Why Is Datadog Stock Trading Lower Tuesday?
Portfolio Pulse from Anusuya Lahiri
Datadog, Inc (NASDAQ:DDOG) reported Q4 FY23 revenue of $589.649 million, surpassing consensus estimates but saw its stock price drop by 3.23% to $130.49. The company met adjusted EPS expectations at $0.44, expanded its adjusted gross margin to 83%, and increased its adjusted operating margin by 10%. Datadog ended the quarter with $2.6 billion in cash and equivalents, and 3,190 customers with an ARR of $100,000 or more, a 15% increase Y/Y. The company's outlook for Q1 and fiscal 2024 revenue and adjusted EPS fell short of consensus estimates, which may have contributed to the stock's decline.
February 13, 2024 | 6:11 pm
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Datadog reported higher than expected Q4 FY23 revenue and met adjusted EPS expectations, but provided a weaker than expected outlook for Q1 and fiscal 2024. Shares fell 3.23% to $130.49.
Despite surpassing revenue estimates for Q4 and meeting adjusted EPS expectations, Datadog's stock price declined due to its weaker than expected outlook for future quarters. This suggests investors are concerned about the company's growth prospects, impacting the stock negatively in the short term.
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