Datadog shares plunge 14% on weak guidance

Investing.com-- Datadog Inc (NASDAQ:DDOG) reported fourth-quarter earnings that beat analyst expectations, but shares tumbled 14% as the company's guidance fell short of estimates.

The cloud monitoring and security platform provider posted adjusted earnings per share of $0.49, surpassing the analyst consensus of $0.43. Revenue for the quarter came in at $737.7 million, up 25% YoY and above the $714.2 million estimate.

However, Datadog's outlook disappointed investors. For the first quarter of 2025, the company expects revenue between $737 million and $741 million, below the $741.7 million consensus.

Full-year 2025 revenue guidance of $3.175 billion to $3.195 billion also missed expectations of $3.24 billion.

"We are pleased with our strong execution in fiscal year 2024, with 26% year-over-year revenue growth, $871 million in operating cash flow, and $775 million in free cash flow," said Olivier Pomel, co-founder and CEO of Datadog.

The company reported 462 customers with annual recurring revenue of $1 million or more as of December 31, up 17% from the previous year.

Customers with ARR of $100,000 or more increased 13% to about 3,610.