Why Datadog (DDOG) Stock Is Trading Higher Today?

Datadog, Inc DDOG reported third-quarter FY22 revenue growth of 61% year-on-year to $436.5 million, beating the consensus of $412.8 million.
As of September 30, Datadog had 2,600 customers with an ARR of $100,000 or more, increasing 44% Y/Y.
The non-GAAP gross margin expanded by 200 bps to 80%. The non-GAAP operating margin expanded by 100 bps to 17%.
Non-GAAP EPS of $0.23 beat the consensus of $0.16.
Datadog held cash and equivalents of $1.8 billion and generated $67.1 million in free cash flow.
"We are pleased with our third quarter results, with 61% year-over-year revenue growth, strong adoption of our products, and robust opportunities with new customers," said Olivier Pomel, co-founder and CEO of Datadog.
Outlook: Datadog sees Q4 revenue of $445 million - $449 million versus the consensus of $446.6 million. It sees non-GAAP EPS of $0.18 - $0.20 above the consensus of $0.14.
Datadog raised its FY22 revenue outlook from $1.61 billion - $1.63 billion to $1.650 billion - $1.654 billion above the consensus of $1.62 billion. It increased non-GAAP EPS guidance from $0.74 - $0.81 to $0.90 - $0.92 above the consensus of $0.79.
Price Action: DDOG shares traded higher by 2.42% at $76.29 on the last check Thursday.

Datadog Clocks Handsome Q3 Performance, Boosts FY22 Outlook