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Datadog (DDOG) plunged early Tuesday after its June-quarter earnings and revenue topped estimates but its third quarter revenue outlook for DDOG stock missed.
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Datadog earnings for the second quarter were 36 cents per share on an adjusted basis, up 50% from a year earlier. The enterprise software maker’s revenue jumped 25% to $509 million.
Meanwhile, analysts expected Datadog to report profit of 28 cents a share on revenue of $501.6 million. A year earlier, Datadog earned 24 cents on revenue of $406.1 million.
New York-based Datadog reported earnings before the market open. Datadog stock plunged 17.6% to 87.56 on the stock market today. In Q1, Datadog billings growth missed.
DDOG Stock: AI Product Ramp
For the current quarter ending in September, Datadog forecasts profit in a range of 33 cents to 35 cents vs. estimates of 29 cents. Datadog said it expects revenue of $523 million at the midpoint of guidance. That missed Wall Street targets of $536.2 million.
Started in 2010, Datadog operates a monitoring and analytics platform for software developers and information-technology departments. Datadog has a partnership with Amazon Web Services, the cloud computing unit of Amazon.com (AMZN).
Some analysts expect Datadog to get a lift as more companies deploy generative artificial intelligence software. Datadog is among AI stocks to watch.
“At the (July) user conference last week, the company announced over 15 new products, many of which are designed for monitoring AI workloads,” Wells Fargo analyst Andrew Nowinski said in a recent note to clients.
Heading into the Datadog earnings report, the software stock had gained 43% in 2023.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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