Datadog’s stock rockets as earnings, forecast blow past estimates

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Datadog’s stock rockets as earnings, forecast blow past estimates
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Emily Bary is a MarketWatch news editor based in New York.

Datadog Inc. shares DDOG, -3.04% were roaring 24% higher in premarket action Tuesday after the software company, which makes tools for monitoring infrastructure and application performance, showed upside with its latest quarterly results and delivered a better-than-expected forecast. The company racked up third-quarter net income of $22.6 million, or 6 cents a share, whereas it posted a net loss of $26.

0 million, or 8 cents a share, in the year-earlier period. On an adjusted basis, Datadog earned 45 cents a share, far ahead of the 34-cent FactSet consensus. Revenue came in at $547.5 million, up from $436.5 million a year before and ahead of the $524.7 million that analysts were projecting. For the fourth quarter, Datadog anticipates $564 million to $568 million in revenue along with 42 cents to 44 cents in adjusted earnings per share.

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