Cloud Data Scaling Platform Developer Datadog Inc. (DDOG) announced first-quarter results earlier this week. Better-than-expected revenue increased the company’s outlook for the entire year.
Wall Street’s expectations were surpassed as Datadog’s revenue rose 51 % YoY to $ 199 million. Among the drivers of growth are the extended client base and the range of services provided. It has seen 15,200 clients (compared to 11,500 customers in the same quarter last year). On the other hand, the company’s customers are increasing their spending on Datadog despite the rise in costs as it provides new in-demand services. In addition to this, Datadog last year also introduced cybersecurity features. And in April, Datadog acquired Sqreen, enabling it to offer additional capabilities for application security to developers. About 25% of customers used four or more modules in the first quarter, up from 12 % a year earlier.
Overall, Datadog Inc. (NASDAQ: DDOG) was pleased with the results from the first quarter. As a result, the forecast for the year is $ 880 – 890 million, up 47 % from last year.
A 20 % decline from 52-week highs has been observed in the stock price for Datadog recently. There was no reason to consider the company’s performance when they declined in quotations due to broader market conditions. Do you believe the current decline represents an excellent opportunity to enter the market? It is favorable for Datadog that the cloud computing market is evolving in a positive direction. Also, the company is developing a rapidly growing customer base. Sustainable development is likely to take place soon for the company. However, as rival companies ramp up their efforts to develop proposals, growth is expected to slow.
DDOG stock closed the last session at $88.12, increasing 5.32% or $4.45. Shares of the company fluctuated between $84.285 and $88.72 throughout the day. The number of shares exchanged was 4.05 million, more significant than the company’s 50-day daily volume of 3.56 million and higher than its year-to-date volume of 3.65 million. In the past 12 months, the company’s stock has advanced 24.64%, and in the last week, the stock has moved up 13.86%. For the last six months, the stock has gained a total of 0.03%, and over the last three months, the stock has decreased by -16.12%. The stock has returned -10.48% so far this year.