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Datadog (DDOG) to Report Q4 Earnings: What's in the Cards?

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Datadog, Inc (DDOG - Free Report) is scheduled to report fourth-quarter 2019 results on Feb 13.

For the quarter, the company expects revenues in the range of $101 million to $103 million.

The Zacks Consensus Estimate for revenues is currently pegged at $102.2 million.

The consensus mark for fourth-quarter loss has been steady at 2 cents over the past 30 days.

Let’s see how things have shaped up for this announcement.

Datadog, Inc. Price and EPS Surprise

Datadog, Inc. Price and EPS Surprise

Datadog, Inc. price-eps-surprise | Datadog, Inc. Quote

Factors to Consider

Datadog’s fourth-quarter results are expected to have benefited from increased adoption of its new and existing products and an expanded customer base.

Notably, the company secured several client wins in the fourth quarter, which included a multinational telecom provider, a higher education software and services company and a European shipping and logistics company, among others. These wins are likely to have driven top-line growth in the to-be-reported quarter.

Moreover, the company enhanced its machine learning and AI capabilities with the launch of features like watchdog and metric coalition for its platform. This well positioned it to address the growing demand for complex IT analytics solutions.

Further, Datadog’s growing international presence is likely to have benefited its performance during the quarter. Notably, the company witnessed strong sales in the EMEA region in the third quarter and the trend is expected to have continued.

The company also witnessed strong uptake of its synthetic products in the third quarter and expects the synthetic segment to have remained bullish this time around as well.

However, increased expenditure on research & development, as well as sales and marketing is expected to have kept margins under pressure.

What Our Model Says

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 a Zacks Rank #3 and an Earnings ESP of 0.00%. 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 companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

Alteryx, Inc. (AYX - Free Report) has an Earnings ESP of +6.49% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Five9, Inc. (FIVN - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank #2.

Zillow Group, Inc. (ZG - Free Report) has an Earnings ESP of +22.22% and a Zack Rank #3.

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