Datadog stock jumped up on Tuesday after the enterprise software maker reported first-quarter earnings and revenue that topped Wall Street estimates while June quarter guidance came in above expectations.
New York-based Datadog reported earnings before the market open. On the stock market today, Datadog stock narrowed an early 6% to around 2% in early trading.
Datadog earnings for the March quarter came in 46 cents per share on an adjusted basis, up about 5% from a year earlier. The enterprise software maker's revenue climbed 25% to $762 million.
Meanwhile, analysts expected Datadog to report profit of 43 cents a share on revenue of $741.4 million.
In early 2025, Datadog issued full-year guidance below views.
Updated Guidance Above Expectations
For the current quarter ending in June, Datadog forecast revenue of $789 million at the midpoint of guidance. Wall Street analysts modeled sales of $770.3 million. Also, Datadog predicted 2025 revenue of $3.225 billion, above estimates of $3.2 billion.
Started in 2010, Datadog operates a monitoring and analytics (observability) platform for software developers and information technology departments. Datadog has a partnership with Amazon Web Services, the cloud computing unit of Amazon.com.
Also, Datadog recently announced the acquisitions of startups Eppo and Metaplane.
Meanwhile, one overhang on Datadog stock involves OpenAI, a leader in building generative artificial intelligence training models. While OpenAI is currently a Datadog customer, it's apparently building its own, in-house observability tools platform. OpenAI's biggest investor to date has been Microsoft.
Datadog Stock Technical Ratings
Heading into the Datadog earnings report, the software stock had retreated 26% in 2025. Also, Datadog stock holds a Relative Strength Rating of 23 out of a best-possible 99, according to IBD Stock checkup.
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