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Datadog (DDOG) to Post Q2 Earnings: What's in the Offing?
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Datadog (DDOG - Free Report) is set to release second-quarter 2021 results on Aug 5.
For the quarter, the company expects to report non-GAAP earnings of 3-4 cents per share. The Zacks Consensus Estimate for earnings has remained at 3 cents per share in the past 30 days, indicating a decline of 40% from the year-ago quarter’s levels.
The company projects revenues between $211 million and $213 million. The consensus mark for the top line is currently pegged at $212.1 million, suggesting 51.5% growth from the figure reported in the previous quarter.
Datadog has a trailing four-quarter earnings surprise of 275%, on average.
Let’s see how things have shaped up prior to this announcement.
Datadog’s performance is expected to have benefited from higher uptake of its cloud-based monitoring and analytics platform on the back of accelerated digital transformation and cloud migration across business enterprises.
In the last reported quarter, the company made its two products namely Continuous Profiler and Incident Management generally available. Incremental gains from adoption of these two products are likely to have boosted the top line.
Strong adoption of Synthetics, Real User Monitoring and Network Performance Monitoring products is expected to have aided customer wins in the soon-to-be-reported quarter. Datadog’s new monitoring functionalities to resolve DNS issues and Deployment Tracking, a new feature for Datadog Application Performance Monitoring (APM) is likely to have contributed to revenues in the to-be-reported quarter
Datadog’s expanding portfolio of integrated solutions has been a major catalyst in expanding its customer base. The company ended first-quarter 2021 with 1,437 customers with ARR of more than $100K, up 49.7% year over year. The firm’s dollar-based net retention rate was more than 130% in the last reported quarter.
Contributions from a strong cloud partner base including Google Cloud, Microsoft Azure and Amazon Web Services (AWS) is anticipated to have been a tailwind.
However, increasing expenses on research & development, marketing and headcount expansion amid stiff competition in the on-premises infrastructure monitoring space are likely to exert pressure on margin expansion in the second quarter.
Key Developments in Q2
In April 2021, Datadog concluded the buyout of Sqreen. The acquisition of Sqreen will boost Datadog’s APM capabilities and will enable in providing its clients with a comprehensive security monitoring solution.
In May 2021, Datadog disclosed the general availability of Datadog’s AWS Lambda extension. Further, Datadog extended support for application monitoring with AWS App Runner to help engineering/product teams to scale, implement and monitor apps. The managed service eliminates the need of keeping a tab on their infrastructure for the engineering/product teams.
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 #4. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks, which you may consider, as our proven model shows that these have the right mix of elements to beat estimates this time around:
Image: Bigstock
Datadog (DDOG) to Post Q2 Earnings: What's in the Offing?
Datadog (DDOG - Free Report) is set to release second-quarter 2021 results on Aug 5.
For the quarter, the company expects to report non-GAAP earnings of 3-4 cents per share. The Zacks Consensus Estimate for earnings has remained at 3 cents per share in the past 30 days, indicating a decline of 40% from the year-ago quarter’s levels.
The company projects revenues between $211 million and $213 million. The consensus mark for the top line is currently pegged at $212.1 million, suggesting 51.5% growth from the figure reported in the previous quarter.
Datadog has a trailing four-quarter earnings surprise of 275%, on average.
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 performance is expected to have benefited from higher uptake of its cloud-based monitoring and analytics platform on the back of accelerated digital transformation and cloud migration across business enterprises.
In the last reported quarter, the company made its two products namely Continuous Profiler and Incident Management generally available. Incremental gains from adoption of these two products are likely to have boosted the top line.
Strong adoption of Synthetics, Real User Monitoring and Network Performance Monitoring products is expected to have aided customer wins in the soon-to-be-reported quarter. Datadog’s new monitoring functionalities to resolve DNS issues and Deployment Tracking, a new feature for Datadog Application Performance Monitoring (APM) is likely to have contributed to revenues in the to-be-reported quarter
Datadog’s expanding portfolio of integrated solutions has been a major catalyst in expanding its customer base. The company ended first-quarter 2021 with 1,437 customers with ARR of more than $100K, up 49.7% year over year. The firm’s dollar-based net retention rate was more than 130% in the last reported quarter.
Contributions from a strong cloud partner base including Google Cloud, Microsoft Azure and Amazon Web Services (AWS) is anticipated to have been a tailwind.
However, increasing expenses on research & development, marketing and headcount expansion amid stiff competition in the on-premises infrastructure monitoring space are likely to exert pressure on margin expansion in the second quarter.
Key Developments in Q2
In April 2021, Datadog concluded the buyout of Sqreen. The acquisition of Sqreen will boost Datadog’s APM capabilities and will enable in providing its clients with a comprehensive security monitoring solution.
In May 2021, Datadog disclosed the general availability of Datadog’s AWS Lambda extension. Further, Datadog extended support for application monitoring with AWS App Runner to help engineering/product teams to scale, implement and monitor apps. The managed service eliminates the need of keeping a tab on their infrastructure for the engineering/product teams.
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 #4. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks, which you may consider, as our proven model shows that these have the right mix of elements to beat estimates this time around:
Avnet (AVT - Free Report) has an Earnings ESP of +9.82% and a Zacks Rank #1, at present. You can see the complete list of today's Zacks #1 Rank stocks here.
CyberArk Software (CYBR - Free Report) has an Earnings ESP of +37.93% and a Zacks Rank #1, presently.
Booking Holdings (BKNG - Free Report) has an Earnings ESP of +34.46% and a Zacks Rank #2, presently.