$DDOG Crushes Earnings! 📈

Datadog reported strong earnings Tuesday morning

The Company

Datadog is a software service that allows companies to monitor the performance of their cloud infrastructure and proactively detect potential failures to mitigate business risk. It also provides cybersecurity support for cloud applications.

The Earnings

On Tuesday morning they released earnings and the stock reacted by jumping over 24%.

• EPS: $0.45 vs. $0.11 estimated

• Revenue: $547.54M (25.4% YoY growth)

• Customers: 3,130 customers with annual recurring revenue >$100,000 (20% growth QoQ)

• Guidance: 4th quarter revenue expectation of $564-568M vs. $544.9 estimated

The Stock

Datadog stock ($DDOG) opened trading up over 24% and has since climbed to rising by as much as 30% on the day. This puts the stock over both the 200-day SMA and 55-day SMA, key indicators for determining institutional support.

The cloud sector is also starting to shape up, breaking a downtrend line (DTL) and moving higher. This is a key sector to watch if the market continues to grind higher.

For more information on earnings updates and stocks to watch, watch this video: