New York-based Datadog reported its first-quarter earnings and revenue results that exceeded expectations. However, the company also provided guidance that was slightly below expectations, and it was announced that Amit Agarwal would be stepping down as president. Following this news, Datadog stock experienced a decline.
For the March quarter, Datadog reported earnings of 44 cents per share on an adjusted basis, reflecting a 29% increase from the previous year. The company’s revenue also saw a 27% surge to $611 million, with growth accelerating for the second consecutive quarter. Analysts had anticipated Datadog to report a profit of 34 cents per share on revenue of $590 million. The company’s earnings for the same period last year were 28 cents, with revenue amounting to $482 million.
Despite closing Monday within a base including a 138.61 buy point, shares were set to open below the 50-day line and the low of the consolidation period. Going into the earnings report, Datadog’s stock had gained 2% in 2024 and 62% over the past year. Despite this growth, shares dropped more than 10% after news broke about Amit Agarwal stepping down as president.
Launched in 2010, Datadog specializes in a monitoring and analytics platform designed for software developers and information-technology departments. The company has a partnership with Amazon Web Services (AMZN), which provides cloud computing services for businesses likeDatadog
