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Datadog announced the acquisition of a security-testing software company.
Dreamstime
Datadog earned more than expected in the first quarter and its financial forecasts beat Wall Street’s estimates as well.
Adjusted earnings were 24 cents a share in the first quarter, beating the 11 cents analysts expected, according to FactSet data. Revenue of $363 million for the quarter was higher than the $339 million Wall Street had anticipated.
Datadog
had told investors to expect earnings of 10 cents to 12 cents a share on $334 million to $339 million of revenue.
The stock (ticker: DDOG) was down 4.5% to $113.64 in premarket trading on Thursday. In a separate press release, the company also announced the acquisition of Hdiv Security, a security-testing software provider.
Datadog is a security-monitoring platform for cloud-based software that went public in late 2019. The company said that as of the end of March this year, it had 2,250 customers with annual recurring revenue of $100,000 or more, a 60% increase versus last year.
“We continue to see customers of all sizes and in all industries progressing along their digital transformation and cloud migration journeys,” said CEO Olivier Pomel.
The company expects adjusted earnings in the second quarter to be between 13 cents and 15 cents a share from revenue of $376 million to $380 million. Analysts tracked by FactSet expect 12 cents a share from $363 million.
Datadog forecast its full-year adjusted earnings will be between 70 cents and 77 cents a share, higher than analysts’ predictions of 51 cents. Revenue in 2022 is expected to be in the range of $1.60…
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