Zinger Key Points
- Datadog's Q2 revenue grew 27% year-on-year to $645.3 million, beating estimates.
- Adjusted EPS of 53 cents surpassed the analyst consensus estimate of $0.37.
- NOW OPEN: 200 Charter Memberships to Benzinga Trade Alerts
Datadog, Inc DDOG stock gained after it reported its quarterly results on Thursday.
The New York-based company clocked fiscal second-quarter revenue growth of 27% year-on-year to $645.3 million, beating the analyst consensus estimate of $624.9 million.
Adjusted EPS of 53 cents beat the analyst consensus estimate of $0.37.
Also Read: Datadog Considers $8 Billion GitLab Acquisition, Sparking Analyst Discussion
As of June 30, Datadog had 3,390 customers with an ARR of $100,000 or more, increasing 13% Y/Y.
The adjusted gross margin expanded by 100 bps to 82%. The adjusted operating margin increased by 300 bps to 24%.
Datadog held cash and equivalents of $3 billion as of June 30, generating $144 million in free cash flow.
Outlook: Datadog expects third-quarter revenue of $660 million–$664 million versus the consensus of $664.19 million. It projects an adjusted EPS of $0.38–$0.40 versus the consensus of 37 cents.
Datadog expects fiscal 2024 revenue of $2.62 billion–$2.63 billion (prior $2.59 billion–$2.61 billion) versus the consensus of $2.61 billion. It projects an adjusted EPS of $1.62–$1.66 (prior $1.51–$1.57) versus the consensus of $1.58.
Price Action: DDOG shares traded higher by 3.67% at $112.00 premarket at the last check Thursday.
Now Read:
Image: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.