Datadog stock surges 14% on strong Q1, full-year guidance boost
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Datadog (NASDAQ:DDOG) shares surged more than 14% on Thursday after the cloud software provider posted first-quarter results topped expectations and raised its full-year earnings outlook.
For the period ending March 31, Datadog (DDOG) said it earned an adjusted 28 cents per share as revenue rose 32.8% year-over-year to $482M. Analysts were expecting an adjusted gain of 24 cents per share and $469M in sales.
The company also generated $133.8M in operating cash flow and $116.3M in free cash flow during the period, leaving it with a $2B cash position on its balance sheet.
The results were aided by continued growth in larger customers, as it had 2,910 customers spending more than $100,000 in annual recurring revenue, up from roughly 2,250 in the year-ago period.
In addition to the strong results, Datadog (DDOG) boosted its full-year outlook, as it now expects to generate between $2.08B and $2.1B in sales, up from a previous guidance of $2.07B to $2.09B.
It also now expects adjusted earnings to be between $1.13 and $1.20 per share, up from a prior view of $1.02 to $1.09 per share. 
Analysts expect $2.08B in revenue and $1.06 per share in earnings for the full-year.
Datadog (DDOG) also issued second-quarter guidance, as it expects sales to be between $498M and $502M, with the mid-point slightly below the consensus of $500.94M.
Snowflake (SNOW) shares jumped more than 6% in conjunction with the results.
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