Yahoo Finance Datadog (DDOG) to Report Q2 Earnings: What's in the Cards?
Datadog DDOG is set to release its second-quarter 2023 results on Aug 8.
For the second quarter of 2023, Datadog anticipates revenues between $498 million and $502 million. The Zacks Consensus Estimate for the same is currently pegged at $500.37 million, suggesting 23.2% growth from the year-ago period.
Non-GAAP earnings are expected in the range of 27-29 cents per share. The Zacks Consensus Estimate for earnings has remained unchanged at 28 cents per share over the past 30 days, indicating growth of 16.67% from the year-ago period.
Markedly, Datadog’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 44.57%.
Let’s see how things have shaped up prior to this announcement.
Datadog, Inc. Price and EPS Surprise
Datadog, Inc. price-eps-surprise | Datadog, Inc. Quote
Factors to Consider
Datadog’s quarterly performance is likely to have benefited from increased adoption of its cloud-based monitoring and analytics platform, owing to the accelerated digital transformation and cloud migration across organizations.
Significant investments in sales and marketing to engage customers, increase brand awareness and drive adoption of its platform and products are likely to have resulted in a growing customer base in the to-be-reported quarter.
In the first quarter of 2023, Datadog had about 2,910 customers with an annual run rate of $100K or more, up from 2,250 in the year-ago quarter. The Zacks Consensus Estimate is pegged at 3,068, indicating growth of 26.77% from the year-ago quarter.
As of the end of the first quarter, 81% of customers used two or more products, which is in line with the year-ago quarter’s figure. Additionally, 43% of customers utilized four or more products, up from 35% in the year-ago quarter and 19% of customers used six or more products, up from 12% a year ago.
Datadog’s dollar-based retention rate was above 130% for the 23rd consecutive quarter, driven by the mission-oriented nature of the platform.
The company introduced new capabilities for its Cloud Cost Management product, including container cost allocation, cost monitors and support for Azure. These updates are expected to have boosted clientele growth in the to-be-reported quarter.
DDOG released new integration that monitors OpenAI API usage patterns, costs and performance for various OpenAI models, including GPT-4 and other completion models. This integration is expected to have boosted customer growth in the to-be-reported quarter.
What Our Model Indicates
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Datadog has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
NVIDIA NVDA has an Earnings ESP of +5.56% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nvidia is scheduled to release second-quarter 2023 results on Aug 23. The Zacks Consensus Estimate for NVDA’s earnings is pegged at $2.06 per share, suggesting a jump from the prior-year quarter’s reported figure of 51 cents.
CACI International CACI has an Earnings ESP of +2.36% and a Zacks Rank #2 at present.
CACI is set to report its fourth-quarter fiscal 2023 results on Aug 9. The Zacks Consensus Estimate for CACI’s earnings is pegged at $4.85 per share, suggesting growth of 6.8% from the prior-year quarter’s reported figure.
Docebo DCBO has an Earnings ESP of +6.67% and a Zacks Rank #3 at present.
Docebo is set to report its second-quarter fiscal 2023 results on Aug 10. The Zacks Consensus Estimate for DCBO’s earnings is pegged at 8 cents per share. The company reported a loss of 5 cents per share in the year-ago quarter.
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