Datadog Inc (NASDAQ: DDOG) Q4 Results Expected to Exceed Expectations Driven by Core Growth Acceleration
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 8h ago
0mins
Source: Benzinga
- Core Growth Acceleration: Analyst Brad Reback indicates that Datadog's fourth-quarter core growth rate is expected to exceed 23%, suggesting strong performance in the non-OAI (OpenAI) segment will drive results above market expectations.
- Significant Customer Growth: Datadog saw a year-over-year increase of approximately 16% in customers generating over $100,000, with a sequential rise of 210 customers in the last quarter, indicating accelerating contributions from new clients and reinforcing the company's market position.
- Investment Inflection Point: Over the past 18 months, Datadog's investments in sales and marketing have reached an inflection point, with core non-GenAI revenue growth accelerating to 20% year-on-year in the previous quarter, up 200 basis points sequentially, signaling substantial future growth potential.
- Optimistic Revenue Guidance: Analysts expect Datadog's management to guide revenue to approximately $4.1 billion in CY26, assuming OAI remains at a quarterly run rate of about $90 million, implying a conservative core growth rate of over 19%, showcasing confidence in the company's long-term growth trajectory.
Analyst Views on DDOG
Wall Street analysts forecast DDOG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DDOG is 207.39 USD with a low forecast of 140.00 USD and a high forecast of 255.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
33 Analyst Rating
30 Buy
3 Hold
0 Sell
Strong Buy
Current: 123.460
Low
140.00
Averages
207.39
High
255.00
Current: 123.460
Low
140.00
Averages
207.39
High
255.00
About DDOG
Datadog, Inc. provides an observability and security platform for cloud applications. The Company’s SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, user experience monitoring, cloud security and many other capabilities to provide unified, real-time observability and security for its customers’ entire technology stack. Its platform consists of products that can be used individually or as a unified solution and includes a marketplace where customers can access products built by its partners on top of the Datadog platform. Its products include Infrastructure Monitoring, Application Performance Monitoring, Log Management, Digital Experience Monitoring, Continuous Profiler, Database Monitoring, Data Observability, Universal Service Monitoring, Network Monitoring and others. It owns Metaplane, an end-to-end data observability platform that provides advanced machine learning-powered monitoring and column-level lineage.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
