Datadog (DDOG) Reports Q4 CY2024 Results: Revenue Beats, EPS Misses

Key Highlights:

* Revenue: $737.7 million (25.1% YoY growth, 3.2% beat)
* Adjusted EPS: $0.49 (13.3% beat)
* Adjusted Operating Income: $179.2 million (24.3% margin, 7.8% beat)
* Enterprise Customers: 3,610 paying more than $100,000 annually
* Market Cap: $50.31 billion

Financial Performance:

* Revenue growth exceeded analyst expectations and continued the company's strong track record of double-digit growth.
* Adjusted EPS also surpassed estimates, demonstrating the company's profitability.

Guidance:

* Management guided for Q1 CY2025 revenue of $739 million, in line with consensus estimates.
* Full-year FY2025 revenue guidance missed analyst expectations by 1.7%, implying 18.7% growth.
* Adjusted EPS guidance also fell short of estimates, with the midpoint missing by 16.8%.

Company Overview:

Datadog provides software-as-a-service (SaaS) solutions for cloud monitoring and infrastructure management. Its offerings help organizations gain visibility into their cloud systems and applications.

Growth Potential:

* The company's strong sales growth over the past three years reflects the increasing demand for cloud monitoring tools.
* Analysts expect continued revenue growth, although at a slower pace than in previous years.

Key Takeaways:

* Datadog beat revenue and operating profit expectations for Q4 CY2024.
* The company added new enterprise customers, demonstrating continued customer acquisition.
* However, guidance for FY2025 missed estimates, weighing on share price.
* Investors should consider the company's long-term business quality and valuation in making investment decisions.