Datadog Raises 2025 Revenue Outlook as AI-Fueled Cloud Security Demand Surges

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Datadog has raised its full-year 2025 revenue forecast and posted better-than-expected first-quarter sales, propelled by strong demand for AI-driven cloud security and monitoring tools and a growing base of large enterprise clients.

The cloud infrastructure and observability provider now expects 2025 revenue between $3.22 billion and $3.24 billion, up from its earlier range of $3.18 billion to $3.20 billion, and above Wall Street’s $3.20 billion consensus, according to LSEG.

Datadog’s first-quarter revenue rose 25% year-over-year to $761.6 million, beating analyst expectations of $741.5 million. Adjusted earnings came in at 46 cents per share, also topping forecasts of 43 cents.

CEO Olivier Pomel highlighted rapid innovation across the Datadog platform, stating the company is helping customers “observe, secure, and act” in cloud environments increasingly shaped by artificial intelligence.

Datadog also announced the acquisition of Eppo, a feature flagging and experimentation platform, to enhance its AI and analytics capabilities and support faster, lower-risk product development.

Newer services like App Builder and On-Call are showing strong uptake, and security monitoring is gaining substantial traction among clients. Datadog ended the quarter with approximately 3,770 customers generating over $100,000 in annual recurring revenue, a 13% year-over-year increase.

Constellation Shifts Focus to Grid-Connected AI Data Center Projects Amid Regulatory Scrutiny

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Constellation Energy is shifting its strategy for supplying power to AI-driven data centers, now prioritizing grid-connected projects over previously favored direct (co-located) connections to its nuclear power plants, the company said Tuesday.

This pivot comes in response to growing regulatory pressure and industry concerns about the potential grid reliability issues and rising consumer energy costs linked to large-scale co-located data center developments.

“On-grid sales are increasingly attractive to us and to our customers,” said Constellation CEO Joseph Dominguez during a call with investors. However, he added that “behind-the-meter configurations”—where data centers are directly connected to power plants—may still be viable in certain cases.

Constellation, the largest operator of nuclear plants in the U.S., had previously proposed co-located data center developments at several of its reactor sites. But the approach came under scrutiny from the Federal Energy Regulatory Commission (FERC), particularly after a proposed expansion of an Amazon data center at a Talen Energy nuclear facility faced regulatory rejection.

FERC is currently evaluating new rules regarding such off-grid, single-customer arrangements to better manage power flow and protect ratepayer interests.

As the demand for electricity to power AI infrastructure skyrockets, utility firms like Constellation are adapting to meet needs while staying aligned with evolving regulatory frameworks and grid integrity standards.

India’s Paytm Eyes Profitability by June as Losses Narrow Post ESOP Charge

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Indian digital payments giant Paytm said Tuesday it expects to become profitable in the April-June quarter, following a sharp reduction in losses after adjusting for a one-time employee stock option (ESOP) charge.

Founder and CEO Vijay Shekhar Sharma stated during the company’s post-earnings call that Paytm is “at the verge of PAT profitability” and is confident that the coming quarter could mark its first profitable period if current trends hold.

For the quarter ended March 31, Paytm reported a net loss of ₹5.4 billion ($64 million), wider than the previous quarter’s ₹2.08 billion loss. However, this included a one-time ESOP-related charge of ₹4.92 billion after Sharma gave up his stock options.

Excluding this charge, the company’s net loss narrowed to ₹230 million, signaling improving financial health.

Other highlights from the report:

  • EBITDA excluding ESOP costs turned positive at ₹810 million, compared to a loss of ₹410 million in the previous quarter.

  • Revenue from operations rose 4.6% sequentially to ₹19.12 billion.

  • Financial services revenue (including lending) increased 9%.

  • Payments services revenue grew by 4%.

Looking ahead, Paytm expects ESOP costs to decrease to ₹750 million–1 billion in the April-June quarter, down from ₹1.69 billion, contributing further to its path to profitability.