Datadog Raises Q3 Revenue Forecast Amid Growing Cloud Security Demand
Datadog, the cloud security and monitoring firm, projected third-quarter revenue above Wall Street expectations on Thursday, driven by increasing enterprise investment in AI and cloud technologies. The company’s shares surged over 10% in premarket trading.
Datadog’s platform, used by clients like Samsung, NASDAQ, and Comcast, supports real-time monitoring and analytics of cloud applications to ensure performance, reliability, and security. As businesses accelerate cloud migration and AI adoption, demand for Datadog’s products has risen significantly.
The company unveiled 125 new innovations designed to enhance customers’ ability to observe, secure, and manage complex cloud and AI environments. For Q3, Datadog anticipates revenue between $847 million and $851 million, exceeding analyst estimates of $819.9 million, and adjusted earnings per share of 44 to 46 cents, above the 42-cent forecast.
In Q2, Datadog reported revenue of $827 million, beating estimates of $791.1 million, with adjusted earnings per share of 46 cents versus expected 42 cents.