Datadog Earnings Top Views, But DDOG Stock Tumbles On Weak Guidance

Datadog (DDOG) on Tuesday reported fourth-quarter earnings and revenue that topped estimates but the software maker’s 2024 guidance missed expectations. DDOG stock fell sharply.

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New York-based Datadog reported earnings before the market open. On the stock market today, Datadog stock initially fell double-digits then clawed back a bit.

Shares were down 6.6% to near 126 in early trading. One key for investors is whether DDOG stock finds support at its 50-day moving average.

Datadog earnings for the December quarter were 44 cents per share on an adjusted basis, up 70% from a year earlier. The enterprise software maker’s revenue jumped 26% to $589.6 million.

Meanwhile, analysts expected Datadog to report profit of 43 cents a share on revenue of $568.7 million. A year earlier, Datadog earned 26 cents on revenue of $469.4 million.

DDOG Stock: 2024 Guidance Misses

For full-year 2024, Datadog forecast profit of $1.41 at the midpoint of guidance vs. estimates of 1.77 profit per share. Datadog said it expects revenue of $2.565 billion. Wall Street analysts called for 2024 sales of $2.586 billion, up 23% from a year earlier.

An investor day is slated for Datadog stock on Feb. 15.

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 (AMZN).

Heading into the Datadog earnings report, the software stock had gained nearly 11% in 2024 and 67% over the past year.

DDOG stock holds a Relative Strength Rating of 94 out of a best-possible 99, according to IBD Stock Check-up.

Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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