Datadog Q1 Profit Down, But Beats Market; Issues Q2 View; Lifts FY25 Forecast - Update

(RTTNews) - Datadog, Inc. (DDOG), while reporting weak first-quarter profit, but above market estimates, on Tuesday issued second-quarter outlook. Further, the company raised its fiscal 2025 guidance, with revenues expected above the Street.

In the pre-market activity on the Nsadaq, Datadog shares were losing around 2 percent to trade at $103.50.

For the second quarter, the company projects adjusted net income per share between $0.40 and $0.42, and revenue between $787 million and $791 million.

The Wall Street analysts on average expect the company to report earnings of $0.41 per share on revenues of $770.11 million. Analysts' estimates typically exclude special items.

For fiscal 2025, the company now expects adjusted earnings per share between $1.67 and $1.71, and revenue between $3.215 billion and $3.235 billion.

The company previously expected full-year adjusted earnings per share between $1.65 and $1.70 and revenue of $3.175 billion and $3.195 billion.

Analysts expect earnings of $1.70 per share on revenues of $3.19 billion for the year.

In its first quarter, Datadog's profit decreased from the same period last year but beat the Street estimates.

The company's earnings came in at $24.64 million or $0.07 per share, compared with $42.63 million or $0.12 per share last year.

Adjusted earnings were $167.91 million or $0.46 per share for the period, compared to $0.44 per share last year. Analysts expected the company to earn $0.42 per share.

The company's revenue for the period rose 24.6 percent to $761.55 million from $611.25 million last year. The Street was looking for revenues of $741.4 million.

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