Datadog rises on Q2 earnings beat, upbeat guidance

Shares of Datadog (DDOG) are on the rise after reporting better-than-expected second quarter results. The company also raised its full-year revenue guidance.

Catalaysts anchors Madison Mills and Seana Smith recap the cybersecurity company's results in the video above.

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This post was written by Stephanie Mikulich.

Video Transcript

Shares of data dog rising after reporting a second quarter earnings beat the stock is up over 5% right now.

And the Cyber security firm also raised its full year forecast and just to run through a couple of the headline numbers here and just the degree to which we are seeing beats revenue coming in at 645 million.

That's a 27% upgrade year over a year, cash and cash equivalents of over 40 percent adjusted gross margin coming in at 82% versus 81%.

Now, what's interesting to me is that this is again, this is a s software as a service platform.

Uh and this is gonna give us potentially an indication of the broader business community health because they would utilize data dog as a service.

And it's interesting to see that they talk about customer additions coming in a little bit softer than anticipated.

That's really one of the only pieces of softness that you can point to in this print.

And that is indicative to me of potentially a broader business environment that is starting to pull back just a little bit on some of their quarterly expenditures.

Yeah, the report, I think also just saying that it signals some of that signals, there will be little a il boost here for the near term.

And I think that also speaks maybe more broadly to some of the trends that we've seen play out here the markets.

But you're right overall, this is a very strong report why we're seeing that stock up just about 5%.

Yes, the fact that we did see a bit of a moderation in customer additions that may be obviously something that the street could take issue with down the line if it becomes more of a trend that we're starting to see.

But overall, at least taking a look at the streets immediate reaction to this baird saying that this is a solid report here that look implies 20% revenue growth here going forward at the midpoint which they expect again, uh to prove conservative.

So again, they even think that this massive uh I guess growth that they are expecting to see, maybe even still on the conservative side when you take into account some of the trends that we're seeing underneath the surface.

But data dog again bucking some of that downward trend and some of that downward pressure that we had seen more broadly across the space.

And we're seeing that move to the upside again today up just about 5%.