Datadog raises annual forecast on strong cloud security demand, shares jump 36%
Tweet
Share
E-mail
FILE PHOTO: A logo for Datadog is seen during the KubeCon + CloudNativeCon Europe hosted by the Cloud Native Computing Foundation (CNCF) in Paris, France, March 20, 2024. REUTERS/Benoit Tessier/File Photo
May 7 (Reuters) - Cloud security firm Datadog on Thursday raised its annual forecast after beating Wall Street expectations for first-quarter results, fueled by high demand for its cloud security products amid rising artificial intelligence adoption.
• The company's shares were up nearly 36% in early trading.
• The demand for Datadog's monitoring and security tools have been on a rise due to increase in generative AI and cloud migration.
• The company now sees full-year 2026 revenue between $4.30 billion and $4.34 billion, compared to its prior forecast of $4.06 billion to $4.10 billion.
• It also expects full-year adjusted profit between $2.36 and $2.44 per share, compared with its previous expectation of $2.08 to $2.16 per share.
• New York City-headquartered Datadog provides a cloud-based monitoring and analytics platform that can help companies see how their software and servers are performing in one place.
• Its first-quarter revenue grew 32% to $1.01 billion from a year ago, well ahead of estimates of $961.3 million, according to data compiled by LSEG.
• Quarterly adjusted profit came in at 60 cents per share, topping expectations of 51 cents per share.
• "We are helping customers of all sizes and industries deploy modern, cloud-based, AI-enabled solutions," CEO Olivier Pomel said.
• The company sees second-quarter revenue between $1.07 billion and $1.08 billion, well above estimates of $961.3 million.
• Q2 adj profit per share is expected between 57 cents and 59 cents, also above the estimates of 50 cents per share.
• Datadog's customers include companies like Samsung, NASDAQ, Comcast, Shell and PayPal.
(Reporting by Arunesh Sinha; Editing by Shailesh Kuber)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- US 30-year Treasury yields drop from multi-year highs
- Greater regulatory scrutiny no bar to mining mergers, bosses say
- Moderna surges as Merck-partnered melanoma vaccine cuts recurrence in large trial
Create E-mail Alert Related Categories
ReutersSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
