Shares of Datadog (NASDAQ:DDOG) experienced a 22% spike pre-market today after the company reported a quarter that exceeded Street expectations.
The company, which specializes in security and cloud applications, reported a 25% increase in third-quarter revenue, reaching $548 million and surpassing the Wall Street forecast of $524.73 million.
Datadog observed a significant uptick in the acquisition of larger clients, disclosing that it ended the quarter with 3,130 customers with annual recurring revenue (ARR) exceeding $100,000, a 20% jump from the 2,600 reported in the same period last year. The non-GAAP net income per diluted share stood at $0.45 for the quarter, outperforming the anticipated consensus of $0.34.
Looking to the future, Datadog forecasts an EPS of $0.42-$0.44 for the fourth quarter, compared to the Street estimate of $0.35. Revenue projections for the same quarter are set at $564-$568 million, well above the Street estimate of $543.7 million.
For the full year, the company’s EPS expectation is $1.52-$1.54, against the Street estimate of $1.33. They anticipate full-year revenue to land between $2.103 billion and $2.107 billion, which would exceed the consensus of $2.06 billion.