Datadog stock fell on Thursday after the enterprise software maker reported third quarter earnings that topped estimates while revenue guidance met expectations.
New York-based Datadog reported earnings before the market open. On the stock market today, Datadog stock fell 3.5% to 123.82 in early trading.
Datadog earnings for the September quarter came in 46 cents per share on an adjusted basis, up a penny from a year earlier. The enterprise software maker's revenue climbed 26% to $690 million.
Meanwhile, analysts expected Datadog to report profit of 40 cents a share on revenue of $665 million.
Billings, a sales growth metric, rose 14% to $689 million, missing consensus estimates of $735 million. Billings growth slowed from 28% in the previous quarter.
Datadog Stock: Guidance Meets Expectations
For the current quarter ending in December, Datadog forecast revenue of $711 million at the midpoint of guidance. Wall Street analysts predicted Q4 sales of $711 million.
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 gained 3% in 2024.
DDOG stock is in a consolidation going back to February. Shares had been working on a handle buy point of 131.84, which also lines up with a trendline from the top of the base.
Further, Datadog stock holds a Relative Strength Rating of 70 out of a best-possible 99, according to IBD Stock Check-up.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
