Datadog (DDOG) reported its first-quarter earnings and revenue results, which exceeded expectations. However, the company also provided guidance that was slightly below expectations, and it was announced that Amit Agarwal would be stepping down as president. Following this news, Datadog stock experienced a decline.
Based in New York, Datadog disclosed its earnings before the market opened. The company’s stock dropped more than 10% to below 114 on the stock market. For the March quarter, Datadog reported earnings of 44 cents per share on an adjusted basis, reflecting a 29% increase from the previous year. The company’s revenue also saw a 27% surge to $611 million, with growth accelerating for the second consecutive quarter.
Despite closing Monday within a base including a 138.61 buy point, shares were set to open below the 50-day line and the low of the consolidation period. Analysts had anticipated Datadog to report a profit of 34 cents per share on revenue of $590 million. The company’s earnings for the same period last year were 28 cents, with revenue amounting to $482 million. Datadog’s guidance for the current quarter ending in June includes an expected revenue of $622 million at the midpoint, slightly higher than Wall Street analysts’ prediction of $617 million. The company also forecasted earnings of 35 cents compared to the estimated 34 cents.
Launched in 2010, Datadog specializes in a monitoring and analytics platform designed for software developers and information-technology departments. The company has a partnership with Amazon Web Services (AMZN), Amazon’s cloud computing division. Going into the earnings report, Datadog’s stock had gained 2% in