Cloud monitoring software company Datadog (NASDAQ:DDOG) will be reporting results tomorrow before market open. Here’s what to expect.
Datadog beat analysts’ revenue expectations by 3.8% last quarter, reporting revenues of $690 million, up 26% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ annual recurring revenue estimates and EPS guidance for next quarter exceeding analysts’ expectations. It added 100 enterprise customers paying more than $100,000 annually to reach a total of 3,490.
Is Datadog a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Datadog’s revenue to grow 21.3% year on year to $715.2 million, slowing from the 25.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.43 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Datadog has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Datadog’s peers in the software development segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Dynatrace delivered year-on-year revenue growth of 19.5%, beating analysts’ expectations by 2.3%, and Cloudflare reported revenues up 26.9%, topping estimates by 1.8%. Dynatrace’s stock price was unchanged after the results, while Cloudflare was up 17.7%.
Read our full analysis of Dynatrace’s results here and Cloudflare’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 9.2% on average over the last month. Datadog is up 5.2% during the same time and is heading into earnings with an average analyst price target of $162.81 (compared to the current share price of $146.40).
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