Datadog, Inc (NASDAQ:DDOG) stock price dropped after it reported its quarterly results on Tuesday.
The company clocked fourth-quarter FY23 revenue growth of 26% year-on-year to $589.649 million, beating the consensus of $568.695 million.
Adjusted EPS of $0.44 was in line with the consensus.
As of December 31, Datadog had 3,190 customers with an ARR of $100,000 or more, increasing 15% Y/Y.
The adjusted gross margin expanded by 200 bps to 83%. The adjusted operating margin increased by 1,000 bps to 28%.
Datadog held cash and equivalents of $2.6 billion, generating $201.3 million in free cash flow.
Olivier Pomel, co-founder and CEO of Datadog, said, “During 2023, we delivered over 400 new features and capabilities to help our customers deliver on their cloud migration and digital transformation plans.”
Outlook: Datadog expects first-quarter revenue of $587 million-$591 million versus the consensus of $585.95 million. It sees an adjusted EPS of $0.33-$0.35 versus the consensus of $0.39.
Datadog expects fiscal 2024 revenue of $2.555 billion-$2.575 billion versus the consensus of $2.59 billion. It projects an adjusted EPS of $1.38 – $1.44 versus the consensus of $1.83.
Price Action: DDOG shares traded lower by 3.23% at $130.49 on the last check Tuesday.
