Yazılar

Datadog Shares Surge 23% After Revenue Beat and Strong AI Demand

/in /tarafından

Datadog shares soared 23% on Thursday, marking the company’s second-best trading day ever, after the cloud software firm posted third-quarter results that exceeded Wall Street expectations and projected robust growth for the final quarter of the year.

The New York-based company reported $885.7 million in Q3 revenue, up 28% year-over-year and well above analyst estimates of $852.8 million, according to LSEG data. For the current quarter, Datadog forecasts between $912 million and $916 million in revenue, surpassing Wall Street’s $887 million projection.

Adjusted earnings reached 55 cents per share, topping FactSet estimates of 45 cents. The company also recorded net income of $33.9 million, or 10 cents per share, compared to $51.7 million, or 14 cents, a year earlier.

CEO Olivier Pomel credited the company’s momentum to continued innovation in artificial intelligence (AI) and cloud security tools. “The Datadog R&D team is innovating rapidly to help our customers solve problems in the AI space,” he said in a statement.

Datadog has rolled out a series of AI-focused products this year, including Bits AI Agents for SRE, which can automatically investigate system alerts and generate response drafts, and expanded features for LLM Observability, designed to monitor large language models. The firm also unveiled its MCP Server, which connects AI agents to enterprise data sources, and TOTO, its proprietary foundation model.

The company said the number of customers generating over $100,000 in annual recurring revenue rose 16% in the quarter, signaling sustained enterprise adoption.

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

/in /tarafından

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.