Software maker’s forecast falls short of Wall Street expectations

  • Datadog shares drop after forecasting lower-than-expected earnings and revenue for Q1
  • Adjusted earnings expected to be 33-35 cents per share, below analyst estimates of 39 cents per share
  • Q1 revenue forecasted at $587-591 million, missing Wall Street’s target of $622 million
  • Full-year adjusted earnings projected at $1.38-$1.44 per share on revenue of $2.56-$2.58 billion
  • Analysts had expected earnings of $1.77 per share on revenue of $2.78 billion for 2024
  • Shares of Datadog fell 9% to $122.40 premarket

Shares of Datadog, a New York-based cloud software maker, experienced a sharp decline after the company announced its first-quarter adjusted earnings and revenue forecasts, which fell below Wall Street expectations. The company projected adjusted earnings of 33-35 cents per share for Q1, lower than the average analyst estimate of 39 cents per share. Additionally, Datadog forecasted Q1 revenue of $587-591 million, missing the target of $622 million set by Wall Street analysts. For the full year, the company projected adjusted earnings of $1.38-$1.44 per share on revenue of $2.56-$2.58 billion. However, analysts had expected earnings of $1.77 per share on revenue of $2.78 billion for 2024. As a result of the disappointing forecasts, shares of Datadog fell 9% to $122.40 premarket.

Public Companies: Datadog (DDOG)
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Factuality Level: 8
Justification: The article provides specific information about Datadog’s forecasted earnings and revenue for the first quarter and full year, as well as the average analyst estimates. The information is sourced from FactSet, a reputable financial data provider. However, the article does not provide any additional context or analysis, making it somewhat limited in terms of depth and perspective.

Noise Level: 3
Justification: The article provides relevant information about Datadog’s forecasted earnings and revenue, as well as comparisons to Wall Street expectations. It includes specific numbers and data to support its claims. However, it lacks analysis or insights into the reasons behind the forecast and the potential implications for the company or the market. It also does not provide any actionable insights or solutions.

Financial Relevance: Yes
Financial Markets Impacted: Shares of Datadog

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses the forecasted earnings and revenue of Datadog, a cloud software maker. However, there is no mention of any extreme event.

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