Stock Story -
Cloud monitoring software company Datadog (NASDAQ:DDOG (NASDAQ:DDOG)) will be reporting results tomorrow morning. Here's what you need to know.
Last quarter Datadog reported revenues of $547.5 million, up 25.4% year on year, beating analyst revenue expectations by 4.5%. It was a very strong quarter for the company, with accelerating growth in large customers and optimistic revenue guidance for the next quarter. The company added 140 enterprise customers paying more than $100,000 annually to a total of 3,130.
Is Datadog buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Datadog's revenue to grow 21.2% year on year to $568.8 million, slowing down from the 43.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.44 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 5.6%.
Looking at Datadog's peers in the software development segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Dynatrace delivered top-line growth of 22.7% year on year, beating analyst estimates by 2.1% and Cloudflare (NYSE:NET) reported revenues up 32% year on year, exceeding estimates by 2.7%. Dynatrace traded down 14.9% on the results, and Cloudflare was up 20.2%.
Read the full analysis of Dynatrace's and Cloudflare's results on StockStory.
There has been positive sentiment among investors in the software development segment, with the stocks up on average 8.2% over the last month. Datadog is up 9.9% during the same time, and is heading into the earnings with analyst price target of $130.3, compared to share price of $136.08.