Datadog, Inc. (NASDAQ:DDOG) reported better-than-expected second-quarter results and raised its full-year guidance, sending its shares up 2.7% in early trading.
The cloud application monitoring and security platform provider posted adjusted earnings per share of $0.43, surpassing analysts' estimates of $0.37. Revenue for the quarter reached $645.28 million, exceeding the consensus forecast of $624.92 million and marking a 27% increase YoY.
Datadog's customer base continued to expand, with about 3,390 customers generating annual recurring revenue of $100,000 or more, up 13% from 2,990 in the same quarter last year.
"Datadog executed well in the second quarter, with 27% year-over-year revenue growth, continued customer growth, and expanding multi-product adoption across our platform," said Olivier Pomel, co-founder and CEO of Datadog.
The company raised its full-year 2024 outlook, now expecting revenue between $2.62 billion and $2.63 billion, up from the previous consensus of $2.61 billion. Adjusted EPS guidance for the year was also increased to $1.62-$1.66, above the prior estimate of $1.58.
For the third quarter, Datadog projects revenue of $660-664 million and adjusted EPS of $0.38-$0.40, compared to analysts' expectations of $664.2 million and $0.37, respectively.