Datadog Issues Cautious FY23 Guidance After Q4 Beat, Shares Fall

Datadog, Inc DDOG reported fourth-quarter FY22 revenue growth of 44% year-on-year to $469.4 million, beating the consensus of $449.3 million.
As of December 31, Datadog had 2,780 customers with an ARR of $100,000 or more, increasing 38% Y/Y.
The non-GAAP gross margin expanded by 100 bps to 81%. The non-GAAP operating margin decreased by 400 bps to 18%.
Non-GAAP EPS of $0.26 beat the consensus of $0.19.
Datadog held cash and equivalents of $1.9 billion and generated $96.4 million in free cash flow.
Outlook: Datadog sees Q1 revenue of $466 million - $470 million below the consensus of $482 million. It sees non-GAAP EPS of $0.22 - $0.24 versus the consensus of $0.24.
Datadog sees FY23 revenue of $2.07 billion - $2.09 billion below the consensus of $2.19 billion. It sees non-GAAP EPS of $1.02 - $1.09 below the consensus of $1.15.
Price Action: DDOG shares traded lower by 6.90% at $82.60 premarket on the last check Thursday.

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