a call with analysts, Olivier Pomel, CEO and founder of the firm, reported that sales from "AI-native customers" accounted for 2.5% out of the company's entire annualized revenue. Datadog creates cloud surveillance and protection solutions for corporations of all sizes.Shares of Datadog jumped 28.7% on Tuesday after the cloud monitoring software company reported quarterly earnings that exceeded expectations, as well as full-year revenue and profit guidance that surpassed analyst estimates. The company reported quarterly revenue of $547.5 million, up 25% year over year and higher than the predicted $524.1 million. Datadog also generated adjusted earnings per share of 45 cents—a substantial improvement when compared to the 34 cents that experts anticipated. These strong figures led the company to increase its revenue and profit outlook for the full year. Datadog now expects fourth-quarter revenue between $564 million and $568 million and full-year revenue of about $2.1 billion—both of which are higher than the consensus estimates of $543.3 million and $2.06 billion respectively.Co-founder and CEO Olivier Pomel revealed that “AI-native customers” generated 2.5% of Datadog's annualized revenue during the quarter. Additionally, he acknowledged that the "intensity and breadth of optimization" the business has seen in recent quarters has lessened. The news of the strong quarter and full-year guidance caused Datadog shares to soar and various other cloud-computing stocks such as MongoDB and Snowflake also benefited.
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