From Nasdaq: 2024-11-08 14:16:00

Datadog (DDOG) reported strong third-quarter 2024 earnings, with a 27.8% increase in non-GAAP earnings to 46 cents per share, beating estimates by 17.95%. Revenues of $690 million also exceeded expectations by 4.15%, leading to a 1.12% rise in DDOG shares in pre-market trading.

In the third quarter, Datadog saw an increase in customers to 29,216, with 3,490 customers generating an annual run rate of $100,000 or more. Net revenue retention was in the mid-110s, showing strong customer adoption and usage of multiple products.

Despite a decrease in gross margin, Datadog reported a non-GAAP operating income of $173 million, a 25.1% operating margin. The company also saw growth in research and development expenses, sales and marketing expenses, and a decrease in general and administrative expenses.

Datadog’s balance sheet showed strong cash reserves of $3.2 billion as of Sept. 30, 2024, with operating cash flow of $228.7 million and free cash flow of $203.6 million in the quarter.

For the fourth quarter of 2024, Datadog expects revenues between $709 million and $713 million, with non-GAAP earnings per share anticipated to be 42-44 cents. For the full year 2024, revenues are projected to be between $2.656 billion and $2.660 billion.

Datadog currently holds a Zacks Rank #4 (Sell), but other stocks in the Computer & Technology sector like StoneCo (STNE), NVIDIA (NVDA), and Bilibili (BILI) present better opportunities with higher rankings and upcoming earnings reports. StoneCo has lost 37% year-to-date, NVIDIA has gained 200.3%, and Bilibili has gained 98.3% in the same period.



Read more at Nasdaq: Datadog Stock Gains on Q3 Earnings Beat & Y/Y Revenue Growth