Datadog (NASDAQ:DDOG) Releases Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Datadog (NASDAQ:DDOG) issued its quarterly earnings results on Thursday. The company reported $0.55 EPS for the quarter, topping the consensus estimate of $0.45 by $0.10, Briefing.com reports. The company had revenue of $885.65 million during the quarter, compared to analysts’ expectations of $852.77 million. Datadog had a net margin of 3.32% and a return on equity of 4.14%. Datadog’s revenue was up 28.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.46 EPS. Datadog updated its FY 2025 guidance to 2.000-2.020 EPS and its Q4 2025 guidance to 0.54-0.56 EPS.

Datadog Trading Up 0.2%

NASDAQ:DDOG traded up $0.42 on Friday, reaching $191.24. The company’s stock had a trading volume of 9,282,929 shares, compared to its average volume of 4,210,942. Datadog has a 1-year low of $81.63 and a 1-year high of $194.87. The business’s 50-day moving average price is $149.87 and its two-hundred day moving average price is $134.62. The firm has a market cap of $66.69 billion, a PE ratio of 503.26, a PEG ratio of 74.82 and a beta of 1.20. The company has a debt-to-equity ratio of 0.29, a quick ratio of 3.43 and a current ratio of 3.66.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Datadog in a report on Wednesday, October 8th. Mizuho set a $215.00 price target on Datadog in a research report on Friday. Stifel Nicolaus set a $205.00 price objective on Datadog in a research note on Thursday. Bank of America increased their target price on Datadog from $180.00 to $215.00 and gave the company a “buy” rating in a research note on Friday. Finally, CIBC upgraded Datadog from a “neutral” rating to a “sector outperform” rating and set a $240.00 target price on the stock in a report on Friday. Twenty-nine investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $201.89.

Insider Activity at Datadog

In other Datadog news, Director Amit Agarwal sold 45,444 shares of the firm’s stock in a transaction that occurred on Wednesday, October 1st. The shares were sold at an average price of $150.08, for a total transaction of $6,820,235.52. Following the sale, the director directly owned 1,640 shares in the company, valued at approximately $246,131.20. This trade represents a 96.52% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CTO Alexis Le-Quoc sold 41,468 shares of Datadog stock in a transaction that occurred on Wednesday, October 1st. The shares were sold at an average price of $150.94, for a total transaction of $6,259,179.92. Following the completion of the transaction, the chief technology officer directly owned 438,885 shares in the company, valued at approximately $66,245,301.90. The trade was a 8.63% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,510,236 shares of company stock valued at $207,339,763 over the last 90 days. Insiders own 8.70% of the company’s stock.

Institutional Investors Weigh In On Datadog

A number of hedge funds and other institutional investors have recently made changes to their positions in DDOG. Sivia Capital Partners LLC acquired a new stake in shares of Datadog in the 2nd quarter valued at about $509,000. Bison Wealth LLC bought a new position in shares of Datadog during the fourth quarter worth about $228,000. Brighton Jones LLC bought a new position in shares of Datadog during the fourth quarter worth about $209,000. Geneos Wealth Management Inc. raised its position in Datadog by 17.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock valued at $76,000 after buying an additional 115 shares during the last quarter. Finally, Empowered Funds LLC lifted its stake in Datadog by 7.0% in the 1st quarter. Empowered Funds LLC now owns 10,313 shares of the company’s stock valued at $1,023,000 after acquiring an additional 672 shares in the last quarter. 78.29% of the stock is currently owned by institutional investors and hedge funds.

Datadog Company Profile

Datadog, Inc operates an observability and security platform for cloud applications in North America and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data streams and universal service monitoring, network monitoring, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, and CI visibility.