Datadog shares soar as Q2 earnings beats expectations, guidance raised

Published 07/08/2025, 12:46

Investing.com -- Datadog, Inc. shares surged 10.8% after the cloud monitoring and security platform provider reported second-quarter earnings that exceeded analyst expectations and raised its full-year outlook.

The company posted adjusted earnings per share of $0.46, beating the analyst consensus of $0.41. Revenue jumped 28% YoY to $826.8 million, significantly outpacing the $790.9 million analysts had expected. The strong performance was driven by robust growth in larger customers, with approximately 3,850 customers generating annual recurring revenue of $100,000 or more, up 14% from about 3,390 a year ago.

"Datadog (NASDAQ:DDOG) had a strong second quarter, with 28% year-over-year revenue growth, $200 million in operating cash flow, and $165 million in free cash flow," said Olivier Pomel, co-founder and CEO of Datadog.

For Q3, Datadog expects revenue between $847 million and $851 million, above the consensus estimate of $819.5 million. It projects adjusted EPS of $0.44-$0.46, higher than analysts’ $0.40 forecast.

For full-year 2025, the company raised its guidance. It now anticipates revenue of $3.312-$3.322 billion, exceeding the consensus of $3.24 billion. Adjusted EPS is expected to be $1.80-$1.83, above the $1.70 analysts had projected.

During the quarter, Datadog unveiled more than 125 new products and features at its DASH 2025 user conference, including three new AI agents and enhanced security offerings. The company also joined the S&P 500 Index, reflecting its growing market presence.

"At our DASH 2025 user conference, we showcased our rapid pace of innovation, announcing over 125 new innovations to help our customers observe, secure, and act on their complex cloud environments and AI tech stacks," Pomel added.

 

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