Datadog stock rose on Thursday after the software maker reported second quarter earnings and revenue that topped estimates while sales guidance came in just below expectations.
Also, New York-based Datadog reported earnings before the market open. On the stock market today, Datadog stock rose 4.9% to 113.44 in midday trading.
Datadog earnings for the June quarter came in at 43 cents per share on an adjusted basis, up 48% from a year earlier. The enterprise software maker's revenue jumped 27% to $645 million.
Datadog Guidance
Meanwhile, analysts expected Datadog to report profit of 37 cents a share on revenue of $624.9 million.
For the current quarter ending in September, Datadog forecast revenue of $662 million at the midpoint of guidance. Wall Street analysts predicted Q3 sales of $665 million.
"Highlights from the quarter included revenue growth of 27% and management's positive commentary about Datadog's upmarket momentum with enterprise customers," said Jake Roberge, a William Blair analyst, in a report. "While Datadog is seeing solid expansion trends and adoption of new products with large customers, management believes there is still plenty of runway ahead as these customers continue to migrate more workloads to the cloud."
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.
Datadog Stock Technical Ratings
Heading into the Datadog earnings report, the software stock had retreated 10% in 2024. DDOG stock hit a 2024 low on Monday.
Further, Datadog stock holds a Relative Strength Rating of 38 out of a best-possible 99, according to IBD Stock Check-up.
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