Datadog Jumps After Q3 Beat, Raises 2025 Outlook

Datadog shares jumped 20.2% premarket on Thursday after third quarter results beat estimates and the company raised its full year 2025 outlook.

For the third quarter ended Sept. 30, non-GAAP EPS surged about 19.5% year-over-year to $0.55, while revenue jumped around 28% year-over-year to $886M. Both top and bottom-line numbers beat estimates.

"The Datadog R&D team is innovating rapidly to help our customers solve problems in the AI space. Recent announcements include our full stack of AI Observability and Security products, Bits AI Agents for SRE, Developers, and Security, Datadog MCP Server, and our time-series foundation model TOTO," said Datadog's Co-Founder and CEO Olivier Pomel.

As of Sept. 30, the company had about 4,060 customers with annual recurring revenue, or ARR, of $100,000 or more, an increase of 16% from about 3,490 as of Sept. 30, 2024.

Outlook

Outlook Q4: Datadog, which provides a security platform for cloud applications, expects fourth quarter revenue to be between $912M and $916M (midpoint at $914M), which was above consensus estimate of $886.37M. The company forecast non-GAAP net income per share to be in the range of $0.54 to $0.56 (midpoint at $0.55) versus $0.45 consensus.

Outlook full year 2025: The company raised its revenue outlook and now expects between $3.386B and $3.390B (midpoint at $3.388B) versus consensus of $3.33B. During second quarter results in August, Datadog expected revenue to be between $3.312B and $3.322B (midpoint at $3.317B).