In the first quarter, Datadog (DDOG) reported earnings that exceeded expectations. Despite this, the company provided guidance that was slightly below expectations and announced that Amit Agarwal would be stepping down as president. Following this news, Datadog stock experienced a decline.
In Q1 2024, Datadog reported earnings of 44 cents per share on an adjusted basis, reflecting a 29% increase from the previous year. The company’s revenue also saw a 27% surge to $611 million, with growth accelerating for the second consecutive quarter. Analysts had anticipated Datadog to report a profit of 34 cents per share on revenue of $590 million. However, the company’s actual earnings were higher than expected due to strong demand for its monitoring and analytics platform.
Despite closing Monday within a base including a 138.61 buy point, shares were set to open below the 50-day line and the low of the consolidation period following news of Amit Agarwal stepping down as president and slightly below-expectations guidance. The company’s stock currently holds a Relative Strength Rating of 86 out of a best-possible 99, as reported by IBD Stock Check-up. For more updates on artificial intelligence, cybersecurity, and cloud computing, follow Reinhardt Krause on Twitter @reinhardtk_tech. Interested in trading options or learning more about market strategies? Unlock IBD’s premium stock lists