Datadog (DDOG) Surpasses Q1 Earnings and Revenue Estimates

Core Insights - Datadog reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.42 per share, and showing a slight increase from $0.44 per share a year ago, resulting in an earnings surprise of 9.52% [1] - The company achieved revenues of $761.55 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3% and reflecting a year-over-year increase from $611.25 million [2] - Datadog has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Datadog's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's price movement based on recent earnings and future expectations [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $767.64 million, while for the current fiscal year, the estimate is $1.68 on revenues of $3.19 billion [7] Industry Context - The Internet - Software industry, to which Datadog belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]