Datadog Inc. (DDOG) announced it financial results for the third quarter that beat consensus forecast and offered an upbeat outlook for the fourth quarter and full year.
The cloud-monitoring company posted a loss of $15.2 million, or 5 cents per share for the three-month period ended September 30, versus a loss of $4.2 million, or 4 cents per share in the comparable period of 2019. On an adjusted basis, profit was 5 cents per share, beating analysts’ average forecast of 1 cent per share.
Revenue for the quarter came in at $154.7 million, well above $95.9 million in the same period last year. Analysts polled by FactSet had a revenue forecast of $144.3 million.
Speaking on the results, Datadog CEO Olivier Pomel said in a statement “as we look ahead to the final quarter of 2020, we continue to be excited about the market opportunity ahead of us, and we are confident in our ability to execute given continued strong performance through challenging times. After some of the rationalized cloud usage we saw in Q2, we've seen a clear return to normalized usage growth. It is apparent that cloud migration is not only resilient in the current environment but may even grow stronger longer term. Companies globally and across all industries are prioritizing digital operations like never before, and the cloud is a clear strategic winner to enable greater agility and innovation.”
For the fourth quarter, Datadog expects to report adjusted profit in the range of 1 cent per share to 2 cents per share and revenue between $162 million and $164 million, as compared to the consensus forecast of 1 cents in adjusted earnings and $155.2 million in revenue.
Datadog (NASDAQ: DDOG) shares fell more than 10 percent this morning despite reporting better-than-expected quarterly results. Overall, DDOG stock has performed well in the recent months. The stock has jumped nearly 118 percent so far this year.
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