DDOG Earnings Prediction
The chart below shows how DDOG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DDOG sees a +3.65% change in stock price 10 days leading up to the earnings, and a +3.46% change 10 days following the report. On the earnings day itself, the stock moves by +0.35%. This data can give you a slight idea of what to expect for the next quarter's release.
DDOG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
690.02M
26.02%
6.93%
Gross Margin
80.04%
-1.34%
-1.01%
Operating Margin
2.94%
481.82%
50.00%
Net Margin
7.49%
81.36%
10.31%
EPS
0.13
116.67%
18.18%
No Data Available
DDOG Earnings Analysis
Datadog, Inc. Class A Common Stock Corporation (DDOG.O) Earnings Conference Call
Positive
Q3 Revenue Surge: 1. Strong Revenue Growth: Datadog reported Q3 revenue of $690 million, reflecting a 26% year-over-year increase and exceeding the high end of their guidance range.
Customer Growth Increase: 2. Customer Expansion: The company ended the quarter with approximately 29,200 customers, up from about 26,800 a year ago, indicating strong customer growth.
Large Customer ARR Impact: 3. High ARR Contribution from Large Customers: About 3,490 customers generated an ARR of $100,000 or more, contributing to 88% of total ARR, showcasing the strength of their enterprise customer base.
Strong Free Cash Flow: 4. Robust Free Cash Flow: Datadog generated free cash flow of $204 million, achieving a free cash flow margin of 30%, highlighting strong operational efficiency.
Product Engagement Surge: 5. Increased Product Adoption: 83% of customers used two or more products, with 49% using four or more, demonstrating growing engagement with Datadog's platform.
Negative
Gross Margin Decline: 1. Declining Gross Margin: Datadog's gross margin decreased to 81.1% in Q3 2024, down from 82.1% in the previous quarter and 82.3% in the same quarter last year, indicating a downward trend in profitability.
Operating Expenses Surge: 2. Increased Operating Expenses: Operating expenses grew by 21% year-over-year in Q3 2024, matching the previous quarter's growth rate, which raises concerns about cost management amidst revenue growth.
Billings Growth Instability: 3. Billings Growth Volatility: Billings were reported at $689 million, reflecting only a 14% year-over-year increase, with a noted decrease in billings duration, suggesting potential instability in future revenue recognition.
Customer Revenue Volatility: 4. Customer Concentration Risk: AI native customers, which now represent over 6% of ARR, may lead to revenue volatility as these customers optimize their cloud and observability usage, potentially impacting future revenue stability.
Q4 Revenue Guidance Reduction: 5. Lowered Q4 Revenue Guidance: Datadog expects Q4 revenue to grow only 20% to 21% year-over-year, down from the 26% growth reported in Q3, indicating a slowdown in growth momentum.
DDOG FAQs
How does DDOG typically perform around its earnings report dates?
Is Datadog (DDOG) Q3 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
DDOG Earning Call Sentiment
Datadog (DDOG) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
DDOG.O
0.83%Positive
The earnings call highlights strong financial metrics, including a 26% YoY increase in RPO and robust cash flow, indicating future revenue potential. AI integration and cloud security expansion offer growth avenues, while management's optimistic outlook on workload growth and customer innovation further supports positive sentiment. However, concerns about AI customer revenue volatility and vague management responses slightly temper enthusiasm. Overall, the positive guidance and strategic growth initiatives suggest a likely positive stock price movement.