Datadog stock rose Tuesday following the cloud software provider's first-quarter financial report that surpassed Wall Street expectations for both earnings and revenue. The company also provided a second-quarter revenue outlook above estimates.
Shares of DDOG Stock jumped early Tuesday after the results were released before the market open. The stock narrowed an initial gain of around 6% to trade about 2% higher in morning activity on the stock market today.
For the first quarter ended in March, Datadog reported adjusted earnings of 46 cents per share. Analysts polled by FactSet had anticipated earnings of 43 cents per share.
Revenue for the quarter climbed 25% from the prior year, reaching $762 million. This exceeded the expected $741.4 million forecast by analysts.
Looking ahead, the New York-based enterprise software maker forecasts second-quarter revenue to fall between $787 million and $791 million. The midpoint of this guidance, $789 million, is above analyst projections.
Earlier in 2025, Datadog had issued a full-year guidance that came in below views at the time.