Datadog stock surges on AI lab deals and first $1B revenue quarter
Datadog, a company specializing in cloud monitoring, announced unprecedented earnings, achieving over $1 billion in revenue for the first time, largely due to new clients from prominent AI research facilities. Following this news, the stock price experienced a significant increase in after-hours trading. The CEO highlighted the AI industry as a vital contributor to growth, with major labs entering into multi-year agreements. Datadog's adjusted earnings per share stood at $0.45, surpassing the anticipated $0.41, while revenue hit $1.01 billion, exceeding the $980 million forecast. For the upcoming quarter, guidance is projected between $1.04 billion and $1.05 billion. The platform plays a crucial role in assisting AI labs with cloud infrastructure monitoring, underscoring the growing significance of cloud services in the AI landscape.
Key facts
- Datadog's revenue crossed $1 billion for the first time.
- The company's stock soared after blowout earnings.
- New customers at major AI research labs drove the revenue growth.
- Datadog reported adjusted EPS of $0.45 vs. expected $0.41.
- Revenue came in at $1.01 billion vs. consensus of $980 million.
- Next quarter guidance: revenue between $1.04 billion and $1.05 billion.
- AI labs signed multi-year contracts with Datadog.
- Datadog's stock has more than doubled over the past year.
Entities
Institutions
- Datadog
Sources
- Quartz —