Datadog Stock Slumps as Downbeat Projections Outweigh Solid Q4 Results
Key Points
- DataDog’s share price fell after the company’s first quarter and 2025 forecasts.
- The software company’s fourth-quarter sales and revenue exceeded estimates.
- Tech companies’ stocks fell 9% Thursday morning.
datadog(dog) On Thursday morning, stocks fell about 9% as forecasts for the first quarter were weaker and for the rest of 2025, with forecasts for the fourth quarter surpassing estimates.
According to estimates compiled by Civible Alpha, the software maker has revenue of $738 million, revenue of $738 million and adjusted revenue per share of $0.49.
DataDog said it had 462 customers at the end of the quarter with revenue running rates of more than $1 million, with fewer such customers than analysts expected.
Despite the strong fourth quarter, Datadog’s forecast for the quarter and full year are mostly estimated.
In the first quarter, the annual forecast is mainly insufficient
The company expects revenue and adjusted EPS in the first quarter between $737 million and $741 million and $0.41 and $0.41 and $0.41 and $0.43, while the consensus per stock analyst is $740.58 million and $0.46.
The full-year forecast was $31.75 billion to $31.95 billion, with $1.65 to $1.70 a share also below estimates, with the EPS range well below analysts’ expectations of $2.04 a share.
Shares of the software maker fell about 9% on Thursday and rose slightly from the same time last year.