Datadog’s stock jumps 31% on crushing earnings beat, showing there’s still hope for software
Shares of Datadog Inc. popped after the application monitoring software firm crushed Wall Street’s expectations with its first-quarter financial results today and followed up with strong guidance.
The stock gained more than 30% during the regular trading session today, and also helped to boost the price of other software firms. Datadog’s gains, which came after impressive results from Twilio Inc. last week, sparked a broader rally among software stocks. Shares of Snowflake Inc. and MongoDB Inc. both gained more than 10% today, while Dynatrace Inc. and Elastic N.V. were up just over 5%.
The company reported earnings before certain costs such as stock compensation of 60 cents per share, easily beating the Street’s consensus estimate of 51 cents. Revenue rose 32% from a year earlier to $1 billion, well above the analyst target of $931.8 million. Those numbers helped to more than double Datadog’s overall profit, with net income reaching $52.6 million in the quarter, up from $24.6 million in the same period one year ago.
Looking forward, Datadog said it’s expecting full-year earnings of between $2.36 and $2.44, well up from its prior forecast of between $2.08 and $2.16. It also lifted its revenue guidance to a range of $4.3 billion to $4.34 billion, up from a prior forecast of $4.06 billion to $4.1 billion. For the current quarter, Datadog sees earnings of between 57 and 59 cents on revenue of $1.07 billion to $1.08 billion. Wall Street is targeting earnings of just 50 cents per share on sales of $994.4 million.
