Datadog Earnings Tops Views, Software Stock Falls On Weak Guidance

Datadog (DDOG) 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.

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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 (AMZN).

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.

Datadog stock fell 4.5% to 82.72 in early trading 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 mid-point of guidance, below estimates of $481.8 million. For 2023, Datadog predicted revenue of $2.08 billion versus estimates of $2.19 billion.

After plunging in 2022, DDOG stock has 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.

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