Shares of Datadog (DDOG -5.23%) are down 19% since the cloud security platform provider issued a weaker-than-expected 2025 outlook with slower revenue growth and higher expenses.
While the top- and bottom-line numbers for Datadog (DDOG) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Zacks.com users have recently been watching Datadog (DDOG) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Datadog (DDOG -1.36%) stock experienced a setback following the release of the company's fourth-quarter 2024 results on Feb. 13, despite delivering better-than-expected numbers, as a slowdown in customer spending dented its guidance.
Despite Datadog's robust product portfolio and strong Q4 results, the tempered 2025 outlook suggests investors may benefit from awaiting a more attractive entry point.
The S&P 500 (^GSPC -0.01%) has advanced 21% in the last year, and many stocks now trade at expensive valuations. However, most Wall Street analysts still see buying opportunities in Datadog (DDOG -3.59%) and The Trade Desk (TTD -2.15%):
DDOG's Q4 2024 results benefit from serving more customers with more products, driven by rising demand for modern observability, cloud security and more.
Datadog NASDAQ: DDOG is in the doghouse following its FQ4 2024 earnings release, but this pullback is an opportunity to buy a great stock at a discounted price. The pullback was caused by tepid guidance, but guidance is in the eye of the beholder.
Shares of Datadog Inc (DDOG -9.49%) are trading lower on Thursday. The company's stock lost 8.4% as of noon ET but lost as much as 11.6% earlier in the day.
Datadog (DDOG) shares fell around 9% Thursday morning as weaker-than-expected projections for the first quarter and rest of 2025 offset a fourth quarter that topped estimates.
Datadog (NASDAQ:DDOG ) Q4 2024 Earnings Conference Call February 13, 2025 8:00 AM ET Company Participants Olivier Pomel - Chief Executive Officer David Obstler - Chief Financial Officer Yuka Broderick - Vice President, Investor Relations Conference Call Participants Mark Murphy - JP Morgan Sanjit Singh - Morgan Stanley Raimo Lenschow - Barclays Kash Rangan - Goldman Sachs Matt Hedberg - RBC Koji Ikeda - Bank of America Eric Heath - Keybanc Patrick Walravens - Citizens JMP Operator Good day and thank you for standing by. Welcome to the second Q4 2024 Datadog earnings conference call.
Datadog's revenue growth is slowing, with a projected 19% increase in 2025, down from previous years' rapid expansion. Despite solid earnings and cash flow, rising operating expenses and stock-based compensation are pressuring margins. Datadog's valuation remains high, but investors are becoming less generous with multiples due to decelerating growth.