Proactive Investors - Datadog Inc (NASDAQ:DDOG) shares fell 11% after the cloud software monitoring and security platform reported first quarter earnings, even thought revenue and income was better than guidance, and the full-year outlook was hiked.
The company said Amit Agarwal, former Dell and IBM (NYSE:IBM) veteran, is stepping down as president at the end of the year but is expected to join the board of directors.
Revenue came to $611 million for the first quarter of 2024, an increase of 27% year-over-year and at the top end of guidance.
Underlying operating income was $164 million at a margin of 27%, up from $86.4 million and 18% a year earlier and better than the top end of guidance, while earnings per share (EPS) were $0.44 versus the top end of EPS guidance of $0.35.
CEO Olivier Pomel said the company "executed solidly" in the quarter, with sales growing and product innovation continuing.
For the second quarter, he expects revenue of $620 million to $624 million, rising to $2.59 billion to $2.61 billion for the year (up from $2.56 billion to $2.575 billion).
Guidance for underlying EPS for the second quarter was hiked to $0.34 to $0.36, and $1.51 to $1.57 for the full year (up from $1.38 to $1.44 before).
Shares fell 10.6% to $114 on Tuesday morning, having risen over 60% over the past 12 months.