Datadog dips 6.00% in the premarket after quarterly earnings 📌

Datadog (DDOG.US) fell by 5.95% following the company's earning report. Datadog revealed its annual forecast, which did not meet Wall Street expectations. For fiscal year 2024, Datadog anticipates adjusted net income per share between $1.38 and $1.44 on revenues of $2.555B to $2.575B, falling below the consensus estimates of $1.78 per share on $2.59B in revenue. The first quarter of 2024 is expected to see revenues between $587M and $591M, with an adjusted net income per share of $0.33 to $0.35, again slightly below the consensus of $0.39.

Fourth Quarter 2023 Financial Highlights:

• Revenue was $589.6 million, an increase of 26% year-over-year.

• Non-GAAP operating income was $166.7 million; non-GAAP operating margin was 28%.

• Non-GAAP net income per diluted share is adjusted for an assumed provision for income taxes, based on our long-term projected tax rate of 21%.

• Operating cash flow was $220.2 million, with free cash flow of $201.3 million.

Fiscal year 2023 highlights :

• Revenue was $2.13 billion, an increase of 27% year-over-year.

• Non-GAAP operating income was $490.2 million; non-GAAP operating margin was 23%.

• Non-GAAP net income per diluted share is adjusted for an assumed provision for income taxes based on our long-term projected tax rate of 21%.

• Operating cash flow was $660.0 million, with free cash flow of $597.5 million

Datadog's CEO, Olivier Pomel, expressed satisfaction with the company's performance in 2023, highlighting a 27% year-over-year revenue growth, $660M in operating cash flow, and $598M in free cash flow. Pomel noted the delivery of over 400 new features and capabilities to aid customers in cloud migration and digital transformation. Looking ahead to 2024, the company is enthusiastic about delivering more innovations and assisting customers in areas such as modern Observability, Cloud Security, Software Delivery, and Cloud Service Management.

Despite the optimistic outlook for product development and customer service, the financial forecasts have led to a price decrease of about 6.00% in the pre-market trading.

Source: xStation 5