Cloud monitoring platform Datadog (NASDAQ:DDOG) will be announcing earnings results this Thursday before market hours. Here’s what investors should know.
Datadog beat analysts’ revenue expectations last quarter, reporting revenues of $953.2 million, up 29.2% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ billings estimates but full-year EPS guidance missing analysts’ expectations significantly. It added 250 enterprise customers paying more than $100,000 annually to reach a total of 4,310.
Is Datadog a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Datadog’s revenue to grow 26% year on year, improving from the 24.6% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Datadog has a history of exceeding Wall Street’s expectations.
Looking at Datadog’s peers in the software development segment, some have already reported their Q1 results, giving us a hint as to what we can expect. F5 delivered year-on-year revenue growth of 11%, beating analysts’ expectations by 3.7%, and Twilio reported revenues up 20%, topping estimates by 4.7%. F5 traded up 8% following the results while Twilio was also up 23.8%.
Read our full analysis of F5’s results here and Twilio’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 12.4% on average over the last month. Datadog is up 25.3% during the same time and is heading into earnings with an average analyst price target of $177.02 (compared to the current share price of $146.00).
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