Cloud monitoring software company Datadog (NASDAQ: DDOG) will be reporting results tomorrow before market open. Here’s what to look for.
Datadog beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $737.7 million, up 25.1% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ annual recurring revenue estimates but full-year EPS guidance missing analysts’ expectations significantly. It added 120 enterprise customers paying more than $100,000 annually to reach a total of 3,610.
Is Datadog a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Datadog’s revenue to grow 21.2% year on year to $741 million, slowing from the 26.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.42 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Datadog has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Datadog’s peers in the software development segment, some have already reported their Q1 results, giving us a hint as to what we can expect. F5 delivered year-on-year revenue growth of 7.3%, beating analysts’ expectations by 1.7%, and Twilio reported revenues up 12%, topping estimates by 2.6%. F5’s stock price was unchanged after the resultswhile Twilio was up 2.2%.
Read our full analysis of F5’s results here and Twilio’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 14.1% on average over the last month. Datadog is up 17.5% during the same time and is heading into earnings with an average analyst price target of $142.95 (compared to the current share price of $103.54).
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