Datadog forecasts slower quarterly revenue growth, shares tumble
Datadog forecasts slower quarterly revenue growth, shares tumble Datadog DDOG.O said it expects revenue growth to slow in the third quarter, overshadowing its raised annual outlook and sending the high-flying stock down more than 15% in premarket trading on Thursday.
The New York-based company forecast current-quarter revenue of $1.14 billion to $1.15 billion, implying year-over-year growth of about 29%, compared with 36% growth in the second quarter.
Here are some details:
Datadog provides cloud-based monitoring and security software that helps businesses manage their applications and IT infrastructure.
Datadog's shares have more than doubled so far this year. Demand for its software has benefited from cloud migration and growing adoption of AI applications.
The company posted second-quarter revenue of $1.12 billion, beating analysts' average estimate of $1.08 billion, according to data compiled by LSEG.
Adjusted profit per share came in at 65 cents, above analysts' estimates of 59 cents.
Datadog forecast third-quarter revenue of $1.14 billion to $1.15 billion, above analysts' average estimate of $1.11 billion.
The company raised its full-year revenue forecast to $4.45 billion to $4.47 billion from $4.30 billion to $4.34 billion.
The New York-based company's customers include LG, Nasdaq, Comcast, Cognizant, PayPal among others.
(Reporting by Anzar Mehraj in Bengaluru; Editing by Leroy Leo)
((Anzar.Mehraj@thomsonreuters.com;))