‘s fourth-quarter earnings and revenue handily beat expectations, but its projections for this year look less rosy, sending the stock down on Thursday.
(ticker: DDOG) provides software used to monitor network infrastructure, helping customers identify performance issues. Analysts have warned of a potential slowdown in cloud spending, hitting companies such as Datadog, which enable cloud services.
The company said that for the first quarter of 2023 it expects revenue between $466 million and $470 million and adjusted earnings per share of between 22 and 24 cents. Analysts had expected The consensus call among analysts tracked by FactSet was for adjusted EPS of 24 cents from revenue of $484 million.
For 2023 overall, Datadog projected revenue between $2.07 billion and $2.09 billion and adjusted earnings per share of $1.02 to $1.09. Analysts had projected adjusted EPS of $1.12 from revenue of $2.19 billion, according to FactSet.
Shares were down 6.2% in premarket trading on Thursday.
“We are pleased with our fourth quarter performance, as we delivered more value to more customers across our broadening platform, while driving strong profitability and cash generation,” said CEO Olivier Pomel.
For the December quarter, Datadog reported adjusted earnings of 26 cents a share. Its revenue came to $469.4 million, up 44% from the prior-year period. Datadog was expected to post adjusted earnings of 19 cents a share from revenue of $450.2 million, according to FactSet.
Write to Adam Clark at [email protected]
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