May 25, 2022


Skillful Business Crafters

Datadog Stock Pops On Earnings Beat, Guidance Amid Amazon Partnership

Datadog stock popped Thursday after its December-quarter earnings and revenue handily beat estimates, while 2022 revenue guidance also came in above expectations.


New York-based Datadog (DDOG) reported fourth-quarter earnings before the market open. DDOG stock jumped 12.2% to close at 174.51 on the stock market today.

Datadog earnings were 20 cents per share on an adjusted basis, up 233% from 6 cents a year earlier.

The enterprise software maker’s revenue jumped 84%, to $326.2 million, amid an expanding partnership with Amazon Web Services, the cloud computing unit of (AMZN). Meanwhile, analysts expected Datadog to report profit of 11 cents a share on revenue of $291.5 million.

“Results were highlighted by 84% revenue growth that accelerated vs. 75% last quarter and consensus at 64%, or a 12% beat, the largest quarterly beat since the third quarter of 2019 and a record on an absolute basis,” RBC Capital analyst Matthew Hedberg said in a report to clients.

Datadog Stock: Revenue Guidance Tops Expectations

For the current quarter ending in March, Datadog forecasts revenue of $336.5 million vs. estimates of $306.4 million. For full-year 2022, Datadog estimated revenue of $1.52 billion vs. estimates of $1.399 billion.

Started in 2010, Datadog operates a monitoring and analytics platform for software developers and information-technology departments.

“Very strong Q4 results should refute concerns over the state of the observability market following deceleration at competitors Dynatrace (DT) and New Relic (NEWR),” said Raymond James analyst Adam Tindle in a report.

Heading into the Datadog earnings report, the software stock had a Relative Strength Rating of 94 out of a best-possible 99, according to IBD Stock Checkup. That means the stock is outperforming all but 6% of the stocks in IBD’s database.

With Thursday’s gain, DDOG stock is about even in 2022.

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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.


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Datadog Stock Pops On Earnings Beat, Guidance Amid Amazon Partnership