Datadog reported March-quarter earnings and revenue that topped analyst estimates, while guidance came in above expectations. DDOG stock fell on Thursday amid a broad sell-off in the tech-heavy Nasdaq Composite.
New York-based Datadog reported first-quarter earnings before the market open. Datadog stock fell 6% to close at 111.87 on the stock market today.
Datadog earnings were 24 cents per share on an adjusted basis, up 300% from 6 cents a year earlier.
The enterprise software maker's revenue jumped 83% to $363 million, amid an expanding partnership with Amazon Web Services, the cloud computing unit of Amazon.com.
Meanwhile, analysts expected Datadog to report profit of 11 cents a share on revenue of $338 million.
"Overall a good quarter as revenue grew 83% (7% beat and essentially no deceleration from 84% last quarter) which topped consensus at 71%," RBC Capital analyst Matthew Hedberg said in a note to clients.
DDOG Stock: Revenue Guidance Tops Expectations
First-quarter billings rose 103% to $444.7 million, topping estimates of $366 million. Datadog said it had 2,250 customers with annual recurring revenue of $100,000 or more as of March 31, up from 60% a year earlier.
For the current quarter ending in June, Datadog forecasts profit of 14 cents vs. estimates of 12 cents. Datadog said it expects revenue of $378 million vs. estimates of $361.7 million.
Datadog on Thursday also announced the acquisition of Hdiv Security.
Started in 2010, Datadog operates a monitoring and analytics platform for software developers and information-technology departments.
Heading into the Datadog earnings report, the software stock had a Relative Strength Rating of 64 out of a best-possible 99, according to IBD Stock Checkup.
DDOG stock is down about 35% in 2022.
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