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Datadog Stock Slumps as Downbeat Projections Outweigh Solid Q4 Results
DDOGDatadog(DDOG) Investopedia·2025-02-13 17:55

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 0.49onrevenueof0.49 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 1million,whichisabout25fewerthananalystshadanticipated[2].FutureProjections−Forthefirstquarter,Datadogexpectsrevenuebetween1 million, which is about 25 fewer than analysts had anticipated [2]. Future Projections - For the first quarter, Datadog expects revenue between 737 million to 741millionandadjustedEPSbetween741 million and adjusted EPS between 0.41 and 0.43,fallingshortoftheanalystconsensusof0.43, falling short of the analyst consensus of 740.58 million and 0.46pershare[3].−Thefull−yearrevenueprojectionsarebetween0.46 per share [3]. - The full-year revenue projections are between 3.175 billion to 3.195billion,withEPSexpectedtobebetween3.195 billion, with EPS expected to be between 1.65 to 1.70,bothbelowanalystestimatesof1.70, both below analyst estimates of 2.04 per share [3].