Shares in cloud monitoring software company Datadog saw a stunning 28% rise on Tuesday, marking its most successful day to date. The surge followed the release of the company's third-quarter results and full-year outlook, both of which beat expectations. The company's quarterly revenue was reported at $547.5 million, representing an impressive 25% year-over-year growth rate that beat estimates and replicated the growth results from the second quarter.
Previously polled analysts at LSEG, formerly known as Refinitiv, had expected Datadog's third-quarter revenue to be $524.1 million. However, that forecast fell short as Datadog's performance came in at adjusted earnings per share of 45 cents, significantly better than the 34 cents expected.
At the same time, Datadog revealed an improved revenue and profit forecast for this year. The cloud monitoring company now expects fourth-quarter revenue to be in the range of $564 million to $568 million and full-year revenue of approximately $2.1 billion. Analysts polled by LSEG had projected lower numbers, with fourth-quarter revenue of $543.3 million and full-year revenue of $2.06 billion.
