Datadog Inc (NASDAQ:DDOG) stock fell 2.72% (As on February 14, 11:19:33 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter earnings that beat analyst expectations, but shares tumbled as the company’s guidance fell short of estimates. Datadog ended the quarter with 462 customers with annual recurring revenue of $1 million or more, up 17% year-over-year, and 3,610 customers with annual recurring revenue of $100,000 or more, up 13% year-over-year. Operating cash flow in the quarter was $871 million and free cash flow was $775 million.
Moreover, the company has announced a new modern approach to Cloud SIEM, which doesn’t require dedicated staff or specialized teams to activate the solution. This approach makes it easy for teams to onboard, de-risk migrations and democratize security practices while disrupting traditional models, which can be costly and resource intensive. The company has expanded its Database Monitoring product to observe MongoDB (MDB) databases. Datadog Database Monitoring supports the five most popular database types-MongoDB, Postgres, MySQL, SQL Server and Oracle. At AWS re:Invent, highlighted Datadog’s continued investment in its Amazon Web Services (AWS) monitoring product portfolio, which covers all aspects of a customers’ tech stack, including AI/ML applications as well as serverless and containerized environments. The company has announced the launch of Kubernetes Active Remediation, which builds on Datadog’s automated troubleshooting capabilities to provide curated remediation guidance, best practices and end-to-end issue management for Kubernetes organizations.
DDOG in the fourth quarter of FY 24 has reported the adjusted earnings per share of 49 cents, beating the analysts’ estimates for the adjusted earnings per share of 43 cents. The company had reported the adjusted revenue growth of 25 percent to $738 million in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $714.23 million.
For its fiscal 2025 first quarter, Datadog expects adjusted earnings per share of 41 to 43 cents on revenue of $737 million to $741 million. At the midpoint, both figures were below the 47 cents per share and revenue of $741.7 million expected by analysts. For its fiscal 2025 first quarter, the company expects Non-GAAP operating income to be between $162 million and $166 million.
It also fell short of its full-year outlook, saying it expects $1.65 to $1.70 per share versus the $2.12 expected by analysts and revenue of $3.18 billion to $3.2 billion, below the $3.24 billion expected. For its fiscal 2025, the company expects Non-GAAP operating income to be between $655 million and $675 million.