Cloud monitoring platform Datadog (NASDAQ:DDOG) will be reporting earnings this Tuesday before the bell. Here’s what you need to know.
Datadog beat analysts’ revenue expectations by 3.9% last quarter, reporting revenues of $885.7 million, up 28.4% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ annual recurring revenue estimates and EPS guidance for next quarter exceeding analysts’ expectations. It added 210 enterprise customers paying more than $100,000 annually to reach a total of 4,060.
Is Datadog a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Datadog’s revenue to grow 24.5% year on year to $918.2 million, in line with the 25.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.55 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Datadog has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.6% on average.
Looking at Datadog’s peers in the software development segment, only F5 has reported results so far. It beat analysts’ revenue estimates by 8.8%, delivering year-on-year sales growth of 7.3%. The stock traded up 8.1% on the results.
Read our full analysis of F5’s earnings results here.The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. Investors in software development stocks have been spared in this environment as share prices are down 18.8% on average over the last month. Datadog is down 11.5% during the same time and is heading into earnings with an average analyst price target of $191.39 (compared to the current share price of $111.91).
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