Datadog (DDOG) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Datadog, Inc. NASDAQ: DDOG has once again demonstrated its operational prowess, delivering first-quarter 2025 financial results that exceeded forecasts and prompted an encouraging upward revision of its full-year guidance.
DDOG's Q1 2025 benefits from serving more customers with more products, driven by rising demand for modern observability, cloud security, and more.
Datadog's Q1 results show moderate growth, but AI-native contributions are insufficient to significantly boost revenue, leading to a downgrade to Hold. Management's strategy involves heavy investment in R&D and sales, impacting margins and pushing overall expenses closer to pre-pandemic levels. Despite revised revenue growth projections, operating margins are expected to decline, questioning Datadog's high valuation premium of 62x earnings.
Datadog (NASDAQ:DDOG ) Q1 2025 Earnings Conference Call May 6, 2025 8:00 AM ET Company Participants Yuka Broderick - SVP, IR Olivier Pomel - Co-Founder & CEO David Obstler - CFO Conference Call Participants Mark Murphy - JP Morgan Sanjit Singh - Morgan Stanley Raimo Lenschow - Barclays Kash Rangan - Goldman Sachs Jake Roberge - William Blair Gregg Moskowitz - Mizuho Brent Thill - Jefferies Kirk Materne - Evercore ISI Howard Ma - Guggenheim Matthew Hedberg - RBC Brad Reback - Stifel Andrew Sherman - TD Cowen Operator Good day, and thank you for standing by. Welcome to the Q1 2025 Datadog Earnings Conference Call.
Datadog (DDOG) came out with quarterly earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.44 per share a year ago.
Datadog is on an acquisition spree. Just a few weeks after snatching up Metaplane, an AI-powered observability startup, the cloud monitoring and security company has acquired Eppo, a feature flagging and experimentation platform.
In the most recent trading session, Datadog (DDOG) closed at $105, indicating a -1.24% shift from the previous trading day.
DDOG shows promise, but valuation reflects growth. Investors can hold and wait for a better entry amid Q1 margin pressure and rising competition.
DDOG expands into data observability with the acquisition of Metaplane, but its premium valuation suggests investors should hold the stock for now.
Datadog (DDOG) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Datadog (DDOG) closed at $101.47 in the latest trading session, marking a +1.88% move from the prior day.