data dog (DDOG) reported September quarter profit and revenue on Tuesday, handily beating consensus estimates amid lower expectations. DDOG stock soared as other cloud software stocks jumped on the news.
For the quarter ended Sept. 30, Datadog’s adjusted earnings were 45 cents per share, up 95% from the year-ago period. The enterprise software maker’s revenue rose 25% to his $525 million.
Meanwhile, analysts had expected Datadog to report earnings of 34 cents per share on revenue of $525 million. A year ago, Datadog earned 23 cents on revenue of $436.5 million.
New York-based Datadog lowered its full-year 2023 revenue forecast in August.
On the stock market today, Datadog stock soared 29.8% to 103.27 in afternoon trading.
Several other cloud software names came up in Datadog’s earnings news. snowflake (snow) and Mongo DB (MDB). Snow shares rose 10.5% to 159.35. Snowflake’s financial results are scheduled to be announced on November 29th.
Meanwhile, MDB stock soared 12.7% to 374.61. Datadog’s third quarter win came after ConfluenceMr. Miss(CFLT) Cloud software stocks fell last week on a disappointing outlook.
DDOG Stock: Outlook Outperforms Views
For the current quarter ending in December, Datadog forecasts earnings in the range of 42 cents to 44 cents, compared to expectations of 35 cents.
Datadog said it expects revenue to be $566 million at the midpoint of its guidance. Wall Street called for sales of $545 million.
Founded in 2010, Datadog operates a monitoring and analytics platform for software developers and the information technology sector. Datadog has partnered with Amazon Web Services, a cloud computing unit. Amazon.com (AMZN).
Software stocks rose 8% in 2023 ahead of Datadog’s earnings report. This lagged his 29% rise in the Nasdaq.
Follow Reinhard Krauss on X, formerly known as Twitter. @reinhardtk_tech Get the latest information on 5G wireless, artificial intelligence, cybersecurity, and cloud computing.
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