Datadog set to release Q4 results with revenue and EPS expectations, faces competition

From Nasdaq: 2025-02-11 15:00:00

Datadog (DDOG) is set to release fourth-quarter 2024 results on Feb. 13, expecting revenues between $709 million and $713 million, with an EPS range of 42-44 cents. The stock has seen a 9.1% increase in the past year but faces competition from tech giants and rivals like New Relic and Splunk.

In the last reported quarter, Datadog surpassed earnings estimates by 17.95%, maintaining a consistent beat in the past four quarters. The company’s customer metrics showed growth, with 3,490 customers generating 88% of total ARR. Datadog’s multi-cloud approach sets it apart, but competition remains a challenge.

Datadog’s fourth-quarter performance is expected to benefit from its cloud-based platform and digital transformation trends. Despite stiff competition, Datadog’s innovative products like Kubernetes Active Remediation and Cloud SIEM solutions aim to attract new clients. However, concerns about profitability due to high sales and marketing investments persist.

Investors are wary of Datadog’s stretched valuation, trading at a premium compared to the industry. The company’s forward P/S ratio suggests high growth expectations. While Datadog’s comprehensive product suite and market position are strong, competitive pressures and pricing concerns may impact profitability and stock performance.

Ahead of the fourth-quarter earnings report, Datadog’s premium valuation and competitive landscape raise caution for potential investors. While the company shows resilience in a competitive market, factors like aggressive sales spending, market saturation, and pricing pressure warrant careful consideration. Existing shareholders may hold positions for long-term growth opportunities.



Read more at Nasdaq: Datadog Before Q4 Earnings: Buy, Sell or Hold DDOG Stock?