Datadog (DDOG) has released its first-quarter earnings and revenue, which exceeded expectations. However, the company’s guidance fell short of expectations, and it was announced that Amit Agarwal will be stepping down as president. As a result, Datadog stock experienced a decline in response to this news.
Based in New York, Datadog released its earnings before the market opened on Tuesday. The company’s stock dropped more than 10% below 114 on the stock market due to the news. The March quarter’s earnings were reported at 44 cents per share on an adjusted basis, showing a 29% increase from the previous year. Additionally, Datadog’s revenue increased by 27% to $611 million, showing slightly accelerating growth for a second consecutive quarter.
Analysts had predicted that Datadog would report profits of 34 cents per share on revenues of $590 million. This was a significant improvement from the previous year when the company earned 28 cents per share on revenues of $482 million. For the upcoming quarter ending in June, Datadog anticipates revenue of $622 million at the midpoint of their guidance, with Wall Street analysts expecting Q2 sales of $617 million. Furthermore, Datadog forecast earnings of 35 cents per share, slightly better than the projected 34 cents.
Founded in 2010, Datadog operates a monitoring and analytics platform for software developers and IT departments. The company has a partnership with Amazon Web Services (AWS), Amazon’s cloud unit. Prior to the earnings report, Datadog’s stock had gained 2% in 2024 and an impressive 62% over the past year. Despite this positive performance, after falling below its 50-day line and hitting its low for consolidation following the news about Amit Agarwal stepping down as president
