Datadog Inc. (NASDAQ: DDOG) shares soared 21% in intra-day trading on Thursday after the cloud monitoring firm reported better-than-expected third-quarter results and raised its guidance for the remainder of the year.
Adjusted earnings per share came in at $0.55, surpassing analyst estimates of $0.46. Revenue climbed 28% year over year to $885.7 million, topping the consensus forecast of $852.3 million.
For the fourth quarter, the company projected revenue of $912 million to $916 million, above Wall Street expectations of $886.4 million, and adjusted EPS of $0.54 to $0.56, higher than analysts’ estimates of $0.45. Full-year revenue is now forecast at $3.386 billion to $3.390 billion, with adjusted EPS between $2.00 and $2.02, both exceeding consensus projections.
Datadog’s customer base continued to expand, with approximately 4,060 clients generating at least $100,000 in annual recurring revenue, up 16% from 3,490 a year earlier. The company also reached a milestone of over 1,000 integrations across its platform, reinforcing its position as a leading observability and monitoring provider.
