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Datadog shares plunge 14% on weak guidance

February 13, 2025 7:14 AM

Investing.com-- Datadog Inc (NASDAQ: DDOG) reported fourth-quarter earnings that beat analyst expectations, but shares tumbled 14% as the company's guidance fell short of estimates.


The cloud monitoring and security platform provider posted adjusted earnings per share of $0.49, surpassing the analyst consensus of $0.43. Revenue for the quarter came in at $737.7 million, up 25% YoY and above the $714.2 million estimate.


However, Datadog's outlook disappointed investors. For the first quarter of 2025, the company expects revenue between $737 million and $741 million, below the $741.7 million consensus.


Full-year 2025 revenue guidance of $3.175 billion to $3.195 billion also missed expectations of $3.24 billion.


"We are pleased with our strong execution in fiscal year 2024, with 26% year-over-year revenue growth, $871 million in operating cash flow, and $775 million in free cash flow," said Olivier Pomel, co-founder and CEO of Datadog.


The company reported 462 customers with annual recurring revenue of $1 million or more as of December 31, up 17% from the previous year.


Customers with ARR of $100,000 or more increased 13% to about 3,610.


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