Investing.com -- Datadog shares jumped sharply after the cloud monitoring company blew past first-quarter estimates and provided upbeat guidance for the current quarter and full fiscal year.

The stock surged more than 25% in premarket trading by 07:09 ET.

The company reported adjusted earnings of $0.60 per share, ahead of the $0.51 estimate, on revenue of $1 billion — up 32% year-over-year and well above the $959.9 million consensus.

Adjusted operating income came in at $223 million, representing a 22% margin, while operating cash flow reached $335 million and free cash flow $289 million.

Datadog said the number of clients with annualized recurring revenue of $100,000 or more rose 21% year-over-year to approximately 4,550 as of March 31, up from roughly 3,770 a year earlier.

"We are helping customers of all sizes and industries deploy modern, cloud-based, AI-enabled solutions," said Olivier Pomel, co-founder and CEO of Datadog.

"We’re using AI to build rapidly across the Datadog platform, and are excited to showcase our latest innovations at our DASH user conference in June," he added.

For the second quarter, Datadog guided for revenue of $1.07–$1.08 billion and adjusted EPS of $0.57–$0.59, both ahead of consensus estimates of $994.5 million and $0.50, respectively.

For the full year, the company sees revenue of $4.30–$4.34 billion against a $4.12 billion consensus, and adjusted EPS of $2.36–$2.44, above the average analyst estimate of $2.18.