Datadog early Thursday reported fourth-quarter earnings and revenue that topped analyst estimates. But guidance for DDOG stock came in well below expectations. Datadog stock fell on the news.
For the quarter ended Dec. 31, Datadog earnings were 26 cents per share on an adjusted basis, up 30% from a year earlier. Revenue jumped 44% to $469 million, amid slowing growth for cloud computing partners such as Amazon Web Services, the cloud computing unit of Amazon.com.
A year earlier, Datadog earned 20 cents on revenue of $326.2 million.
Analysts expected Datadog to report profit of 19 cents a share on revenue of $450.2 million.
DDOG Stock: Cloud Spending Outlook
Datadog stock fell 7% to close at 82.47 on the stock market today.
Started in 2010, Datadog operates a monitoring and analytics platform for software developers and information-technology departments.
For the current quarter ending in March, Datadog forecast profit of 23 cents vs. estimates of 24 cents. Datadog said it expects revenue of $468 million at the midpoint of guidance, below estimates of $481.8 million. For 2023, Datadog predicted revenue of $2.08 billion versus estimates of $2.19 billion.
"Management guided for 2023 revenue of $2.08 billion), which equates to 24% to 25% year-over-year growth and is a significant deceleration from 2022 (63%)," said Wells Fargo analyst Andrew Nowinski in a report. "We believe the guidance approach remains conservative, as the outlook assumes no improvement with large customers optimizing their cloud spending throughout the full year."
After plunging in 2022, DDOG stock had advanced about 18% this year heading into the Datadog earnings report.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
