When Datadog Inc. (NASDAQ: DDOG) reported its third-quarter financial results after the markets closed on Tuesday, the firm posted breakeven earnings on $95.9 million in revenue. That compared with consensus estimates that called for a net loss of $0.14 per share and $84.73 million in revenue. The same period of last year reportedly had a net loss of $0.04 per share and $51.07 million in revenue.
At the end of the latest quarter, Datadog had 727 customers with annual recurring revenue (ARR) of $100,000 or more, an increase of 93% from 377 in the third quarter of last year.
Looking ahead to the fourth quarter, the company expects to see a net loss in the range of $0.02 to $0.01 per share and revenue between $101 million and $103 million. Consensus estimates call for a net loss of $0.05 per share and $91.49 million in revenue.
In September, the company completed its initial public offering of 27.6 million shares at $27 per share, for total net proceeds of $709 million. Currently, the company has $771 million in cash, cash equivalents and restricted cash on the books.
Olivier Pomel, co-founder and CEO of Datadog, commented:
We are very pleased with our third quarter, which was highlighted by 88% year-over-year revenue growth, and continued traction with larger customers. Datadog has established itself as the leading monitoring and analytics platform and we have continued to extend our capabilities during the quarter. We announced over fifteen new products and functionalities at our annual user conference in July, including Network Performance Monitoring and Real User Monitoring.
Shares of Datadog traded up nearly 16% to $39.80 Wednesday morning, in a post-IPO range of $27.55 to $41.44. The consensus price target is $40.00.
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