Key Takeaways
- Shares of Datadog sank in intraday trading Tuesday as the cloud monitoring and security company’s guidance appeared to be less than some had anticipated.
- The company also said president Amit Agarwal was resigning.
- Datadog’s first-quarter profit and revenue exceeded forecasts.
Datadog (DDOG) shares plunged in intraday trading Tuesday as the cloud monitoring and security company’s guidance appeared to be less than some had anticipated, and its president resigned.
Datadog said it sees current-quarter adjusted earnings per share (EPS) in a range of $0.34 to $0.36, with revenue of $620 million to $624 million. It predicts full-year adjusted EPS to be $1.51 to $1.57, and revenue of $2.59 billion to $2.61 billion.
Analysts were expecting second-quarter adjusted EPS of $0.35 on revenue of $620.6 million, according to estimates compiled by Visible Alpha, and full-year adjusted EPS of $1.47 on revenue of $2.59 billion.
Q1 Results Top Estimates
In the first quarter, the company reported adjusted EPS of $0.44, with revenue jumping 27% to $611.3 million. Both exceeded forecasts.
Datadog noted as of the end of March it had 3,340 customers with annual recurring revenue (ARR) of $100,000 or more. That was a 15% increase from a year earlier.
Datadog President to Step Down
The company also announced that president Amit Agarwal will be stepping down at the end of 2024 and is expected to join the board.
Shares of Datadog were down 9.5% at 11:22 a.m. ET to $114.87, their lowest level since early January.