Datadog Revenue Jumps 27% In Q2, Margins And EPS Exceed Expectations

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.

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