Datadog Earnings Overshadowed By Leadership Shift: What To Know
Datadog stock is down even after the cloud company beat expectations for its first quarter and raised its full-year outlook.


Datadog (DDOG) stock is down more than 10% Tuesday even as the cloud monitoring and security firm beat top- and bottom-line expectations for its first quarter and raised its full-year outlook.
In the three months ended March 31, Datadog's revenue increased 27% year-over-year to $611 million. Its earnings per share (EPS) improved to 44 cents from 23 cents in the year-ago period.
"Datadog executed solidly in the first quarter, with 27% year-over-year revenue growth and continued product innovation across our platform," Datadog co-founder and CEO Olivier Pomel said in the press release.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results handily beat analysts' expectations, which had called for revenue of $591.3 million and earnings of 35 cents per share, according to Yahoo Finance.
The results also exceeded Datadog's outlook for the quarter, which had called for revenue in the range of $587 million to $591 million and EPS in the range of 33 cents to 35 cents.
As a result of the strong performance in the first quarter, Datadog raised its full-year outlook. It now expects revenue in the range of $2.59 billion to $2.61 billion and earnings per share in the range of $1.51 to $1.57, up from its previous outlook of revenue in the range of $2.555 billion to $2.575 billion and EPS in the range of $1.38 to $1.44.
In its appearance on the earnings calendar, Datadog also provided its outlook for the second quarter. The company is calling for revenue in the range of $620 million to $624 million and earnings in the range of 34 cents to 36 cents per share.
The Q2 outlook is inline with Wall Street's expectations, which calls for revenue of $620.6 million and EPS of 35 cents.
The report also indicated that Amit Agarwal will step down as president of Datadog at the end of this year, which some media outlets suggest is the reason for today's selloff in the tech stock. Agarwal is expected to join the company's board of directors upon his departure.
Is Datadog stock a buy, sell or hold?
Datadog stock has been choppy in 2024, down 6% so far. Still, shares remain nearly 50% higher year-over-year.
Analysts have a positive outlook for the cybersecurity stock. According to S&P Global Market Intelligence, analysts' average target price for DDOG is $148.19, representing implied upside of more than 30% to current levels. Additionally, the consensus recommendation is Buy.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
S&P, Nasdaq Hit New Highs: Stock Market Today
A late-day rally wasn't enough to lift the Dow into the green as its six-session winning streak came to an end.
-
Five Things to Consider Now If You Want to Retire in 2026
To retire with confidence in the year ahead, tackle these essential tasks right now.
-
S&P, Nasdaq Hit New Highs: Stock Market Today
A late-day rally wasn't enough to lift the Dow into the green as its six-session winning streak came to an end.
-
AMD Stock Surges on OpenAI Deal
Advanced Micro Devices could see tens of billions of dollars in new revenue from the ChatGPT maker as the AI infrastructure buildout accelerates.
-
These Stocks Dipped in 2025. Do They Have Value?
If you are looking to add new long-term positions to your portfolio, as you should, this is the time to examine stocks that the market shuns.
-
Striking Gold (or Gas): A Financial Pro Unpacks the Nuances of Energy Investing
Investing in the energy industry, particularly oil and gas, involves understanding the facts about how projects generate returns through cash flow and long-term asset building, while also being aware of the risks.
-
Escaping the New Golden Handcuffs: A Financial Expert Has a Plan for Today's Executives
Feeling stuck in your job? It could be your complicated compensation package, but it also could be where you live, your family or even how you view yourself.
-
Stock Market Winners and Losers of the 'Big, Beautiful' Bill
Defense, manufacturing and tech should prosper, while health care and green energy stocks face hurdles.
-
I'm a Financial Planner: Here's How to Invest Like the Wealthy, Even if You Don't Have Millions
Private market investments, once exclusive to the ultra-wealthy and institutions, have become more accessible to individual investors, thanks to regulatory changes and new investment structures.
-
Four Ways a Massive Emergency Fund Can Hurt You More Than It Helps
Saving too much could mean you're missing opportunities to put your money to work. Redirect some of that money toward paying off debt, building retirement funds, fulfilling a dream or investing in higher-growth options.