Datadog: 2025 Guidance Worries Investors
Here's our initial take on Datadog's (NASDAQ: DDOG) fourth-quarter financial report.Things looked good for Datadog in the fourth quarter. Strong quarterly revenue gains helped the data-focused technology company finish 2024 with a 26% rise in annual sales, and adjusted earnings of $0.49 per share for the quarter and $1.82 per share for the year were both above what most of those following Datadog had anticipated. The company had 462 customers spending $1 million or more annually on Datadog's platform, up 17% from 12 months ago, showing the sticking power of the platform for its biggest users.However, investors weren't as happy about Datadog's projections for 2025. Full-year revenue of $3.175 billion to $3.195 billion would represent a slowdown in growth to between 18% and 19%. Moreover, calls for adjusted earnings of between $1.65 and $1.70 per share would be an outright decline from 2024's final numbers.Continue reading
Here's our initial take on Datadog's (NASDAQ: DDOG) fourth-quarter financial report.
Things looked good for Datadog in the fourth quarter. Strong quarterly revenue gains helped the data-focused technology company finish 2024 with a 26% rise in annual sales, and adjusted earnings of $0.49 per share for the quarter and $1.82 per share for the year were both above what most of those following Datadog had anticipated. The company had 462 customers spending $1 million or more annually on Datadog's platform, up 17% from 12 months ago, showing the sticking power of the platform for its biggest users.
However, investors weren't as happy about Datadog's projections for 2025. Full-year revenue of $3.175 billion to $3.195 billion would represent a slowdown in growth to between 18% and 19%. Moreover, calls for adjusted earnings of between $1.65 and $1.70 per share would be an outright decline from 2024's final numbers.
