Datadog (NASDAQ: DDOG), the monitoring and security platform for cloud applications plummeted at the time of publishing on Tuesday after the company updated its outlook that was below Street estimates. In Q3, the company has forecasted revenues between $521 million and $525 million below consensus estimates of $535.5 million while adjusted earnings are likely to be in the range of $0.33 to $0.35 per share but above Street estimates of $0.29 per share.
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In FY23, DDOG has projected revenues between $2.05 billion and $2.06 billion as compared to consensus estimates of $2.09 billion while adjusted earnings are likely to be in the range of $1.30 and $1.34 per share but above consensus estimates of $1.18 per share.
Datadog’s revenues surged by 25% year-over-year to $509.5 million, beating analysts’ estimates of $501.56 million. Adjusted earnings were $0.36 per share in Q2 and above Street estimates of $0.28 per share.
Analysts are bullish about DDOG stock with a Strong Buy consensus rating based on 13 Buys and three Holds.