Datadog, Inc (NASDAQ:DDOG) reported its quarterly results on Tuesday, after which the stock declined.
The software-as-a-service (SaaS) platform’s fiscal first-quarter revenue increased 25% year over year to $761.55 million, beating the analyst consensus estimate of $741.52 million.
Also Read: Datadog Acquires Eppo To Boost Product Analytics And Simplify AI Workflows
Adjusted EPS of 46 cents beat the analyst consensus estimate of 43 cents.
As of March 31, Datadog had 3,770 customers with an ARR of $100,000 or more, an increase of 13% Y/Y. The adjusted gross margin declined by 300 bps to 80%, and the adjusted operating margin decreased by 500 bps to 22%.
As of March 31, Datadog had cash and equivalents of $4.4 billion, generating $244 million in free cash flow.
Outlook: Datadog expects second-quarter revenue of $787 million–$791 million above the consensus estimate of $772.13 million. It projects an adjusted EPS of $0.40–$0.42 compared to the analyst consensus of $0.41.
Datadog raised its fiscal 2025 revenue outlook to $3.215 billion-$3.235 billion (prior $3.175 billion-$3.195 billion), above the consensus estimate of $3.200 billion. It projects an adjusted EPS of $1.67-$1.71 (prior $1.65–$1.70), below the analyst consensus of $1.75.
Price Action: DDOG stock is down 2.08% at $103.50 premarket at last check Tuesday.
Read Next:
Photo: Shutterstock
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.