Why did Datadog shares surge 12% Thursday? Strong earnings and outlook
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Datadog (NASDAQ:DDOG) made some noise, Thursday, as the network cybersecurity company's shares surged more than 12% in the wake of a strong fourth-quarter report and first-quarter outlook.
Early Thursday, Datadog (DDOG) reported a fourth-quarter profit of 20 cents a share, excluding one-time items, on revenue of $326.2 million, while Wall Street analysts had forecast the company to earn 11 cents a share on $291.5 million in sales.
During the same period in 2020, Datadog (DDOG) earned 6 cents a share on $177.5 million in revenue.
Jefferies analyst Brent Thill said that Datadog's results showed the company is in "the very early days of a large security opportunity to complement a rapidly expanding observability market.
Among the highlights of the quarter was Datadog (DDOG) saying it ended the quarter with 216 customers that had annual revenue rates of more than $1 million, or more than double the 101 such customers it had in the fourth quarter of 2020.
For its first quarter, Datadog (DDOG) expects to earn between 10 cents and 12 cents a share, excluding one-time items, on revenue in a range of $334 million to $339 million.
Datadog (DDOG) said it was seeing more gains from its expanded partnership with Amazon Web Services (NASDAQ:AMZN).