Datadog (DDOG) released their first-quarter earnings and revenue that exceeded expectations. However, the company’s guidance fell short of expectations, and it was announced that Amit Agarwal will be stepping down as president. As a result, Datadog stock experienced a decline in response to this news.
Based in New York, Datadog reported earnings of 44 cents per share on an adjusted basis, showing a 29% increase from the previous year. The company’s revenue also increased by 27% to $611 million, showing a slightly accelerating growth for a second consecutive quarter. Despite this positive news, analysts had predicted that Datadog would report profits of 34 cents per share on revenues of $590 million. This was a significant improvement from the previous year when the company earned 28 cents per share on revenues of $482 million. For the upcoming quarter ending in June, Datadog anticipates revenue of $622 million at the midpoint of their guidance, with Wall Street analysts expecting Q2 sales of $617 million. Datadog also forecast earnings of 35 cents per share, slightly better than the projected 34 cents.
Despite this positive news, Datadog stock experienced a decline following the announcement that Amit Agarwal will be stepping down as president. Prior to the earnings report, Datadog’s stock had gained 2% in 2024 and 62% over the past year. Despite this positive performance, the stock price fell below the 50-day line and the low of the consolidation following the news. Currently, Datadog stock holds a Relative Strength Rating (RSR) of 86 out of a possible 99.
Founded in 2010, Datadog operates a monitoring and analytics platform for software developers and IT departments. The company has a partnership with Amazon Web Services (AWS), which is Amazon’s cloud computing unit. Prior to joining AWS in May 2018, Agarwal served as vice president at Yahoo Finance for more than five years before leaving to join AWS.
Overall, despite some concerns around guidance and leadership changes within dat
