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.

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New York-based Datadog (DDOG) reported fourth-quarter earnings before the market open. DDOG stock jumped 15.5% to 179.70 in morning trading 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 Amazon.com (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.

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.

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