Shares of Datadog (NASDAQ: DDOG) are down 6% in premarket trading after the cloud company offered soft Q3 and FY guidance.

Datadog reported an adjusted EPS of $0.24 on revenue of $406.1 million to crush the average analyst estimate of $0.14 per share on sales of $378.3 million. The adjusted gross margin came in at 81%, again much better than the 76% consensus.

For this quarter, Datadog said it expects adjusted EPS between $0.15 and $0.17, slightly behind the consensus of $0.15. Revenue topped expectations as the monitoring and analytics company said it expects to record revenue of between $410 million and $414 million, higher than the $410.6 million.

Datadog raised its full-year forecast so that it now expects an adjusted EPS of $0.74 and $0.81, much better than the estimate of $0.75 and up from the prior forecast of $0.70 to $0.77. Revenue is expected to be between $1.61 billion to $1.63 billion, which compares to the estimate of $1.61 billion and the prior outlook of $1.60 billion to $1.62 billion.

Datadog also announced it acquired Seekret, an API (Application Programming Interface) observability company.

By Senad Karaahmetovic