{"id":12048,"date":"2022-02-11T00:40:09","date_gmt":"2022-02-11T00:40:09","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/11\/datadog-does-it-again-crushing-earnings-and-revenue-forecasts\/"},"modified":"2022-02-11T00:40:09","modified_gmt":"2022-02-11T00:40:09","slug":"datadog-does-it-again-crushing-earnings-and-revenue-forecasts","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/11\/datadog-does-it-again-crushing-earnings-and-revenue-forecasts\/","title":{"rendered":"Datadog does it again, crushing earnings and revenue forecasts"},"content":{"rendered":"

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Datadog Inc.\u2019s stock surged more than 13% Thursday after it reported a strong fourth quarter earnings and revenue beat and provided an upbeat outlook.<\/p>\n

The company reported<\/a> earnings of 20 cents per share on revenue of $326.2 million, up 84% from a year ago. Net income for the period came to $7.16 million.<\/p>\n

That was better than expected, with Wall Street analysts looking for earnings of just 11 cents per share on sales of $291.5 million.<\/p>\n

Datadog co-founder and Chief Executive Olivier Pomel (pictured) wasn\u2019t wrong when he said the company showed \u201cexcellent revenue growth\u201d and \u201ccontinued business efficiencies\u201d.<\/p>\n

\u201cWe are proud of our strong execution in fiscal year 2021, with 70% year-over-year revenue growth, $287 million in operating cash flow, and $251 million in free cash flow,\u201d he added. \u201cWe continue to believe we\u2019re in early days with our opportunities in observability. And we are just starting our efforts in cloud security and developer-focused products. We have much to do, and we\u2019re excited about what we\u2019re working on for 2022 and beyond.\u201d<\/p>\n

Datadog sells application monitoring and analytics tools that help developers and information technology teams to assess the health of their apps and keep an eye on the infrastructure that supports them. The platform is especially popular with DevOps teams, those that combine software developers with information technology staff, to build cloud-native apps and frequently update them, since it enables to keep a lid on any problems those regular changes might cause.<\/p>\n

Today\u2019s report followed a similar strong earnings and revenue beat<\/a> three months ago, showing the company is no one-trick pony.<\/p>\n

Datadog\u2019s growth wasn\u2019t only seen in terms of revenue but also its customer base. The company reported it had 2,010 customers that spend at least $100,000 a year on its products at the end of December, up from just 1,228 one year before. It also reported 216 customers who drive at least $1 million in annual recurring revenue, up from 101 a year ago.<\/p>\n

For its full fiscal year 2021, Datadog said its revenue came to $1.03 billion, up 70% from a year ago.<\/p>\n

Raymond analyst Adam Tingle told Barron\u2019s that Datadog\u2019s success is due to the high level of \u201cstickiness\u201d of its product.<\/p>\n

\u201cDatadog has a financial model in which upfront customer acquisition cost is scaled over a healthier lifetime value of the customer in order to ultimately create a very attractive profit stream,\u201d he said.<\/p>\n

Such a model may explain Datadog\u2019s confidence in its ability to continue growing. For the first quarter, the company offered a forecast of $334 million to $339 million in revenue, way ahead of Wall Street\u2019s forecast of $306.4 million.<\/p>\n

Datadog\u2019s full year forecast was similarly optimistic, with the company looking for $1.51 to $1.53 billion in revenue, versus the $1.40 billion consensus.<\/p>\n

Photo: SiliconANGLE<\/h5>\n
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