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Datadog (DDOG) to Report Q3 Earnings: What's in the Cards?
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Datadog (DDOG - Free Report) is set to release third-quarter 2020 results on Nov 10.
For the quarter, the company expects to report earnings between breakeven and 1 cent. The Zacks Consensus Estimate for earnings is currently pegged at 1 cent per share, unchanged over the past 30 days. The company had reported break-even earnings in the year-ago quarter.
Moreover, the company expects revenues between $143 million and $145 million indicating year-over-year growth of 50% at the midpoint.
The consensus mark for the top line is currently pegged at $144.2 million, implying 50.4% growth from the figure reported in the previous quarter.
Markedly, Datadog’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average being 362.5%. The company completed its initial public offering on Sep 19, 2019.
Let’s see how things have shaped up prior to this announcement.
Datadog’s third-quarter performance is expected to have benefited from increased adoption of its cloud-based monitoring and analytics platform.
The company’s high exposure to industries benefiting from the coronavirus-led social distancing guidelines like streaming media, gaming, food delivery and e-commerce, is expected to have aided top-line growth in the to-be-reported quarter.
Notably, the company ended second-quarter 2020 with 1015 customers with ARR of more than $100K, up 71% year over year, reflecting solid demand for its solutions like Network Performance Monitoring and Real User Monitoring. The momentum is expected to have continued in the to-be-reported quarter.
Additionally, Datadog’s expanding portfolio of integrated solutions has been a key catalyst in expanding clientele. In the third quarter, the company achieved the AWS Outposts Ready designation, part of the Amazon Web Services (AWS) Service Ready Program. This designation recognizes Datadog’s successful integration with AWS Outposts deployments.
Datadog also announced support for ingesting log data via Amazon Kinesis Data Firehose, a solution from Amazon Web Services (AWS) that reliably loads streaming data into data lakes, data stores and analytics tools. With support for Amazon Kinesis Data Firehose, Datadog allows customers to stream logs from AWS services to Datadog directly from the AWS Management Console and APIs.
Moreover, enhanced features of Watchdog and strengthening serverless capabilities are noteworthy. Further, Datadog’s growing international presence is likely to have benefited its performance during the quarter.
Key Developments in Q3
During the to-be-reported quarter, Datadog entered into a strategic partnership with Microsoft Azure. As part of this launch, Datadog’s availability in the Azure console as a first- class service will allow Azure customers to implement Datadog as a monitoring solution for their cloud workloads through new streamlined workflows that cover everything from procurement to configuration.
Additionally, the company achieved “In Process” status on the Federal Risk and Authorization Management Program (FedRAMP) Marketplace for moderate-impact SaaS. Datadog is currently working with the U.S. Department of Veterans Affairs and the General Services Administration (GSA) FedRAMP Program Management Office (PMO) to achieve FedRAMP Authorization status for Moderate Impact. This follows Datadog’s earlier FedRAMP Authorization for Low Impact SaaS workloads.
Moreover, Datadog acquired Undefined Labs, a testing and observability company for developer workflows. This acquisition extends Datadog’s existing platform into development environments and will provide organizations with better tooling and monitoring in continuous integration and deployment workflows.
What Our Model Indicates
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Datadog has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming release.
Electronic Arts Inc. (EA - Free Report) has an Earnings ESP of +400.00% and a Zacks Rank #3.
Take Two Interactive Software (TTWO - Free Report) has an Earnings ESP of +7.51% and is Zacks #3 Ranked.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Datadog (DDOG) to Report Q3 Earnings: What's in the Cards?
Datadog (DDOG - Free Report) is set to release third-quarter 2020 results on Nov 10.
For the quarter, the company expects to report earnings between breakeven and 1 cent. The Zacks Consensus Estimate for earnings is currently pegged at 1 cent per share, unchanged over the past 30 days. The company had reported break-even earnings in the year-ago quarter.
Moreover, the company expects revenues between $143 million and $145 million indicating year-over-year growth of 50% at the midpoint.
The consensus mark for the top line is currently pegged at $144.2 million, implying 50.4% growth from the figure reported in the previous quarter.
Markedly, Datadog’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average being 362.5%. The company completed its initial public offering on Sep 19, 2019.
Let’s see how things have shaped up prior to this announcement.
Datadog, Inc. Price and EPS Surprise
Datadog, Inc. price-eps-surprise | Datadog, Inc. Quote
Factors to Consider
Datadog’s third-quarter performance is expected to have benefited from increased adoption of its cloud-based monitoring and analytics platform.
The company’s high exposure to industries benefiting from the coronavirus-led social distancing guidelines like streaming media, gaming, food delivery and e-commerce, is expected to have aided top-line growth in the to-be-reported quarter.
Notably, the company ended second-quarter 2020 with 1015 customers with ARR of more than $100K, up 71% year over year, reflecting solid demand for its solutions like Network Performance Monitoring and Real User Monitoring. The momentum is expected to have continued in the to-be-reported quarter.
Additionally, Datadog’s expanding portfolio of integrated solutions has been a key catalyst in expanding clientele. In the third quarter, the company achieved the AWS Outposts Ready designation, part of the Amazon Web Services (AWS) Service Ready Program. This designation recognizes Datadog’s successful integration with AWS Outposts deployments.
Datadog also announced support for ingesting log data via Amazon Kinesis Data Firehose, a solution from Amazon Web Services (AWS) that reliably loads streaming data into data lakes, data stores and analytics tools. With support for Amazon Kinesis Data Firehose, Datadog allows customers to stream logs from AWS services to Datadog directly from the AWS Management Console and APIs.
Moreover, enhanced features of Watchdog and strengthening serverless capabilities are noteworthy. Further, Datadog’s growing international presence is likely to have benefited its performance during the quarter.
Key Developments in Q3
During the to-be-reported quarter, Datadog entered into a strategic partnership with Microsoft Azure. As part of this launch, Datadog’s availability in the Azure console as a first- class service will allow Azure customers to implement Datadog as a monitoring solution for their cloud workloads through new streamlined workflows that cover everything from procurement to configuration.
Additionally, the company achieved “In Process” status on the Federal Risk and Authorization Management Program (FedRAMP) Marketplace for moderate-impact SaaS. Datadog is currently working with the U.S. Department of Veterans Affairs and the General Services Administration (GSA) FedRAMP Program Management Office (PMO) to achieve FedRAMP Authorization status for Moderate Impact. This follows Datadog’s earlier FedRAMP Authorization for Low Impact SaaS workloads.
Moreover, Datadog acquired Undefined Labs, a testing and observability company for developer workflows. This acquisition extends Datadog’s existing platform into development environments and will provide organizations with better tooling and monitoring in continuous integration and deployment workflows.
What Our Model Indicates
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Datadog has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming release.
NVIDIA (NVDA - Free Report) has an Earnings ESP of +1.75% and a Zacks Rank #2. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Electronic Arts Inc. (EA - Free Report) has an Earnings ESP of +400.00% and a Zacks Rank #3.
Take Two Interactive Software (TTWO - Free Report) has an Earnings ESP of +7.51% and is Zacks #3 Ranked.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>