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Datadog (DDOG) to Report Q4 Earnings: What's in the Cards?
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Datadog (DDOG - Free Report) is set to release its fourth-quarter 2022 results on Feb 16.
For the quarter, the company expects non-GAAP earnings in the range of 18-20 cents per share. The Zacks Consensus Estimate for earnings has remained unchanged at 19 cents per share over the past 30 days, indicating a decline of 5% from the year-ago period.
The company projects fourth-quarter revenues to be between $445 million and $449 million. The consensus mark for the top line is currently pegged at $446.3 million, suggesting 36.83% growth from the year-ago period.
Markedly, Datadog’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 81.19%.
Let’s see how things have shaped up prior to this announcement.
Datadog’s quarterly performance is likely to have benefited from increased adoption of its cloud-based monitoring and analytics platform, owing to the accelerated digital transformation and cloud migration across organizations.
Significant investments in sales and marketing to engage customers, increase brand awareness and drive adoption of its platform and products are likely to have resulted in a growing customer base in the to-be-reported quarter.
Notably, the company ended third-quarter 2022 with 2,600 customers with an Annual Recurring Revenue (ARR) of more than $100K, up from about 1,800 in the year-ago quarter. These customers generated about 85% of ARR. Also, the firm’s dollar-based net retention rate remained more than 130% as customers increase their usage and adopted more products.
During the to-be-reported quarter, Datadog announced a new integration with Amazon Security Lake that makes it easy for Amazon Security Lake users to send cloud security logs to Datadog in a standard format.
Also, Datadog announced the general availability of Cloud Security Management. This product brings together capabilities from Cloud Security Posture Management, Cloud Workload Security, alerting, incident management and reporting in a single platform to enable DevOps and Security teams to identify misconfigurations, detect threats and secure cloud-native applications.
Key Developments
Datadog announced that it has acquired Cloudcraft, a visualization service for cloud and system architects to create real-time diagrams of their cloud infrastructures.
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 some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Endava is set to report its second-quarter fiscal 2023 results on Feb 14. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.94% from the prior-year period’s reported figure.
Airbnb (ABNB - Free Report) has an Earnings ESP of +8.10% and a Zacks Rank #3 at present.
Airbnb is scheduled to release its fourth-quarter 2022 results on Feb 14. The Zacks Consensus Estimate for ABNB’s earnings is pegged at 27 cents per share, suggesting an increase of 237.5% from the prior-year quarter’s reported figure.
TripAdvisor (TRIP - Free Report) has an Earnings ESP of +112.90% and a Zacks Rank #3 at present.
TripAdvisor is scheduled to release its fourth-quarter 2022 results on Feb 14. The Zacks Consensus Estimate for TRIP’s earnings is pegged at 5 cents per share. The company reported a loss of a cent per share in the prior-year quarter.
Image: Bigstock
Datadog (DDOG) to Report Q4 Earnings: What's in the Cards?
Datadog (DDOG - Free Report) is set to release its fourth-quarter 2022 results on Feb 16.
For the quarter, the company expects non-GAAP earnings in the range of 18-20 cents per share. The Zacks Consensus Estimate for earnings has remained unchanged at 19 cents per share over the past 30 days, indicating a decline of 5% from the year-ago period.
The company projects fourth-quarter revenues to be between $445 million and $449 million. The consensus mark for the top line is currently pegged at $446.3 million, suggesting 36.83% growth from the year-ago period.
Markedly, Datadog’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 81.19%.
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 quarterly performance is likely to have benefited from increased adoption of its cloud-based monitoring and analytics platform, owing to the accelerated digital transformation and cloud migration across organizations.
Significant investments in sales and marketing to engage customers, increase brand awareness and drive adoption of its platform and products are likely to have resulted in a growing customer base in the to-be-reported quarter.
Notably, the company ended third-quarter 2022 with 2,600 customers with an Annual Recurring Revenue (ARR) of more than $100K, up from about 1,800 in the year-ago quarter. These customers generated about 85% of ARR. Also, the firm’s dollar-based net retention rate remained more than 130% as customers increase their usage and adopted more products.
During the to-be-reported quarter, Datadog announced a new integration with Amazon Security Lake that makes it easy for Amazon Security Lake users to send cloud security logs to Datadog in a standard format.
Also, Datadog announced the general availability of Cloud Security Management. This product brings together capabilities from Cloud Security Posture Management, Cloud Workload Security, alerting, incident management and reporting in a single platform to enable DevOps and Security teams to identify misconfigurations, detect threats and secure cloud-native applications.
Key Developments
Datadog announced that it has acquired Cloudcraft, a visualization service for cloud and system architects to create real-time diagrams of their cloud infrastructures.
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 some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Endava (DAVA - Free Report) has an Earnings ESP of +1.47% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Endava is set to report its second-quarter fiscal 2023 results on Feb 14. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.94% from the prior-year period’s reported figure.
Airbnb (ABNB - Free Report) has an Earnings ESP of +8.10% and a Zacks Rank #3 at present.
Airbnb is scheduled to release its fourth-quarter 2022 results on Feb 14. The Zacks Consensus Estimate for ABNB’s earnings is pegged at 27 cents per share, suggesting an increase of 237.5% from the prior-year quarter’s reported figure.
TripAdvisor (TRIP - Free Report) has an Earnings ESP of +112.90% and a Zacks Rank #3 at present.
TripAdvisor is scheduled to release its fourth-quarter 2022 results on Feb 14. The Zacks Consensus Estimate for TRIP’s earnings is pegged at 5 cents per share. The company reported a loss of a cent per share in the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.