Datadog Stock Slumps as Downbeat Projections Outweigh Solid Q4 Results

Core Insights - Datadog's shares fell approximately 9% due to weaker-than-expected projections for the first quarter and the full year of 2025, despite a strong fourth quarter performance that exceeded estimates [1][4]. Financial Performance - The company reported adjusted earnings per share (EPS) of $0.49 on revenue of $738 million, both figures surpassing analyst expectations [1]. - Datadog's fourth quarter sales and earnings exceeded estimates, but the stock still declined due to future projections [4]. Customer Metrics - At the end of the quarter, Datadog had 462 customers with an annualized revenue run rate exceeding $1 million, which is about 25 fewer than analysts had anticipated [2]. Future Projections - For the first quarter, Datadog expects revenue between $737 million to $741 million and adjusted EPS between $0.41 and $0.43, falling short of the analyst consensus of $740.58 million and $0.46 per share [3]. - The full-year revenue projections are between $3.175 billion to $3.195 billion, with EPS expected to be between $1.65 to $1.70, both below analyst estimates of $2.04 per share [3].