Application observability cabinet Datadog Inc.The s stock reappeared today amid extended trading after reporting solid earnings and earnings beating expectations, followed by bullish expectations.
The company reported third-quarter profit before certain costs such as stock compensation of 13 cents per share on revenue of $ 270.5 million, up 75% from a year ago. Wall Street expected the company to earn just six cents a share on sales of $ 247.7 million.
The report thrilled investors, with Datadog shares gaining more than 13% in after-hours trading.
Datadog co-founder and chief executive Olivier Pomel (pictured) said the company strengthened in several customer and product segments during the quarter. âOur strong, large-scale growth demonstrates that we continue to be a trusted partner in our customers’ digital transformation and cloud journeys,â he added.
Datadog sells application monitoring and analysis tools that help developers and IT teams assess the health of their applications and keep tabs on the infrastructure that supports them. The platform is particularly popular with DevOps teams, those who combine software developers with IT staff, who build cloud-native applications and frequently update them, as it helps keep a lid on the issues these regular changes could cause.
The company has not only seen its revenues grow enormously, but also its customer base. At the end of the quarter, Datadog said it had 1,800 customers with annual recurring revenue of $ 100,000 or more, up 66% from last year. ARR is a key metric for investors because it shows how much recurring revenue the business can expect to receive based on its clients’ annual subscriptions.
RBC Capital Markets analyst Matthew Hedberg said in a note to clients that “digital transformation and cloud migration continue to be the driving force behind the business.”
During the quarter, Datadog announced a new integration with Circle Internet Services Inc.’s continuous delivery and integration platform. With this evolution, developers using the popular CircleCI CI / CD platform will be able to use Datadog more easily to visualize the metrics of their application development pipeline. So this is an announcement that could well see even more teams adopting its platform.
Datadog is also working on improving its own tools. âWe continue to extend the features and functionality of our cloud-native end-to-end observability platform,â said Pomel. âWe’re just starting to break down the silos between DevOps and security teams. “
Datadog executives have released confident forecasts for the fourth quarter, saying they expect revenue of between $ 290 million and $ 292 million, well ahead of Wall Street’s forecast of just $ 248 million. sales dollars.