In a surprise move, Datadog (DDOG) reported first-quarter earnings and revenue that exceeded expectations. The company’s guidance, however, fell short of expectations, and it was announced that Amit Agarwal will be stepping down as president. As a result, Datadog stock experienced a decline in response to this news.
Despite the negative news about their guidance, the company’s earnings for the March quarter were reported at 44 cents per share on an adjusted basis, showing a 29% increase from the previous year. The company’s revenue also increased by 27% to $611 million, showing a slightly accelerating growth for a second consecutive quarter. Analysts had predicted that Datadog would report profits of 34 cents per share on revenues of $590 million. This was a significant improvement from the previous year when the company earned 28 cents per share on revenues of $482 million.
For the upcoming quarter ending in June, Datadog anticipates revenue of $622 million at the midpoint of their guidance, with Wall Street analysts expecting Q2 sales of $617 million. Datadog also forecast earnings of 35 cents per share, slightly better than the projected 34 cents. Despite this positive outlook for future earnings and revenue growth, investors are still concerned about the sudden departure of Agarwal as president and may be hesitant to invest in the stock until more information becomes available about his replacement and how it will impact the company’s operations going forward.
