Datadog ( DDOG Quick Quote DDOG - Free Report) recently announced new capabilities for its Cloud Cost Management product, including container cost allocation and cost monitors. It extends the collaboration with Microsoft ( MSFT Quick Quote MSFT - Free Report) by providing Cloud Cost Management support for Azure. Cloud cost data is ideally dispersed and difficult to centralize and understand, putting organizations at risk of exceeding budget. As organizations increase their usage of containers and multiple clouds, the ability to centralize cost data and allocate spend across different dimensions becomes a top priority. Datadog’s Cloud Cost Management addresses this issue by providing engineers visibility into spend and creating a cost-conscious culture to take action on cost insights. With granular alerting and visibility into containers and Azure environments, it empowers to reduce waste and avoid unexpected cost overages. With support from Azure and Amazon’s ( AMZN Quick Quote AMZN - Free Report) AWS, organizations can now seamlessly understand the teams, services and environments responsible for their highest cloud costs. Teams using Microsoft Azure can optimize performance and cost, with full visibility into infrastructure and application telemetry. Datadog, Inc. Price and Consensus Datadog Leveraging on its Cloud Business to Aid Prospects
Datadog banks on a strong cloud portfolio, delivering value to customers in their digital transformation and cloud migration journeys. Its trailing 12-month dollar-based net retention rate continued to be over 130% in the first-quarter 2023 as customers increase their usage and adopt more products.
Besides Cloud Cost Management, Datadog introduced several products to bolster its cloud business.
It introduced cloud security management which brings together capabilities from Cloud Security Posture Management and Cloud Workload Security to identify misconfigurations, detect threats and secure cloud-native applications.
It also launched Datadog continuous testing, that helps developers and quality engineers to quickly create, manage and run end-to-end tests for their web applications.
These enhancements are expected to track users and boost the company’s top line. A solid cloud partner base, including
Alphabet’s ( GOOGL Quick Quote GOOGL - Free Report) Google Cloud, Microsoft Azure and Amazon Web Services, remain a key growth driver in addition to an expanding portfolio.
Coming to the price performance, DDOG gained 27.3% year to date compared with the Zacks
Internet- Software industry’s and the Zacks Computer and Technology sector’s rise of 43.8% and 33.2% respectively.
Shares of Alphabet, Microsoft and Amazon have gained 38.8%, 34.9% and 44.3% in the year-to-date period, respectively.
Datadog’s Bright Prospects
This Zacks Rank #3 (Hold) company reported first-quarter 2023 revenues of $481.7 million which increased 32.7% year over year. You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Datadog continues to broaden its platform with continuous investments in R&D as well as sales and marketing. It aims to help customers save on costs, execute with better engineering efficiency, and drive competitive differentiation.
The company’s second-quarter 2023 revenues are anticipated to be in the range of $498-$502 million, which represents 23-24% year-over-year growth. The Zacks Consensus Estimate for the same is pegged at $500.37 million.
Its Non-GAAP earnings are expected in the range of 27-29 cents per share in the second-quarter 2023. The consensus mark for earnings has remained unchanged at 28 cents per share in the past 30 days, indicating a year-over-year rise of 16.67%.