Datadog gains after guidance lift, Cloudcraft acquisition
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Datadog (NASDAQ:DDOG) shares surged as much as 11% Thursday morning after the software firm exceeded Wall Street estimates with its third quarter results and raised its forecast for the full year.
The New York-based firm generated adjusted earnings of $0.23 per shares on revenue of $436.5M that grew 61.4% year-over-year. Adj gross margin improved from 78% in the year-ago quarter to 80% and also exceeded Bloomberg consensus estimate of 79.5%.
The company saw strong growth of larger customer base, with about 2,600 customers with ARR of $100,000 or more, up from about 1,800 a year ago.
Operating cash flow was $83.6M, with free cash flow of $67.1M. Datadog (DDOG) ended the quarter with $1.8B of cash, cash equivalents, restricted cash, and marketable securities. 
Outlook: The company raised its full-year 2022 adj EPS guidance from $0.74-$0.87 PREVIOUSLY to $0.90 and $0.92, which is well ahead of consensus estimate of $0.79. Revenue is seen between $1.65B and $1.654B vs. consensus of $1.63B and prior outlook of $1.61B TO $1.63B.

Elsewhere, Datadog (DDOG) acquired cloud infrastructure visualization service, Cloudcraft.