Datadog Q3 revenue soars, raises 2024 outlook

Datadog’s (NASDAQ:DDOG) stock was largely flat premarket on Thursday after third quarter results and outlook exceeded expectations.

For the third quarter ended Sept. 30, non-GAAP EPS grew about 28% year-over-year to $0.46, while revenue rose around 26% year-over-year to $690M. Both top and bottom-line numbers beat estimates.

As of Sept. 30, the company had about 3,490 customers with Annual recurring revenue, or ARR, of $100,000 or more, an increase of 12% from around 3,130 as of Sept. 30, 2023.

Outlook: The company expects fourth quarter revenue to be between $709M and $713M (midpoint at $711M), which was above consensus estimate of $710.44M.

Datadog forecast non-GAAP net income per share between $0.42 and $0.44 (midpoint at $0.43) versus $0.40 consensus.

Datadog, which provides a security platform for cloud applications, raised its full year outlook. The company anticipates full year 2024 revenue to be between $2.656B and $2.660B (midpoint at $2.658B), versus prior forecast range of $2.62B to $2.63B (midpoint at $2.625B) provided during second quarter results in August. The consensus estimate is $2.63B.

Non-GAAP net income per share raised to be between $1.75 and $1.77 (midpoint at $1.76) compared to prior estimate range of $1.62 to $1.66 (midpoint at $1.64). The consensus estimate is $1.66.

Shares of peer Dynatrace (DT), which also reported its quarterly results, dipped about 6% premarket. Other related stocks include Amazon (AMZN).