Earnings Results: Datadog stock rallies after results, outlook exceed Wall Street expectations
Datadog Inc. shares rallied in the extended session Thursday after the cloud-monitoring company’s results and outlook exceeded Wall Street expectations.
surged 10% after hours, following a 2.6% rise in the regular session to close at $166.95. At the close, Datadog shares were up 71% over the past 12 months, while the S&P 500 index
is up 36%, and the tech-heavy Nasdaq Composite Index
is up 38%.
The company reported a third-quarter loss of $5.5 million, or 2 cents a share, compared with a loss of $15.2 million, or 5 cents a share, in the year-ago period.
Adjusted earnings, which exclude stock-based compensation expenses and other items, were 13 cents a share, compared with 5 cents a share in the year-ago quarter.
Revenue rose to $270.5 million from $154.7 million in the year-ago quarter.
Analysts surveyed by FactSet had forecast earnings of 6 cents a share on revenue of $247.8 million.
“We are pleased with our third-quarter performance, with revenue growth accelerating to 75% year over year,” said Olivier Pomel, Datadog co-founder and chief executive, in a statement. “Digital transformation and cloud migration continue to be transformational forces for companies of all sizes.”
Datadog expects adjusted earnings of 11 cents to 12 cents a share on revenue of $290 million and $292 million in the fourth quarter, and 39 cents to 40 cents a share on revenue of $993 million and $995 million for the year.
Analysts forecast 6 cents a share on revenue of $263.4 million for the quarter, and 28 cents a share on revenue of $943.7 million for the year.