Datadog on Tuesday reported September-quarter earnings and revenue that handily beat consensus estimates amid lowered expectations. DDOG stock soared as other cloud software stocks jumped on the news.
For the quarter ending Sept. 30, Datadog earnings came in at 45 cents per share on an adjusted basis, up 95% from a year earlier. The enterprise software maker's revenue jumped 25% to $525 million.
Meanwhile, analysts expected Datadog to report profit of 34 cents a share on revenue of $525 million. A year earlier, Datadog earned 23 cents on revenue of $436.5 million.
Datadog Stock: Billings Beat
New York-based Datadog in August cut its full-year 2023 revenue prediction.
In Q3, billings rose 30% to $606.5 million, topping estimates of $565.1 million. Billings are a sales growth metric.
On the stock market today, Datadog stock skyrocketed 28.5% to close at 102.20.
Some other cloud-software names rose on the Datadog earnings news, including Snowflake and MongoDB. SNOW stock jumped 10.7% to 159.57. Snowflake earnings are due Nov. 29.
Meanwhile, MDB stock popped 11% to 369.04.
Datadog's Q3 beat came after Confluent's disappointing outlook sent cloud software stocks down last week.
DDOG Stock: Outlook Tops Views
For the current quarter ending in December, Datadog forecast profit in a range of 42 cents to 44 cents vs. estimates of 35 cents.
Datadog said it expects revenue of $566 million at the midpoint of its outlook. Wall Street called for sales of $545 million.
Started in 2010, Datadog operates a monitoring and analytics platform for software developers and information-technology departments. Datadog has a partnership with Amazon Web Services, the cloud computing unit of Amazon.com.
Heading into the Datadog earnings report, the software stock had gained 8% in 2023. That lagged the Nasdaq's gain of 29%.
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