Datadog Beats Q3 Revenue by 3.9% as Q4 Is Forecast at $918.2M
Datadog's last quarter delivered revenue of $885.7 million, up 28.4% year-on-year, beating analyst estimates by 3.9% and adding 210 enterprise clients paying over $100,000 to reach 4,060 such customers. Analysts expect Q4 revenue to rise 24.5% to $918.2 million and adjusted EPS of $0.55.
1. Q3 Performance Highlights
In Q3, Datadog reported revenue of $885.7 million, up 28.4% year-on-year, outperforming analyst estimates by 3.9%. The company added 210 new enterprise customers paying over $100,000 annually, bringing the total to 4,060, while EPS guidance for the next quarter exceeded consensus.
2. Q4 Projections
For Q4, analysts forecast revenue of $918.2 million, representing 24.5% year-on-year growth, with adjusted EPS of $0.55. This projection aligns closely with the 25.1% revenue increase recorded in the same quarter last year.
3. Analyst Sentiment
Analysts have largely reaffirmed their estimates over the past 30 days, reflecting confidence in Datadog’s continued momentum. The company has beaten revenue forecasts every quarter for two years, with average beats of 3.6%.
4. Market Context and Valuation
Software stocks have declined 18.8% on average over the last month, and Datadog shares are down 11.5% over the same period. Potential trade policy shifts and corporate tax discussions for 2025 pose headwinds, while the stock trades well below its $191.39 average analyst price target.