We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Datadog (DDOG) Q3 Earnings Rise Y/Y, Revenues Top Estimates
Read MoreHide Full Article
Datadog (DDOG - Free Report) reported third-quarter 2020 non-GAAP earnings of 5 cents per share. The company had reported break-even earnings, on a non-GAAP basis, in the year-ago quarter.
The Zacks Consensus Estimate was pegged at a loss of 1 cent per share.
Net revenues of $154.7 million beat the consensus mark by 7.4% and increased 61.3% from the year-ago quarter.
Datadog’s revenue growth was driven by robust customer additions during the third quarter as well as continued growth of existing customers.
Notably, the company had 13,100 customers as of the end of the third quarter, up from 9500 in the year-ago quarter. Moreover, Datadog added 1000 customers in the quarter, up from 600 customers added in the previous quarter.
Of these customers, 1107 have an annual run rate (ARR) of $100k or more, up 52% year over year. These customers generate about 75% of total ARR.
During the quarter, Datadog’s dollar-based retention rate was above 130% for the 13th consecutive quarter, driven by increased usage of existing products.
Operating Details
In the third quarter, Datadog’s adjusted gross margin expanded 250 basis points (bps) on a year-over-year basis to 78.6%.
Research & development, as a percentage of revenues, expanded 170 bps to 29.6%, driven by increased investments in Datadog’s platform.
Sales and marketing expenses, as a percentage of revenues, contracted 670 bps to 32.1%. General & administrative expenses, as a percentage of revenues, contracted 70 bps to 7.9%.
Datadog reported non-GAAP operating income of $13.8 million. The company had reported a non-GAAP operating income of $0.7 million in the year-ago reported quarter.
Balance Sheet & Cash Flow
As of Sep 30, 2020, Datadog had cash, cash equivalents and marketable securities of $1.49 billion million compared with $1.46 billion as of Jun 30, 2020.
Operating cash flow was $36.3 million in the reported quarter compared with $24.7 million in the previous quarter.
Free cash flow during the quarter was $28.6 million.
Guidance
For the fourth quarter of 2020, Datadog anticipates revenues between $162 million and $164 million. Non-GAAP earnings are expected between 1-2 cents per share.
Non-GAAP operating income is expected to be in the range of $3 million to $5 million.
For full-year 2020, Datadog anticipates revenues between $588 million and $590 million. Non-GAAP earnings is expected between 17-18 cents per share.
Non-GAAP operating income is expected to be in the range of $48.5 million to $50.5 million.
Zacks Rank & Stocks to Consider
Currently, Datadog carries a Zacks Rank #4 (Sell).
Himax Technologies, NVIDIA and Pure Storage will report third-quarter 2020 results on Nov 12, Nov 18 and Nov 24, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Datadog (DDOG) Q3 Earnings Rise Y/Y, Revenues Top Estimates
Datadog (DDOG - Free Report) reported third-quarter 2020 non-GAAP earnings of 5 cents per share. The company had reported break-even earnings, on a non-GAAP basis, in the year-ago quarter.
The Zacks Consensus Estimate was pegged at a loss of 1 cent per share.
Net revenues of $154.7 million beat the consensus mark by 7.4% and increased 61.3% from the year-ago quarter.
Datadog, Inc. Price, Consensus and EPS Surprise
Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote
Quarter Details
Datadog’s revenue growth was driven by robust customer additions during the third quarter as well as continued growth of existing customers.
Notably, the company had 13,100 customers as of the end of the third quarter, up from 9500 in the year-ago quarter. Moreover, Datadog added 1000 customers in the quarter, up from 600 customers added in the previous quarter.
Of these customers, 1107 have an annual run rate (ARR) of $100k or more, up 52% year over year. These customers generate about 75% of total ARR.
During the quarter, Datadog’s dollar-based retention rate was above 130% for the 13th consecutive quarter, driven by increased usage of existing products.
Operating Details
In the third quarter, Datadog’s adjusted gross margin expanded 250 basis points (bps) on a year-over-year basis to 78.6%.
Research & development, as a percentage of revenues, expanded 170 bps to 29.6%, driven by increased investments in Datadog’s platform.
Sales and marketing expenses, as a percentage of revenues, contracted 670 bps to 32.1%. General & administrative expenses, as a percentage of revenues, contracted 70 bps to 7.9%.
Datadog reported non-GAAP operating income of $13.8 million. The company had reported a non-GAAP operating income of $0.7 million in the year-ago reported quarter.
Balance Sheet & Cash Flow
As of Sep 30, 2020, Datadog had cash, cash equivalents and marketable securities of $1.49 billion million compared with $1.46 billion as of Jun 30, 2020.
Operating cash flow was $36.3 million in the reported quarter compared with $24.7 million in the previous quarter.
Free cash flow during the quarter was $28.6 million.
Guidance
For the fourth quarter of 2020, Datadog anticipates revenues between $162 million and $164 million. Non-GAAP earnings are expected between 1-2 cents per share.
Non-GAAP operating income is expected to be in the range of $3 million to $5 million.
For full-year 2020, Datadog anticipates revenues between $588 million and $590 million. Non-GAAP earnings is expected between 17-18 cents per share.
Non-GAAP operating income is expected to be in the range of $48.5 million to $50.5 million.
Zacks Rank & Stocks to Consider
Currently, Datadog carries a Zacks Rank #4 (Sell).
Himax Technologies (HIMX - Free Report) , NVIDIA (NVDA - Free Report) and Pure Storage (PSTG - Free Report) are some better-ranked stocks in the broader computer and technology sector. Each carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Himax Technologies, NVIDIA and Pure Storage will report third-quarter 2020 results on Nov 12, Nov 18 and Nov 24, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>