Datadog Delivers Q1 Earnings Beat Amid Worries Over Cloud Computing
DDOG stock is up after they reported that their earnings and revenue topped analyst estimates while their sales guidance came in just below views.
Datadog (DDOG), on Thursday morning, reported earnings and revenue for the March quarter that exceeded analyst expectations. However, revenue guidance was slightly below analyst expectations. DDOG shares rose after the news.
Datadog, a New York-based company, announced its first-quarter results before the opening of the market. Datadog's stock rose 4.4% in early trading today to 68.75.
Datadog's earnings per share were 28 cents on a recalculated basis, an increase of 16% over the previous year. Revenue for the enterprise software maker jumped by 33%, to $482 millions.
Datadog's revenue in the previous year was $363 million, and it earned Datadog 24 cents.
Stock DDOG: Revenue Outlook is Light
Analysts expected Datadog's profit to be 23 cents per share, based on a revenue of $470 millions.
Datadog expects to earn 28 cents per share for the current quarter, ending in June. The estimate was 26 cents. Datadog expects to reach $500 million in revenue at the midpoint of its guidance, compared with estimates of $502 millions.
Datadog is partnered with Amazon Web Services (AMZN), the cloud computing division of Amazon.com. Datadog's stock has been impacted by concerns over a slowdown in cloud computing.
The software stock had fallen 67% since its high of November 221. According to IBD StockCheckup, it had a relative strength rating of 18 out a maximum possible 99. DDOG's stock price is down by about 12% for 2023.